Article 1 - The Role of Employee Well-being from a Strategic HRM - The Perception
Employee well being is no longer only a benefit in the fast business environment of today, it is a main requirement. Companies who give wellness top priority not only improve their staff but also their employee retention. Retaining qualified personnel has become a major issue as businesses fight for top talent, well-being programs are showing to be breakthroughs (Guest, 2017).
Why Employee Well-being Matters in Retention
The well being of employees includes physical, mental, and
even emotional health. Employees are more likely to remain in an organization
that makes them feel appreciated and cared for. Following the Job
Demands-Resources (JD-R) Model (Demerouti et al., 2001), minimizing stress
in the workplace and improving resources available (such as offering remote
work options or providing access to mental health services) helps increase
engagement levels in the workplace while also reducing the number of employees
that leave the organization.
In addition, Herzberg's Two Factor Theory (Herzberg, 1959) says that poor hygiene factors such as lack of good initiatives, is a trigger for work related dissatisfaction, while motivational factors such as employees’ recognition and opportunities for career advancement are associated with retention. Therefore, it is evident that well-being is not just a 'nice to have' option but is something that affects employee engagement and loyalty directly (Armstrong and Taylor, 2020).
17 Best Employee Retention Tools for 2024 to Reduce Turnover and Boost Engagement. https://snacknation.com/blog/employee-retention-tools/ [Accessed 12 Mar. 2025]
Programs for holistic well-being: Google
Not only do Google employees have access to on-site wellness
centers, but the company also provides a variety of other well-being
initiatives, such as generous parental leave. This has helped foster an engaged
workforce that is less likely to leave the organization(Sonnentag & Frese,
2018).
Focus on Mental Health: Unilever
With the introduction of flexible work policies along with
programs aimed towards raising mental health awareness, Unilever has been able
to foster higher morale along with greater retention rates (Bailey et al.
2017).
Work-life balance strategy: Microsoft
Microsoft has seen improved employee loyalty due to the reduction in burnout because of the increased focus on work-life balance and hybrid work models (Kramar, 2019).
Implementing wellbeing strategies: barriers and challenges
Although important, employee wellbeing is often viewed as a challenging area to invest in:
Cost -unfortunately, many small businesses are not able to afford comprehensive
well-being programs (Guest, 2017).
Buy-in -leadership buy-in is a problem due to some leaders categorizing well-being as
unimportant (Armstrong & Taylor, 2020).
Barriers - in some working cultures, discussing mental health and well-being is tabou
(Bailey et al., 2017).
Suggestions for HR Executives Strategy Leaders
To develop an effective retention strategy, HR leaders must
consider implementing a well being strategy that is sustainable by taking the
following steps:
Implement a comprehensive strategy - Design programs that
consider physical exercise, mental health, and financial wellness (Sonnentag
& Frese, 2018).
Cultivate a positive workplace – Foster positive
interpersonal relationships, team cohesion, and mental well-being (Kramar,
2019).
Work with analytics and data – Improve well-being
initiatives based on feedback from workers (Bailey et al., 2017).
Assist employees to advance their careers – Feeling of
growth and purpose contributes to overall well-being (Guest, 2017).
Conclusion
Employee well being and employee retention are factors that
cannot be denied. Wellbeing focused organizations win the loyalty of employees,
enjoy lesser turnover, and create a strong organizational culture.
Accomplishing these objectives will be crucial for HR professionals in upcoming
years and will require consideration of wellbeing strategies as fundamental to
retention strategies (Armstrong and Taylor, 2020).
References
Armstrong, M., & Taylor, S. (2020). Armstrong's
Handbook of Human Resource Management Practice. 15th ed. Kogan Page.
Bailey, C., Mankin, D., Kelliher, C., & Garavan, T.
(2017). Strategic Human Resource Management. Oxford University Press.
Demerouti, E., Bakker, A. B., Nachreiner, F., &
Schaufeli, W. B. (2001). The job demands-resources model of burnout.
Journal of Applied Psychology, 86(3), 499-512.
Guest, D. (2017). Human resource management and employee
well-being: Towards a new analytic framework. Human Resource Management
Journal, 27(1), 22-38.
I like the insights on the link between employee well-being and retention! As cost is a major barrier for small businesses, what are some low-cost or no-cost strategies that organizations can implement to support employee well-being without straining their budgets?
ReplyDeleteThis comment has been removed by the author.
DeleteYou're right, cost is a big challenge for small businesses. But there are still many lowcost ways to support employee wellbeing. Things like flexible work hours, regular check ins, saying thank you, and creating a positive work environment can really help. Even small actions like recognizing good work or celebrating team achievements can make employees feel valued. It's all about making people feel respected and supported.
DeleteI fully agree that the employee plays an important role in promoting good retention and positive organizational culture. As Armstrong and Taylor (2020) highlight, welfare strategies are no longer an ad-on, but it should be integrated into retention efforts. Organizations that prioritize the good of their employees are more likely to create loyalty, reduce turnover and create a work environment where employees feel valuable and supported. It is clear that HR professionals will need to focus on these strategies as a fundamental part of their long -term retention plans.
