At a glance
- Increased investment in wellbeing has been linked to greater productivity and staff retention.
- Sickness absence rate jumps to the highest in a decade – businesses should develop wellbeing strategies to mitigate this.1
- Business should realise the value for their business and that wellbeing goes hand-in-hand with financial and commercial success
The latest labour market outlook from the CIPD shows that organisations are being affected by a new trend – ‘The Big Stay’ – with employees opting to stay put at work. On the
surface, you might see this as a positive thing. In reality, employees may not be staying for the positive reasons you think.
A study by AXA and CEBR indicate that staff are feeling increasingly disengaged in the workplace, fuelled by elevated levels of burnout, stress and struggles with mental health, not helped by a high level of global volatility and uncertainty. This amounts to 23.3 million sick days a year – organisations can’t afford to neglect this issue.
This puts the focus on organisations implementing wellbeing initiatives and providing an environment where staff feel secure and supported.2
What is employee wellbeing and why does it matter?
This refers to the financial, physical and mental health of staff in the workplace. By supporting the wellbeing of employees, this can result in:
- employees feeling satisfied and motivated
- help retain the best talent and attract new talent
- enhance workplace culture and build a supportive environment
- motivate staff and boost productivity
- reduce overall staff turnover.
SME owners may feel they don’t have time or money for wellbeing initiatives, but there are many that realis the value for their business, and that wellbeing goes hand-in-hand with financial and commercial success.
A small business may only have a handful of employees with a particular skill set and if only one is off sick for any length of time the business will take a productivity and financial hit. According to the CIPD, the average rate of employee absence now stands at 7.8 days per employee per year. Businesses need to think seriously whether they can survive this.1
How to implement a wellbeing strategy
According to the CIPD, wellbeing initiatives often fall short of their potential because they are siloed – implemented separately from the everyday business.
Instead of viewing it as a tick-box exercise, wellbeing should be embedded as part of a culture of inclusivity, respect and support.
How to support employee wellbeing
Employee wellbeing can be approached in different ways, depending on your organisation’s budget and set up. Here are a few quick wins:
Find out what your employees really want
Which wellbeing initiatives you choose for your business will depend on the needs of your employees. It could be anything from help with rising living costs to more flexible working, mental health support or access to a financial adviser. So, ask people what matters to them. That will help you decide what initiatives to prioritise first.
Empower your managers
These days it is getting harder for individuals to leave their personal lives behind when they come to work, so managers should try to understand their issues and be accommodating. Be open so that your people feel comfortable sharing their concerns with you, and discuss ways of supporting them. It doesn’t have to be monetary support it could just be a more flexible approach to their working hours to accommodate family duties such as caring for an elderly relative.
How financial advice can help
Financial wellbeing is often part of the overall package. With the cost-of-living crisis impacting households, support for financial wellbeing has moved centre stage in many firms.
Providing access to a financial adviser is a great service employers can provide tips and solutions on managing debt, investing, pensions and other financial decisions are great gifts. However, never pressure employees to take this up, as they may wish to deal with their issues privately.
To discuss how financial advice can benefit you and your staff, get in touch with us. We can advise businesses and support you at every stage.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
Sources
1Chartered Institute of Personnel and Development, 12 October 2023 (survey in over 900 organisations covering 6.5 million employees)
2AXA UK & Centre of Economic and Business Research, accessed 29 March 2023
SJP Approved 07/10/2024