KPIs & OKRs, but what about Wellbeing 

HR professionals are no strangers to the importance of KPIs and OKRs in tracking progress and setting goals. But there is another metric that is quickly becoming just as vital for the company’s success, and that’s employee wellbeing. 

Did you know that organizations that prioritize wellbeing see improvements in employee engagement, lower turnover rates, and reduced absenteeism? According to Forbes, in a supportive environment, people are 53% more efficient and their overall work performance increases by 25%.

As we inch closer to the new year, more employees are expecting mental health support, flexible work options, and wellbeing initiatives. In this post we’ll address the value of implementing a wellbeing strategy that helps HR professionals create a healthier and more productive workplace.

Well-being as a KPI

Employee well-being and satisfaction are now part of performance metrics. Prioritizing these metrics not only improves morale but also boosts productivity. If the organization looks after employee well-being, it will rank better at the KPIs, such as Employee Engagement, Turnover Rate, and Absenteeism Rate.

Supporting employee well-being means focusing on physical health, mental health, and job satisfaction. Simple steps like health checks, fitness challenges, and mental health awareness sessions can make a big difference. Tools we use to measure the Workplace Well-being Index can help improve our efforts, while satisfaction surveys show how happy employees are with their jobs. A healthy and satisfied team leads to better work and happier workplaces.

Investing in employee well-being can lead to significant returns. Companies with a thriving workforce save up to $50,000 per employee in recruitment costs, boost productivity by 18%, and increase innovation by 40%. On the other hand, neglecting well-being can lead to turnover costs up to four times an employee's salary and a 40% reduction in innovation. Culturetec helps drive ROI by fostering a positive work environment that boosts both employee well-being and business performance.

Pulse of the Workforce: By 2025, employees will expect more from their employers, particularly of technology and well-being programs. Key expectations include:

• Seamless integration of tech tools for remote and hybrid work.
• Comprehensive mental health resources.
• Flexible working hours and environments support work-life balance.

The Growing Demand for Mental Health Resources

Mental health is not a personal issue; it's a workplace priority. According to the World Health Organization (WHO), 15% of working-age adults experienced a mental disorder in 2019. Inadequate support for mental health at work results in a $1 trillion annual loss in productivity for the global economy. But here's the good news: workplaces can be powerful environments for fostering well-being and recovery.

Decent work can boost mental health by offering:

• Purpose and Achievement: A sense of contribution and accomplishment.
• Community Inclusion: Opportunities for building positive relationships.
• Stability: Structured routines and financial security.

On the flip side, poor workplace conditions, like excessive workloads, discrimination, or job insecurity, pose risks to mental health. Unaddressed issues can lead to absenteeism, reduced performance, and high turnover rates.

A mentally healthy workplace isn’t a nice-to-have; it’s essential for both employee well-being and organizational success. By taking proactive steps, employers can cultivate an environment where everyone, regardless of their mental health status, can thrive. As HR professionals, you have the power to create a supportive environment where employees feel valued, appreciated, and motivated to contribute their best work.

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