In today’s fast-paced and demanding work environment, employee wellbeing has emerged as a critical factor for both individual and organizational success. The World Health Organization (WHO) defines burnout as an occupational phenomenon resulting from chronic workplace stress. As burnout rates continue to rise, employees are seeking workplaces that prioritize their wellbeing. In fact, according to the Mercer Talent Trends report 2022-2023, thriving employees are seven times more likely to work for a company that prioritizes employee wellbeing. In this blog, we will explore the importance of employee wellbeing and discuss how employers can redesign their work practices and benefits packages to retain talent, boost wellbeing, and enhance productivity.
The landscape of employee wellbeing in Australia and New Zealand (ANZ) is undergoing significant changes. The number of companies measuring burnout risk has nearly doubled since 2020, indicating a growing recognition of the detrimental effects of burnout on both employee wellbeing and organizational performance. Furthermore, financial, physical, and mental wellness have reached their lowest points in two years, underscoring the urgent need for organizations to address these areas of wellbeing and foster a supportive work environment.
Responding to these challenges, 43% of Australian leaders are actively redesigning work practices to prioritize employee wellbeing. This involves reevaluating workloads, promoting work-life balance, and implementing flexible working arrangements. Moreover, 24% of organizations in ANZ have already started offering cost-of-living adjustments or wage increases to acknowledge the importance of employee wellbeing. Looking ahead, 63% of these organizations plan to expand their benefits packages in 2023, incorporating programs that cater to physical, mental, and financial wellbeing. These proactive measures reflect a growing commitment to nurturing a healthy workforce and recognizing the critical role of employee wellbeing in driving success.
Employee wellbeing is gaining significant attention in Asia, as organizations recognize its importance in attracting and retaining top talent in the region. Delivering on total wellbeing strategies has emerged as one of the top 10 HR priorities in Asia for 2023, reflecting a shift in acknowledging employee wellbeing as a crucial aspect of organizational success.
Health, flexible working options, and retirement security are the top three benefits desired by employees in Asia. These priorities highlight the need for organizations to provide comprehensive support across different dimensions of employee wellbeing, ensuring that employees feel supported in their physical, mental, and financial health. Approximately 50% of employers in Asia have already recognized the positive impact of flexible working options on work-life balance and overall wellbeing. This trend aligns with the changing expectations of employees and the evolving nature of work. By offering flexible working arrangements, organizations are empowering their workforce to manage their time effectively and foster a healthier work-life integration.
Financial security is another significant concern for employees in Asia, and organisations are taking note. Around 14% of employers have plans to invest in financial wellness programs to enhance long-term financial security for their workforce. By providing resources and guidance on financial management, organizations can alleviate stress and improve the overall financial wellbeing of their employees.
The importance of employee wellbeing cannot be overstated. Organizations must recognize the impact of burnout and prioritize wellbeing initiatives to retain talent and drive productivity. The ongoing trends in ANZ and Asia demonstrate a shift towards redesigning work practices and benefits packages to accommodate the holistic needs of employees. By providing support across physical, mental, and financial dimensions of wellbeing, employers can create a workplace that fosters engagement, reduces burnout, and enhances overall employee satisfaction. Is your benefits package set up to compete for talent? Talk to one of our talent experts.