Why wellbeing, and why now?
Today's investments mean future dividends for organisations and their workforces
Awareness of the need to support employees’ mental health and wellbeing has been growing for a number of years, but the pandemic and its effect on mental health have accelerated that trend.
In some organisations, employees have been calling out for support and not being heard, while in others, employees don’t speak out and seek help when they need it. There is a pressing need to “unmute” wellbeing so that employees are not only provided with mental health and wellbeing support services but work within a culture where management speaks openly about it and encourages everyone to get the help they need. This is not only in the individual’s interest – the mental health and wellbeing of employees directly influences the bottom line. Improving lives improves business. COVER has teamed up with LifeWorks to present this comprehensive guide to wellbeing and the strategies that are required as 2022 progresses, including commentary from brokers on how they see the market.
• The four pillars of wellbeing
Action required: The dramatic decline in wellbeing
The need for a truly holistic approach
How do you know your support services are working?
• Wellbeing into the future
In this guide
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The four pillars of wellbeing
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Paula Allen, Global Leader for Research and Total Wellbeing at LifeWorks, emphasises that wellbeing is a holistic concept, that seeks to define people in their best possible state. “There are many things that influence wellbeing,” she says. “For example, we know that there's a really strong link between how you're doing from a mental health point of view and your financial wellbeing.” Social wellbeing is increasingly being recognised, she adds. “This is about the relationships that you have, including your relationships at work. Do you feel a sense of belonging in your workplace? That’s why social health actually overlaps quite a lot with diversity, equity and inclusion.”
The most common of these elements, however, are mental, physical, social and financial. Importantly, these elements do not exist in isolation – for example, physical wellbeing can impact on mental wellbeing, and vice versa.
The need for a holistic view
How is the person’s mental health? Are they feeling happy and motivated?
How is the person’s physical health? Are they active, eating well and getting enough sleep? And is this impacting their mental health?
Does the person feel a sense of belonging to their organisation or workplace? And do they feel they are part of a wider community where they make a contribution to society?
Is the person having problems or challenges around money? Do they feel they have control over their finances and enough resources to meet their needs, both now and in the future?
Mental
Physical
Social
Financial
Looking after employees’ mental health and wellbeing is not just a moral decision. It directly benefits the business bottom line. Much of what makes a business successful in the modern day is its people. Most businesses can gain access to the right resources for requirements like manufacturing or technology, but what differentiates them and what separates them from their competition is how innovative they are, how creative they are, how good their customers service is, and how responsive they are. All of these things are in large part impacted by the wellbeing of the workforce. There have been a number of studies that have looked directly at the effects of company investment into employee mental health and wellbeing. They’ve found that organisations that invest in wellbeing see their stock performance outperform that of their peers by between three and six times.
Wellbeing impacts the bottom line
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of Britons reported an increase in job stress compared to 2020
The Mental Health Index by LifeWorks™ – United Kingdom, September 2021
There are a number of ways to define wellbeing. Search online for the “pillars of wellbeing” and you will be greeted by a range of frameworks consisting of four, five, six and even seven elements.
30%
5.69:1
Average return on investment in wellbeing
Improvement in absenteeism
Improvement in productivity
57%
81%
Impact of investing in wellbeing
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All of these things are in large part impacted by the wellbeing of the workforce. There have been a number of studies that have looked directly at the effects of company investment into employee mental health and wellbeing. They’ve found that organisations that invest in wellbeing see their stock performance outperform that of their peers by between three and six times.
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LifeWorks’ Mental Health Index has been tracking wellbeing in the UK on a monthly basis since April 2020, surveying a representative sample of 2,000 people and then benchmarking the results against data collected in 2017, 2018 and 2019. A negative score means mental health has declined against the benchmark. A positive score means it has improved. The findings are stark. While employees’ mental health improved last year, it continues to track well below the average benchmark level and has done so ever since the pandemic began. This scale of this problem does at least appear to be getting through to employers. The brokers we spoke to all agreed that organisations are taking wellbeing increasingly seriously.
Industry specialists:
Are employers taking up the challenge?
Select a broker to read their view
Managing Partner, Partners&
“I think there is a much greater understanding that wellbeing at work and at home are interrelated. It is now much more acceptable to say ‘I’m not OK’, and I believe that many (but not all) organisations are accepting responsibility for the part that the workplace culture can play in the wellbeing of an individual. There is also an acknowledgement that commitment to wellbeing support has tangible benefits for an organisation.”