ReplyDeleteYes, I agree when employees feel supported and valued, they are more likely to stay and do their best at work. Making employee welfare part of the main plan, not just an extra, really helps build trust and a strong work culture. HR has an important role in making this happen for long term success.
DeleteThis article provides a powerful insight as to why employee well being is not just a name sake strategy ,but is a necessity for any organization to improve employee retention and foster loyalty to the organization . The theories discussed here are insightful and well supported by real world examples such as Google, Unilever and Microsoft .As clearly discussed in the blog ,employee well being is not merely limited to physical health . It covers aspects such as mental well being ,work-life balance etc .... The article has discussed some actionable suggestions which could be implemented by organizations to build a sustainable and positive organizational culture
ReplyDeleteI'm really glad you found the blog interesting. Yes, you're right that employee wellbeing is not just about physical health, but also mental health and worklife balance. It’s great to see how companies like Google and Unilever set good examples. Supporting employees in these areas truly helps build a strong and loyal team.
DeleteDear Mashood,
ReplyDeleteI thoroughly enjoyed reading your article, "The Role of Employee Well-being from a Strategic HRM Perspective," and I fully agree with the insights you shared. Employee well-being is no longer merely an added benefit but a critical driver of talent retention and organizational success.
Your reference to the Job Demands-Resources (JD-R) Model (Demerouti et al., 2001) effectively highlights the importance of mitigating workplace stress while ensuring employees have the necessary resources. Organizations that prioritize mental, physical, and emotional well-being foster a positive work environment, leading to higher engagement and lower turnover.
Additionally, your discussion of Herzberg’s Two-Factor Theory (Herzberg, 1959) underscores how both hygiene factors and motivational elements shape employee satisfaction. By implementing well-being initiatives—such as career development programs, recognition systems, and mental health support companies can significantly boost loyalty and long-term retention.
As competition for top talent intensifies, businesses that strategically invest in employee well-being will undoubtedly gain a competitive edge. Your article excellently reinforces this perspective.
Thank you for sharing such valuable insights!
I appreciate your agreement on the importance of employee wellbeing. It's great to see that you also highlighted the significance of models like JD-R and Herzberg’s Two-Factor Theory in shaping workplace culture. As you mentioned, investing in mental, physical, and emotional well-being can truly drive engagement and retention. It’s encouraging to see that more organizations are recognizing the need for strategic wellbeing initiatives
DeleteThis article rightly emphasizes that employee well-being is a strategic necessity for retention. While companies like Google and Unilever set strong examples, the challenge lies in cost and leadership buy-in, especially for smaller businesses. How can organizations implement impactful well-being initiatives without heavy financial investment? Creative, low-cost strategies like flexible work and a supportive culture might be the key. Thoughts?
ReplyDeleteYou’ve raised a great point. Not every company has a big budget like Google or Unilever, but small changes can still make a big difference. Lowcost ideas like flexible hours, saying thank you, giving regular feedback, and creating an open, caring environment can really support employee wellbeing. It’s more about the mindset and care than the money. When leaders understand this, they can create a positive culture without spending much.
DeleteInsightful post on the importance of employee wellbeing. The connection to frameworks like the JD-R Model and Herzberg's Two Factor Theory really highlights how critical it is to balance reducing stress and enhancing motivation. Well-being truly goes beyond being a 'perk'. It's foundational to employee loyalty and engagement. A great read...!
ReplyDeleteYes, I agree well-being is not just a bonus anymore, but a key part of keeping employees loyal and engaged. It’s great to see how models like JD-R and Herzberg’s theory help explain the real impact of stress and motivation in the workplace. I'm happy you enjoyed the post!
DeleteThis article provides a compelling argument for why employee well-being should be at the forefront of strategic HRM. The connection between employee health, whether physical, mental, or emotional, and retention is apparent. It’s especially insightful how the article draws on models like JD-R and Herzberg’s Two-Factor Theory to explain the direct impact well-being has on employee engagement and satisfaction. The examples of companies like Google, Unilever, and Microsoft show that well-being initiatives can truly make a difference in retention and morale. However, the barriers to implementing such strategies—cost, leadership buy-in, and workplace stigma—are important challenges to acknowledge. It's encouraging to see suggestions for HR leaders to create comprehensive and sustainable well-being strategies, as these are not just “nice-to-have” but essential for building long-term employee loyalty. Excellent insights that will undoubtedly resonate with HR professionals looking to improve retention and engagement.
ReplyDeleteI agree that employee wellbeing is not just a bonus it’s a key part of keeping employees happy and loyal. It’s great to see how companies like Google and Unilever are leading the way. You also made a good point about the challenges like cost and leadership support. With the right mindset and small steps, even simple actions can help build a strong culture of care and support.
Delete