The connection between employee wellbeing and retention

These days, employee wellbeing matters more than ever. In a 2024 report¹, 90% of employers put employee wellbeing at the core of their recruitment and retention strategy. This is because employers recognise that the health and wellbeing of their employers is not just a ‘nice to have’ but gives them a strategic advantage in a competitive marketplace for top talent – and for retaining the star employees they have already recruited, something that is likely to be a crucial part of HR strategies in the upcoming months.

What is employee wellbeing?

It is as the name suggests; the being-well of a person employed by an organisation. As well as the physical, mental, emotional and social health factors associated with wellbeing, employee wellbeing takes into consideration things like work hours, pay, job satisfaction and a person’s work-life balance.

How does a focus on employee wellbeing support retention?

A good employer understands that an employee is their whole-self and when they’re supported they are more likely to be an engaged worker who is productive. With 88% of workers in the UK reporting that their wellbeing is as important to them as salary², it is understandable that HR leaders are looking to focus on this area as a way to retain top talent.

By promoting physical and mental health, companies can support their employees to be their healthier selves, reducing absences, which is often a significant factor in employee turnover. Employees also benefit from not having to pick up workloads from missing members of staff, but also the continuity and stability within the workforce. This, in turn, fosters a positive workplace culture where employees feel valued and respected, not only attracting top talent but also retains existing employees too.

Wellbeing initiatives, such as flexible working hours, mental health support, and wellness programs, can also lead to higher productivity. When employees are healthy and happy, they perform better, which in turn benefits their organisation. This increased productivity can also reduce the need for unnecessary hiring and training of new staff. Wellbeing programmes that address stress management, career development, and work-life balance also contribute to higher levels of engagement. This means engaged employees are less likely to leave, as they feel a strong connection to their workplace.

What wellbeing initiatives can businesses use to retain top staff?

There are several ways UK organisations can harness the benefits of employee wellbeing to retain their best employees and recruit new talent into their workforce.

• Flexible working arrangements: Understanding that employees have to balance their work and personal lives and providing flexible hours or remote/hybrid working options (where possible) can help employees manage their time more effectively.
• Mental health support: Providing access to services that allow employees to better manage their mental health. Services such as counselling and stress management workshops can significantly improve employee wellbeing. Foster a workplace where staff understand their mental health is as important as their physical health.
• Health and wellness programmes: Initiatives such as discounts on gym memberships, healthy eating options in workplace canteens, and wellness challenges can well promote physical health to your employees.
• Recognition and rewards: This is not just about salary, but regularly acknowledging and rewarding employees' hard work and achievements can boost morale and job satisfaction. Consider highlighting great examples in company-wide communications or personal emails from the senior team.
• Career development opportunities: Employees want to know they have the opportunity to learn and grow at their place of work. Invest in employees' professional growth through training and development programs, which can enhance their sense of purpose and loyalty to the company.

By prioritising the health and happiness of their workforce, UK businesses can create a more engaged, productive, and loyal workforce. Whilst more organisations are focusing on employee wellbeing, this is not simply a passing trend but a savvy business move. In the competitive landscape of today's job market, focusing on workplace wellbeing will not only retain top talent but also attract new employees who want to be part of a workplace that places a value on them as individuals who can have a lasting, positive impact on the organisation.

Sources

1. https://healthatworkcentre.org.uk/wp-content/uploads/2024/03/HR-Ebook-2024_Digital_PAGES_compressed.pdf
2. Gympass, The State of Work-Life Wellness 2024, October 2023