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Employee Well-Being: Surprising Link Between Employee Happiness and Company Success

July 15, 2024

8 min read

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Author : Kamala Meenakshi G.
Employee Well-Being: Surprising Link Between Employee Happiness and Company Success

Introduction

In recent times, the awareness about how employee’s mental health impacts their overall health has increased drastically. So, work-related stress and mental health concerns together can contribute to the development of various physical illnesses such as diabetes, hypertension, cardiovascular disease, etc. Specifically, burnout is a major element that comes up when we talk about poor mental health since it impairs an employee’s capacity to contribute effectively, both in their personal and professional lives.

Employee well-being

Employee well-being is influenced by a variety of circumstances, including interactions with their coworkers and the decisions they make at their workplace. Working hours, remuneration, and workplace safety (physical and mental) have a substantial impact on employee well-being. Since well-being is a factor that varies according to different individuals, it should help in balancing professional and personal life and, in turn, allow for a productive and conducive workplace. 

Sometimes, external factors can also hinder the well-being of an individual, particularly to employees, such as stress related to housing, health, and family. On the other hand, a most effective method to maintain employee well-being is that the employers should also realise that employees have little influence over what happens after working hours while still taking measures to create a healthy environment for their employees.   

Employee Happiness and Company Success

A research study (Thomson and Bruklee, 2020) which was conducted to understand the link between employee happiness and a company’s success found out that employee happiness can positively affect the company’s success when the target set by the organization for the employees is achieved. 

However, jobs which need a high amount of physical, emotional and mental exertion as a nature of their job, reduce employee satisfaction drastically. This impacts the employee’s commitment towards organization and performance while increasing the chances of unproductive work behaviour among the employees and eventually leading to job quitting.

Another study (Claypool, Kevin K) explored the link between workplace happiness and employee engagement. The study concentrated on these two factors since these led to a company’s success.  This study shows us that employee happiness and their engagement in company’s decision, both go hand in hand. 

This also helps us understand that companies can improve their development by creating a favorable link between their employee happiness and satisfaction. Implementing initiatives to enhance employee happiness can lead to increased productivity and growth. The study found out that happy people are more involved in their work and contribute to corporate success. It confirms the organization’s culture and environment impact the performance and approach of the employee.

Gallup discusses five core elements of employee well-being, which are as follows:

Employee Well-Being: Surprising Link Between Employee Happiness and Company Success

Career well-being: The happiness of an individual with their work life and the way they spend their time at work every day.

Social well-being. Creating positive, meaningful relationships with friends and family.

Financial well-being. The ability to manage one’s finances efficiently.

Physical well-being. Having the health and energy to conduct basic functions and the ability to finish day-to-day activities.

Community well-being. Able to connect with others and develop a sense of belonging to one’s community.

Employee Well-Being Initiatives

We all work in a very stressful and busy environment, which might hinder our overall well-being. Employers can create and promote initiatives among their workforce by providing employee wellness programs. Initiatives that are 

designed to improve the emotional and physical well-being of employees, which will help to increase their productivity.

Employee well-being initiatives must be established in every workplace to help employees cope with stress and pressure.

 Some employee well-being initiatives

  1. Emphasizing the significance of sick days and time off for those with health concerns.
  2. Mental Health Awareness
  3. Recreational activities like tours and camps with family
  4. Regular health checkup programs
  5. Motivational talks on improving mental health and productivity.
  6. Importance of healthy meals and snacks
  7. Fitness activities and many other programs suitable for each workspace should be adapted.

A research study (Grawitch, M. J., Gottschalk, M., & Munz, D. C., 2006) summarises most of the previous research since 1990 that has linked healthy workplace practices in firms to employee well-being and organizational improvements. This study’s findings help us to understand how imbibing and adapting to healthy working practices has a direct relationship with the company’s success and gains.

 The five areas that the research analyses for healthy work-life practices are:

  1. How to maintain work-life balance,
  2. Enhancing employee growth and development, 
  3. Importance of health and safety in the workplace 
  4. Importance of recognition of employee’s work and 
  5. Importance of employee engagement. 

Employee Well-Being Programs

Employee wellness programs are important because, for any company, employees are its biggest wealth. An organization can only achieve what it needs with its employees working for it. One of the best methods to achieve its demands is by setting up different and effective employee wellness programs. 

These initiatives promote workers’ health in all aspects, which makes the companies express their genuine care and concern towards their employees while also enhancing the work productivity. Employees mental well-being has a direct impact on how they think and feel about their jobs and organisations. It is also known to have impact on the quality of work, according to many research studies.

