The pandemic left us all shooketh and work has changed since then, in spite of companies like Amazon and Goldman Sachs doing their best to push us backwards. Employees need more than just a fair paycheck. They’re looking for jobs that care about their overall wellbeing via the benefits they receive. This goes far beyond the marketing and recruiting companies have become so comfortable throwing around. This isn’t a trend either. It represents a big shift in what people expect from their jobs. In fact, the once uncommon Chief Wellbeing Officer (CWO) has become more and move prevalent and today we’re talking about why your organization needs one.
What workers want now
When it comes to what workers want, the fastest path to discovery is in the data. Since the pandemic began, companies have been collecting reams of data around what helps employees stay engaged, motivated, and more importantly, around. Here are a few key highlights from the research:
- Trust – According to a Mercer study, 80% of employees said they believed their company would do the right thing by then in 2022, down to 69% in 2024, putting trust high on the list of must-haves.
- Wellbeing Support – The American Psychological Association found that 67% of workers experienced some form of workplace burnout in the last month. That’s a staggering 2/3 of employees.
- Profit Connection – Gallup discovered that employees with higher wellbeing make for more profitable companies. Their 2024 report showed that companies recognize up to 16% lower profits than competitors with highly engaged employees, with higher wellbeing.
These are only a few examples, but they further demonstrate the momentum of the importance of employee wellbeing. Ultimately, workers care a lot about their wellbeing and want their jobs to care, too. After all, for a place that we devote 1/3 of our working life to, it’s not too much to ask. Not to crap on the office fruit and gym memberships, but it’s not enough and it’s often tone-deaf. Employees are looking for real, meaningful support for their overall wellbeing, and a CWO may be the solution.
The Great Resignation aftermath
If you worked in corporate or watched the news once in 2021-2022, you heard about the “Great Resignation,” and/or “quiet quitting.” These were both clear messages from workers that they need more than the churn and burn cultures of Corporate America. They’re leaving jobs that don’t support their wellbeing for ones that do, and this continues to be a common theme.
An MIT Sloan Management Review from 2022 uncovered some interesting observations about the Great Resignation. For example, a toxic work culture is 10.4 times more likely to make people quit than low pay (Sull et al., 2022). This outpaced the next highest concern (job insecurity and re-org) by 3x, remarkably. It’s easy to take for granted, but a toxic culture is, well, toxic. Employee recognition is another factor. We think because our boss doesn’t tell us something bad that we’re in good shape. However, managers need to understand that employees also want to hear and be told they’re doing excellent work. In fact, not recognizing good work is 2.9 times more likely to drive people away than low pay.
The lesson? Money isn’t everything. People want to work somewhere that cares about their overall wellbeing. That includes the mental, physical, and emotional, parts. They want to feel valued, supported, and part of a positive work culture – not one they believe will cut them with the next flat growth quarter. This is why a CWO may be the missing piece to fill your corporate gaps.
Ignoring wellbeing costs money
As we talked about in previous posts, ignoring wellbeing costs money.
You might think, “We can’t spend money on wellbeing right now.” But not spending on it could cost you more. Here’s how:
- The World Health Organization (WHO) says depression and anxiety cost the global economy US$ 1 trillion each year in lost work. That number is unfathomable and much of it is preventable, through employers.
- 91% of HR leaders reported decreased healthcare costs due to wellness programs
- Nearly two-thirds of HR leaders saw at least $2 in return for every $1 spent on wellness programs
A great example of this in action is the Phifer factory in Tuscaloosa, Alabama. Their employees were struggling to save for retirement due to medical debt, and it was affecting their work. So what did Phifer do? They opened an in-house clinic and offered free/low-cost prescriptions. The result was that employees saved money, paying $394 for a family, compared to the $548 national average, monthly. Then, 90% of employees started hitting their retirement goals, up from 75%, and Phifer saves undisclosed hundreds of thousands in medical costs. This was an easy yes for the company and the outcomes show why. They’re a great example of creative options. Having worked in two companies with in-house clinics the savings were substantial – not only in lost work time, but convenience and overall health costs.
