In a complex and constantly evolving economic and social context, such as the one we live in today, the level of resilience and competitiveness of an organization depends more and more on organizational well-being. The performance of companies is directly linked to the physical health and psychological state of people: a link that is now unequivocally proven, it is clear that companies taking care of their employees is no longer a paternalistic choice, but a need to see with confidence an increasingly and more sustainable and profitable future.
Defining organizational well-being
Organizational well-being goes beyond the concept of individual well-being. Therefore, it can be defined as the ability of the organization to promote and maintain the physical, psychological and social well-being of its employees at all levels and for every job.
Promoting well-being in the company, explains the International Labor Organization (ILO) with numerous studies highlighting the link between productivity and employee health, is vital to the long-term effectiveness of the organization. On the other hand, a lack of attention to well-being can create problems such as stress, conflict and mental health disorders. Solutions as one conscious leadershipa effective communication and attention to development are essential to creating a positive and rewarding work environment.
How to achieve organizational well-being
To promote organizational well-being and improve employee satisfaction, managers can adopt seven key strategies, as outlined in a Harvard Business Review article written by MIT and Harvard professors:
- Give more control. Empowering employees to decide how to do their jobs promotes organizational well-being. Lack of discretion is associated with worse mental health and higher rates of heart disease.
- Flexibility in times and places of work. Giving employees more flexibility about when and where they work improves mental health. Allowing variations in schedules and simplifying shift exchanges contribute to prosperity.
- Stability of schedules. Avoid just-in-time scheduling to ensure more stability for workers, especially in the retail sector. This provides better quality sleep and reduces stress, especially for those with family responsibilities.
- Participate in problem solving. Giving employees the opportunity to identify and solve workplace problems can reduce burnout and increase job satisfaction.
- Adequate staff. Ensuring sufficient staff for a reasonable workload is vital. Heavy demands can adversely affect the health and well-being of workers.
- Support for personal needs. Incentivizing managers to support the needs of employees, especially those caring for children or elderly parents, promotes a balanced work-life environment.
- Work culture and social participation. Taking steps to enhance a sense of social belonging among employees by creating a work culture where the development of supportive relationships among colleagues can increase organizational well-being.
The situation in Italian companies
Looking at the state of organizational well-being in Italian companies, the situation is certainly not the best. According to what was found by HR Trends & Salary Survey 2023, the survey conducted by Randstad Professionals in collaboration with Catholic University’s Agostino Gemelli High School of Psychology, comparing the views of 300 HR managers and 630 potential candidates (employed and non-employed), reveals a clear disconnect regarding the concerns made perceptible. from HR and employees. 40% of candidates cite psychological distress among their top concerns, followed by fewer career opportunities (32%) and difficulty balancing work and private life (31%). for HR, however, employees are concerned about salary cuts and difficulties covering expenses (38%).
Just as there is a strong disconnect regarding the level of well-being or ill-being perceived within the organization, although for 70% of HR and 60% of candidates the topic of well-being has become more important in the company in the last year. Therefore, while HR managers believe there is an overall improvement, candidates report a worsening of conditions compared to last year, with levels of well-being decreasing and levels of malaise increasing. In fact, the data says: well-being is improving for HR (43%, up from 34% last year), but getting worse for candidates (19%, up from 33% in 2022). the level of discomfort is improving for HR (only 1% perceive it, compared to 19% in 2022), but worsening for candidates (15%, compared to 11% a year ago). Both HR and candidates note work overload (increasing strongly for candidates) and lack of motivation among the key malaise elements, but HR also highlights stress and anxiety and lack of goals, overworked candidates, dissatisfaction with tasks and the inability to make professional leaps.
The misalignment of these views reduces the margin of understanding between the two parties involved, which, in the most serious cases, can lead to situations of burnout, silent withdrawal phenomena, even resignation.
