Workplace Wellbeing: A Strategy for Employee Retention

The cost of high employee attrition is well known. Gallup reports that “the global cost of disengaged employees has skyrocketed to an eye-watering $8.8 trillion annually.” While there are many causes for low employee retention (low salaries, no career growth, etc), a lack of workplace wellbeing is often among the most cited. This includes things like burnout, poor benefits, and diminished satisfaction.

Business leaders understand the importance of creating a positive work environment and supporting the wellbeing of their workforce. Even in times of economic uncertainty, companies continue to invest in employee wellness, even increasing the amount spent on mental health resources (86% of those surveyed are spending more on mental health initiatives than last year). However, there is a disconnect between leadership and employee perception, with 96% of CEOs reporting that their company does enough to support employee wellbeing. Only 65% of employees agree.

Investing in workplace wellbeing is about much more than seeing more smiles around the office or on Zoom. It’s about retaining top talent. If done correctly, businesses won't be forced to recruit to take their businesses forward. Instead, they will be able to take their existing workforce to new heights.

Approaches for improved workplace wellbeing

Invest in better onboarding processes

A structured and inclusive onboarding process sets the tone for an employee's journey within the organisation. It not only helps new hires adjust to their roles, but it also fosters a sense of belonging and commitment from the start. This entails more than just paperwork; it is about integrating new employees into the organizational culture and equipping them with the tools they need to succeed. This includes:

• Giving the new hire a warm welcome
• Setting them up with the tech and tools they need
• Providing training in everything from internal processes to subject-matter knowledge
• Breaking the ice between new hires and their colleagues
• Encouraging proactive communication and feedback loops between the new hire and their manager
• Creating a structured plan so they know what to expect as they move from onboarding to ramp-up

Optimise compensation and benefits

In today's global economy, compensation extends beyond salary figures to include comprehensive benefits packages that address the diverse needs of employees worldwide.

Offering compensation and perks tailored to local market dynamics is critical for retaining top talent. This approach demonstrates fairness and appreciation for employees' contributions, which reduces the risk of losing them to competitors.

Organizations can keep their compensation strategies competitive and aligned with industry standards by conducting regular market analyses and benchmarking studies. We’ve built a step-by-step benefits builder inside the Deel platform that allows teams to design the prices, deductibles, contributions, and eligibility for any benefit they offer. All while ensuring everything is compliant with local legal requirements and competitive.

Improve leadership and management relationships

Effective leadership that values open communication, feedback, and professional development cultivates trust and loyalty among team members.

The culture of an organization is shaped by its management. It’s important to invest in leadership development programs that give managers the skills they need to develop talent and foster a positive work environment.

Regular feedback sessions and mentorship opportunities boost managerial effectiveness by creating a supportive environment in which employees feel valued and motivated to put forth their best efforts.

Create a safe and inclusive work environment

A culture of inclusivity and mental security is essential to employee wellbeing and retention, as it creates an environment in which employees feel respected, valued, and empowered to share their ideas. Open dialogue, anti-discrimination policies, and diversity initiatives all contribute to creating a positive culture and improving employees' perceptions of their workplace.

Organizations foster a sense of belonging and collective purpose by creating an environment that acknowledges diverse perspectives. This demonstrates a dedication to fairness and equality, which encourages trust and loyalty among global teams. At the work level, this can be done by keeping track of who is invited to brainstorming sessions or project kick-off meetings, and ensuring it’s not always the same roster. At a cultural level, this means celebrating and bringing awareness to global holidays (i.e, if you’re in the U.S., not just acknowledging Christmas, Easter, and Thanksgiving, but also Eid, Chinese New Year, and others, depending on the makeup of your team).

Support professional growth opportunities

Top talent gravitates towards organizations that offer opportunities for advancement and development. Offering opportunities for skill development, mentorship programs, and career advancement shows a dedication to employees' long-term success and professional fulfilment.

Organizations should provide tailored training programs and development pathways that not only prepare their workforce for future challenges but also foster a culture of internal mobility and career advancement.

This could look like role-specific training academies, with skill tracks aligned with current and future skill needs. Making these available for all employees encourages internal mobility by letting them explore other paths. Future career plans should also be included as a topic of conversation in review cycles, rather than focusing solely on current performance.

Adhere to flexible work arrangements

Flexible work schedules and remote work options are becoming increasingly important in today's global workforce. A global survey found that 83% of employees now prioritize work–life balance over salary, implying that organizations must now focus more than ever on accommodating diverse preferences to improve job satisfaction and work-life balance.

Allowing employees to balance professional and personal responsibilities promotes employee wellbeing and productivity. As this trend continues to rise, companies with inflexible schedules may find themselves losing employees to those who do.

Leveraging technology can also help with remote collaboration and communication, increasing the effectiveness of flexible work policies and allowing global teams to thrive in a virtual environment while maintaining high engagement and performance.

This could include recording meetings for asynchronous catchup, or repeating interactive sessions for different timezones to allow for maximum participation without expecting people to work unsociable hours.

Understanding cultural differences

Any wellbeing improvement strategy needs to account for regional differences. Wellbeing isn’t universal; it’s cultural. For global organizations, ignoring regional nuances in approaches to mental and physical health will be detrimental to any wellbeing strategy.

This means considering things such as:

• Mental health stigma: Approaches to mental health can vary greatly. For example, conversations around therapy are becoming more accepted in North America, whereas they’re still stigmatized in many APAC and Middle Eastern countries.
• Healthcare and family leave: Statutory requirements vary greatly, making a one-size-fits-all approach difficult to achieve.
• Religion and culture: Local holidays and religious observances present opportunities to improve wellbeing offerings. For example, allowing for flexible hours during Ramadan.

How to track the ROI of employee wellbeing

Employee retention is one of the main metrics for employee wellbeing, and so should be the first thing measured when tracking the ROI of wellbeing initiatives. If done well, organizations should see lower attrition rates, mitigating dips in productivity and disruption to daily operations, as well as saving money on recruitment.

There are other benefits to improved employee wellbeing, such as:

• Stronger employer branding: Companies with a reputation for being good to their employees recruit top talent more easily. This can be seen in the quality of applications and the amount of time spent on outreach.
• Increased productivity: Engaged employees perform better in their roles. This impact should be reflected in performance reviews with individual KPIs.
• Improved organizational culture: Happier employees leads to better collaboration, fewer silos, and less time wasted on resolving interpersonal conflict. While tougher to measure, it should be reflected in quarterly or annual feedback cycles.

Leveraging HR technology for insights and analytics

Data-driven decisions enable targeted interventions and continuous improvement in retention strategies, and in this era of digital transformation, HR technology is critical to improving employee retention.

Implementing tools like analytics and employee engagement platforms allows organizations to gain actionable insights into retention metrics. These insights make it possible for HR professionals to identify retention trends, anticipate challenges, and take proactive steps to foster a supportive workplace. It is a strategic approach that ensures retention strategies remain adaptable and responsive to changing organisational needs, resulting in long-term growth and competitive advantage.

While reducing unnecessary hiring costs is a bonus, prioritising employee wellbeing through strategic retention initiatives is more than just lowering turnover. It is also about cultivating a loyal and motivated workforce capable of driving innovation and long-term growth. As organizations navigate the complexities of an interconnected economy, implementing these retention strategies will be critical to maintaining resilience and achieving sustained success.

Deel offers an all-in-one HR platform that lets you create effective onboarding processes, retain top talent, and foster a high-performance culture. With Deel Engage, manage development, performance, and training programs all in one place. Measure engagement and retention, and improve wellbeing with targeted action plans. Start by requesting your 30 minute demo today.