The Evolution and Growing Importance of Employee Wellbeing

The Evolution of Workplace Wellbeing

Much has happened in recent years to shape how HR approaches workplace wellbeing. The pandemic and subsequent shift to hybrid working, the Great Resignation, silent resignations, the cost-of-living crisis, and changing generational expectations all shape employee wellbeing expectations and needs.

Once upon a time, workplace wellbeing and employee benefits centred around health insurance, life insurance, and pensions. Any benefits package that offered more was considered a perk.

Today, employee benefits are essential for retention, talent acquisition, employee engagement, productivity, and more.

Employers recognise that employee wellbeing is holistic, incorporating financial, mental, and physical health. From creating an authentic culture of workplace wellbeing to providing employee benefits that make employees’ lives more joyful - there are many ways businesses can make an impact.

Flexibility has become a right - no longer a gift - and employees are willing to leave a business that doesn’t meet their needs or align with their values.

Why is wellbeing important?

Our recent survey of over 1,300 UK employees found that 81.25% have access to mental health support at work. As part of our research, we asked our employee respondents how much time they’d taken off work due to mental health issues in the past year. 16.78% had taken 3 – 5 days, and 10.81% had taken 6 – 10 days off work due to mental ill health.ONS data from 2022 estimated that 185.6 million working days were lost because of sickness or injury – a record high! This averages 5.7 days per employee. As such, out of the employees taking time off work for mental ill health, 10.81% were above average – and this is without considering time taken off due to sickness. With our research finding that 40.97% of employees felt like there wasn’t anyone at work they could talk to about their mental health and 32.88% experiencing ‘mental health challenges at work’, these high figures aren’t surprising.

Reduce absenteeism

Mental ill-health leads to employees taking, in some cases, a higher-than-average amount of sick leave, so it stands to reason that supporting employee mental wellbeing will help reduce it.

The average absenteeism rate in 2023 was 7.8 days per year, a 34.4% increase on the 2019 figures. 

Absenteeism isn’t rising purely because physical health is declining. Mental ill-health is the leading cause of long-term sickness (four weeks or longer), and financial anxiety is more prevalent, increasing the risk of burnout.

During his EE Summit keynote, Tom Nash shared a personal story about a time when he didn’t prioritise his health.

Before I joined Pluxee... there was so much going on. I didn’t have the time (or energy) to do the things I enjoyed, and I’d let quite a lot of my fitness go.

What do you think his employer did to help keep Tom energised?

They gave him a pay rise.

The salary increase created a momentary buzz and a sense of achievement, but it didn’t change the fact that Tom lacked time, balance and space to take care of himself. Recognising that the environment wasn’t right for him - even though he’d just received a pay rise - Tom left the business.

Their loss… Pluxee’s gain!

The power of a pay increase is limited. When a business provides employee benefits that positively impact workplace wellbeing alongside a culture that puts people at its heart, the impact is felt and is sustainable in the long term.

Absenteeism costs the UK economy approximately £50 billion a year (Public Health England).

You’re familiar with the phrase ‘throwing money at a problem’, and Tom’s example was just that. The pay rise cost the business money, and they thought it was the solution. In the end, it cost them even more - the average £30,000 expense associated with replacing an employee.

Reducing absenteeism will involve a financial investment in your employee wellbeing strategy, but when it’s effective… when it cuts sickness absences, increases employee engagement, and boosts employee retention, it yields a financial return.

Discover more about rising absenteeism, why it’s happening and how you can resolve it in our blog, ‘Reducing absenteeism and Sending National Sickie Day on its Merry Way’

Boost employee engagement

Engaged employees are happy, motivated and productive employees. They are more likely to go the extra mile, and less likely to be looking for a new role. By implementing an employee wellbeing strategy that supports employees across all pillars of wellbeing, you can create a more engaged workforce. Offering benefits such as an Employee Assistance Programme, employee discounts, and discounted gym memberships can help to improve employee wellbeing and boost engagement.

The Rise of Financial Wellbeing as a Primary Pillar

If asked, would you guess that almost half of your employees rate their financial wellbeing poorly?

Burcin asked her keynote audience this question at the EE Summit, referencing research from our Money Mastery eBook. 

Our survey findings showed that nearly half (48%) of respondents rated their financial wellbeing as average, poor, or very poor. More than that, 73% stated it added more stress to their lives, and 57% said it led to poor mental health.

Poor financial health causes increased anxiety = reduced productivity.

Employee financial wellbeing and business profitability are intrinsically linked. Consistent levels of low productivity reduce profitability and can cause high employee turnover.  The cost-of-living crisis has caused financial anxiety across the nation, increasing mental ill-health, contributing to rising absenteeism, and negatively impacting businesses.

