Employee well-being: Why your team’s happiness should matter to you

Signifying much more than simply being well, the concept of  well-being

seems to have lately become the ultimate holy grail for the modern (wo)man. 

The notion of well-being has recently been gaining greater importance than ever before in the public discourse. 

Since the time spent working every day is significant for the majority of people, well-being in the workplace is gaining more attention, on the global level. 

Business owners and people in HR are starting to realize that employee well-being has a profound impact on things like employee productivity, retention, and the work organization as a whole.

What is employee well-being?

Simply put, employee well-being is the overall quality of life that employees experience in the workplace and it includes overall mental, physical, emotional, and economic health. 

A workplace that values and prioritizes employee well-being provides an environment where an employee feels valued, supported, and motivated to thrive, both personally and professionally. 

 47% of people surveyed by Indeed, say their expectations around work well-being have increased in the past year alone. And that makes complete sense. 

However, promoting well-being at work isn’t only important for employees for obvious reasons, it also benefits work organizations. 

Benefits of employee well-being

The importance of employee well-being in the workplace simply cannot be overstated. The employee’s attitude towards the company impacts every aspect of work, from productivity to the company’s reputation. 

When employees are happy and thriving in the workplace, the organization thrives as a whole. A satisfied worker will do more work, and do it better, they will make others in the team more motivated to show great work performance. They will stay at the company for years, and they will talk to anyone who’ll listen about how great the company is. 

Some of the most important benefits of employee well-being are: 

• Improved employee engagement
• Reduced absenteeism
• Improved productivity
• Increased job satisfaction
• Better workplace mental health
• Improved work-life balance
• Improved company reputation

Improved Employee Engagement

If you’ve managed to make your employees feel their well-being is a priority in the workplace, they’re going to be more engaged in their work. That means they’ll be more willing to participate in meetings, offer their ideas and points of view, and provide feedback. 

Engaged employees care about the quality of the work they’re doing. They’re more committed to their work, show better performance, and contribute positively to the overall work atmosphere. An engaged employee is a valuable asset for every workplace. 

Reduced Absenteeism

Did you know that 30% of employees report that they have called in sick when they were not actually ill? 

When you prioritize employee well-being in the workplace, it can lead to reduced absenteeism rates. 

When employees are physically and mentally healthy, they’re less likely to miss work due to illness or workplace stress-related issues (or call in sick because they’re simply sick of coming to the office). 

Improved Productivity

Caring about your staff’s well-being is good for productivity. According to research conducted by Oxford University, happy workers are 13 % more productive. 

Satisfied employees tend to focus better on tasks, show more creativity, and achieve better results. That all contributes to the overall success of the organization.

Increased Job Satisfaction

A focus on well-being contributes to higher job satisfaction levels among employees. When employees feel their well-being is supported, they feel more satisfied with their jobs. They’re also more likely to stay with the organization long-term. A correlation between job satisfaction and employee retention has been proven.

A worker who is actually glad to be at their workplace and enjoys being around their colleagues and superiors is going to be more focused and ready to give their best to complete any task. 

Better Mental Health

Employee well-being initiatives can significantly impact their mental health. If a work organization provides resources and support for mental health issues, that creates a supportive workplace culture. 

The employees feel safe to seek help when needed. They can be confident they won’t be ignored or punished for going through some difficult times. That kind of support makes the overall work experience more enjoyable for everyone.

Improved Work-life Balance

Sure, work is important, but it shouldn’t be more important than our personal lives. If your employees are happy with their work-life balance, that means they’re less stressed at work, and helps with avoiding employee burnout. 

How can you achieve that?

 You can offer flexible work hours remote work options, and encourage them to take their PTO regularly.

What are the signs of poor employee well-being?

If you’re an HR person or in a leadership position, you understand the importance of recognizing signs of poor employee well-being and acting on them on time.  

Common signs you should pay attention to include increased absenteeism, decreased productivity, mood swings, and signs of burnout. 

1. Increased absenteeism and presenteeism

Absenteeism and presenteeism are two sides of the same coin. Both can be signs of poor well-being. 

Absenteeism refers to employees not coming to work without valid reasons. They may call in sick when they lack the energy to handle work-related stress, or even to avoid some particularly unpleasant work task or a specific meeting (with some particularly unpleasant people).

Presenteeism means that employees are physically present but mentally or emotionally distanced. So, an employee may show up to work on a particular day, but they will be disinterested, unmotivated, or in a bad mood.

If you notice your employees avoid coming to work or are showing up but seem uninterested (which might be even worse for the morale), it could be an indicator that they feel overwhelmed, stressed, or demotivated.  

2. Decreased productivity

Decreased productivity is a reduction in the efficiency and effectiveness with which employees complete their work. It often manifests as difficulty focusing on tasks, failing to meet deadlines or a noticeable drop in overall work performance.

An employee who previously excelled at managing multiple projects might now struggle to keep up with deadlines, frequently miss meetings, or produce work of lower quality. 

