Today, employee wellbeing and workplace wellness are no longer just buzzwords – they are integral to organisational success. But leaders may have to rethink what wellbeing means if they want to keep morale high and keep productivity at its highest levels. Let’s explore what this means for executives and the corporate culture in Australia.

Is Australia in a workplace wellbeing crisis?

In recent years, corporate investments in employee wellbeing have skyrocketed. But a new Gartner survey indicates that Australian workers are at the precipice of a wellbeing crisis: the study concludes that employee wellness started to decline in late 2022 and continues to fall to this day. 

The same survey found that financial, physical and mental wellness is now at an all-time low of 22.5% and 25.3%, respectively. This data suggests that some three-quarters of Australian employees feel overwhelmed and enjoy a poor work-life balance due to the demands of their jobs. Similar findings emerged from Indeed’s 2023 Workplace Wellbeing Report, which revealed that fewer than one in four workers (23%) are thriving at work.

Declining wellness is a notable trend with significant implications for employee morale, engagement and productivity. So, it’s high time for decision-makers to take the lead and spearhead a paradigm shift regarding wellbeing in the workplace.

Why leadership is crucial for employee wellbeing

The 2023 Indeed Workplace Wellbeing Report also revealed that a majority of workers (60%) initially turn to their direct managers for support when experiencing mental health challenges, followed by 20% who would first reach out to a colleague. Worryingly, only a mere 7% of workers initially approach HR for support. These figures seem to suggest a lack of confidence or trust in HR as a resource for addressing mental health issues.

What this makes clear is that leadership plays a pivotal role in resolving these issues and establishing and fostering a culture of workplace wellbeing. Ideally, employees should be encouraged to have open discussions about mental health matters and to prioritise their wellbeing without fearing repercussions. Interestingly, research has shown that the impact of leadership on employee wellbeing is the same whether staff work in the office or remotely.

When tackling the impending wellbeing crisis, Australian CEOs and executives do well to embrace a holistic approach to workplace wellbeing. A workplace report by the Australian HR Institute shows that wellbeing initiatives are most effective when they comprise mental, physical and social aspects of employees’ lives.

Fostering employee wellbeing isn’t just about offering free gym memberships, a weekly corporate massage service or mental health days. Business leaders might be encouraged to build a workplace culture that promotes all staff members' physical health, mental resilience and social connectedness. Given that a significant majority of employees initially confide in their direct supervisors, there is a real opportunity here to systematically train these managers and equip them with the skills and knowledge to handle mental health conversations and advise their team on what resources are available for support.

Rethinking workplace wellness and wellbeing

According to the Black Dog Institute, poor mental health at work costs the economy billions. With mental health being one of the pillars of workplace wellbeing, this can only mean leaders are well advised to take proactive measures to address mental health challenges in their workforce. 

A first step might be to recognise that mental health challenges are pervasive and can affect anyone in their organisation. Reducing the stigma and encouraging staff to seek help when needed are important components of any effective corporate wellbeing strategy.

Similarly, research by Deakin University urges corporate decision-makers to rethink employee wellbeing beyond the superficial perks, as traditional leadership approaches typically neglect the fact that employee wellbeing is multidimensional. Employee wellbeing should be a strategic imperative rather than just ticking a box on a checklist.

Successful organisations incorporate the wellbeing of their staff in their business objectives. In concrete terms, this means re-evaluating workloads, promoting a better work-life balance and investing in employee wellness and personal growth opportunities. 

Given that ‘Australian jobseekers remain keenly interested in remote work’ according to Indeed Hiring Lab’s Senior Economist, Callam Pickering, allowing staff to work from home where feasible will also likely boost their overall wellbeing and engagement.

Diversity, equity, inclusion and belonging are deeply connected to employee mental health; belonging cultivates comfort, connection, and contribution. This makes DEI another important pillar of a successful employee wellbeing policy and an effective recruitment strategy. Embracing this can enable your managers to hire with the positive effects of diversity in mind.

Employee wellbeing and its effect on business

The positive effects of wellbeing on employees as human beings are crystal clear. But did you know that your organisation as a whole can also benefit if you make workplace wellbeing a priority? 

