First published on Thursday, June 4, 2020
Last updated on Friday, January 31, 2025
In recent years, employers have seen a shift in expectations from Canadian workers, who are seeking stronger support for employee wellbeing initiatives. In addition to benefits, many employees look for a positive work culture, empathetic leadership and even Environmental, social, and governance (ESG) contribution as a sign of a good workplace.
So why is employee wellbeing important and how can employers improve staff wellbeing?
We're going to break this down for you.
What is employee wellbeing?
A common misconception about employee wellbeing is that it’s only about the physical. While providing staff with perks like gym memberships or catered lunches are great ways to support their physical health, it’s not everything.
Employee wellbeing refers to the holistic health and satisfaction of staff and includes various dimensions that shape people’s overall experience of life. In addition to physical health, employee wellbeing encompasses mental, social, financial, spiritual and environmental wellness; all of which are interconnected and affect workplace performance.
Why is employee wellbeing important?
Good employee health and wellbeing can positively impact both staff morale and absence rates. A healthier workforce will ultimately be absent less, which means that having a focus on health in the workplace is a win-win situation for both employees and employers.
Fitter employees are also more productive; if their bodies are performing to the best of their ability, and their mental state is free from excessive stress, then they will be better able to maintain consistent performance.
Impacts of poor staff wellbeing
Poor employee wellbeing is associated with employee absence.
According to research conducted by the Conference Board of Canada, some of the most common self-reported reasons for missing work were related to physical health (flu, cold), followed by mental health (stress, anxiety, depression) and personal or family obligations.
Absences and employee wellbeing
Employee absence is one of the greatest costs associated with employing staff. Its impact spans far beyond the financial as absence creates increased workload and a dip in morale for colleagues who remain at work covering for the absent employee. It also has the potential to negatively impact upon the organization's ability to meet customer demand.
Consider the absence cases you have been privy to in your current and previous organization or team.
What were the most common causes of absence in the workplace, and could anything have been done to prevent or reduce the length of these absences?
Absence due to physical illness
For example, quite often absence due to a back condition can be dramatically reduced as a result of interventions by a trained professional, such as a physiotherapist or chiropractor.
Absence due to mental health illness
Absences due to mental health illnesses such as depression or anxiety can be reduced with talking therapies. But wait times for specialist appointments are long and often the employer is expected to wait until these interventions begin before return-to-work discussions can take place.
Employee wellbeing solutions
The solution required is two-fold; reduce the length of the employee’s absence whilst also improving their health and wellbeing.
By supporting employees to improve their health and wellbeing, whether that be through an Employee Assistance Program (EAP) or enhanced healthcare package, you demonstrate a genuine commitment to helping your staff feel better, and the benefit of this spans far beyond nine-to-five.
Steps to promote workplace health and wellness:
First, you should consider developing a health and wellbeing program that details the commitment of the business to employee health and explains how the business will support them to maintain positive physical and mental health.
Examples of things to include in your employee benefits package:
Access to an Employee Assistance Program
Physiotherapy/Chiropractic sessions
Gym membership (agree a preferential rate with local gyms)
Wellness rooms
On-site pilates or yoga classes at lunchtimes
Sport activities (running clubs, soccer, basketball)
Another option is to consider paying for private health insurance for your staff; this could be a comprehensive group benefits plan that covers services not provided by the public health care system, such as prescription drugs, dental, and vision care. Alternatively, you may opt to offer employees a Health Spending Account (HSA), which reimburses employees a portion of costs for treatments and services not covered by their provincial healthcare plan.
Whilst costly, group benefits improve employee occupational health whilst also helping the organization to become an employer of choice.
How to choose a health insurance plan for your company
Choosing healthcare packages for employees can be a minefield, but it’s important to remember that employers looking to offer comprehensive healthcare benefits are able to negotiate attractive discount packages as their buying power is greater than the individual, or those who are the usual target customers for these companies.
There are two forms of private healthcare package:
Full Coverage (Comprehensive Insurance Plan)
Provides hospital stays, consultations with specialists and diagnostic tests free of charge to the employee.
No out-of-pocket expense required for the employee
Employees access services included in the benefit package as though they’re personally enrolled in the plan.
Partial Reimbursement: HSA or Reimbursement Plan
The alternative to a comprehensive insurance plan is an HSA or reimbursement plan. This covers a percentage of the costs of specialist consultations, diagnostic tests, therapies such as physiotherapy and provides financial compensation for these appointments.
The employer pays their contributions to the plan in lump sum, and employees are responsible for making claims against the money they have spent on treatment. A percentage of the money spent is then refunded directly from the third-party to the employee. This encourages staff to have their eyes tested regularly and to attend dental checkups without the worry of having to pay the full costs associated with these appointments.
Having the option to have most of the cost of a physiotherapy session covered by this type of scheme can encourage staff who would otherwise have to wait for provincial healthcare waitlists lists to access heavily subsidized private treatment, which could help them return to work faster.
Get advice on your employee’s wellbeing at work
If you are worried about employee wellbeing or would like more information about the steps you can take to implement health and wellbeing initiatives within your business, get HR advice from HR professionals.
With BrightHR you gain access to our round-the-clock employment relations advice line. With a team of HR experts available whenever you need them to provide advice and guidance, give the team a call to discuss your employee wellbeing concerns today.