{"id":69521,"date":"2023-10-19T09:00:43","date_gmt":"2023-10-19T01:00:43","guid":{"rendered":"https:\/\/primer.com.ph\/blog\/?p=69521"},"modified":"2023-12-19T11:58:28","modified_gmt":"2023-12-19T03:58:28","slug":"social-aspect-of-esg-fostering-employee-well-being-in-the-workplace","status":"publish","type":"post","link":"https:\/\/primer.com.ph\/blog\/social-aspect-of-esg-fostering-employee-well-being-in-the-workplace\/","title":{"rendered":"Social Aspect of ESG: Fostering Employee Well-Being in the Workplace"},"content":{"rendered":"

The “Social” category of ESG pertains to how the company interacts with and impacts people around its circle of influence – both internally and externally. While there is a wide array of social issues such as labor relations, diversity, equity, inclusion and belongingness, protection of human rights, well-being and community engagement, this article will focus on the topic of employee well-being and how organizations can foster a safe, healthy working environment for employees. <\/b><\/span><\/p>\n

The World Health Organization (WHO) defines well-being as when \u201cpeople flourish and achieve their full physical and mental health potential throughout their lives and across generations.\u201d<\/span><\/p>\n

\"\"IMAGE from Pexels<\/span><\/em><\/p>\n

Why is it important?<\/b><\/span><\/p>\n

Harvard Business Review (2021) argues that improvements in worker well-being programs can bring about positive business outcomes such as increased productivity, higher individual and organization performance and reduction in cases of employee burnout. <\/span><\/p>\n

According to the Gallup Global Workplace Report for 2023, 68% of employees in Southeast Asia are not engaged (classified as \u201cquiet quitting\u201d) or not actively contributing to the growth and development of the organization. They deliver the bare minimum requirement. Moreover, the Philippines ranked 1st<\/sup> for being most stressed among Southeast Asian employees. In the same study, Gallup reported that low employee engagement costs the global economy $7.8 trillion, hindering growth potential for businesses. <\/span><\/p>\n

To unlock employees\u2019 potential and drive optimal performance, more and more leaders recognize the importance of addressing employee well-being issues to drive overall organizational performance. Prioritizing well-being tends to produce more engaged and motivated employees, who contribute positively to the organization. <\/span><\/p>\n

How can organizations foster employee well-being? <\/span><\/h2>\n

In the 2023 JCCIPI Wage Survey, NRI Manila reported that 34% of its respondents indicated \u2018Employee Wellness\u2019<\/b> as one of the top programs that drive motivation and retention of employees. <\/span><\/p>\n

The growing conversation on sustainability and employee well-being represents a profound transformation in business leaders\u2019 appreciation of the workforce. From the human capital perspective where employees are viewed as mere \u201cassets\u201d to be maximized, to treating them as \u201cstakeholders\u201d, whose health, happiness, and engagement are pivotal in driving long-term business success. <\/span><\/p>\n

In the topic of employee well-being, what sets a surviving versus a thriving organization is how business leaders can shift their mindset and perspective on the following paradigm. <\/span><\/p>\n

Work vs. Life <\/b><\/span><\/p>\n

Much has been said about the benefits of work-life balance \u2013 as if work and life are two opposing concepts that need to be weighed and equally valued. However, the pandemic has changed the conversations on work-life balance. Employees are no longer seeking to find balance between work and life \u2013 they have come to the realization that work is indeed just a part of life.<\/span><\/p>\n

NRI\u2019s Total Well-being Framework<\/b> shows how employees traverse these five (5) domains as they improve their quality of life. As companies promote a workplace environment that supports holistic development, organizations create a more positive employee experience and improve quality of life for employees, resulting to increased job satisfaction, higher productivity, and a more resilient workforce.<\/span><\/p>\n

For a Better Employee Experience (EX) and Quality of Life (QOL)<\/strong><\/span><\/p>\n

\"\"<\/span>IMAGE from NRI Manila<\/span><\/em><\/p>\n

Employee training and development has expanded from knowledge and skills building to overall talent development. Unilab, Inc., the country\u2019s leading healthcare company has launched its \u201cLife Matters\u201d program which covers all these five domains with initiatives from financial literacy for young\/new to workforce employees to retiring employees, to employee-led advocacy programs under the banner program \u201cAlagang Unilab\u201d (care for community). This program created a shared value between management and its employees standing in unity to serve its communities and various stakeholders.<\/span><\/p>\n

Appreciation for the holistic development of employees can be seen in the evolving regulations and initiatives in the country. DOLE (Department of Labor and Employment) mandated workplaces to implement mental health programs to support employee welfare and well-being (Rappler, 2022). This policy aims to raise awareness and provide access to support for Filipino workers with mental health issues. The Department of Health (DOH) sponsored by the World Health Organization (WHO) and Australian government also launched \u201cThe Wellness Movement\u201d for Filipino healthcare workers nationwide in January 2023. <\/span><\/p>\n

On average, 54% of Filipino workers experience a decline in their well-being, and a substantial 10% of the workforce is currently grappling with mental health crises. Among industries, those in the knowledge-based sectors \u2013 specifically IT, Finance, Media and Advertising, and Utilities \u2013 are facing greater wellness issues (Rappler, 2022). <\/span><\/p>\n

Given this context, many companies integrate wellness programs that encourage healthy behaviors among employees. These programs not only enhance well-being but can also reduce healthcare costs and absenteeism, contributing to sustainability by optimizing resource allocation. Conglomerates in the Philippines such as Ayala, Aboitiz, Unilab, etc. have established a comprehensive Employee Assistance Program (EAP), providing employees with access to 24\/7 mental health support. While utilization rate is quite low, the future of EAP is to \u201cfunction as an enabler of a holistic culture of wellness by supporting intersectional needs such as nutrition, rest, and mindfulness.\u00a0What companies can take away is that mental health is for everyone, and that means meeting everyone\u2019s special needs the way that they can best adapt to them\u201d (Rappler, 2022). <\/span><\/p>\n

Today, the discourse on employee well-being has expanded beyond physical well-being to a more holistic perspective including physical, emotional, financial, social, career, community, and purpose. At the heart of this is the growing need for flexibility in where, when, and how employees work.<\/span><\/p>\n

Track vs. Trust<\/b><\/span><\/p>\n

Flexible work arrangements took center stage due to lockdowns during the pandemic. Suddenly, workplaces had to adapt to an online (work from anywhere, anytime work environment). While most companies have started to Return to Office (RTO), majority have experienced the benefits of a hybrid setup and are looking to carry this on for the long-term. <\/span><\/p>\n

In the 2023 JCCIPI Wage Survey, NRI Manila reported that out of 221 respondents, 35% are implementing flexible work arrangements in terms of working hours and \/ or location. With the flexible work arrangements, companies view of \u201cattendance\u201d and absenteeism needs to be revisited. <\/span><\/p>\n

The primary goal of leaders is to enhance the performance of their teams. Historically, measuring productivity has been challenging, and one straightforward method has been to assess employees’ presence in the office. However, being physically present at the workplace does not necessarily correspond to being productive, especially in today’s environment where employees are often located in various geographic locations.<\/span><\/p>\n

In NRI Manila\u2019s 2023 HR Global Outlook Report, it was stated that instead of monitoring whether work is done, it is more crucial to ask HOW work is done.<\/span><\/p>\n