The path to a healthy company
Second Josh Bersinthe American human resources expert for many years, Deloitte researcher and consultant in this field as well as the founder of the Academy of the same name Josh Bersin, there are four levels that an organization must overcome to be truly healthy.
Level 1: Worker safety
At a lower maturity level, companies focus on workplace safety. This dimension has many meanings: physical safety is fundamental, but so is the psychological safety of speaking up and asking questions, the safety of being yourself, the safety of taking a break or slowing down, and then there is the security of leadership to feel included, respected and heard. So, first of all, a healthy company is a safe company.
Level 2: Employee Wellbeing
At the next level of investment, companies have created wellness programs, which often run out in the benefits department and include dozens or hundreds of options. Wellness software like Gympass or Jointly, for example, offer a wide range of fitness, mental health and resilience programs. However, no tool or app can help meetings be more productive, so we move to level 3: focus on healthy work.
Level 3: hygienic work
Work planning and management practices are among the most important aspects that contribute to the health of the company. When people feel they have the right tools, resources and time, they feel relaxed and productive at work. In fact, says Bersin, it happens that Wellness Directors say they have a lot of wellness programs, sleep rooms and amenities, but people keep wondering when they’ll have time to do those things.
Level 4: Healthy organization
At level 4, organizations go further. They look at the leadership model, growth opportunities and the overall health of the company from top to bottom.
It is important to know that companies in level 4, says Bersin based on research, are almost four times more likely to be market leaders and have the best financial performance in their sector.
Experiments in organizational well-being: Smart work and the 4-day work week
The experience of Covid-19 has highlighted to organizations how Smart Working is highly valued by employees who manage to find a better work-life balance, feel less stressed and therefore more productive. Until today in Italy, they reveal the latest figures Smart Working Observatory of the School of Management of the Polytechnic of Milan, almost all large companies (96%) include Smart Working initiatives within them, which is also present in 56% of SMEs and 61% of public bodies. The trend is increasing and in 2024 it is estimated that smart workers will reach 3.65 million. The Observatory, however, warns: remote work does not always lead to truly “smart” models; it is only “true” smart workers, that is, those who, in addition to remote work, have flexible schedules and work towards goals, who present higher goals. levels of well-being and engagement relative to traditional workers.
But if flexibility has become one of the gateways to achieving organizational health, it can be expressed in various models. Among the latest experiments we are witnessing is the four day work week. And so reality as Luxottica, Lamborghini, Intesa Sanpaolo and others are preparing to experiment with mixing the conventional elements, all with the aim of increasing people’s and by extension organisation’s well-being, and consequently engagement and productivity.
How organizational well-being is measured: tools and indicators for monitoring
Measuring organizational well-being is a key activity in creating a healthy work environment. Only by keeping key indicators under control is it possible to make a true assessment of the company’s climate and make improvements where necessary. Surveys, interviews, focus groups among employees are some of the tools used by Human Resources, which today can also rely on HR Analytics software. These platforms provide companies with insight and insight into employee performance, productivity and engagement by evaluating, through the processing of multiple data from multiple sources, aspects such as employee performance, turnover rate, engagement level.
But let’s see in more detail what the main key indicators (KPI) of organizational well-being are:
- Employee satisfaction index. It assesses overall satisfaction through surveys of company culture, leadership and perception of work and results from the calculation of an index called eNPS (Employee Net Promoter Score).
- Analysis of stress and burnout levels. Use survey data to identify sources of stress and implement preventative measures.
- Absenteeism rates and staff turnover. Track absences and shifts to assess stress and dissatisfaction.
- Employee engagement index. It measures engagement through meeting attendance and collaboration, reflecting a positive work environment.
- Performance index. It examines productivity, work quality and customer satisfaction, highlighting the positive relationship with organizational well-being.
- Number of occupational accidents. Considering that in any workplace safety is one of the most important measures of well-being (see levels of well-being above), monitor injury rates with the aim of ensuring that the workplace is safe.