Steps towards sustainability – human resource capital and employee wellbeing – benchmarking evidence Mara Stan, PhD, University of Bucharest, Lecturer, Sociology – HRM dept. Key Words: human capital, employee wellbeing, workplace sports facilities, employer brand, healthy lifestyle, sustainable impact assessment, benchmarking 1 Wellbeing, simply put Organizations encourage employees to become pro-active in the pursuit for health and subjective wellbeing through an extensive offer of benefits, incentive schemes and facilities Topic JEL Classification: I31 (General welfare, wellbeing), I12 (Health Behavior), J24 (Human Capital) Meeting point for OH (occupational health), HR, CSR and internal communication decisionmakers 2 Evidence-driven theories on occupational health Ad hoc programs associated to particular events (e.g. Health & Wellbeing Month @ E&Y, European “Sports for everyone” week, national no-smoking day, national stress awareness day – in UK) Integrative approach to workplace wellbeing – transition from isolated initiatives to coherent, purposeful, sustainable programs (from happening to strategy) Wellbeing ethos – impregnated across all policies, embedded in organizational culture and climate 3 Conceptual clarification: wellness, wellbeing, welfare Welfare – government program of social assistance (providing basic goods and services) for the disadvantaged (vulnerable groups) Second meaning: state of being healthy, glad or successful (source: Merriam-Webster, Oxford dictionary) Wellness: quality or state of being in good health especially as an actively sought goal (not merely a given fact) Well-being: general state of being comfortable, feeling well, in good health, prosperous, thriving, happy 4 Research objectives Comparative analysis of corporate initiatives that aim to enhance the adoption of healthy lifestyles among staff Investigation of the perceived utility that employers attach to employee wellbeing programs (EWPs) Inquiry into the assessment tools that employers use to quantify objectively the impact of EWPs across stakeholder groups Overall aim: Accountability capacity building for evidencebased practice to inform decision-making, boost organizational learning, improve practice 5 Research questions How do organizations define and evaluate the competitive advantage implied by the strategic human resource management practice related to employee wellbeing programs (EWPs)? How are EWPs designed in terms of selected objectives, budget configuration, administrative procedures and layout cornerstones? What are the main means of promotion for EWPs among internal audiences (current employees) and external audiences (would-be clients and prospective job candidates)? Do such initiatives genuinely and consistently enhance sustainable employer brand image and elicit talent attraction and retention? 6 Research questions – summed-up What does the employer do to make people feel happy and proud brand ambassadors at work and outside it? How do such programs work? Do they work? How can employees’ readiness (and willingness) for behavioral change be assessed? Challenge HRM practitioners to think evaluatively (take out the guesswork) Evaluate both process and outcome 7 8 Theories Socio-behavioral: Health Beliefs Model, Social Cognitive Theory (attributional style, locus of control, self-efficacy) (Field & Louw, 2012; Ebunlomo et al, 2015) Partnership with medical associations (e.g. diabetes, nutrition disease, cardiology) Incentives to boost employee participation: pre- and post-screening of biometrics, free access to health monitoring applications and online resources, personal trainer at the onsite gym Health risk assessments based on incentives have a negative impact on the voluntary take-up of this activity, and are contested because they can lead to discrimination according to health criteria that they 9 gain access to. Expected outcome of wellbeing initiatives In the context of sustainable development, the impact of such initiatives is expected to help “re-capitalize” human resources Add value to organizational behavior Put to work the untapped human potential (KSA model: knowledge-skills – attitudes & work ethic values) Commensurate impact on diminished health risks, medical costs and absenteeism 10 Impact of organizational wellbeing for performance, learning and involvement Critical reflection on the persistence of health improvements and behavioral change after such worksite programs finish Follow-up KPI reporting and evaluation mechanisms The role and mandate of the HR department in devising persuasive organizational tactics (employee-focused “buy-ins”) to drive the lasting change How to achieve sustainable adoption of more weekly hours dedicated to fitness or practicing a sport or healthy diet choices? How to internalize wellbeing initiatives into everyday practice, by ownership, empowerment and assumed 11 personal responsibility 12 Methodology of online research Benchmarking-based comparative analysis, performed on: 12 private-owned operating in four sectors (FMCG, banking, audit & consultancy and IT&C). featured in top employer rankings, yearly issued by: Dutch-based Top Employers Institute – author of Premium Employer ranking and German Trendence Institute – author of Graduate Barometer 9 most profitable SOEs across four economic sectors: energy (Romgaz, Transgaz, Electrocentrale Bucureşti, Nuclearelectrica), industry (Uzina mecanică Cugir, Carfil), transport (CNADNR, Aeroporturi Bucureşti) and forestry (Romsilva) 13 Analytical categories Addressability (target stakeholder groups / audience) Accessibility (communication means) Covered topics & themes Statistics on reporting Source (local, regional or central headquarters, in-bound vs. out-bound, national or international) Core principles and institutionalization mechanisms Assessment methods for determining the added value of wellbeing programs 14 Data processing Data collection - throughout August – October 2016 NVivo software for theme coding, concept mind