The Strategic Imperative of Well-Being
It has long been known and proven that well-being positively impacts individual performance and is an essential component of building resilience from its early days in working with the US Military.
However, the power and potential of wellbeing to promote business success has reached somewhat of a high-water mark in May 2023 with a groundbreaking study by Dr. De Neve and team from University of Oxford and Harvard.
They used large-scale data from the business platform Indeed to assess the relationship between workplace wellbeing and firm performance. “The data set is not only unique in how big it is, but how rich it is,” says Professor Jan-Emmanuel De Neve, the study’s lead author and the director of the Wellbeing Research Centre at the University of Oxford. “We’re hearing directly from the employees themselves. It’s not an HR officer telling us how they think employees feel. We’re actually getting to the heart of the matter. While leaders might intuitively know that how people feel is important, it’s hard to push this agenda if you can’t show the return on investment. They haven’t jumped to prioritize it in part because there hasn’t been enough hard data. But now there is.”
Measures of employee wellbeing included self-reported job satisfaction, purpose, happiness, and stress, which was aggregated to over 1,600 listed companies in the United States.
I am happy at work most of the time.
My work has a clear sense of purpose
Overall, I am completely satisfied with my job.
I feel stressed at work most of the time.
Dr. De Neve and team used company-level employee wellbeing measures to predict firm performance and found that wellbeing is associated with firm profitability, with data being aggregated into a Workplace Wellbeing Score. Companies with the highest levels of wellbeing also subsequently outperformed standard benchmarks in the stock market.
As a result, Workplace wellbeing is being touted as a new frontier in the global competition for talent and a key ingredient to business success.
For many, investing in wellbeing has often been seen as a trade-off with other organizational goals. In fact, Dr. De Neve believes that leaders misjudge well-being as “fluffiness” with only 19% of leaders reporting that they make well-being a strategic priority within their organizations- even though 89% of leaders note that well-being gives them a competitive edge.
With research like this, organizations seeking to be successful in the new world might be taking note- though I still believe the challenge lies in how leaders understand WHAT well-being actually IS.
The Oxford dictionary defines well-being as general health and happiness. A broad definition specific to one’s overall quality of life.
This is different from how we define wellness, which is a state of being physically healthy, or even mental health, which is a component of well being that addresses more specifically an individual's state of mind and emotions.
At the organizational level, we can look at the collective state of wellbeing of all the individuals within the organization.
This involves also looking at the work environments that either promote or detract from an individual’s wellbeing. Work environments affect the day to day experiences and growth of each individual, regardless of title or position.
Given that work constitutes more than one-third of waking life for most adults, I believe as leaders, we have a responsibility to ensure that the environment we create positively impacts the growth of the individuals and teams.
Prioritizing wellbeing is essential to accomplish this.
Wellbeing alone is a multidimensional concept that reflects OPTIMAL FUNCTIONING AND SATISFACTION in various domains of life. Recognizing this interplay in ourselves and those we lead ensures we are creating and maintaining environments that support wellbeing.
This is why I chose the koi fish to represent my brand- representing the inspiration behind my work as a coach and positive psychology practitioner, Koi fish grow based on their environment. If the environment is nourishing, say a larger body of water even, they can grow up to 3.5 feet long.
In a small pond, the fish may not have enough space to swim and exercise, which can lead to stunted growth and potential health problems.
As a leader … whether you lead a team of 2, 10,…or 52, you are a role model. And so, what happens as a result of how WE prioritize our work and where you put your attention - your team tends to mimic what you do.
As a result, it also affects our bottom lines- if it hasn’t yet, it will.
The human hamster wheel is unsustainable and contributes to a non nourishing environment.
This environment leads to disengagement with individuals becoming disconnected from WHY they do this work to begin with. Some team members, perhaps not admittedly, begin to become resentful. Missing out on important milestones in their personal lives as a result of the demands and pacing of their work life.
The World Health Organization (WHO) revealed that stress related disorders cost approximately $1 trillion per year in lost productivity, arising from various factors such as absenteeism, turnover, reduced productivity, as well as medical, legal, and insurance expenses.
