Research shows that
92% of employees want their workplace to care about their emotional and psychological well-being. But meeting this expectation requires more than just good intentions — it demands intentional, actionable plans that truly support employees.To do this, companies must first understand employee health and well-being impacts business success.
What is employee health and well-being, and why does it matter?
Employee health and well-being goes beyond physical health. It's about creating an environment where employees feel supported, valued, and empowered.
Here are a few key areas that affect the employee experience:
Physical health covers everything from access to healthcare to exercise habits.
Mental health includes emotional resilience and stress management.
Social well-being involves meaningful connections with colleagues and peers.
Career satisfaction focuses on growth opportunities and making employees feel valued.
Financial well-being refers to an employee’s ability to manage money and feel secure about the future.
The results speak for themselves. Businesses that offer comprehensive wellness programs see an
average return of $3.27 for every dollar spent, which shows an increase in productivity and performance. Beyond cost savings, employee health initiatives also help
attract and retain top talent. Employees who feel their employer cares about their well-being are
69% less likely to hunt for a new job.
What impacts employee health and well-being?
When employers understand what affects employee well-being, they can take the right steps to keep the workforce healthy and engaged. Here are some primary challenges that impact employee wellness:
Workload and job demands
Heavy workloads, tight deadlines, and insufficient tools or processes can contribute to burnout and stress. When employees feel overwhelmed and unsupported, it can lead to mental exhaustion and even high turnover rates.
Leadership and support
Supportive leadership and open communication make a big difference in employee engagement and well-being. Employees need managers who listen, communicate clearly, and care about their growth. Without this support, workers might feel stressed and disconnected from their work.
Compensation and financial stress
Compensation plays a direct role in employee well-being, influencing everything from stress levels to job satisfaction and overall quality of life. However, pay alone isn’t always enough to alleviate financial stress.
About 80% of employees report feeling financially stressed. To truly support employees, businesses need to go beyond wages and offer financial wellness benefits, such as EarnIn’s Earned Wage Access solution, which gives employees
access their earned wages when they need them. Employees can access up to $150 per day, with a max of $750 per pay period,
and get their money in minutes, starting at just $2.99 per transfer.
With greater control over their earnings, 65% of EarnIn users say they experience less financial stress.
6 benefits of an employee well-being strategy
An effective well-being strategy strengthens the employee experience and has measurable benefits for organizations. These include:
1. Lower costs, higher productivity
Healthy, engaged employees might take fewer sick days and achieve greater productivity. When workers aren't stressed about their health or well-being, they have more bandwidth to focus on their jobs.
2. Better recruitment and retention
Organizations that care about well-being attract better talent. Many job seekers look closely at wellness programs, paid time off policies, and mental health support when choosing where to work. Plus, when current employees feel supported, they're
more likely to stay and recommend their company to others.
3. Improved employee engagement
Health and well-being initiatives can lead to more engagement and motivation, encouraging employees to go above and beyond in their roles. Engaged employees are likely to build better relationships with coworkers, participate more in team projects, and feel a greater connection to company goals.
4. Lower burnout and stress levels
When workers have the resources they need to take care of their mental health — like flexible schedules, wellness programs, and supportive management — they can better handle the challenges in the workplace.
5. Improved company culture
Focusing on well-being creates a more positive work environment. That means better collaboration, transparent communication, and colleagues who feel proud to be part of the team.
6. Enhanced innovation and creativity
With fewer stress or health concerns to distract employees, they have more energy for creative thinking and problem-solving, leading to better solutions and innovations that improve outcomes.
4 employee health and well-being best practices
Here are some powerful ways to create a healthier, more supportive work environment:
1. Offer employee wellness programs
Comprehensive
employee wellness programs make all the difference. Include resources and wellness tips about physical fitness, mental health, and
financial wellness in an employee handbook or other documentation. Consider offering meditation apps or gym memberships as extra perks.
Financial wellness benefits like
EarnIn give employees the tools they need to build financial freedom today. More than just on-demand pay, EarnIn offers additional tools to help employees save for the future, track their credit score, and more.
2. Create regular feedback opportunities
Don't wait for annual reviews to check in on employee well-being. Open lines of communication by setting up regular check-ins where managers and employees can have honest conversations about workload, stress levels, and upward mobility. When employees have the chance to voice concerns, they're likely to mention small issues before they become big problems.
3. Give rewards and recognition
Employees want to know their employers see and appreciate their work. Regular shout-outs and even bonuses show team members that their effort matters. This encourages them to keep up the good work and support each other to improve.
4. Offer work-life balance and flexibility
Trust employees to do their jobs in ways that work for them. Offer remote, hybrid, or flexible schedules to give them the freedom they deserve.
Remember that supporting well-being is an ongoing commitment. Start with the employee well-being initiatives that make the most sense for the workplace and build from there after learning what people need most.
Measuring employee well-being
To improve employee well-being, companies need to know what's working and what isn't. Track key metrics like these to spot problems early and monitor the effectiveness of initiatives:
Daily indicators
These metrics offer quick insights into how employees are doing right now, helping leaders spot and address issues faster:
Sick days and absenteeism rates. Sudden increases can mean rising stress levels or burnout.
Overtime patterns. Frequent overtime indicates workload issues that harm well-being.
Productivity levels. Unexpected inefficiency might mean employees are struggling at work or at home.
Stress-related complaints. Analyzing employee feedback can identify persistent problem areas in the workplace and whether they’re workload or personnel-based.
Use of wellness resources. If employees don’t use the resources available to them, they may need better access or awareness.
Long-term measurements
These statistics reveal if well-being initiatives are working over time and if the workplace culture supports employee health:
Satisfaction surveys. Regular feedback reveals what employees value most.
Employee turnover rates. High turnover could mean workers aren't getting the support they need.
Exit interview feedback. This identifies patterns in why employees leave, revealing what needs to change.
Team support metrics
Understanding how managers support their teams improves well-being across the board:
Work-life balance feedback. This shows how employees perceive the company's respect for the boundary between work and home.
Manager effectiveness scores. Good managers are key to employee well-being. Make sure that performance reviews and satisfaction surveys offer employees a chance to evaluate their managers.
Team stress levels. Consider the unique makeup of different teams, their responsibilities, and the types of tailored support each might need.
Department-level productivity. Compare across teams to spot where employees might need help.
Employee feedback participation rates. Low participation might mean workers don't feel heard.
Mental health resource usage. Track this to ensure employees know about and feel comfortable using the support their employer provides.
Support employees with EarnIn
Employee well-being extends beyond physical and mental health—financial wellness is just as critical to their daily lives. Employers who recognize this can make a meaningful impact by offering benefits that provide financial flexibility.
With EarnIn’s comprehensive financial wellness tools, employees can access their earned wages
when they need them, helping to reduce financial stress and create a greater sense of security—especially important as
one in four households living paycheck to paycheck. Employees can access up to $150 per day, with a max of $750 per pay period,
and get their money in minutes, starting at just $2.99 per transfer.
Additional features like
Credit Monitoring empower employees with insights to manage their credit confidently, while
Tip Yourself makes it easier to save with every paycheck.
Best of all, EarnIn requires no integration and comes at no cost to employers, making it a simple yet powerful way to enhance employee wellness and financial peace of mind.
Offer
EarnIn today to prioritize employee health and well-being.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services
EarnIn is a financial technology company not a bank. Banking Services are provided by Evolve Bank & Trust, Member FDIC. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance
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