maps, word clouds, word trees and coding comparison queries Tool of qualitative data mapping and data mining Benchmarking of top-ranking employers that currently implement various wellbeing programs regarding: Smoking cessation Stress management Weight loss Nutritional counselling Facilities and incentives for taking up of sports activities Healthier lifestyle choices Life coaching, parenting, work-life balance 15 Further aspects to consider Wishful thinking – road from: “nice to have” to “must have” Need of broad framework to secure lasting employee engagement to healthy lifestyle goals and organizational support thereof Customized, targeted options to address different wellbeing needs: Healthy employees – encourage maintenance of positive health habits “At risk” group – prevent health impairment Employees with declining health – deter / slow down the escalation of illness 16 Green Workplaces Lucrative activities that contribute to environmental quality conservation or restoring. In fields such as agriculture, manufacturing, research-innovation-development, administration and services Positive impact: protecting ecosystems & biodiversity, optimised resource consumption (water supply, energy, materials), minimising carbon imprint, waste management) 17 18 How will sustainability-based economy affect employment? Additional jobs across industries – e.g. pollution control devices as production equipment Dispensable / Replaced jobs: transition from fossil fuels to renewable energy, or from traditional garbage disposal systems to new recycling, incineration, conversion to bio-fuel and waste management innovation Cancelled jobs (without direct replacement) – e.g. banned packaging materials, production stops Existing jobs, transformed and redefined – “greened” as profiles, job description & job specification, work protocols 19 Impact on supply chain Upstream workplace “greening” process Providers for solar or wind energy rely on traditional industries – now reconfigured (e.g. use of steel for wind turbine) Green Jobs cover an extensive area of qualifications, educational fields and occupational profiles Shades of green employment: some types are more profound & more transformative than others 20 Eco-friendly threshold Where do we establish the threshold between energy efficient and inefficient methods? Incremental outlook – gradual optimisation Ever more demanding standards, thresholds & regulatory pressure Accused of blocking economic growth Lower threshold increases green employment headcount, however progress remains illusory Technological progress & urgent need to perform changes 21 Talent Pool – skill deficit for green workers Eco labelling for consumers to ensure they can make responsible purchasing decisions Aiming to encourage producers to conceive & distribute eco-friendly products Impact on budgets assigned to research, development & innovation: Reduced support for nuclear and fossil fuel Increased financing for renewable energy & processing technologies 22 Costs of “going green” Pressure on job market – esp. in developing countries. Risks to employment: outsourcing, automatized processes, income instability Green jobs prevent or solve issues related to waste, noise, destroyed bio-diversity & landscapes Too poor to be green? Incurred costs of green jobs 23 24 Findings A useful assessment strategy relies on the comparison between the intended program and the delivered one (Louw, 2012) Scrutinized variables: activities, content & employed methods, resources, communication Issues about creating sustainable healthy habits: transfer of learning from initial formal setting to informal everyday practices 25 Acknowledgement Need to focus and streamline efforts not to get over-involved & dispersed across too many intervention lines Personnel Today Awards for Health and Wellbeing initiatives – „Happiness and wellbeing award” – Centrul Fericirii Recommended (and adequately promoted), not compulsory service Beneficial for overall performance outcome (impact in business, KPIs), not merely „fluffy, glossy add-on” (Silcox, 2016) 26 Gamification On-site medical check-ups – complete with Body Mass Index (BMI) & psychometrics of stress & anxiety Gamification schemes – earn points for attending classes or performing healthy behaviour (e.g. bank of kilometers – rewarding each kilometer run) and turn them into paycheck credits, vouchers, gift cards or donation to the chosen NGO – effective for program enrollment & behavioural persistency Coordination team is multi-disciplinary, selected from various departments: corporate communication, branding, HR compensation & benefits, occupational health and safety (O’Reilly, 2015) Controversial use of „faming and shaiming”, rewards and penalties schemes e.g. by Johnson & Johnson to counter-act reluctance to change 27 Participatory wellbeing Slogans: „balanced lifestyle”, „building accountability”, „prevention pays off”, „Reduce your risks” (O’Reilly, 2015) Health ambassadors = employee champions / role models assist OH advisers also during supporting events (O’Reilly, 2015) Future of wellness programs: better integration, targeted programs according to staff segmentation, improve participation for non-head office and atypical staff (e.g. part-time, fixed-term, outsourced personnel) (O’Reilly, 2015) Inconclusive impact of wellness programs on cost savings (O’Reilly), although circa half of US employers offer initiatives thereof 28 Case study Raiffeisen – “My first marathon” 29 Wellness programs typology 50 types of wellness programs roll-out in Romania, upward trend more obvious in the last 5 years Organizational well-being means both prevention and the creation of healthy life habits Creating a community with a common interest –sports, cycling, football, volleyball, painting, gastronomy Organizing thematic events for psychological and emotional balance. 