Does Your Firm Support Well-Being?

limeade_quantum_wbereportDid you know employee engagement and employee well-being are two different things? I kind of did, but this research by Limeade and Quantum Workplace (pictured at left) made the differences about as clear as they could be, given the subject matter.

The report, released last week, defines the two thusly:

“Engagement [is] the strength of the emotional connection employees have with their work, team, company and higher purpose. … Well-being [is] a state of optimal health, happiness and purpose.”

OK, different, yes, but clearly very related. In fact, that’s one of the report’s key takeaways: that when employees feel they have higher well-being, they’re more likely to be engaged in their work.

The survey of 1,276 employees across 45 U.S. markets found, more specifically, that 88 percent of employees who cited feelings of “higher well-being” (i.e., access to healthy options, the flexibility and freedom to pursue them and find balance between work and life, and a sense of belonging and value to an organization) also said they feel engaged at work, versus 50 percent for those citing “lower well-being.”

Moreover, 83 percent of those in the “higher” category say they enjoy their work versus 41 percent in the “lower” one, and 84 percent in the higher category say they’re loyal to their teams, versus 54 percent in the lower camp.

So, is all this an intuitive no-brainer? Well, yes and no, according to Dr. Laura Hamill, Limeade’s chief people officer and managing director of the Limeade Institute. As she puts it,

“The connection between well-being and engagement may seem intuitive, but there has been little research that statistically relates the two. These findings confirm the relationship and can serve as the foundation of taking companies from good to great.

“[This] connection is great news. It means that helping disengaged employees isn’t out of an organization’s control [and can actually, by enhancing retention and productivity, lead to] better business results. “

(Here’s another link to the study’s microsite with a cool video for your viewing pleasure.)

Also key to an employee’s feeling of well-being is organizational support, defined in the report as “the resources and nudges an organization intentionally provides to encourage well-being improvement.” More specifically, it says, “this research indicates that organizations should provide the policies, visible manager and leadership support, role modeling, encouragement and norms to fully support [that] improvement.”

(One interesting note: The study found managers to be the primary source of that support, or nonsupport, over and above executive leaders. “Managers,” Hamill told me, “can be the biggest obstacles to well-being improvement because they don’t understand its connection to team success or they are nervous about how to talk with their employees about their well-being. Organizations should educate managers about the impact of well-being on employee engagement — and give them the tools and support to make it a priority.”)

The numbers certainly bear out the importance of this organizational/managerial support. Seventy-two percent of people who felt their employer cared about their well-being also reported having higher organizational support, whereas only 7 percent of employees with lower organizational support reported feeling higher well-being. In other words, as perceptions of organizational support diminish, so do perceptions of well-being. So why is this finding important? According to the report’s authors,

“You’ve heard it before: It’s more expensive to replace an employee than to retain one. A 2015 study [‘The impact of human resource practices on employee retention in the telecom sector,’ published in the International Journal of Economics and Financial Issues] states that costs associated with a person leaving unexpectedly are usually 2.5 times greater than that person’s salary.

“So why not invest those dollars back in the people who already work for you to help retain them? Employees who feel they have higher well-being and who feel they have higher organizational support are more likely to want to stay in an organization — compared to those [in the lower groups].”

In fact, researchers found, about 98 percent of those who feel they have higher well-being and higher organizational support answered favorably to the statement “I would like to be working at this organization one year from now.” That number dropped to about 79 percent for people who feel they have lower well-being and lower organizational support.

Even more impressive in terms of sheer numbers, 99 percent of employees with high well-being and high organizational support recommend their employer as a great place to work.

“Employee engagement is the holy grail for many companies aiming to attract and retain top talent,” says Jason Lauritsen, director of customer success at Quantum Workplace. “[This report] validates this goal … .”