A study (Edwards, A. V., & Marcus) was conducted to assess employee well-being using the happiness mini-survey scale. The employees were told to individually score their well-being before and after participating in various classes held as part of a well-being program. The employees felt better emotionally, physically, and mentally after attending the well-being program. Employees also reported that they feel less stressed after the well-being program. These findings are important for firms planning to conduct programs with the goal of improving their employee well-being.  

Importance Of Employee Well-Being

Many concerns the organizations face about its employees could be efficiently handled if they gave importance to employee well-being programs. 

  1. Giving importance to employee well-being increases the organization’s productivity, helps to improve the health of the employees, enhances the work culture, aids in better employee retention, recognizes better talents, reduces unproductive work behaviour,  builds and helps improve employee self-esteem and satisifaction.
  2. A study (Pahkin, K., Nielsen, et al.2014) helps us understand the importance of considering employee well-being while an organization is planning a restructuring and how its employees might perceive those changes. The study showed the importance of including employees in the reorganization of their work so that they feel heard and can start preparing themselves to welcome the new change.
  3. Both positive and negative impacts on employees’ well-being can be expected after the firm undergoes restructuring.
  4. Some negative changes during the organizational restructuring impacted the previously existing positive and motivational parts of employee well-being. 
  5. The findings demonstrated how crucial it is to provide staff members with the chance to be involved in the planning of changes pertaining to their jobs. 
  6. It is also said that change appraisal influences both the negative and positive aspects of work-related well-being among employees who continue working in the organization after the restructuring process.  

Benefits Of Employee Well-Being

The belief of employees about their jobs as a source of tension and anxiety can be reduced. 

The attitude towards the work and the quality of performance can be enhanced by improving employee well-being.

A recent research study (Tov, William, and David CHAN. 2012) says that employees who don’t see their work as a constant cause of stress or who feel the job is interesting work in a healthier mindset that encourages happiness and pleasure and can, therefore,, benefit their company’s success. 

Conclusion

Developing and increasing employee well-being at organizations can have a huge impact on the work environment. Understanding the importance of employee well-being and genuine implementation of a few initiatives, as mentioned, will help build a conducive atmosphere for both employers and employees. Hence, employee well-being has a surprising link between employee happiness and company success. 

References

Thompson, A. H., & BrukLee, V. (2020). Employee Happiness: Why We Should Care. Applied Research in Quality of Life16(4), 1419–1437. https://doi.org/10.1007/s11482-019-09807-z

Claypool, Kevin K Organizational Success: How the Presence of Happiness in the Workplace Affects Employee Engagement that Leads to Organizational Success – ProQuest. (n.d.). https://www.proquest.com/openview/1784978578eb2171d435388f4494333b/1?pq-origsite=gscholar&cbl=18750

Grawitch, M. J., Gottschalk, M., & Munz, D. C. (2006). The path to a healthy workplace: A critical review linking healthy workplace practices, employee well-being, and organizational improvements. Consulting Psychology Journal: Practice and Research58(3), 129–147. https://doi.org/10.1037/1065-9293.58.3.129

Edwards, A. V., & Marcus, S. (n.d.). Employee Perceptions of Well-Being Programs. Scholar Works. https://scholarworks.waldenu.edu/jsbhs/vol12/iss1/7/

Tov, William, and David CHAN. 2012. “The Importance of Employee Well-being.” Business Times, September 25, p. 14.

Pahkin, K., Nielsen, K., Väänänen, A., MattilaHolappa, P., Leppänen, A., & Koskinen, A. (2014). Importance of Change Appraisal for Employee Well-being during Organizational Restructuring: Findings from the Finnish Paper Industry’s Extensive Transition. Industrial Health52(5), 445–455. https://doi.org/10.2486/indhealth.2014-0044

Gallup, Inc. (2024, January 27). What is employee well-being, and why is it important? – Gallup. Gallup.com. https://www.gallup.com/workplace/404105/importance-of-employee-wellbeing.aspx.aspx#ite-404111

HiBob. (2023, October 10). What is employee well-being? | HiBob. https://www.hibob.com/hr-glossary/employee-wellbeing/#:~:text=Employee%20wellbeing%20refers%20to%20a,time%20at%20work%20every%20day.

Waida, M. (2023, June 13).What is Employee Well-being, and Why Does it Matter? Blog Wrike. https://www.wrike.com/blog/what-is-employee-wellbeing-why-does-it-matter/

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Author : Kamala Meenakshi G.

Kamala Meenakshi G. works as a Counselling Psychologist in Bengaluru.

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