Executive Summary
Health and Wellbeing of employees are critical aspects in any organization. The two factors are directly involved in production and performance. In addition, the health and wellbeing of workers is not only beneficial to employees but also to organizations. This report utilized secondary data mainly from the CIPD 2018 and 2019 reports to come with the conclusion. Positivisms research strategy was used in the report to enable the researcher make conclusions based on the analysis done from various sources. Resulting from the same process, the research concludes that the well being and health of employees is directly related to the production and performance of their organizations. It recommends that various measures should be used to make employees comfortable in the workplace. Furthermore, organizations should hire health therapists on regular intervals to diagnose the conditions of the employees. To add on that, any work-related illness should be treated and the cost catered by the organization.
- Introduction
- Background of the Study
Healthy workplaces are a critical ingredient in helping people reach their full potential. A healthy workplace means that the working environment is friendly to the employees. The health and wellbeing of the workers are not only beneficial to the employee but also to the organizations. Investing in measures of promoting health and wellbeing of the employees helps in reducing stress and creating a conducive environment where people can comfortably work and therefore, allow organizations to thrive. Currently, organizations are buying the idea of improving the health and wellbeing of their employees in the workplace. However, there are still some, which are still reluctant to adopt the idea due to various reasons such as insufficient funds.
- Time Scale and Resources
Implementing an employee’s wellbeing strategy in an organization can take a few months or even weeks depending on the current state of the organization. The resources required range from the training facilities to the hiring of health therapists. However, organizations can opt to hire a health therapist who will be coming to attend to the employees at regular intervals.
- Challenges
The main challenges anticipated in the implementation are;
- Resistance by the employees
- It may be hard to get an affordable qualified therapist.
- Hypothesis
Health and wellbeing of the employee have a positive impact on the productivity of a firm.
- Stakeholder Analysis
Stakeholder analysis is critical endeavor whenever an organization is looking to undertake a new project. It is therefore important to conduct this analysis before the project is implemented. To begin with, conducting this analysis will help in getting the project into shape (Thompson , 2019); the input from stakeholders during the first phase of the project will help in formulating the plan. Secondly, conducting stakeholder analysis will help the organization win resources. When they are convinced beyond doubt that the project is viable to the community and the organization, the stakeholders will invest their money into the project. Finally, stakeholder analysis will help foster a proper understanding of the project at an early phase.
Figure 1: Stakeholders Grid
Identifying and prioritizing various stakeholders is very important in any organization (Thompson , 2019). The main stakeholders in the implementation of a health and wellbeing strategy are; the employees, community, government, and other organizations in the same industry. Employees are the main target of this project; therefore, they take the “keep satisfied” position in the grid. The community will take the position “manage closely”, the government will lie under “monitor” while other organizations will be placed at “keep informed”. Grouping the stakeholders using the grid will help the organization to determine how each stakeholder should be treated.
- Research Methodology
The research used Interpretivism asopposed to positivism approach. This research strategy was used so as to allow the researcher make their conclusions based on the data collected and analyzed. To add on that, the strategy also allows the researcher to reject or accept the hypotheses formulated.
Primary Methods
Method | Justification for using |
1 Questionnaire | Allows the researcher to get appropriate information |
2 Conduct observation | Helps the researcher address specific issues |
3 Online survey | The researcher has greater control |
4 Test marketing | The researcher gets an immediate response as opposed to other methods |
Table 1: Primary research methods
Secondary Methods
Method | justification for using |
1 Reading a textbook on the subject | Cheap |
2 CIPD research report | May help the researcher to clarify on a certain issue |
3 Online sources | Easily available |
4 Journals | The journals are well organized and well researched therefore allowing the researcher to get enough information about a particular matter. |
Table 2: Secondary research methods
Methods Considered but Subsequently Rejected
Method | Why rejected |
1 Old Books | Since they are not updated, they may contain invalid conclusions on certain matters. |
2 Individual blogs | Blogs contain information that is not well researched. Use of this information may lead to wrong conclusions |
3 Focus group | They encourage biasness and therefore the researcher gets narrow information from them. |
Table 3: Methods considered but subsequently rejected
- Data Analysis
- Health and Well Being of the Employee
Most organizations are now taking the necessary action to improve the general health and well being of their employees. However, there is a variation in how different organizations are adopting this strategy. On the overall, only 40% of organizations are using techniques of ensuring the health and well-being of the employees (CIPD, 2019).
