Employers have different perspectives on the development and deployment of human capital within their organizations. Some employers place the demands of the organization as top priority. Other employers focus on employee skills development, primarily for the purpose of maximizing employee productivity and organization effectiveness. More progressive employers focus on employee well-being. These employers are interested in fully engaging their employees and creating an environment where they can not only be productive, but flourish.
When I refer to well-being I don’t mean employee wellness where we conjure up visions of massage therapists at employee cubicles. I’m referring to psychological well-being, which is a holistic approach to creating high-performance organizations by establishing the right conditions to generate high levels of employee engagement. Workplace well-being is connected to physical health, mental health and wellness, but primarily emphasizes the social and psychological aspects of these three dimensions. It is in the best interest of employers to adopt this well-being perspective because of the many benefits it brings, and yet so many organizations do not even have well-being on their radar.
Canada’s changing labour market
This shift in thinking requires an understanding of the changes in the Canadian labour market that have taken place in the last number of years. These changes place higher monetary benefits on employee loyalty and retention rates. The aging of the Canadian workforce is driving the demand for skilled workers. Approximately 24% of the Canadian labour force will be older than 55 by 2011 and 18% will be over 60 (according to Statistics Canada, 2001 census data). As a result, serious labour shortages are expected in the fields of education, medicine, and skilled trades. A recent skills shortage survey, published by Manpower Inc. in April 2008, surveyed 1,742 Canadian employers and found that 31% are finding it more difficult to fill skilled positions. The study also surveyed 43,000 employers in 32 countries, highlighting skills shortages in many countries, heightening the global demand for both skilled and unskilled workers.
Other factors also come into play. Corporate downsizing in past decades has eroded the traditional idea of job security, so workers do not feel a sense of loyalty or obligation to stay with one organization. The proliferation of the Internet has made it easier for workers to browse for new jobs right at their desk. In 1994, the Canadian government signed The Agreement on Internal Trade (AIT), making it easier for people and resources to move across Canada. All of these trends make employee retention a higher priority for Canadian employers.
Improved well-being equals better retention
Recent research has shown that improving employee well-being can improve employee retention and productivity. The argument for well-being is that a positive work environment, one that generates positive emotions, promotes healthier and more productive employees, according to research conducted by Barbara Fredrickson, Kenan Distinguished Professor of Psychology and Principal Investigator of the Positive Emotions and Psychophysiology Lab at the University of North Carolina. When work environments promote interesting and challenging work, it increases the likelihood of ‘flow’ experiences, which promote employee engagement. Research indicates that an engaged workforce delivers better customer service, greater profitability, and reduced turnover, according to a recent Gallup Inc. report, Well-being in the workplace and its relationship to business outcomes. Thus, pursuing well-being for employees is directly aligned with corporate goals and, therefore, produces mutual benefits for both employee and employer.
So how do we create an organization that promotes employee well-being? Each organization has its own culture and set of demonstrated values that can have a significant impact on the employee experience. According to Peter Warr, organizational psychologist, a psychologically ‘good’ job scores well across twelve features:
- Opportunity for personal control or latitude in decision making
- Opportunity for skill use acquisition and development
- Clear goals
- Variety in job content and location
- Role clarity and feedback
- Positive contact with others
- Good pay
- Physical security
- Valued social position
- Supportive supervision
- Career outlook
- Equity (justice for both the individual and the community)
Consideration of these factors when implementing new employee programs would be a step in the right direction toward creating a positive work environment for your employees. A detailed employee survey exploring these areas could guide policy decisions. However, organizations that are not in a position to take action on items resulting from the survey should not waste their money or time on them. Just the mere act of surveying employees raises the expectation that the organization will address items of major concern. If the organization turns a blind eye, then the survey will exacerbate the problem and the initiative will have a negative, not positive effect on well-being. If organizations took greater responsibility in ensuring the well-being of their employees, it would strengthen communities and have a positive effect on the whole of Canadian society.
Louisa Jewell is a co-founder of www.WhyDidYouGo.com, a consulting and coaching firm specializing in employee engagement and retention. Their vision is to improve happiness at work, one workplace at a time. For more information about psychological well-being in the workplace contact Louisa at louisa@whydidyougo.com.