In fact, focusing on workplace wellbeing is not just a moral obligation; it’s a smart business decision. Companies that invest in their staff's wellbeing typically experience several benefits. These include:

  • Lower staff turnover: A positive workplace culture that promotes wellbeing reduces staff turnover rates and the associated costs of recruitment, onboarding and training.
  • Increased morale and productivity: Indeed's own 2022 Workplace Wellbeing Report found that stressed employees are more likely to lose concentration, become less motivated and make more mistakes. Conversely, workers who are physically and mentally well tend to be more productive and engaged in their work. The last thing you want in your organisation is ‘grumpy staying’ – discontent staff who stay on but are unhappy and thus less productive.
  • Enhanced employer reputation: Organisations that care about employee wellbeing typically enjoy a better reputation in the market, which makes it easier to attract top talent.
  • More innovation and creativity: If your staff are well-rested and mentally healthy, they are more likely to think out of the box and come up with innovative ideas.
  • Cost savings: Investing in preventive measures for employee wellbeing can save you money in the long term, for instance by reducing health-related absenteeism.

Actionable steps towards wellbeing for business leaders

Now, you may agree that wellbeing in the workplace is important, but what specifically can you do today to support your staff best? 

Given the looming wellbeing crisis discussed earlier, embracing workplace wellbeing as a strategic priority can make all the difference when it comes to positioning your business for long-term success in the market. Here are some actionable steps you may want to consider:

Conduct a wellbeing assessment

You can start by assessing the current state of employee wellbeing within your organisation. Surveys are a handy tool to gain insights into your staff’s needs and challenges. This is especially important given 50% of workers believe that mental health and wellbeing needs in the workplace are likely to increase over the next two years, according to Indeed’s 2023 Workplace Wellbeing Report. Without proper acknowledgement and support of mental health concerns, those who have experienced mental health challenges in their current role are more likely than their colleagues who haven’t to consider leaving in the next 12 months (56% compared to 34%). In fact, nearly three-quarters of workers (73% vs 68% in 2022) agree that mental health and wellbeing is a key factor in employee retention. These figures serve as a great reminder for leaders to increase their efforts in championing impactful mental health initiatives in their businesses.

Develop a wellbeing strategy

Once you know where you stand and where there might be shortcomings, create a comprehensive wellbeing strategy that encompasses physical, mental and social aspects. Such a policy could include targeted leadership training for your managers and initiatives that promote a healthy work-life balance. Keep in mind that your wellbeing strategy can include anything from tiny steps to overarching concepts.

Dana Mrkich, Holistic Coach and Workshop Facilitator at Holistic Services Group, for example, advises that simple meditation and mindfulness techniques are enough to shift mindsets and have a positive impact on workplace wellbeing. You can start as small as introducing mini one- minute breathing breaks between meetings or calls.

Raise awareness

Remind your workers and executives about the importance of their own wellbeing and the resources available to them. Reduce the stigma around mental health and encourage open dialogue across all levels within your organisation. Although there’s still some way to go, it’s promising to see that Australian organisations are already making progress in this area. According to data in Indeed’s 2023 Workplace Wellbeing Report, many Australian workers are reporting increased levels of happiness, satisfaction and purpose compared to the previous year. While only 60% reported feeling happy at work most of the time in 2022, this figure rose to 68% in 2023 and is higher than the average of 56% across other international markets surveyed.

Foster a culture of wellbeing

Leadership plays a crucial role in setting the tone in any organisation. Encourage your managers and executives at all levels to lead by example and foster a culture of kindness where employees feel safe to discuss their wellbeing concerns. In fact, 36% of respondents in the 2023 Indeed Workplace Wellbeing Report confirmed that a company culture that promotes a greater work-life balance would be more likely to make them want to stay in their jobs.

Invest in resources

When you sign off your budget, check that enough resources are allocated to employee wellbeing programs, including mental health support, wellness initiatives and training programs. Remember that these are investments in your organisation's future. As Annika Rose, Founder of The Wellbeing Collective points out in the 2023 Indeed Workplace Wellbeing Report, ‘Today’s employees want and need mentally healthy workplaces, and this requires an ongoing commitment, considerable investment and oftentimes, a significant culture shift.’

Measure and adapt

Try to measure the impact of your wellbeing initiatives on an ongoing basis and be prepared to adapt them as needed. In particular, regular feedback from your staff coupled with data analyses can help you refine your approach. In the latest Indeed Workplace Wellbeing Report, Amanda Gordon, Indeed’s Corporate Psychologist, explains that ‘In order to remain highly competitive and attract and retain the best talent, it’s necessary for organisations to first engage in an honest evaluation of their internal culture and practices and consider how they can better nurture their existing workforce.’

Prioritising people is worth it

All in all, the state of workplace wellbeing in Australia seems to be at a critical juncture, and business leaders have a crucial role to play. Embracing a holistic approach to employee wellness and wellbeing is a strategic advantage and makes good business sense, as it may unlock your staff’s full potential and thus strengthen your organisation in the rapidly evolving Australian market. In a nutshell: it’s time to prioritise people – and the profits are sure to follow.