Employee engagement is falling for the first time in a decade. A recent Gallup survey revealed a drop from 36% of engaged employees in 2020 to 34% in 2021. The pattern followed organizations into 2022, with 32% of employees engaged and 18% actively disengaged.
Many businesses have or plan to roll out corporate wellness plans to boost engagement and overall employee participation rates.
Growing Need for Corporate Wellness Plans
With fierce competition across many industries, today’s employers feel pressured to actively attract and retain talent, maintain an engaged workforce, and maximize productivity. Corporate wellness plans are programs that organizations can use to enhance the health and wellness of their employees.
Examples of resources that a corporate wellness program may offer include:
- Nutritional guidance, such as weight loss management
- Fitness incentives, such as free or low-cost gym memberships
- Stress management, such as yoga classes
- Injury prevention, such as stretching exercises
- Mental health support, such as depression screenings
- Smoking cessation, such as quitting tobacco or nicotine resources
- Financial wellness support, such as retirement account webinars
- Wellness activities, such as walking challenges
Modern Mental Health Status for Employees
Approximately 64% of employees reported that they were struggling with mental or behavioral health issues, according to a 2023 State of the Workplace Health report. The report also showed that 91% of these employees felt that they were less productive due to their mental health status.
Modern Physical Health Status for Employees
The One Medical report also touched base on the physical health status of modern employees, with approximately 34% saying that their physical health has worsened since 2022. According to research from the Integrated Benefits Institute (IBI), the poor health of employees costs U.S. businesses $530 billion and 1.4 billion work absences each year.
How Wellness Plans Impact Employee Behavior
Improving employee behaviors is a major goal of most corporate wellness programs. When employers take steps to improve the behaviors of their workforce through initiatives such as wellness plans, they can help reduce employee health risks and promote healthier habits.
Wellness programs can encourage employees to eat healthier, stay fit, stop smoking, and manage stress more effectively.
Employee Engagement Rates and Why They Are Important
Employee engagement is a leading indicator of overall work satisfaction. Low employee engagement rates could shine a light on negative factors in the workplace, such as poor company communication and a lack of recognition by managers.
When organizations improve employee engagement rates, they often experience long-term employee retention, improved quality of work, higher employee performance, and increased organizational success.
The Correlation Between Employee Wellness and Productivity
Employee wellness and productivity are closely linked. Employees who experience physical, mental, or emotional struggles are less likely to be engaged at work, resulting in reduced productivity.
In addition, employees who do not feel well are more likely to miss work due to an illness. This can lead to disruption in the workplace as team members can fall behind on projects or overlook important details.
Why Improved Employee Behavior Benefits an Organization
Employee behavior in the workplace directly correlates to business operations and the overall success of an organization. While unprofessional employee behaviors can thwart productivity, reduce morale, and contribute to a poor public image, professional employee behavior can improve collaborative work products and enhance the status of a company.
Improved employee behavior touches many workplace areas, from productivity and public perception to recruitment and retention. Well-trained professionals can thrive in a collaborative team environment and work together toward common goals.
Reduced Costs from Absenteeism
While it is common for employees to miss work occasionally, poor or unprofessional employee behavior can lead to a high absenteeism rate. Incorporating corporate wellness programs has been found to help reduce absenteeism and the costs associated with loss of productivity.
Wellness plans can also help reduce or prevent the severity of injuries, illnesses, and mental health issues that can force employees to miss work.
Reduction in Employee Turnover Rates
Employee retention is a common struggle among organizations across all industries. High employee turnover rates can have significant organizational and financial effects, including reduced productivity, decreased morale, and increased recruitment and training costs.
Corporate wellness programs give employees more resources to improve their work-life balance, better manage their health, reduce stress, and create a positive workplace culture. Employers can dramatically reduce employee turnover rates by promoting healthy behaviors and habits.
Corporate Wellness Plan Consulting from New City
Corporate wellness plans are an affordable solution for lowering healthcare claims and improving employee health. When you contact New City Insurance about corporate wellness plan consulting, we will develop a tailored wellness plan that is customized to meet the unique needs of your organization. For more information, reach out to New City today at 888.210.2765.