Marcia Reid
“Whilst wellbeing programmes have long focused on physical wellbeing, we have seen a far greater focus on emotional and financial wellbeing over the past five years. Throughout the coronavirus pandemic, social and work wellbeing have also been coming much more to the fore.”
Head of UK Wellbeing Solutions, Aon
Charles Alberts
Senior Wellbeing Consultant, Barnett Waddingham
“Employers are taking this much more seriously. Wellbeing used to be considered a nice-to-have, but employers are now understanding and seeing the benefits of implementing wellbeing interventions and the positive impact on the workforce, which in turn has had positive impacts on client interaction and bottom line.”
Laura Matthews
International Director, Engage Health Group
“There has certainly been a significant shift towards mental health support over the last couple of years, with organisations looking to support employees through the pressures of the pandemic.”
Ian Abbott
The Mental Health Index™
Mental Health Index™ sub-scores
The Mental Health Index™ (by industry)
Select an industry to see where it scores against the benchmark
Wholesale Trade
Public Administration
Educational Services
Health Care and Social Assistance
Real Estate, Rental and Leasing
Construction
Transportation and Warehousing
Finance and Insurance
Retail Trade
Information and Cultural Industries
Professional, Scientific and Technical Services
Manufacturing
Administrative and Support services
Arts, Entertainment and Recreation
Food Services
The benchmark reflects data collected in 2017, 2018 and 2019. Data as at December 2021
Optimism
Depression
Anxiety
Isolation
Work productivity
Psychological health
Financial risk
-14.0
-14.2
-11.1
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Employees have always needed mental health and wellbeing support, but it is clear that the pandemic has exacerbated matters.
reported poorer mental health than before the pandemic
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Benchmark
We have established the need for mental health and wellbeing support. But what should that support look like? The following are the key elements to have in place.
Key components of a wellbeing programme
We’ve already discussed the various factors that make up the four pillars of wellbeing. With these in mind, it is vital to look beyond mental health and towards a total wellbeing programme. On top of that, people may need to access support in differing ways. With the pandemic ongoing, in-person support at the workplace may not be suitable for everyone. There needs to be a strong digital component for those that require it.
A continuum of support
This might sound obvious, but increasing awareness of mental health has led to a lot of new providers which might not have the appropriate privacy and security requirements, or the depth of clinical knowledge.
Focus on quality
This is one of the most effective ways that organisations can invest in wellbeing. Not only does it help managers themselves but it ensures they are able to support their staff, not as counsellors but in creating a psychologically safe workplace. According to research conducted by LifeWorks, four out of five managers have had to deal with a mental health issue among one or more of their employees since the pandemic began, so it is important that they know how to intervene appropriately.
Train managers in mental health
It is all very well putting support services in place, but they are not offering value if employees don’t know about them or decide not to use them. The organisation has to set a culture that’s appropriate, particularly around mental health – destigmatising it and communicating about it.
Drive engagement
Offering resources ranging from toolkits to videos and podcasts, complete with advice on managing specific health risks.
A personalised service should be available to assess an employee’s needs, provide immediate support and, when necessary, triage to an appropriate counsellor.
Management can tend towards stoicism when it comes to their own mental health and wellbeing. But this creates a culture where people at all levels of the organisation are hesitant ask for help when they need it. We need to unmute wellbeing, so that all employees can make themselves heard. If a CEO and senior leadership team are encouraging people to use services and are talking about mental health, physical or other wellbeing issues openly and often, then they are changing the culture. Otherwise the support programme becomes merely something “off to the side” for people who are fragile.
How to drive engagement
In terms of communications more generally, organisations need to think in terms of “health marketing”. The rule of seven in marketing states that an individual must see a message seven times before they’ll take an action. The same is true of a wellbeing programme. As LifeWorks’ Paula Allen puts it: “If you say something once, you've not said it at all. You have to repeat and remind people of what's available to them or they literally forget. “They don't think it's important. They don't think it's valuable. They don't know the next step in terms of getting the help.” Part of health marketing is making sure services are always visible and easily available. Offering services via an app or even integrated into the software that people use for work will bring them to the forefront and make wellbeing an integral part of the work experience.
