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Organizations that focus on improving their employees’ well-being are likely to improve retention and customer satisfaction.
This is according to a global survey of 1,648 companies in 41 countries by Aon in partnership with IPSOS. The “2021 Global Wellbeing Survey” also found that while well-being performance overall has a direct connection to a strong and focused well-being strategy, a series of standalone well-being initiatives will have less impact.
The key business performance takeaways from the Aon survey were:
- Organizations that improve employee well-being performance by 3% see a 1% increase in customer satisfaction and retention.
- Organizations that improve employee well-being performance by 3.5% see a 1% increase in employee satisfaction and customer acquisition.
- Organizations that improve employee well-being performance by 4% see a 1% increase in company profit and a 1% decrease in employee turnover.
“Well-being is so much more than programs and individual initiatives; it is a long-term people and performance strategy, using resources to achieve resilience goals over a sustained period,” said Dr. Avneet Kaur, Europe, Middle East and Africa (EMEA) well-being solutions leader at Aon. “Cultures are the seedbeds that determine whether employee well-being programs flourish or die, so companies should assess if their organizational culture is helping or hindering them in their well-being and resilience efforts.”
WorldatWork’s “Workplace Well-Being Trends” survey found that well-being programs are on the rise, as 61% of the HR leaders surveyed said demand for the programs has increased, as has employee utilization (63%).
Although a high percentage of the companies surveyed by Aon said employee well-being and resilience is important and have initiatives in place, few have strategies in place, and even fewer have fully integrated well-being into their business and talent strategy.
- Globally, 82% of companies surveyed said employee well-being is important, 87% have at least one initiative in place, but only 55% have a strategy in place and just 24% fully integrate well-being into their business and talent strategy.
- In EMEA, although 82% of companies surveyed said employee well-being is important and 86% have at least one initiative in place, only 51% have a strategy in place and just 19% fully integrate well-being into their business and talent strategy.
- In EMEA, Ireland, the Czech Republic and South Africa are most likely to have an initiative in place, while Portugal, South Africa and Switzerland are most likely to have a strategy. Companies in Portugal are most likely to have fully integrated well-being into their business and talent strategy (26%), with Poland, South Africa and Ireland all at 24%.
- The survey found that overall, in EMEA, 25% of well-being programs are performing exceptionally or above average, with Ireland (37%), South Africa and the United Kingdom (both 34%) leading the way.
- In the UK, 91% of companies have well-being initiatives, while 53% have a strategy. Additionally, 42% said well-being is extremely important at their company and another 41% said it was important.
The survey also found that company culture is the number one driver in developing a business case for well-being, but beyond financial resources and investment, one of the biggest challenges to starting or expanding well-being initiatives is employee engagement and interest (ranked as a challenge by 42% of survey participants globally).
Leadership can set the tone for culture and well-being; 89% of firms surveyed agreed that the Chief Human Resources Officer (CHRO) is the biggest supporter of well-being initiatives, followed by the CEO (78%).