Employee Well Being and Company Performance

Employee Well Being and Company Performance

Employee well being has become an area of focus by many governments and corporations. Most people in the corporate sector regard it as part of the government mandate to ensure that employee well being related legislation is adhered to accordingly (Page & Vella-Brodrick, 2009). Scholars have argued that employee well being plays a crucial role in economic development and insist that organizations need to streamline their operations and business process in consideration to the well being of their employees. Research has also shown that there is a close relationship between employee well being and the effective and efficient performance of human resources in an organization (Tripathi, 2011). This implies that employee well being influences a company’s performance and growth positively. This means that the profitability of a company is affected in absolute and relative terms if it focuses on the employee-well being.

Moreover, the level of competitiveness in the international business environment is a motivation for companies to implement human resource management measures that focus on improving employee well being. This is aimed at increasing employee performance, which directly affects company performance in the market. Companies aim that employee well being will increase the efficiency and effectiveness of human resources. Effectiveness and efficiency will be optimized if the companies produce better quality goods and services, produce more products per unit of production, and reduce the final cost of goods and services to distributors/wholesalers and retailers. This research paper aims to investigate and evaluate the potential impacts of employee well being on the performance of a business/organization.

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Background of the study

Human resource management plays a crucial role in the elevation of an organization’s performance and stability in the market. Many scholars have argued that a combination of human resource activities and business strategy to achieve higher performance levels, profitability, and increased competitiveness (Shibuya, Yoshida & Ho, 2020). Human resource management practices and activities influence the way an organization is managed (Avey, Luthans, Smith, & Palmer, 2010). HRM is defined as a system that requires high commitment and high involvement to be better and more efficient than competitors in the market..

The performance of a company can either be gauged in the short term or long term basis. The success of an organization can also be measured in different ways, such as social acceptance and CSR. Research also shows that well being of workers plays a crucial role in the creation of workplace environments, which makes it enjoyable, exciting, stimulating. A joyful, filled workplace also improves company performance. According to Avey et al., (2010), for an organization to continue being profitable, they must promote the well being of their employees to improve their performance and ensure the sustainability and survival of the organization. Studies have shown that many governments and private entities across the world are increasingly paying attention to employee well-being as they have realized its benefits. To ensure that they achieve their economic targets, developed nations such as the US, China, Russia, Denmark, Canada, encourage companies to ensure that their business strategies and operations are focused around employee well being (Tripathi, 2011). However, it is a challenge for developing countries to enforce laws that obligate organizations to put in place measures that are meant to ensure the well being of their employees.

It is common knowledge that making the working conditions for employees conducive and making them happy, and also ensuring that they are healthy is crucial for the success of any business. Business growth and development is directly related to employee well-being and productivity (Shibuya et al., 2020). The corporate world has accepted that the notion that business success leads to happiness/satisfaction is incorrect. Companies have realized that ensuring the health, well being, and comfort of workers determine the amount and quality of work done. When employees are well engaged and are enjoying working for a business/ company, it means that the rate of turnover is lower. When employees keep quitting, it has adverse effects on the performance and profitability of a business. When an employee position is left vacant, some tasks and duties are left unattended. Clients and potential customers are left unattended, which means they will have to acquire the goods or services elsewhere.

Literature Review

Employee Well Being

Many companies across the world are putting greater emphasis on employee health and well being. According to Page & Vella-Brodrick (2009), employee well-being cannot be directly be defined. However, what this term entails is well understood in the corporate world. Research has shown that healthy and satisfied employees are more productive and contribute positively to the performance and growth of companies. Many scholars have published findings that indicate that employee well being increases organizational performance, profitability, employee citizenship behavior, job efforts, and also reduces the rate of turnover and absenteeism among employees. The management practices in an organization determine the focus given to employee well-being policies implemented in the company.

References

Avey, J. B., Luthans, F., Smith, R. M., & Palmer, N. F. (2010). Impact of positive psychological capital on employee well-being over time. Journal of occupational health psychology, 15(1), 17.

Page, K. M., & Vella-Brodrick, D. A. (2009). The ‘what,’ ‘why,’ and ‘how of employee well-being: A new model. Social indicators research, 90(3), 441-458.

Shibuya, K., Yoshida, M., & Ho, B. Q. (2020, March). Problem Structure for Employee Well-Being in the Workplace. In International Conference on Serviceology (pp. 126-140). Springer, Singapore.

Tripathi, P. (2011). Employee Well-being: Role of Psychological Capital. Amity Journal of Applied Psychology, 2(1).