Health marketing
A truly holistic wellbeing approach will include:
Personalised assistance
Workplace training
Pension and savings advice
Critical incident support
Rewards and recognition
Absence management
A diversity, equity and inclusion programme
A wellbeing platform
Staff training to create a resilient culture that will overcome disruptions and challenges and help employees manage their wellbeing and emotional stress.
Assisting employees with their financial planning will have a significant impact on financial wellbeing.
Real-time clinical support in the event of traumatic or violent incidents on both a global (e.g. natural disaster) and intimate (workplace accident) scale.
An organisation’s compensation structure should be designed to attract and retain talent, reduce turnover, promote equity and stay competitive.
Software can provide the data needed to proactively manage cases and intervene early when needed.
Ensuring all employee feel a sense of belonging in order to protect and enhance their social wellbeing.
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LifeWorks has developed a quick and easy tool to help organisations assess their wellbeing strategy. In return for some basic information, you will be provided with relevant benchmarks and a report assessing the strategy against the four pillars of employee wellbeing.
Access the tool
wanted more/better support for their personal wellbeing
15%
As LifeWorks’ Paula Allen puts it: “If you say something once, you've not said it at all. You have to repeat and remind people of what's available to them or they literally forget. “They don't think it's important. They don't think it's valuable. They don't know the next step in terms of getting the help.” Part of health marketing is making sure services are always visible and easily available. Offering services via an app or even integrated into the software that people use for work will bring them to the forefront and make wellbeing an integral part of the work experience.
A simple starting point is to measure how much a particular programme is used. But it is important to go deeper and use surveys to measure satisfaction. Are people happy with the service? Are their needs being met? Then organisations can ask about the impact of the services. Did the service solve a problem for the person? Is the person’s work productivity any better? Are their symptoms lessened? All of these things help to create a picture of how effective the wellbeing programme is, says LifeWorks’ Paula Allen. “If there isn't participation, then you have to look at your communication; you have to dig deep into why people aren't using it and problem-solve around that. “If people aren't feeling satisfied, then maybe they're not getting that full continuum of support where they can match themselves to where they need to be. If you're not having impact, then that's another problem to solve.”
Knowing exactly how many people should be using services is tricky to benchmark. Allen says around 25-30% of people could typically do with support during a year, but it depends on the range of services on offer. If an organisation only offers crisis services (which would be inadequate as it is important to offer preventative measures rather than wait until a person is in crisis), then take-up might be as low as 2%. LifeWorks offers its customers the Total Wellbeing Index, which surveys an organisation’s staff across all the areas of wellbeing and produces data that can be easily benchmarked against similar organisations. The important thing is to go deep enough, Allen emphasises. “An organisation could have a poor mental health score because its people are overworked and burned out,” she says. “Another might have that exact same score because there's harassment in the workplace. Another might have that score because its people are confused about what they have in terms of services. “So whatever tool you use, it has to go deep enough to help you understand and diagnose why, or else you can't take action.”
An organisation may have put some wellbeing support services in place and taken steps to create an appropriate culture, but how do managers know that this is working? How can they track the mental health and wellbeing of their workforce and the effectiveness of the measures in place, as well as identify areas for improvement?
“An organisation could have a poor mental health score because its people are overworked and burned out”
Paula Allen, Global Leader for Research and Total Wellbeing at LifeWorks
How do you measure wellbeing success?
“Employee surveys are valuable in measuring all aspects of workplace wellbeing, and feedback via users of wellbeing apps is useful.”
“The success of any wellbeing programme is measured against the employer’s objectives – what it is that they are trying to achieve through the programme in the first place. For many this remains hard return-on-investment metrics such as reducing sickness absenteeism or medical claims, but increasingly we’re seeing a focus on value-on-investment metrics such as employee engagement and retention.”
“Data analytics. Employers are finally realising that they can’t just put some intentions in place and hope they stick. Data provides meaningful info on if it’s working, how it’s being received and, if not, how they should go back to the drawing board.”
“Success factors can be assessed in a number of ways, but what makes them meaningful is aligning them to the objectives which the client is looking to achieve.”
25-30%
of people could typically do with support during a year
Take-up if an organisation doesn't offer the right services
2%
Measuring satisfaction
How much take-up should services get?
