Ten, or even five years ago, it felt insensitive to talk about employee health, wellbeing and productivity in the same breath. The focus was more on the moral rather than the business imperative.
Now, with the UK’s productivity heading in the wrong direction, employee engagement levels stagnant – and research from organisations such as the Institute for Public Policy Research (IPPR) urging the government to rethink health policy and its link to the economy – the narrative is changing.
Taking place two days before the UK General Election, our timely discussion at the Make A Difference Leaders’ Lunch on 2nd July, highlighted the interconnection of workplace health, wellbeing and productivity. It also emphasised the kind of multifaceted approach necessary to achieve meaningful change.
Drawing on insights from former Bank of England Chief Economist Andy Haldane (who is now heading up the Royal Society of Arts), the Health Foundation, McKinsey and Gallup’s State of the Global Workplace Report, Dame Carol Black eloquently set the scene. Mona Balasubramanian from Gallup (who hosted the lunch) and Chris Foster from Personify (who sponsored the event), added their perspectives to a rich and varied discussion.
This is a summary of the key insights shared.
What factors are impacting productivity?
Health
Previously economists were reluctant to believe that health care and good health made a big difference to productivity. But Andy Haldane, commenting in the Financial Times, has stated that there is “clear evidence, for the first time since the industrial revolution, of poor health detracting from both growth and wellbeing”.
Furthermore, The Health Foundation shows more working-age people than ever are reporting long-term health conditions. Post-COVID there are 470k more people out of work on ill-health grounds. Worryingly there are 3.7m working age people in work with a work-limiting health condition. And the rate of growth of work-limiting conditions (with the major cause being mental ill-health), has grown fastest among young workers – doubling in the past decade.
Echoing many of these points, Personify’s most recent research reminds us that physical issues around musculoskeletal health also impact people’s ability to do their work – and therefore their productivity.
Lack of investment in human capital
Andy Haldane believes that a lack of investment in human capital is one of the big drivers of poor productivity. The UK ranks 29th in the EU in spending on human capital.
This, combined with a widening skills deficit, endemic ageism and loss of experienced workers aged 50+, is contributing to stagnant productivity. Our ability to train and retrain are critical.
The way that people are managed, including managing workloads, is also fundamental to both workplace wellbeing and productivity.
Gen AI
Automation and analytics broadly – and generative AI specifically – has the potential to contribute to productivity but it can be both dangerous and helpful – with McKinsey suggesting that heavy users of AI are increasingly likely to leave their jobs because of burnout.
On the other hand, AI can improve work by freeing up time spent on rote tasks for work that requires more creativity, judgment, innovation, creativity and collaboration.
Amongst other applications related to employee health and wellbeing, AI can also be used to streamline and speed up access to appropriate health and wellbeing support.
Community & financial health
Poor social wellbeing, lack of sense of connection in the workplace and poor financial health were also cited as elements that impact both presenteeism (working whilst sick) and productivity.
The wider perspective
Other key factors impacting productivity that were identified by attendees included:
- Employees’ constant exposure to negative news and global events. This impacts their frame of mind when they arrive at their desks
- The impact of Covid on the NHS and employees’ lack of ability to access support is adding to anxiety, as are long waiting lists, which can reduce employees’ chances of getting back to work
- Raised awareness of neurodiversity, coupled with long waiting lists for diagnosis, are also creating anxiety, which in turn is impacting productivity
- High levels of presenteeism
- Challenges around measuring both productivity and presenteeism
- Employees juggling caring and working responsibilities and impacted by the cost of and lack of access to childcare
- Government, society, the employer, individual employees; lack of clarity around where responsibility for health and wellbeing starts and finishes
Suggested solutions
After sharing ideas and experiences, potential solutions to the challenges impacting productivity were suggested by attendees. These are the main the main points that I noted.
Reframe productivity and the way that it is measured
As well as a suggestion that, in order to solve the productivity problem, we need to recognise that a preventative approach to health and wellbeing is essential, there was a call for the way that we measure productivity to be reconsidered.
This includes first thinking about the definition of productivity, the expectations of the team and what data can be used.
Whilst recognising that one size does not fit all, it was suggested that the development of a cross-industry wellbeing metric, linked to core business drivers of productivity, could be an invaluable benchmarking tool.
