By Cassidy Cloward, Landon Overturf, Calum Reid, Mariana Rodriguez, and Kayla Wiest

*All authors contributed equally to this paper

Imagine having access to chiropractic and massage services, fitness centers, classes, community bikes, and healthy food options while at work – sound too good to be true? It’s a reality for Google employees and other companies are following suit. Research studies have shown that it’s money well spent; positively impacting the performance and retention of employees while decreasing absenteeism (Chien-Hung, I-Shen, & Jia-Chern, 2017; Elia & Rouse, 2016; Wright, 2009).

I. Why Manage Employee Wellness?

We are taught early in management courses that creating an environment where employees flourish is key to achieving company success. There are several ways managers can do this and one effective method is gaining traction: managing employee wellness.

Evidence shows that employee health, job satisfaction, and performance are strongly correlated. A 2015 study based on 433 workers in a variety of organizations found that: 1.Employee health has a noticeably positive impact on job performance; 2.Employee health has a noticeably positive impact on job satisfaction; 3.Job satisfaction has a noticeably positive impact on job performance (Chien-Hung et al., 2017). Managers who wish to increase the performance of employees should emphasize their health and well-being.

The Bellingham-based, professional society for optics and photonics technology, SPIE, provides comprehensive wellness benefits similar to Google. Employees are rewarded for bike commuting and daily exercise while lunchtime volleyball matches, yoga classes, and standing desks are available to all employees. A current IT employee commented, “Whether it all directly contributes to better job performance I can’t say for sure but I know it contributes to job satisfaction which is surely a factor,” (Personal communication, 2020).

It’s no secret that employee turnover is costly – associated expenses include recruitment, screening, and training. Research has shown that the cost of an employee quitting their job is between 1.5 – 2.5 times the individual’s salary (Wright, 2009). Understandably, employee retention is a hot topic among management, and one influenced by the psychological well-being of employees.

Historically, job satisfaction has been a key predictor of employee turnover (Wright, 2009). This indicator combined with the previously mentioned findings of Chien-Hung et al., that health and job satisfaction are significantly correlated, suggests that employee health (and psychological well-being) may also predict turnover.

This idea is further supported by psychologist Stevan Hobfoll’s Conservation of Resources Model which suggests that low job satisfaction and psychological well-being may be attributed to the work environment, causing employees to change jobs in an effort to remedy the undesirable situation (Wright, 2009).

Seattle-based medical distributor, CoMedical Inc., is considering including a meditation room in their new building to create a more relaxing work environment and increase job satisfaction among employees. President of CoMedical Inc., Griff Overturf explains, “We feel that it is important to invest in our employees’ wellness. A healthy, relaxed employee increases productivity and supports our mission as a company.” CoMedical realizes that investing in employee wellness not only aids in retention but also improves employee performance.

In addition to increasing employee performance and retention, workplace wellness programs reduce absenteeism and associated costs. A two-year study of 820 participants from 28 companies found that implemented wellness programs improved the amount of physical activity, water consumption, and nutrition among subjects by 53, 59, and 51 percent, respectively (Elia & Rouse, 2016). Diet and exercise strengthen the immune system making employees less susceptible to common illness and translate to fewer sick days.

Quantifiably, the reduction in absenteeism equated to 1.5 – 1.7 fewer missed days per year and a savings of $251 per employee. Participating companies saw a return of $3.27 for every dollar invested (Elia & Rouse, 2016). That sounds worth it to us.

II. How to change employee behavior.

Leadership style and related behavior have been shown to influence the performance and well-being of employees (Derue, Nahrgang, Wellman, & Humphrey, 2011). In the case of managing employee wellness, effective leadership results in the accomplishment of a shared goal. A goal that establishes group structure and promotes greater task productivity in follower performance, leading to higher employee satisfaction; this is most common among leaders who express task-orientational skills (Derue et. al., 2011). Setting attainable, shared goals with employees increases intrinsic motivation and leads to higher job satisfaction and retention.

There are two ways in which leadership effectiveness is influenced – by individual traits of leaders and by how those traits are received by employees (Derue et al., 2011). Personality traits such as extraversion and openness to experience predict what kind of behaviors a leader might possess. For example, extraverted leaders are more likely to seek input from subordinates and find ease when setting a vision (Derue et al., 2011). Managers in the 2016 Elia & Rouse study exhibited similar characteristics when targeting the relevant needs of employees while setting a vision that was consistent with the organization.

Additionally, a leader high in openness to experience will challenge assumptions, recognize external factors, and intervene when necessary when they find their employees in need of such support (Derue et al., 2011). This trait is particularly desirable during the implementation of new wellness related programs when it is essential to challenge limiting assumptions, recognize, and address external factors which may impede the successful participation of employees.

Understanding behavior change at the individual level is crucial for the long-term success of wellness programs in the workplace. Logie-MacIver, Piacentini, & Eadie (2012) considered the social context and environmental factors which impact sustained behavior change.

In an 18-month study of 40 people with a minor bowel disease who were advised to make dietary changes, participants were interviewed three times to qualify their success. Participants with the most success making and maintaining changes had: 1.A functional knowledge of healthy eating; 2.Long-term goals; 3.Social support (Logie-MacIver et al., 2012). These findings provide a useful framework for the implementation of wellness related programs. Workplaces provide an inherent structure of social support but a focus on education and collaboratively setting long-term goals should prove to be even more successful.

III. Conclusion

Employee wellness is becoming the preventative perk of workplace benefits. A healthy body and mind translate to fewer sick days and more engaged employees (Elia & Rouse, 2016; Chien-Hung et al., 2017). Wellness initiatives also create a more satisfying work environment, a major component of employee retention (Wright, 2009). These initiatives seem to be relatively new and while more research is needed to quantify the benefits of specific programs, the broader practice of managing employee wellness seems to be a potentially powerful stone with which to drive away several pesky birds.