This decline in performance could indicate underlying issues such as a toxic work environment, excessive workload, or ineffective management.

3. Mood swings and emotional instability

Mood swings and emotional instability involve frequent and unpredictable changes in emotional state, which can affect an individual’s behavior and interactions. This instability can manifest as sudden irritability, excessive sadness, or erratic behavior, impacting personal and professional relationships.

An employee who once had a consistent positive demeanor and showed healthy behavior might start exhibiting unpredictable mood swings, such as becoming irritable over minor issues or displaying sudden outbursts of anger. 

These changes can disrupt team dynamics, strain interactions with colleagues, and create a tense work atmosphere, signaling the need for supportive interventions and potential changes in workplace practices.

4. Withdrawal from social interactions

Another tell-tale sign is when a person withdraws from social interactions at work. 

If an employee who was once happy to spend time with their colleagues is now avoiding that, they might feel isolated, stressed, or simply lack the energy to engage with others. 

They could be avoiding team meetings, social gatherings, and even informal conversations with colleagues. 

5. Physical symptoms and health Issues

Stress and poor well-being can cause some physical symptoms. 

If your once perfectly happy team member complains often about headaches, fatigue, muscle tension, and digestive problems, pay attention. 

Chronic stress can weaken the immune system and make us all more susceptible to illnesses. Persistent health issues may indicate the need for intervention and support.

6. Increased use of unhealthy coping mechanisms

Excessive alcohol consumption or substance abuse are also red alerts and can indicate your employee is unhappy at work. 

This type of behavior can mean the employee is trying to deal (in the wrong way) with stress, anxiety, or emotional discomfort. 

Recognizing these signs early allows work organizations to handle the situation the proper way and avoid bigger problems.

7. Burnout

Burnout is another word that’s been tossed around a lot lately: unfortunately, not without a reason. It’s a state of emotional, physical, and mental exhaustion. 

It’s caused by prolonged stress and overwhelming work demands. Some symptoms of burnout are cynicism, detachment from work responsibilities, and a sense of inefficacy. 

Modern fast-paced lifestyle does take its toll. According to the latest isolved’s report, a staggering 65% of workers suffer from burnout. Fatigue, emotional exhaustion, low energy, lack of motivation: it’s important to recognize these signs on time and deal with the issue. 

8. Lack of engagement and motivation

Poor well-being can lead to a lack of engagement and motivation in the workplace. 

Employees may seem less interested in their work, stop showing any initiative, and start expressing apathy toward organizational goals. 

Low motivation is the death of productivity and it creates a negative work environment.

9. Difficulty concentrating and making decisions

If an employee is having difficulty concentrating on tasks or making decisions, it can be another sign of poor well-being. 

They may experience cognitive fatigue and so-called mental fog and have problems with processing information.

10. Personal appearance

Changes in how a person looks or how well they take care of themselves are the most obvious signs that something is off. 

An employee can look unkempt, messy, or have unusual changes in their appearance. These changes could be a sign of deeper mental pain or trouble taking care of oneself while dealing with problems at work.

Why is it important to know how to detect the most common signs of poor employee well-being? So that you can do something about it. 

No person wants to work in a place where they don’t feel valued, supported, and where they’re not able to grow. Talented and ambitious workers even less so. 

If you want to keep top talent, decrease employee turnover, and keep morale high, you need to create a healthy and relaxed work environment. Investing into the health and happiness of employees isn’t only good for them, but it also helps the company succeed in the long run.

What are the factors influencing employee well-being?

Many factors influence employee well-being. They include:

• Work atmosphere,
• Leadership style,
• Relationships with colleagues,
• Workload and pressure,
• Growth opportunities,
• Employee benefits and compensation, 
• Company culture, and
• Recognition of achievements.

Work atmosphere

Contrary to what most of us would assume, it isn’t all about the money. Positive energy, sense of belonging, and trust rank the highest among the factors influencing employee wellness. 

How employees perceive their work experience depends a lot on the overall atmosphere in the workplace and the team. A supportive and relaxed work environment provides every worker with everything they need to do the job, including any needed training, resources, and helpful colleagues.

A stressful or toxic work environment, on the other hand, can lead to increased stress levels and burnout. It makes employees feel isolated and frustrated, it promotes a culture of competition instead of cooperation. 

Leadership style

How does leadership style affect employee well-being? The leader’s communication style influences the work environment as a whole.  

Having a manager who provides employee recognition for achievements, leads by example, encourages open communication, shows empathy and honest interest in their team members’ well-being will create a team where anyone can thrive. 

On the other hand, if a team leader is too authoritative, dismissive, or simply not interested in whether his team is happy or miserable (as long as they get the job done), that creates a tense work atmosphere and inflicts unnecessary stress on the team.

Relationships with colleagues

It isn’t all about team leaders and CEOs. Other relationships at work deeply influence employee well-being. 

