Time to prioritise workforce wellbeing
• Proactive firms can gain a competitive advantage, writes Lynette Dicey
Employers need to understand the overall wellbeing of their employees and act quickly to address any physical, emotional, social and financial risks as these risks can pose threats to the business if left unmanaged.
Implementing employee benefit plans that are designed to mitigate against these risks should be a critical component of every organisation’s risk management strategies, says Samantha Hayes, MENA senior consultant at Mercer Marsh Benefits.
The challenge is that unmanaged workforce risks can result in business disruption, says Spiros Fatouros, CEO for Marsh Africa. “Covid-19 highlighted a number of workforce trends that may not have been as high of a priority to businesses previously. The value of looking after the wellbeing and health of employees is now more important than ever. Businesses that realise this will benefit from positive business outcomes.”
The economic fallout of the Covid-19 pandemic has had a significant impact on mental wellbeing in adults with several local studies revealing the negative impacts of working from home during lockdown. These include stress, depression, strain and fatigue.
Health policies, says Hayes, need to focus on both physical and mental health interventions. Research by Mercer, she
reveals, indicates that 10.6 days of lost productive time per employee per year can be recouped by improving the health of the workforce.
Another trend of the Covid19 pandemic is the importance of business and brand reputation, and how easily this can become damaged if an organisation is perceived to be neglecting employee wellbeing.
One of the ways employers can manage this, says Hayes, is to view wellbeing holistically and from an employee perspective, rather than just a business item that needs checking off the list. “When a company provides meaningful benefits in line with employee needs and expectations, it indicates to employees that the business cares about the health and wellbeing of its people.”
An added advantage of meaningful benefits, she adds, is that it increases employee productivity and performance, and risks of safety violations and errors can be mitigated.
“By implementing wellmanaged wellbeing and health plans, proactive businesses can gain a competitive advantage and can place themselves in a position of attracting top talent.”
According to the World Health Organisation (WHO), depression and anxiety disorders cost the global economy about $1-trillion each year in lost productivity. “Organisations that show they care are the ones that will stand out,” says Hayes.
The danger with poorly designed employee benefit plans is they risk endangering business continuity. Employees who feel overworked and stressed and don’t receive the support they require from the company can become demotivated and unproductive, leading to greater absenteeism and presenteeism (being present at work for more hours than required). Disengagement is a concern for businesses, costing about $7-trillion in lost productivity globally, according to a Gallup study.
“Organisations need to take a holistic approach to their employee health and wellbeing benefits,” recommends Julio Garcia Villalon, Mercer Marsh Benefits leader for Middle East and Africa. “Employee benefits are no longer the sole concern of HR managers, but also for finance and risk managers. Identifying potential problems in a workforce wellbeing strategy is essential not just for mitigating against workforce risks but business risks as well.”
As many as 61% of employees rate health as a bigger concern than wealth or career, according to a Mercer study, which means organisations should be looking to match this perspective in their business strategies.
“Employers who are proactive and implement strong wellbeing and health strategies early on, and focus on a plan design that manages workforce risks but also provides benefits valued by their employees, will have a headstart on mitigating against potential health issues that may occur in their workforce,” says Villalon.
Strong wellbeing strategies mitigate health risks, optimise health and enable a wellbeingcentric culture and brand, which all contributes to positive business outcomes, points out Hayes, adding that strategies should identify which benefits are important to employees.
According to the Mercer Marsh Benefits Health on Demand 2020 Survey, the majority of employees want to work for an organisation that protects their employees’ health and financial wellbeing. It also revealed that 95% of company decision-makers expected to invest more in health and wellbeing in the next five years.
In an effort to be seen as an employer of choice, nearly half of employers plan to add mental health benefits to their programme and 36% want to include more digital health services, according to the Mercer Global Talent Trends 2020-2021 Survey.
An effective wellbeing strategy has four pillars: physical, emotional, financial and social wellbeing, explains Hayes. “Organisations that strategically address each of these pillars end up with a strategy that leads to improved engagement, productivity, health, retention and trust.”
THE ECONOMIC FALLOUT OF THE COVID-19 PANDEMIC HAS HAD A SIGNIFICANT IMPACT ON MENTAL WELLBEING IN ADULTS