I believe there is a simple but meaningful circular process that makes sense of the way this should be applied to a business context.
This ‘virtuous circle’ starts with the assertion that value creation involves three parties: customers, shareholders and employees.
Logically, the only way to general value for the shareholders is to have enough of the right kind of customers. Only if you’re offering value to your customers, will the shareholders reap the rewards. And similarly, in order to create value for customers, we have to invest in giving value to employees.
It’s no coincidence that those organisations that engage with their employees the most have higher loyalty and retention levels, and there is a direct relationship between this and shareholder value.
On Henley’s Executive Management Programme (EMP) we speak at length about the need to engage with employees so that we gain their commitment, and not just their compliance. This fundamental difference is what increasingly separates sustainable from unsustainable businesses.
Having employees who have a shared purpose and are willing, able and WANT to go the extra mile is crucial in gaining a competitive advantage, and wellbeing is a key driver.
Treating your employees better will attract a higher level of talent too
Competition for the best new talent that comes onto the market each year is intensifying, and surveys of business owners are increasingly citing the acquisition of the right individuals as one of the top three factors for the future success of the organisation.
As the scramble for the top performers grows, the demands from the candidates take on growing value too, and most talented individuals are no longer prepared to accept terms and conditions that will lead them to burn out.
Therefore, the bar is being raised, and raised again. Employers are recognising the trend, and are making strenuous efforts to provide employees with flexible working (in terms of schedules and locations), healthcare screenings and insurance, mental health first aid, exercise facilities, better food options and nutritional advice, and specific areas designed for creativity or contemplation.
And some companies now define productivity expectations purely in terms of the output, rather than any set number of working hours.
What are the benefits of greater employee wellbeing?
The conclusion of all this is not just that healthier employees work harder for you.
The benefits extend to:
improved retention, and therefore less money wasted on training and recruitment
reduced costs of healthcare for the organisation
an enhanced brand reputation in the marketplace, leading to greater attraction of higher calibre talent
a greater sense of community, higher morale and a greater capacity to grow.
Delivered by business experts, academics and practitioners, the Henley EMP is designed for anyone rising from a functional or operational management position into a role with greater responsibility across the organisation.
As well as helping to boost self-confidence of participants, we challenge their thinking and enhance their business performance. We help people to increase their ability to engage with their peers, their teams, clients, suppliers and other stakeholders. We empower them to inspire the people around them, and influence them in ways they could not have believed possible.
And by doing so, we ensure that they are better equipped to see the big picture, make sound judgements and be a part of a winning team.