The Importance of Corporate Well-Being: A Key Factor for Sustainable Success
*By Florencia Lafuente
“Well-being is wealth,” concluded linguist George Lakoff and philosopher Mark Johnson in a joint study. The concept of organizational well-being has gained increasing importance in the business world in recent years. Organizations are realizing that sustainable success is not limited to environmental or financial results, but also includes the well-being and happiness of its employees.
Today, the concept of “sustainable well-being” is being discussed, which is achieved when the improvement of individual well-being is correlated with the improvement of the well-being of other members of society and the natural environment. The greater the well-being, the greater the productivity and work efficiency. Numerous studies have shown that employees who feel valued, supported, and satisfied in their work perform better. According to a report by the International Labor Organization (ILO), workplace well-being increases employee productivity by 20%.
Well-being also contributes to reduced absenteeism and staff turnover. According to Gallup, companies with a high level of employee engagement have 37% less absenteeism and 25% less employee turnover. An engaged and motivated workforce is essential for a long and healthy corporate life. However, the World Health Organization estimates that 12 billion work days are lost annually worldwide due to depression and anxiety, at a cost of $1 billion per year in lost productivity.
Furthermore, well-being is fundamental for corporate reputation and social responsibility. Organizations that care about the well-being of their employees demonstrate their commitment to ethical and human values, generating a positive image among consumers, investors, and society in general.
One example is Google, which has invested heavily in wellness programs and offers its employees a wide range of benefits and services, contributing to its reputation as an attractive employer. The 2020 study “Employee happiness and corporate social responsibility: the role of organizational culture” concluded that a greater effort in internal Corporate Social Responsibility (CSR) by companies translates into a higher level of happiness for their staff. Occupational health and safety practices have the greatest influence on people’s happiness.
Other companies, such as Patagonia, IKEA, Salesforce, Natura, and Burt’s Bees, have also shown a commitment to corporate well-being, sustainability, and social responsibility in their industries.
The evidence is clear that well-being and corporate sustainability go hand in hand. With the simple individual exercise of observing ourselves when we work in an environment with purpose and vision of the future, when we feel satisfied, valued, cared for, and free, it is evident why well-being is a key factor for sustainable success.
Florencia Lafuente is a wellness coach based on positive psychology.