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In recent years, employee well-being has gained significant attention, prompting a shift in people management and leadership approaches.
Organisations and leaders recognise that prioritising employee well-being is a moral imperative and a strategic advantage. People management practices are undergoing a pivot to adapt to this evolving landscape.
Employee well-being is gaining significant attention in the workplace due to the prevalence of mental health issues in Australians. According to the Australian Institute of Health and Welfare, one in five Australians experience mental illness annually.
The concept of employee well-being has changed over time. Employers now recognise the significance of physical well-being and their employees’ emotional and mental health. The recent Covid pandemic has accentuated this shift, which has blurred the boundaries between work and personal life. Consequently, employers must prioritise the holistic well-being of their workforce.
Workplace well-being has positive outcomes
While it may appear intuitive that enhancing employee well-being would lead to positive outcomes, according to existing research, these specific improvements that can be attributed to well-being still need to be made known. These improvements could range from heightened productivity, including increased presentism and job performance, to reduced physical, mental and emotional health risks. Additionally, the presence of workplace support plays a vital role in ensuring improved employee well-being.
In June 2022, the government agency Safe Work Australia updated its Work, Health and Safety (WHS) regulations to include specific measures to manage psychological risks in the workplace. In August 2022, the agency released a new code of practice that tackles these risks. This names potential psychosocial hazards, ranging from the demands of a job, flexibility and autonomy to workplace interactions and the physical environment of a workplace itself.
The Commonwealth, New South Wales, Queensland, Tasmania and Western Australia have already adopted these WHS regulations on managing psychosocial risks, with the Northern Territory planning to introduce theirs in July 2023.
The challenge is: how can Australian employers tackle the growing mental health crisis in their workplaces?
Current challenges employers face understanding employee well-being needs
Employee wellness goes beyond healthcare benefits and promoting healthy behaviours. Thanks to digitising people management tools, organisations can now proactively address employee well-being, through regular touchpoints supported by technology that will ensure managers are closer to the individual employee experience.
Additionally, digital tools can provide access to mental health resources and directly support employees. Those struggling with mental health issues like anxiety and depression can benefit from the employer’s online counselling and therapy services.
How well-being relates to productivity and performance
According to the Creating a mentally healthy workplace study by HeadsUp and PwC, mental health conditions can result in substantial costs to organisations. The report says that by implementing an effective action plan to create a mentally healthy workplace, organisations, on average, can expect an average positive return of 2.3 times their investment.
Organisations that improve their workforce’s overall health by prioritising employee well-being can reduce absenteeism and improve productivity.
How people management and leaders are pivoting
With the help of performance management systems, leaders are pivoting to create a culture of open communication and psychological safety within the workplace. This guides regular real-time conversations between employees and managers, allowing managers to pick up and be close to any potential or existing well-being issues.
Something as simple as automating the clock-in and clock-out process and tracking each employee provides an organisational view of key insights, including overly long hours worked by certain employees, which can lead to well-being concerns.
A platform that provides automated rostering of employees ensures fairness and equity upfront, evenly distributing hours and available people across the available timeslots and provides managers with an organisational view of rostering.
This level of automation can alleviate unpaid overtime consequences and prevent time theft, giving managers and HR professionals a view of any potential hazards impacting employee well-being that they need to address, such as being rostered on too much, long hours worked and too much overtime.
Using technology to enable the change
People management and leadership are undergoing a pivotal transformation in response to the changing dynamics of the workplace. By embracing performance management systems and leveraging time and attendance automation, leaders can create a culture of open communication that will improve psychological safety and well-being.
As organisations prioritise the holistic health of their employees, they position themselves for sustained success in a rapidly evolving world. With the insights provided by people management technology, organisations can design customised wellness programs and introduce initiatives such as more flexibility, fostering a mentally healthy workplace.
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