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It is one of the greatest paradoxes in modern business: we have known for years that investing in the well-being of employees is not only good for them, but also for the performance of organizations. Yet the implementation of policies that structurally improve well-being often fails to be implemented. Why?
The Facts Are Clear
Research, such as the report “Workplace Wellbeing and Firm Performance” (2024), shows conclusively that companies with high levels of employee well-being perform better. Happy and engaged employees are more productive, less often sick, and more loyal to their organization. Companies with a focus on well-being also realize higher profit margins, better stock returns, and higher customer satisfaction. Indeed, a portfolio of companies with high well-being scores perform structurally better in the stock market.
The Great Gap
So why aren't these insights being translated into policy? A recent survey of U.S. managers found that 87% recognize that well-being provides a competitive advantage. Nevertheless, only one-third indicated that well-being is a strategic priority within their organization. This gap between knowing and doing requires a deeper understanding.
Obstacles and Misconceptions
There are several reasons why well-being often remains low on the priority list:
- Cost illusion: Many leaders view well-being programs as a cost, not an investment. They are unaware of the proven ROI to be gained.
- Short-term thinking: Many organizations focus on quarterly results and see well-being as a long-term project.
- Lack of hard data: Although more and more research is available, it remains difficult for some companies to directly measure the causal link between well-being and performance.
- Lack of Confidence in Influenceability: Many leaders have the belief that well-being is a personal issue that is primarily in employees themselves and difficult to influence. This misconception ignores the fact that there is overwhelming evidence that both the person and the work context in which they work matter for well-being.
The Way Forward: Consciously Getting Started
What companies need is a combination of awareness and practical tools to effectively improve well-being. This means:
- Translate research into action: Use data and scientific insights to develop concrete strategies and deploy scarce resources where they will pay off most.
- Set measurable goals: Set KPIs for well-being, just as you would for profit or productivity.
- Culture Change: Make well-being a core value of organizational culture, carried by management.
An Invitation to Organizations
As a research firm specializing in organizational development and well-being, we call on companies to vigorously pursue opportunities. The data don't lie: investing in well-being is not only ethically right, but also business smart. Let's work together for a future where well-being is the key to sustainable growth!