44% of individuals worldwide now report experiencing daily stress.
Work life imbalances resulting from burnout are resulting in individuals in the nonprofit sector reporting they may permanently leave the field and recent research by DDI highlights 30% of nonprofit employees report being burnt out.
Only 15% of team members believe that there are sufficient practices and methods in place to prevent burnout within their organization.
A study found that leaders expressed a desire for more training and guidance on how to recognize and respond to individual or team wellbeing issues.
Judith Rodin, the Former President The Rockefeller Foundation has summarized the challenge of our current work environments by saying “…Today, there is a growing recognition that the pace of change is so great we cannot possibly solve all the problems at the rate we need to…working to solve root problems alone is not enough and will never work because the pace of change is too fast. What is needed now is to build capacity, connect people, and provide a platform for sharing knowledge and advancing common agendas.”
Working longer, faster, and harder is no longer the answer to enhance productivity or improve overall performance. Organizations are hitting a proverbial wall with this approach, as it too often results in many working slower, shorter, and being less happy doing it!
In fact, McKinsey and Company just released a report highlighting the impact on the public sector specifically. What they note is how best to attract and retain public sector employees must be done in a manner that keeps pace with current workplace trends and demographics. Two align specifically to taking a strategic approach to well-being: developing a strong employee value proposition and planning strategically for future needs. In fact, research from the Great Attrition supports the fact that many employees are more interested in being part of a supportive community than how much their paycheck reads.
So, as leaders we must take note and engage in more of a marathoner’s approach- rather than sprinting from one “fire” to the next. To establish this new cadence, we need to re-ground the organization in practices and routines that support this shift. A shift that I see reflective of more of an abundant mindset [there is enough resources-time, money, etc.] versus the former, scarcity mindset which operates from a place of “never enough”, causing us to engage in unsustainable activities that only lead down the path of burnout mentioned above.
Consider for a moment that marathon runners, who need to map up their route and determine stops along the way to refuel, rest [maybe use the bathroom]... in marathon training [yes, I have run 3 in my life and they did not get easier!] we would call these “SAG” stops…short for “Support and Gear Stops”. These stops were a chance for us to resource ourselves so we could make it to our destination- be it 16 miles or 20 that day. I see well-being practices and routines, be it for an individual member of a team, the team, or organization as a whole, as similar in that they can support us in resourcing our strategic plan goals. This may be as simple as an individual team member engaging in physical activity during a lunch break, setting boundaries on work hours/focused work blocks or engaging in mindfulness or meditation to manage stress. It might also include beginning each team meeting with 5 minutes for high quality connection time between each team member before diving into the meeting’s agenda or the team establishing a system for ending meetings 5 minutes early so that everyone has time to transition before their next meeting or activity. As an organization, this might include providing some training and development around building resilience, embracing opportunities, thinking, or delving into work that showcases everyone’s strengths, supporting them in leveraging them within their roles- maybe even crafting their position to enhance engagement in their role.
Counter to what many leader’s think, well-being initiatives do not have to be costly. They just need to be strategically aligned. This is a strength area for most leaders, right? So why not leverage a leader's strengths and take a more strategic approach to well-being within your organization.
If we embrace wellbeing as an essential element to our organizational culture AND take a strategic approach to prioritizing it, WE can and WILL transform ourselves, our teams, and our organizations from a mindset of “not enough” to one that is more abundant and re-grounds us all in a belief that the world is full of enough resources and TIME for you to accomplish your goals.
By re-grounding our work environments in well-being practices, we breed sustainable growth and empowerment that will support us as we continue to face rapid changes and challenges, across industries and sectors.
The environment we build will support the strengthening of the psychological capital of individuals and teams within our organizations. By enhancing our psychological capital, we can unlock the inner HERO with our teams (Hope, Efficacy, Resilience, and Optimism) to navigate the white water world of work with its rapidly changing landscape and the many demands that pull at each of us any given day. This approach ensures organizational sustainability and impacts all organizational stakeholders, becoming a strategic advantage for any organization, be it for profit or nonprofit.
Work environments are established by their culture. In organizational psychology, workplace culture has three key elements: practices, values, and underlying assumptions.
