Workplace Wellness Trends in 2021: The ROI of a "Culture of Health"

What is workplace wellness? As described in Why Workplace Wellness Matters for GenZ, workplace wellness doesn’t have a clear definition and can mean (or not) a variety of things. In general, however, workplace wellness is how the workplace implements practices to encourage healthy behaviors. This could be an hour long break, specific training to benefit employees, access to fitness programs, or simply allowing employees to take personal days to themselves without penalty. Efforts like this help establish trust and satisfaction between employers and employees.

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Workplace wellness improves work productivity

Plenty of researchers over the years have investigated the association between workplace wellness and productivity. They have found that the more support a company gives their employees, the higher the work outcomes. 

• Qaiser et al. (2018) found in their sample of 108 managers that organizations with lower rates of workplace wellness were not only less organized, but also less productive.
• Gubler et al. (2017) found in their analysis of 111 employees that employees whose mental and physical health improved as a result of company wellness policies also improved productivity by 10%. 
• Psychologist Shawn Achor in his TEDtalk stressed that when the brain is positive, it will perform better than when it is stressed, negative, or even neutral. According to his research, we are 31% more productive when happy with our work and lives. 

The reality is this: most adults spend one-third of their lives working. If the work and/or its environment isn’t enjoyable or positive, companies will see their production rates decrease as a direct cost of employee dissatisfaction.

An even greater cost of employee dissatisfaction is absenteeism and presenteeism, or calling out sick from work. By using a cross-sectional study to analyze the relationship between workplace wellness and absenteeism, Chen et al. (2015) noted that absenteeism did not have a significant correlation with unhealthy workplaces, but that may be because presenteeism is more common. Presenteeism is when you feel unwell, either physically, mentally, or both, but you still go to work because you fear losing your job in some way. In the same study, participant surveys showed that the workplaces with the least support for healthy lifestyles and physical activity promotion reported 17.2% more presenteeism than workplaces who do support multiple aspects of employee health (Chen et al.). 

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Improving mental health and productivity in the workplace

How can we improve mental health in the workplace? Ammendolia et al. (2016) conducted a systematic approach called intervention mapping to improve upon employee engagement, awareness, and communication. The goal was to improve the mental health of the workplace, because mental health was the biggest claim of health problems and the main reason for presenteeism. With the rise in other chronic diseases and the aging working population, workplace wellness is needed to keep both companies and employees in peak performance. 

How much work is lost because of the mental constraints of depression? In 2011, it was estimated that roughly one-third of the $51 billion cost of mental health was caused by the decreased productivity on mentally unwell workers (Dewa et al., 2011). That was ten years ago - one can only imagine how costly the loss is today. 

Today, leaders are recognizing the immense need for workplace wellness to support their team. 57% of employees with moderate symptoms of depression are treated, and only 40% of employees with severe symptoms of depression are treated (Dewa et al.). Depression leads to decreased productivity slowly over time (12 to 18 months after an episode). By the time the problem becomes noticeable, it’s likely already contributed to years of lost productivity. It’s also become more serious and difficult to treat. For this reason, companies would be better served focusing on preventive mental health care as part of wellness programs. They can save cost and improve outcomes by addressing mental health needs before they develop.

Unfortunately the stigma against mental health, especially in professional settings such as the workplace, still exists. Employees may worry that they’ll be laid off, seen as weak, or treated differently if they express concerns (Gray et al., 2020). This is another reason companies are turning to seek prevention as the cure. Workplace wellness as a term is purposefully broad so that it captures all aspects of a person's life: their physical, mental emotional, and relationship health. Workplace wellness prevention programs and help employees without forcing them to self-identify and face stigma. By making wellness practices as standard and essential as a flu shot, everyone can benefit without fear. 

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Can a culture of health make your company’s stock outperform?

When companies begin to support their employees’ mental and physical wellbeing, they begin to establish a culture of health in the workplace. Establishing an internalized culture of health means employees feel welcome, safe, and happy in their positions. But, can a culture of health and happiness really translate from work productivity into bottom-line financials -- and even stock performance? 

Goetzel et al. researched the correlation between a company’s culture of health and stock price performance. Companies with strong employee wellness/internalized cultures of health also had stocks that appreciated by 115% compared to the benchmark of 69%. On the other hand, the stock price of companies with low internal cultures only appreciated 43%, far underperforming the benchmark (Goetzel et al.). With these numbers, we can infer that companies who truly care for their employers can not only improve day-to-day productivity, but create lasting financial outcomes that are noticed by inventors and the broader market. 

Strong cultures of health also means a strong employee retention, meaning “the office” is a place people want to be. Santana et al. (2018)’s survey of 2000 employed respondents found job satisfaction increased 47% when wellness efforts such as resilience training were provided. Satisfied employees are less likely to quit - they’re happier to come in early, stay late, help fellow colleagues, pick up new projects, and communicate and resolve conflict effectively. New hires can be great additions to the team, but when a company needs to constantly hire new staff, it can create an undesired dissonance. Not only is turnover costly -- it also affects a company’s reputation and ability to brand and hire in the future. 

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Role of the employee in employee wellness program participation

While companies should take the time to include wellness programs in their company policies, it’s just as important that employees actually utilize these programs. Employees who don’t value workplace wellness/contribute to the culture of health actually face higher rates of turnover compared to the employees who do value this component in their careers. So, wellness is a two-way street: a company must provide it, but an employee must be proactive and willing to improve their own health by using it. 

In a longitudinal study done over the course of 4 years, Jenkins and Sherman (2020) discovered that employee participation in workplace wellness programs was not only related to higher productivity rates, it was also linked to decreased risk of turnover. The “Debbie Downers” of the staff were more likely to be fired or let go than the staff members interested and committed to improving workplace wellness. Even if these “Debbie Downers” didn’t get fired, 82% of employees surveyed asked for proper training to deal with difficult coworkers or supervisors, suggesting a tense work environment is anything but productive (Santana, 2018).

Employees that actively participated in workplace wellness programs were more likely to keep their jobs. What’s more, they also significantly improved their emotional intelligence. We’ve previously written about the importance of emotional intelligence in the workplace before, but here is a bit more information: teams that scored higher on emotional intelligence components such as job performance, leadership, effectiveness, and conflict resolution made for more desirable applicants/employees compared to those who scored low on emotional intelligence (Rathore et al., 2017). And, high EI teams go on to attract other high EI applicants, because those workers prefer being a part of a well-oiled and empathetic team. As such, workplace wellness is the gift that keeps giving: you improve, retain, and attract the best employees for the future.

All these studies show that as a leader or manager, you have the power to improve the wellness and productivity of your team. They also show that you can learn a lot about your people based on whether they opt into wellness programs or participate as team players. Because your team is only as strong as your weakest link, bringing everyone into the fold for preventive mental health care can improve the emotional intelligence and collaboration of the whole. 

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LIFE Intelligence app: Preventive mental health for proactive team productivity

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The next step is to apply workplace wellness learnings to your company. Whether you are a seasoned executive or a new hire, there is a simple way for you to gradually improve your own well-being and productivity. The LIFE Intelligence app is a robust, science-backed tool for both employers and employees to not only manage employee development and productivity, but also improve emotional intelligence and establish common preventive mental health practices. Try the user-friendly app for free and share it with your team to start your company on its path toward a culture of health today.