It’s clear why UK employers are now prioritising financial wellbeing. 

Break the cycle. Empower employees to become financially resilient.

The Employee Benefits Mix

Everyone is exceptionally busy. They’re working on exciting topics they are passionate about and delivering exceptional results. However, to maintain this level of performance, they need substantial energy and resilience, as well as adequate time to recharge.

Tom Nash, HR Business Partner, Pluxee UK

Tom’s quote links back to why he chose to leave his previous role. The gifted pay rise improved his take-home pay but didn’t give him the time or opportunity to improve his wellbeing.

Employee benefits are often more effective at increasing employee engagement and workplace wellbeing.

Employee wellbeing as a business strategy

In 2023, Pluxee’s CEO, Burcin Ressamoglu, hosted a keynote at the Employee Engagement Summit, defining the steps businesses should take to create an employee wellbeing business strategy.

Ownership of leadership

Ownership isn’t just about business leaders recognising their role in supporting employee wellbeing and the benefits that follow when it’s prioritised. Leaders must set an example by prioritising their wellbeing needs. They, too, need to be healthy to be at and do their best for their people and organisation.

Accountability

Once the business has committed to creating a wellbeing strategy, it must be managed like any other initiative or project. That means setting clear roles and KPIs and defining overall accountability.

Measurement & feedback

During the planning and implementation stage, creating a focus group to gather feedback from your employees is beneficial. Once implemented, it’s essential to regularly measure engagement and wellbeing through surveys to ensure your strategy achieves the desired results.

Diversity, Equity, & Inclusion

We’ve produced several blogs on DE&I. If you’re yet to establish a DE&I initiative, you will find our guide on Building a Sustainable and Cost-Effective People Strategy useful.

The research on DE&I all points to the same thing: everyone benefits. 

Half of the companies with diverse management report higher profits, and 73% of those with gender equality practices have ‘higher profits and productivity’. What’s more, inclusive companies are ‘more likely to lead and capture new markets’.

Career development

In a survey that included Baby Boomers, Generation X, and Millennials, 70% of employees said that training and development opportunities were a factor in their decision to leave or accept a role.

Having a clear career path mapped out provides employees with a sense of security, which, especially in the current climate, positively impacts their wellbeing.

Reward & recognition 

84% of HR leaders agree that embedding an employee reward and recognition platform and strategy boosts employee engagement and retention rates.

Employee benefits

“Employee benefits, when chosen carefully. can also lead to stronger employee commitment and engagement.” Professor Amanda Kirby.

Effective communication

Have you read our blog on Making Employee Benefits Work? We took a deep dive and here’s a snippet of what we found:

• 12% of employees didn’t know how to access the benefits that are on offer
• 29% don’t know where to find information
• 27% don’t know who to ask for information about benefits or rewards

Culture & EVP

When employee wellbeing is lived, breathed, and practised at all levels, it becomes part of your culture. Once there, employers can enhance their employee value proposition (EVP), of which culture and values are essential components.A strong EVP will speed up the recruitment process and create an engaged workforce that goes the extra mile, giving you an edge over your competitors while boosting productivity and profitability.

Our blog on Bridging the Generational Divide in the Workplace discusses how to make your financial wellbeing benefits inclusive. To be most effective, wellbeing benefits must also support employees’ physical and mental wellbeing – creating an end-to-end holistic solution.

Discounted gym memberships sound like a nice perk, but the value is incredibly impactful. They support financial wellbeing by giving employees up to 25% off at a vast range of fitness providers, including digital platforms employees can access at home. When a healthier lifestyle is more affordable and attainable, physical health improves, and exercise is a great way to reduce stress.

That’s three wellbeing pillars all boosted by offering just one kind of employee benefit. Let’s not forget emotional and social wellbeing, too.

Our Employee Discounts Platform and cashback-earning Pluxee Card make everyday living more affordable, stretching salaries and relieving some of the financial pressures employees face. When employees buy the things they need for less, it can alleviate their money worries, reduce stress, and improve their mental health.

When it comes to employee mental wellbeing, you can’t do better than offering an Employee Assistance Programme. Can you put a price on the peace of mind that comes from being able to contact a BACP-accredited counsellor 24/7, 365?

Support employee wellbeing with Pluxee UK

There’s much more to consider and a vast range of employee benefits to add to the wellbeing mix. Discover everything you need to know about employee benefits here.

Join Pluxee and unleash a range of benefits for your employees. To find out more, see how our employee benefits and discounts platform could support your business. Your employees could make use of our Cycle to Work scheme, Online GP, Financial Wellbeing App and more!

You're ready to harness the power of your employee wellbeing strategy! Get in touch with us today, and we'll be by your side every step of the way.