Wellbeing is a Key Component of an Organization’s Workforce Strategy
March 10, 2023
By Heather Nezich, courtesy of SBAM approved partner, ASE
Aon PLC has published its 2022-2023 Global Wellbeing Survey revealing that improving employee wellbeing factors can enhance company performance by at least 11% and up to 55%.
There is a relationship between wellbeing and a sustainable working life, which can impact company performance. The higher an employer’s ratings are in overall employee wellbeing, culture, and climate of wellbeing, performance of wellbeing initiatives, and funding allocation toward wellbeing, the better their scores are in workforce resilience, agility and belonging, which make a sustainable working life.
Aon surveyed more than 1,100 organizations, finding that employers are increasingly prioritizing wellbeing programs, in both recognizing the issue and aiming to take action. Nearly two-thirds of respondents reported that wellbeing is more important to their company since 2020, and just under half said that employee wellbeing has increased in priority in that same timeframe.
87% of companies have at least one wellbeing initiative in place, which was flat compared to 2020. However, 83% reported having a wellbeing strategy, compared to 55% in the 2020 report.
Wellbeing is a key component of an organization’s workforce strategy. Integrated as a people and performance approach, the framework for wellbeing balances the appropriate resources, opportunities and commitment needed to achieve optimal health, resilience and sustainability for the individual, team, leadership, organization, and community.
“Despite companies facing increasing volatility and uncertainty in the form of inflation, a global pandemic, changing workforce patterns and geopolitical conflict, the latest Global Wellbeing Survey demonstrates that employers are still focused on wellbeing, now more than ever,” said Stephanie Pronk, senior vice president for Health Solutions at Aon. “Companies are building resilient workforces by increasing their commitment to employee wellbeing both in support and financial investment, which also helps to attract and retain talent. Wellbeing is far from being a niche issue – wellbeing programs that are designed to address the diverse needs of employees can have wide-ranging impacts on an organization.”
Globally, 43% of companies say they have increased their investment in wellbeing, while most other companies have left investment the same or refocused their investments. The allocation of funding toward wellbeing varies, with about half of companies allocating 2-5% of their benefits funding toward wellbeing.
Additional findings from the global report include:
- Employee wellbeing programs have risen in perceived effectiveness since 2020, with 42% rating their programs exceptional or above average – an increase from 22 percent in the 2020 report.
- More organizations are strategically integrating wellbeing into company culture and other business strategies. Eighty percent of employers say wellbeing is fully or partially integrated into their overall business and talent strategy, an increase of 13% over 2020. The same number has integrated diversity, equity, and inclusion, environmental, social and governance, and total rewards into their wellbeing strategy.
- The level of importance an organization assigns to wellbeing determines the level of support from leadership, including the C-suite. Only 3% of respondents felt C-suite leaders didn’t support wellbeing initiatives at any level, either actively or passively.
Additional survey findings are available here.