At the same time, reframing productivity to shift the business psyche from input to outcome based – with reward and recognition based on results rather than how busy you are – was put forward as a way to encourage sustainable high performance.
Get flexible working and workplace environments right
Timewise’s recent pilots suggest that 83% of flexible working beneficiaries agree that their new working arrangement is helping them to work in a more productive way. However, for many of the Leaders’ Lunch attendees, question marks persist around how to overcome the unintended consequences of flexible working in order to ensure work-life balance, wellbeing and productivity are improved for all employees.
In order to do this, the requirement to speak to local teams to understand their needs was underscored. Recognising the positive impact flexible working can have on health and wellbeing also builds acceptance.
The need to get people back into the workplace for social interaction was also mentioned, as well as the imperative to consider whether the work environment is conducive to health, wellbeing and productivity.
Both managers and peer-to-peer groups matter
There was recognition that managers have a significant impact on an employee’s wellbeing. If line managers are experiencing poor mental and/or physical health themselves, this can have a knock-on effect on their teams.
There was consensus that to boost productivity, we need to ensure the health and wellbeing of managers is prioritised, improve line manager training and provide space and time to facilitate good management. At the same time, alternative promotion routes need to be developed for those that have excellent technical skills but not the aptitude for people management.
Empowering peer-to-peer support was also mentioned as a way to ensure people feel they belong, as was the need to recognise the importance of human connections (not rely purely on technology).
Shift from multigenerational to intergenerational psychological safety
Reverse mentoring schemes can help generations to work together and ease the shift from a multigenerational to an intergenerational workplace. According to Forbes, a multigenerational workforce is one that spans different generations. “Intergenerational” describes the impact of the interaction between/among different generations.
Reverse mentoring can also help leaders to understand the impact of work on their people. Starting at the top, this helps to create psychologically safe environments that nurture trust, where people can share ideas and collaborate productively.
Ease access
Ensure ease of access to internal / supportive information and introduce an intervention to accelerate response to referrals. AI could be used to solve the internal complexity / access challenge and in turn support productivity.
Build trust to maintain the Board’s investment in health and wellbeing
When it comes to maintaining investment in health and wellbeing, attendees stressed the need to build trust in the effectiveness of interventions and to simplify. To help employers save time navigating the maze of health and wellbeing solutions available to them, and ensure a level of quality control, there was a call for an accreditation scheme for wellbeing providers.
Take action!
Whilst recognising that to improve productivity, health and wellbeing needs to be a golden thread running right across every aspect of the organisation – from recruitment through to exit interviews – rather than trying to do everything, the key to making a difference is to focus on a small amount of impactful follow-up.
Tactics suggested to complement the more strategic approaches included:
- No bad news emails on Friday
- Add standing and walking meetings
- Put in place digital boundaries
In summary
The UK’s post-COVID workforce faces challenges such as stagnant productivity, declining employee engagement, and a widening skills gap. Investing in human capital, reimagining leadership styles, exploring the potential of AI and addressing the needs of both younger and older workers are all crucial to enhance both productivity and employee health and wellbeing.
A room full of health and wellbeing leaders all collaborating and sharing ideas and experiences was music to my ears. I’m looking forward to diving deeper into many of the points made at the Leaders’ Summit, which is taking place at the MAD World Festival of Workplace Culture, Employee Health and Wellbeing on 17th October.
We look forward to seeing you there.
If you are interested in joining the Make A Difference Leaders’ Club, which also gives a VIP entrance rate for the Leaders’ Summit at MAD World, you can find more information, including eligibility criteria, and apply to join here.
References:
“Healthy Industry, Prosperous Economy” discussion paper from the Institute for Public Policy Research (IPPR)
“State of the Global Workplace Report 2024” Gallup
“Flexible Working for All: Achieving Greater Equity for Frontline and Site-based Workers” webinar from Timewise
“Worsening Health is an Economic Headwind” Andy Haldane, Financial Times
“2024 Insights: Employee Health & Productivity Report” Personify
How can the next government boost the health of the workforce and boost growth? The Health Foundation
“To defend against disruption, build a thriving workforce” McKinsey
“Is AI exhaustion the new burnout?” Visier
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