More companies in the private sector are likely to employ formal strategies of enhancing the well being of the employees as compared to those in the private sector and the nonprofit making organizations. During interviews, the respondents working in the private sectors are likely to go along with the fact that the senior managers and the board have agreed to implement formal strategies of ensuring good health and employee.
Figure 2: Health and Well-being positions in different organizations
- Well-being Benefits
Majority of the employers provide multiple benefits to their employees. About 94% of the firms offer more than one benefit which include free eye testing, counselling services among others. The findings also suggest that the number of organizations that provide such benefits has been increasing over recent years. 72% of the firms offer insurance protections initiative to some groups of staff and employees (CIPD, 2019). However, insurance benefits and support are more common in the private sector.
Figure 3: Changes in two health benefits from 2016-19
- Factors Influencing Employers to Purchase Wellbeing Benefits
When asked to rank the factors that affect the purchase of wellbeing benefits of employees, research revealed that’s budgetary constraint is the main influencer (CIPD, 2019). As a result, the companies in the public sector are likely to make the purchase of wellbeing for their employees a major priority in the operations. On the other hand, the companies in the private sector are likely to be concerned with the activities that lead to improved competitive advantage in the market.
Figure 4: Factors that influence the purchase of health benefits
- Measures used in Evaluating Well-being Activity
The most common measure used to make an evaluation of an employee’s well-being activity rate is sickness absence rate, the level of employee retention, the engagement of the employees as well as the voluntary resignation of the employees (CIPD, 2019). When rate at which these metrics happen is determined, it is possible to determine how the company has strategized itself in enhancing the well-being of the employees. About 60% of the companies use measures such as the time for returning to work, the incidence of mental health among the employees, as well as the programs meant to assist the employee in assessing the well-being of the employees. However, there are some gaps in the metrics used in this context because companies in the public sector are likely to use different approaches as compared to those in the private sector
- The Impacts of Health and Well-Being Activity
More than 75% of the total respondents from organizations offering well-being and health benefits activity believe that these activities are highly related to positive results in the workplace. When these activities are in place, the company largely benefits by increased morale and engagement, an inclusive and healthier culture, and a decreased absence in the workplace due to sickness. The analysis shows that the performances of the organizations adopting such health and well-being activities have improved their performance over the last few years (CIPD, 2019).
- Absence Levels
The average level of employee absenteeism in 2019 is 5.9 on every employee. This simply means that 2.6% of the total working time is lost (CIPD, 2019). This figure represents the lowest number that CIPD surveys have ever recorded. Over the past few decades, there has been a fluctuating gradual decline in the rate of absenteeism and this can be explained by the slow but gradual adoption of health and well-being activities. The private sector has registered the highest reduction of absenteeism rate.
- Causes of Absence
The most common cause of absenteeism in the workplace is minor illnesses among employees. To reduce the rate of absenteeism in the organizations, most organizations have excluded minor illness as the reason for an employee to miss their duties (CIPD, 2019). To add on that, mental health is also showing a rising trend in both the long term and short-term absence. Other causes of absenteeism in the workplace include acute medical conditions, stress, musculoskeletal and injuries.
- Managing Absence in the Workplace
Most companies use multiple methods in managing absence. However, since short term absenteeism is common compared to absenteeism, organizations employ practices to counter the former. Mechanisms such as return to work interview are used to discourage employees from being absent in the organization during the normal working hours. To add on that, employees also use supportive strategies such as leave for family situations, change work patterns, employee assistance programs among others. The supportive policies have been very successful in discouraging absenteeism in the workplace.
The managers can also be given the responsibility of managing short term absenteeism in the workplace. The CIPD research ranked this approach as one of the most effective approach that can be used by the organizations to discourage absenteeism. The managers can be trained to deal with the issue in a friendly manner without causing any conflict with the employees.
- Managing Mental Health
About 60% of the analyzed organizations have reported an increase in mental health conditions for the employees in their workplaces. In this context, mental health may include depression and anxiety among employees. However, a small percentage of firms have reported a decrease in the same. Surprisingly only 9% of the organizations have a separate policy to deal with the mental health of their employees. Some organization have incorporated the mental health policy among other health measures in an organization (CIPD, 2019). The majority are now becoming aware of how serious mental health can be although they have not formulated policies to safeguard the health of their employee.
