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A new report from the Johns Hopkins Carey Business School has revealed a steady decline in workplace wellbeing across the United States in recent years.
The decline comes as employers scale back on the supportive, flexible work environments implemented during the COVID-19 pandemic.
The annual survey, conducted by Carey's Human Capital Development Lab in partnership with Great Place To Work, gathered data from over 1.5 million individuals at more than 2,500 US organizations between 2019 and 2023. The findings are detailed in a report titled Well-Being At Work: Fostering a Healthy Work Climate for All.
Key findings from the survey included:
Workplace wellbeing peaked at the start of the pandemic in 2020 but has since regressed as workers return to offices and lose some of the flexibility that provided work-life balance.
Female, African-American, and younger employees scored lower in wellbeing compared to male, white, and older colleagues. This gap underscores the need for organizations to address equity, inclusion, and belonging for all employees.
While all surveyed industries experienced a downward trend, the health care, retail, and hospitality sectors recorded the lowest levels of workplace wellbeing.
Executives and managers reported higher levels of wellbeing, potentially leaving them "out of touch with their employees."
Companies with high levels of wellbeing demonstrated that proactively addressing employee wellbeing makes good business sense, as poor mental and physical health in a workforce can erode profits through higher staff turnover, decreased engagement, reduced customer service, and increased health care costs.
The research measured key dimensions for fostering corporate climates of wellbeing, including mental and emotional support, sense of purpose, personal support, financial health, and meaningful connections.
Michelle Barton, a Carey Business School associate professor and co-author of the study, said: "The COVID pandemic heightened employers' awareness of the importance of wellbeing, and many of the best organizations worked to create a positive work climate. The challenge now will be to integrate those practices into everyday work life, rather than simply as a crisis response."
Rick Smith, faculty director at the Human Capital Development Lab and co-author of the study, added: "Improving employee wellbeing can be complex—our research highlights a need for leaders to address organizational culture factors coupled with a more nuanced management approach to create a climate of wellbeing for all."
The survey found that leaders who enjoyed a "great deal" of confidence from employees and who continued to allow flexible and remote work options experienced higher levels of workplace wellbeing. The highest levels were observed at companies that prioritized trust in leadership, pride in work, and connections among colleagues.
The report concludes by suggesting that organizations can create a positive workplace culture conducive to employee satisfaction and productivity by involving employees in decision-making processes, fostering fair management practices, encouraging work-life balance, and connecting employees to meaningful work