Spending time at work with colleagues and team members a person actually likes and has a lot in common with does wonders when it comes to creating a nice and relaxed work atmosphere.

Positive relationships built on trust, respect, and open communication create a sense of belonging. Employees who feel supported by their peers and managers are more likely to experience higher levels of job satisfaction. 

If that isn’t the case and an employee has strained relationships and even conflicts at work, it’s likely they won’t stick at the job for very long, nor that they would even try to do a good job while there. 

Conducting regular employee surveys to have an insight into total worker health and offering an employee assistance program for those struggling are some great ways to address any issues.

Workload and job demands

What role does workload play in employee well-being? 

Excessive workload, unrealistic deadlines, and constant pressure to perform greatly contribute to stress, fatigue, and burnout. 

It’s on department managers and team leaders to ensure workload distribution is fair and manageable. 

Also, it is important to provide adequate training and tools necessary for the job, and to prioritize work-life balance.

Growth opportunities

Opportunities for career development, growth, and advancement are essential for employee wellness. This especially goes for top talent. 

While there are employees who are satisfied with an occasional raise, there are those who are more ambitious and need more from the company. They need challenging and meaningful work assignments, opportunities to learn new skills. 

A company needs to invest in professional growth through training programs, mentorship opportunities, and clear pathways for career progression. That way, employees can see their future in the company and feel more connected to it.

Compensation and benefits

Fair and competitive compensation is a critical job satisfaction factor and especially important for diminishing employee turnover. That goes for comprehensive benefits packages.

Employees who feel adequately compensated for their contributions are more likely to perceive their work positively and experience higher levels of job satisfaction. Benefits such as health insurance, retirement plans, and wellness programs also contribute to overall well-being by supporting employees’ physical and financial health.

Company culture

How do organizational culture and recognition impact employee well-being? Organizational values and culture shape the workplace environment and influence employee wellness. A positive organizational culture that prioritizes integrity, transparency, inclusivity, and respect fosters a sense of belonging and commitment among employees. Organizations that align their values with employees’ personal beliefs and create a supportive culture promote trust, engagement, and well-being.

Supportive policies and practices

Implementing supportive policies and practices is essential for promoting employee well-being. Policies that support work-life balance, flexible work arrangements, parental leave, and employee assistance programs demonstrate organizational commitment to supporting employees’ holistic well-being. Regular feedback mechanisms, performance recognition programs, and well-being initiatives that address diversity, equity, and inclusion also contribute to creating a positive and inclusive work environment.

Measuring employee well-being

How do you measure employee well-being? It includes both quantitative and qualitative assessments. Common methods include:

• Employee surveys,
• focus groups, 
• health assessments,
• analysis of absenteeism
• analysis of turnover rates.

These measurements help organizations understand current well-being levels, identify areas for improvement, and track progress in employee engagement and happiness over time.

How to improve well-being in the workplace?

At some point, we all ask ourselves: Am I encouraged by my employer to take care of my health (physical and mental)? Do I feel comfortable and relaxed around my colleagues? Do I enjoy spending time with them? Do I get recognition for my hard work? If the answer to these questions is no, it’s a clear sign a person isn’t not happy at work and some sort of a change would do them good.

There are many things you can do to promote a sense of well-being in the workplace. Interestingly, even a simple thank you for a job well done goes a long way. According to Workhuman, 34% of workers reported being thanked in the last month, and they’re half as likely to be looking for a new job. 

Other than simply being a polite human being, you can try these ideas:

• Promoting work-life balance: Providing flexible work arrangements, encouraging regular use of vacation time, and setting boundaries between work and personal life.
• Training and development: Offering training on stress management, resilience, and work-life balance skills.
• Implementing a well-being program: Offering employee wellness programs such as fitness classes, mindfulness sessions, health screenings, and nutrition workshops. These all might sound like a cliche, but they’re cliches for a reason: most people like them.
• Leadership support: Ensuring team leaders and those in any position of authority understand the importance of employee well-being and prioritize it. Good team leaders create a culture where employees feel valued and supported.
• Creating a supportive culture: Workplaces need to be spaces of open communication, inclusivity, and diversity. Lead by example: Offer recognition, and try to make everyone feel heard.

With employee experience software like HeartCount, you can not only gain valuable insights into your employees’ well-being through pulse checks and custom surveys but also enhance it with peer recognition, regular feedback, and transparent communication.  

With HeartCount, you can monitor employee well-being with weekly reports and track long-term progress through detailed Semiannual report. 

Conclusion

Employee well-being goes much beyond a trendy word HR people toss around when they want to sound important. It is a critical aspect of organizational success and employee satisfaction. 

By prioritizing employee well-being, organizations can create healthier, more engaged, and more productive workplaces. Once you recognize the signs of poor well-being, understand what influences them, and learn to measure employee well-being, you’ll be able to create an effective well-being program and build a thriving work environment. When you build it, they (top talent) will come. 

In corporate lingo: ROI on keeping your employees happy to be working is going to be through the roof.