Meet the Chief Wellbeing Officer and why you need one
So, how can companies keep up with what workers want? I’d like to introduce the Chief Wellbeing Officer (CWO).
A CWO isn’t just any C-code. It’s a strategic role that can positively influence company culture, improve productivity by proxy, and help you hire and keep the best people. The entire value prop of a CWO is ensuring your company is a healthy, happy place to work. What’s even better is that the CWO is an ideal role to hire as a fractional position. This is because you can start slowly and control investment costs, as your company scales and realizes value.
You may find yourself asking, what does a CWO even do? A few things may include:
- Create and oversee wellbeing programs
- Work with other leaders to make sure company policies support employee health
- Measure how well wellbeing efforts are working
- Stay up-to-date on the latest research and best practices in workplace wellbeing
- Help create a positive company culture that values employee health
- Partnering with HR to remove the burden of employee engagement from their plate
Investing in a CWO, even a fractional one, shows employees that you’re serious about their wellbeing. It’s a demonstration of real commitment to company wellbeing.
How a CWO is different from HR
It’s easy to see why a dedicated CWO seems to be in conflict with, or duplicating HR’s efforts. However, the conflict is inherent in the HR role. The primary role of HR is to reduce corporate risk and protect the assets of the company. That seems pretty clinical, but it’s for good reason. HR is the “CYA” department, but with less legal-ease. Also, think about the last time you weren’t panicked about seeing a meeting or email from HR. Go ahead…I’ll wait.
The reality is that you cannot create psychological safety and positive wellbeing, when the team responsible is also the team responsible for hiring, firing, and discipline. There is a psychological conflict and barrier for employees, by default. As we learned from the Mercer study, trust is paramount and it’s only by uncoupling employee wellbeing from the other standard HR tasks that we can truly embrace trust. That’s why separating employee wellbeing from the standard HR role is so transformational.
Where to go from here
If your company has a fractional or full-time CWO, congratulations! You’re already among companies on the leading edge of corporate leadership. If not, it’s never too late to get started. In fact, I can help. Let’s talk about how a CWO can help move your company forward and ensure your employees are setup for long-term success. Not quite ready? That’s OK! Check out the blog for more insights on corporate wellbeing or peep the Pomona Wellness Substack for behind-the-scenes happenings. Looking to learn more? Book a conversation to learn more about how a CWO could be just the secret to up-level your organization’s employee wellbeing effort(s).
Don’t let your company fall behind. It’s time to think about getting a fractional CWO. Your employees – and your bottom line – will thank you.
Resources
American Psychological Association. (2024). 2024 Work in America Survey. https://www.apa.org/pubs/reports/work-in-america/2024
Baicker, K., Cutler, D., & Song, Z. (2010). Workplace wellness programs can generate savings. Health Affairs, 29(2), 304-311. https://doi.org/10.1377/hlthaff.2009.0626
Deloitte. (2024). The Deloitte Global 2024 Millennial and Gen Z Survey. https://www.deloitte.com/global/en/issues/work/genz-millennial-survey.html
Gallup. (2024). State of the Global Workplace: 2024 Report. https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx
Mercer. (2023). Global Talent Trends Study 2023. https://www.mercer.com/our-thinking/career/global-talent-hr-trends.html
Shi, Y., Sears, L. E., Coberley, C. R., & Pope, J. E. (2013). The association between modifiable well-being risks and productivity: A longitudinal study in pooled employer sample. Journal of Occupational and Environmental Medicine, 55(4), 353-364. https://doi.org/10.1097/JOM.0b013e3182851923
Society for Human Resource Management. (2024). 2024 Employee Benefits Survey. https://www.shrm.org/topics-tools/research/employee-benefits-survey
Sull, D., Sull, C., & Zweig, B. (2022). Toxic culture is driving the great resignation. MIT Sloan Management Review. https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/
Wellhub. (2024). 2024 Return on Wellbeing Report. https://assets-cdn.gympass.com/docs/Lead-Magnets/US/ROW24/US_ROW_REPORT_167eed42d9.pdf
World Health Organization. (2022). Mental health and substance use. https://www.who.int/teams/mental-health-and-substance-use/promotion-prevention/mental-health-in-the-workplace