Well-being and performance: can organizations have both?

Employee well-being is about being healthy, happy, and fulfilled at work and in everyday life. It covers physical, mental, social, and financial aspects of employees' lives. Performance is crucial for organizations to deliver value to customers and shareholders, and can be influenced by various factors, such as skills and rewards, but also motivation, engagement levels and company culture. 

These two concepts appear contradictory. How can organizations create a caring environment that supports employee well-being while at the same time driving performance? Employee empowerment is at an all-time high and talent retention is harder than ever, and yet in an increasingly competitive and turbulent environment, businesses must also prioritize productivity, results and the bottom line. It is essential for leaders to find the right balance. 

These two seemingly opposite goals are on a spectrum, where we need to dial up (or down) each priority according to the needs of the individual and the business. It is possible to hold these two objectives simultaneously, and in fact they are closely linked.  

Whether we notice it or not, each of us have micro and macro cycles of performance, and by losing our equilibrium, or that of our team, we risk the ability to rise to the challenge of high achievement long-term. To use a sporting analogy, elite performers only peak a few times a year and at other times they are managing their effort levels, incrementally building or resting and recuperating so that they can go again. Even veteran performers need the guidance of a coach to notice when there is danger of becoming unbalanced, or of not reaching their goals. 

In the world of business, the frequency and length of our performance peaks can outdo those of sportspeople, but we must still pay careful attention to getting the balance right. I would also argue that the right point on this spectrum for most businesses today is to err towards well-being, due to its capacity to feed back into performance and ROI across several metrics. 

Employee well-being is not only important for individuals, but also for organizations if they want to have sustainable, high levels of performance. 

In a 2020 Gallup poll, only 27% of UK workers believed that their company cared about their well-being. This is despite further research from Gallup finding that teams with higher employee engagement and well-being experienced 21% greater profitability, 41% reduction in absenteeism, and 59% reduced turnover. 

On the financial front, studies have found at least a 3x ROI for every dollar spent on employee well-being, largely due to reduced attrition and absenteeism – this could be even higher when the increased productivity of a happy workforce is factored in. 

One way that coaches can help organizations to strike this balance is by supporting them to adopt an holistic approach to well-being through coaching. Coaches help individuals, teams, and the whole organization to align their business strategy and culture with individual and collective needs. A great coach will equip employees with the tools needed to reach their potential and perform in their role, while also noticing their own personal needs for rest and reflection. 

A study by the International Coach Federation (ICF) found that companies that invested in executive coaching saw an average ROI of nearly 7 times the initial investment, with some organizations reporting an ROI as high as 49 times the cost. According to the ICF, around 76% of individuals who underwent coaching sessions reported an improved work-life balance, which is critical for overall well-being.  

Here at Hult EF Corporate Education, we provide coaching services to empower employees to be the best version of themselves and increase their capacity to drive change. Our coaching can help employees to develop their self-awareness, resilience, emotional intelligence, and growth mindset, which are essential for both well-being and performance.