Employee well-being refers to the overall state of employees’ physical, mental, social and financial health, which various workplace dynamics can often influence (e.g., workload, connections with co-workers and available resources).

While employee well-being plays a key role in employee retention, it also significantly impacts business performance. As a result, it’s vital for organizations to take employee well- being seriously and do what they can to foster a culture that promotes well-being.

68% of senior HR leaders rated employee well-being and mental health as a top priority, according to the Future Workplace 2021 HR Sentiment survey.

The U.S. corporate well-being market is estimated to be $20.4 billion and is forecasted to grow to $87.4 billion by 2026.

Employees’ mental health and well-being can impact employers in various ways. Here are some key business objectives that may be influenced by overall workplace well-being:

• Business performance—Employee well-being can make all the difference in business performance. According to the National Center for Biotechnology Information (NCBI), mental health concerns in the workplace can contribute to increased absenteeism rates, lost productivity, decreased customer satisfaction and reduced profits. In addition, the NCBI reported that work-related stress is a leading cause of poor job performance among employees, negatively affecting employers as a whole.

• Employer brand—According to a recent report from the Harvard Business Review, most working adults (91%) believe that a company’s culture should support mental health. As such, employers who disregard their employees’ mental health and well-being are more likely to be perceived poorly by employees and other stakeholders. A negative perception extends to an employer’s brand, limiting its ability to attract top talent.

• Attraction and retention—Employers who offer mental health and overall well-being benefits and create safe, supportive spaces at work often experience higher employee engagement and job satisfaction Those feelings can translate to stronger employee attraction and retention for organizations, which matters even more in today’s tight race for talent.
• Workplace safety—If organizations encounter employee mental health and well-being concerns on- site, workplace accidents and related injuries are likely to follow suit. According to the National Safety Council, moderate and severe mental health distress instances have been linked to a greater risk of workplace accidents. This is likely because employees facing mental health concerns are often less focused, engaged and aware of potential safety hazards, resulting in poor decision making and unnecessary risk-taking.

Employer Takeaway of Focusing on Employee Mental Health and Well-being

Ignoring employees’ mental health and well-being can significantly affect organizations, so it’s crucial for employers to adopt effective workplace well-being initiatives. As pandemic-era workers are evaluating their current jobs and considering other career paths or priorities, employers have an opportunity to provide or prioritize mental well-being support and resources. Supporting employee well-being is not only ethical, but it can have positive ripple effects across the organization.

If you or one of your employees have concerns about mental health, reach out to a doctor or use the Substance Abuse and Mental Health Services Administration’s (SAMHSA) National Helpline by calling 800-662-HELP (4357). To explore other mental health resources for your organization, visit our TIG Advisors Blog on a regular basis.