Practices are daily routines that reflect and reinforce values.
Values are shared principles around what is important, and
Assumptions are deeply held beliefs about how the world works, which shapes our values and in turn drives our practices.
By seeing wellbeing as a means of resourcing your strategic plan, you can identify practices that become normative and serve as scaffolding to building organizational culture and capacity and supporting the shift needed in modern work environments, from a mindset of scarcity to one of abundance. This supports us in reframing day to day work from being solely based on outputs and performance to ensuring long term viability through processes that account for learning, reflection, and are aligned with our values.
I am defining strategic well-being as a holistic approach to individual and organizational well being that aligns wellbeing initiatives with long term goals and objectives of the organization.
Taking a strategic approach involves courageously committing to a path forward and committing the resources necessary to achieve these goals.
Strategic wellbeing extends beyond individual health and happiness OR the organization's goals and mission.
Strategic wellbeing supports the building of skills, resources, and internal processes that empowers every level of an organization to positively respond to adversities, fostering growth and building the psychological capital of the individual, team, and organizational- ensuring long term sustainability..
By making well-being an integral part of organizational strategy, you are taking a proactive approach- one that fosters practices and routines in support of individuals, team, and organization thriving! It naturally resets your organization’s cadence and re-grounds all organizational stakeholders.
As leaders, your investment in sustainable and strategic wellbeing practices supports modern organizations of today by helping to create the SAG stops!
The “support and gear” serves to resource your team in a way that will ensure their ability to execute on the goals and initiatives laid out in your strategic plan.
In fact, if each goal consisted of mile markers, as a leader you might ask whoever owns that goal to help resource that goal from a wellbeing perspective.
What is the appropriate timeframe to expect that goal to be achieved, given the resources? Given the other scheduled events or activities? What is driving our decision- a simple “gut check” can be a wellbeing practice in all honesty.
or in order to achieve that timeline, what additional resources are available?
What innovative approaches may be available?
How might collaboration advance that initiative?
Are we even creating space for these types of innovation discussions?
In my research, I identified the key elements that serve as the basic building blocks for strategic wellbeing and the criteria that serves as a set of requirements to be met in order to determine the viability of a wellbeing practice in being strategic.
The aim was to help leaders be disciplined in your approach to its implementation.
In the words of Jim Collins, business strategist and author of Good to Great, we ensure greatness through disciplined people, disciplined thought, and disciplined action.
Successful strategic wellbeing initiatives hinge upon the success of the individual implementing them- and yes, that is each of YOU! ( no pressure)
So, let’s look first at the foundational building blocks of strategic wellbeing:
Authentic leadership commitment- rooted in positivity and values
A mindful approach- present, open-minded, compassionate
Alignment with organizational goals
Integration into systems and processes
Long term perspective that accounts for attention and investment to ensure sustainability
And each of the four criteria that serve as filters to be satisfied in order for a proposed wellbeing practice to be considered strategic, ensuring its sustainability. These filters are related to key organizational stakeholder groups:
The individual [self awareness, purpose, and meaning]
The team [the power of the individual in context]
The internal org [Individuals and teams co-create impact measures that justify the investment. ]
The external org [to be sustainable, they need to positively advance the organization's mission and include measurable shifts in performance indicators external and unique to the organization, as well as positively impact organizational beneficiaries.]
Consider this approach as one that aligns with Jim Collin’s Flywheel Effect, a concept developed in his book Good to Great wherein he notes that good to great transformations never happen in one “fell swoop, rather, the process resembles relentlessly pushing a giant, heavy flywheel, turn upon turn, building momentum until a point of breakthrough, and beyond.” As individuals take action to prioritize their well-being, the team collective begins to benefit and build on individual practices at the team level, which then translates into impact measures felt within the internal organization [like reduced turnover] and this yields results that benefit the external organization-often the end user, rippling into customer retention rates, repeat business, and overall positive brand image ensuring the organization's longevity.
As organizations embark on strategic wellbeing initiatives, positive and skillful leadership to introduce these practices will be foundational to facilitating and guiding teams through the transition from theory to practice, modeling that abundant mindset.