Less than 50% of the total organization engage their employees in mental health training. For example, training the managers on how to advise an employee who has developed any mental illness. However, the proportion of the companies adopting such policies have increased compared to a year ago. This is because most organizations have realized that mental conditions could be vital not only to the employee but to the health of the company as well
- Conclusion
The research concludes that the hypothesis formulated (Health and wellbeing of the employee have a positive impact on the productivity of a firm) is true. Globalization has increased competition in the business environment; therefore, it is very important for companies to step forward and pay attention to human capital investment (Chenoweth, 2011). Based on the research, the health and the well being of the employees have a direct impact on the performance of a company.
The mental and the general working condition of the workplace affects how employees feel and think about the organization and their jobs. According to the CIPD report, the wellbeing of the research predicts the general attitude of the employee and their performance. In the context of small and medium enterprises, the working conditions and the heath of the employees are not only important to the workers and staff but also to the organizations (Tov & Chan, 2012). Furthermore, employees who are satisfied and happy are also likely to comply with the rules and regulations of the companies, provide suggestions to improve performance and trust their managers (Chenoweth, 2011). Such behavior encourages innovation and production in the workplace.
- Recommendation
Based on the finding in this report, the researcher gave the following recommendations to the senior management of the organization;
- General managers should be trained on how to improve the employee well being
The general managers and the supervisors provide a link between the employees to the senior management of the organizations. Therefore, they are directly involved in managing the employees in the workplace. Managers and supervisors should be trained on how to diagnose the employees who are suffering from a work-related illness. This will make them to be in a position to offer advice to their employees. To add on that, it will be a simple approach since the organization will not hire a therapist when the managers are trained.
- The organization should hire a therapist to assist the employee to overcome any mental illness.
To determine the general conditions of the employees, the organization should hire a therapist who will conduct a quick random test to the employees. Employees with any health issues should be treated and advised accordingly.
- Formulate a standalone policy for people with mental health issues
Mental illness has shown an increasing trend in most workplaces. Formulating a standalone policy will place the organizations as a better position of mitigating health-related issues.
- Introduce a supportive policy that discourages absenteeism.
Short term absenteeism is common in all the organization. To be on the safer side, measures to discourage absenteeism such as return to work interviews should be introduced. To add to that, these policies should be friendly to the employees.
- Implementation Plan
Action | Timeline | People in Charge |
Train mid-level managers how to deal with mental illness | 3 weeks | Mental illness Specialist |
Inform the employees about the plan | 1 week | General managers and supervisors |
Formulate standalone policies for people with mental illness | 2 weeks | Board of directors and mental health therapist |
Formulate policies to improve the general conditions of the workplace | 2 weeks | Board of directors and mental health therapist |
Review all the policies formulated | 1 week | Board of directors and mental health therapist |
Table 4: Implementation Plan
- Cost Break-down
Action | Cost |
Training of general managers | $2,000 |
Formulation and review of policies | $ 2,000 |
Table 5: Cost Break-down
- Reflection
Through this report, I have learnt the health and wellbeing ofemployees are very important in any organization. They are directly connected to productivity and performance in the workplace. I will transfer the knowledge gained in this report to real-world situations in different ways. To begin with, I will always ensure that the employees and staff are given the first priority in the workplace. Since employees play the main role in any organization, improving their wellbeing will enable me to enjoy a successful managerial career. Secondly, I will ensure that the employees are treated with the utmost respect by their managers, staff, and supervisors. This will improve their morale and hence increase the productivity of the organization. To add on that, when employees are respected by everybody in the workplace, they always see themselves as important elements in the workplace and they would, therefore, enjoy seeing the organizations achieve its goals. Finally, I will purchase health benefits to my employees such as free eye checkups and other critical tests to the employees. All employees suffering from any work-related illness will also be treated for free or advised if they are suffering from mental illness such as stress or depression.
References
Chenoweth, D., 2011. Promoting Employee Well-Being. Alexandria: SHRM Foundation,
CIPD, 2019. Health and Well-being at Work.
Thompson, R., 2019. Stakeholder Analysis. [Online]
Available at: https://www.mindtools.com/pages/article/newPPM_07.htm
[Accessed 1 11 2019].
Tov, W. & Chan, D., 2012. The Importance of Employee Well-being. Business Times, p. 14.