30 Wellness programs typology (2) Consultancy firms provide wellbeing offers (customized, modular packages) that include teambuildings (theme parties, urban, outdoor, indoor) Wellbeing for development: Behavioural styles inventory (DISC), stress management, conflict mngm, life coaching, parenting by connection, time management for work-life balance, assertiveness training Romanian beneficiaries (employees) most appreciate personal development, work-life balance and healthcare prevention programs (Sebesi, 2016) Wellbeing for relaxation 31 Wellness programs typology (2) Consultancy firms provide wellbeing offers (customized, modular packages) that include teambuildings (theme parties, urban, outdoor, indoor) Wellbeing for development: Behavioural styles inventory (DISC), stress management, conflict mngm, life coaching, parenting by connection, time management for work-life balance, assertiveness training Romanian beneficiaries (employees) most appreciate personal development, work-life balance and healthcare prevention programs (Sebesi, 2016) Wellbeing for relaxation 32 Wellbeing offer Office yoga workshop, on-site massage sessions, gym subscription, private medical / dental insurance, tickets to sports events, shows, corporate libraries Healthy diets (meal planning, healthy eating out / holiday meals – “lunch and learn” – O’Reilly, 2015), nutritionists’ advice, live cooking shows and lessons, team dance energizers, fashion & style – dressing up to the occasion, attire design for impression management, photography & art lessons, personal branding, boot camps Laugh therapy, storytelling (stand-up comedy, theater – acting improvisation), development groups, hot air balloon flying, rock climbing, horseback riding, escape rooms, adventure parks (Ioniţă, 2014) 33 Outsourcing wellbeing Outsourced wellbeing - Shopping for smart experiences as corporate gift vouchers – employees can choose preferred activity – HR dept. usually handles administrative aspects, public speaking (rhetoric skills & voice protection counselling for intensive speakers), book clubs, choirs, Agility of offer – low sign-up rates lead to program adjustment / change “Practice what you preach” – walk the talk: e.g. healthy options available at onsite vending machines Timing – convenient for all types of employment (e.g. part-time, shifts) Field days, not only theory Not one-time-only, but monthly / yearly event 34 35 Assessment methods Before-after measurements of productivity, sick leave, absenteeism, presenteeism, employee disengagement and escape-oriented coping, health risk assessments Report from direct manager Stakeholders’ 360◦ feedback (clients- enrolled employees, providers / trainers, managers, planners, funders, supporters and opponents) about the sessions content, delivery, format, usefulness, applicability. Self-assessment („warm” reactions immediately after the program delivery, „cold” / postponed reactions – few weeks after) 36 Assessment methods (2) Conducted staff surveys with participants / nonparticipants / would-be ROI determination – measurable outcome as organizational bottom line External audit & benchmarking through Organizational Wellbeing Index – World Health Organization’s (WHO) Workplace Health and Productivity Questionnaire (WHPQ) 37 User segmentation Digitalized wellbeing: Implemented through gamification and intranet platforms, supported by themed forums, chat rooms, health portals, online resource center – successful introduction of playful & social networking elements in the work system – facilitate metrics (e.g. anonymized input to participation rates) Resonate to personal relevance: find joy & sense of fulfillment and intrinsic meaning Design of flexible, “a la carte” incentive packages – suitable for versatile workplace dynamics in a liquid modernity (Z. Bauman) - VUCA world (dominated by volatility, uncertainty, complexity, ambiguity) 38 Shortcomings and pitfalls of OH initiatives Scarce (if any) evidence base (Romanian records, reports, statistics) to document wellbeing intervention No explicit connection between organizational needs and wellbeing objectives across program descriptions Perk fragmentation – rewards are dispersed, erratic, un-integrated across a unitary, stand-alone wellbeing strategy Stakeholders’ unfamiliarity with and subsequent resistance to assessment 39 Between “gold mine” and “minefield” Ambivalence: what do critics / skeptics / contesters say? MNEs often present misleading or inflated wellbeing credentials Recast synergies, reshaped agendas Unintended consequence: stigmatization of employees who do not comply with “golden standard” Risk of polarization or segregation between the fit and unfit, the thin and the fat – with reciprocal stereotypic abounding 40 Tyranny of organizational virtue? Programs as alleged corporate hypocrisy that endorses the “tyranny of virtue”. Golden standard that all corporate players need to adhere to, even reluctantly, ignorantly or in contradiction to their authentic beliefs It relies on the savior’s complex: captatio benevolentiae in disguise – ultimate purpose, though unacknowledged, is to protect corporate interest In fact, economic capital is partially transferred & converted to social capital 41 42 Evaluative thinking The organizational culture of evaluative thinking (i.e. in terms of SWOT analysis) for any program – Critical to gain a shared, objective-based understanding of these actions and support for its outcomes Developmental perspective: what can be done next or better, what must be upgraded / updated / upscaled? According to the Start-Stop-Keep model by on-going monitoring to ensure prospective evaluation, not only post-hoc analysis. 43 Evaluative thinking Conclusions Evaluation means pacing accelerated rhythm of activity, hitting the pause button (Louw, 2012) instead of the always available fast-forward one. Vital need for accurate records, objective feedback based on findings, longer-term outcomes Not only proximal output e.g. number of attendees, hours of training, assigned budget etc. Measure impact by consequences, not merely declarative results 44
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