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“An organisation could have a poor mental health score because its people are overworked and burned out,” she says. “Another might have that exact same score because there's harassment in the workplace. Another might have that score because its people are confused about what they have in terms of services. “So whatever tool you use, it has to go deep enough to help you understand and diagnose why, or else you can't take action.”
Wellbeing into the future
LifeWorks' data indicates that before the pandemic, 71% of employees felt a good sense of belonging with their work, workplace and colleagues. By August 2021 this had fallen to 63% – a significant decline.[1] This is important because employees who feel a sense of belonging and acceptance at work have higher mental-health scores, resulting in greater productivity on average. LifeWorks’ analysis has shown that work productivity falls on average by almost 30 days per year if someone doesn’t have a sense of belonging. Many more employees are likely to be working from home as we find the new normal after the pandemic. But employers shouldn’t assume that that means the new arrangements are automatically ok, says Paula Allen. “There's a lot of positives in terms of people working from home. But there are unintended consequences as well. “You don't have that sense of connection. We have an issue in our society with isolation to begin with. It impacts the variety you have in your experiences and the opportunity for different stress outlets with your colleagues.”
“Most people are not wanting to work at home for reasons of their health and wellbeing,” continues Allen. “It's because commuting is a pain in the neck and expensive. I'm not saying we should just stop working from home, but we need to make sure that we support people appropriately so that their wellbeing is not negatively impacted.” While LifeWorks' surveys have found that commuting and saving money were easily the top reasons for wanting to work at home, there were almost 10% of employees who didn’t want to come back because of something unpleasant in the office, such as relationships with other staff. However, the solution here is less about working from home and more about finding out what’s causing tension in the office. Otherwise there is a problem with the organisation’s culture which is not being addressed.
How are wellbeing budgets changing?
“We are noticing an upturn in interest and investment in wellbeing solutions from our clients and a willingness to invest more in their people.”
“According to Aon’s 2021 Benefits and Trends Survey, only about 30% of employers had a dedicated budget for employee wellbeing in 2020, but a significant number more (47%) plan to have one in the next 12-18 months. Whilst the budget values will differ, this indicates a seismic shift in employers’ investment in wellbeing and is a compelling indicator for the future.”
“I feel that they are improving from the start of Covid, but I still feel that the purse strings are very tight, and finance directors are still wanting to find ways to make cost savings across the board.”
“We anticipate wellbeing budgets to remain broadly stable next year against a backdrop of competing factors: an uncertain economic outlook for many industries versus businesses keen to support and retain employees in a competitive job market.”
How to manage a hybrid working model
The principles of change management are essential: visible leadership, stakeholder involvement, clear and consistent messaging and engaging communication.
Manage any transition as a major change
Given the recent decline in mental health, support needs to be in place and communicated on an ongoing basis.
Ensure visible mental health support
Organisations must ensure that programmes and practices can accommodate an increase in the number and complexity of cases as we reopen society.
Review absence and disability management practices
Training managers to deal with mental health issues in the workplace benefits both employees and their managers.
Train managers in workplace mental health
The wellbeing of employees is supported in an organisation where they can feel a sense of belonging.
Build a culture that embraces diversity, equity and inclusion
It is important to know where an organisation’s risk is most significant, as well as whether its efforts in managing those risks are making a difference.
Measure what matters
71%
Before
63%
After
Employees with a good sense of belonging, before and after the pandemic
“It's not that we need to stop working from home, but we need to make sure that people are supported so that their wellbeing is not impacted”
[1] The Mental Health Index by LifeWorks™ – United Kingdom, August 2021
A sense of belonging matters
Home workers must be supported
One of the biggest items on the agenda for most organisations has been the extent to which employees should return to the office once the pandemic has receded. There are compelling arguments on both sides, but it is important to ensure mental health and wellbeing are part of the discussion.
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Many more employees are likely to be working from home as we find the new normal after the pandemic. But employers shouldn’t assume that that means the new arrangements are automatically ok, says Paula Allen. “There's a lot of positives in terms of people working from home. But there are unintended consequences as well. “You don't have that sense of connection. We have an issue in our society with isolation to begin with. It impacts the variety you have in your experiences and the opportunity for different stress outlets with your colleagues.”
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