Employee Wellness
On Aug 19th, 181 CEOs from the Business Roundtable, a public policy organization made up of a coalition of CEOs of America's largest and most prominent companies including Amazon, Boeing, Walmart, Bank of America, Pepsi, JPMorgan Chase and Apple, issued a signed statement saying that corporations should no longer value shareholder profit above all - a fundamental change to what the purpose of a corporation is and how companies should go about corporate governance. The Business Roundtable, founded in 1972, has put out many statements on the principles of corporate governance since the late 1970s. It said this new definition supersedes past statements and outlines a "modern standard for corporate responsibility". The statement didn't list any specific policy changes but instead laid out high-level goals, such as considering customers, the environment, employees, suppliers and the community at large. The coalition says the purpose of the new statement is to modernize the role of corporations. The reimagined idea of a corporation drops the age-old notion that corporations function first and foremost to serve their shareholders and maximize profits. Rather, investing in employees, delivering value to customers, dealing ethically with suppliers and supporting outside communities are now at the forefront of business goals.
While this was great, the Business Roundtable did not provide specifics on how it would carry out its newly stated ideals, offering more of a mission statement than a plan of action. But the companies pledged to compensate employees fairly and provide important benefits, as well as training and education. They also vowed to "protect the environment by embracing sustainable practices across our businesses" and "foster diversity and inclusion, dignity and respect." The statement called out on investing in Employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. Every company should foster diversity and inclusion, dignity and respect. However, there was no mention of curbing executive compensation when CEOs are earning more than they ever had before! According to the Economic Policy Institute, CEOs at large companies make $278 for every $1 a typical worker earns, up from $20 in 1965 and $58 in 1989. There is a lot to be done!
According to the 2019 HCM Trends report from The HR Federation, a network of leading HR market analysts, global HR technology venture capital has topped $3.1 billion this year, more than triple the amount invested in 2017. While there's a range of technologies, some of the most interesting and disruptive examples are powered by AI and RPA. So, what's the next big thing coming down the line in HR tech? From payroll automation to AI in recruitment and using technology to improve physical and mental wellness and prevent burnout. Employee wellness with a focus on mental health is fast becoming the top HR priority for modern enterprises as it has has an impact on the company as a whole, on team productivity, and job performance. So increasingly we will see more personalized health and wellness systems fueled by employee data. Platforms using gamification and wearables will continue to grow, but there is a notable shift of focus towards employee mental health. In the US alone, approximately one in five adults experience some form of mental disorder, and companies are starting to understand what that may mean for their overall performance. There are already solutions emerging to address these concerns. One example is Lantern, a mental health startup that helps fight anxiety and depression using digital cognitive behavioral therapy tools and has partnered with large digital health care providers to offer programs that help people learn to manage their anxiety, stress, and body image. But there are other simple non-technology driven practices as well such as the occasional possibility of working from home which enhances personal well-being, good work-life balance and convenience in everyday issues - sounds simple, but practiced with some difficulty in many companies!
The Society for Human Resource Management recently released its annual employee benefits report, highlighting employee benefits trends for 2020. The report gathered information on the types of benefits companies currently offer their employees or those they plan to offer in the next 12 months. In addition, the survey aims to uncover perks that are most sought after by employees and have the highest impact on long-term job satisfaction. Health related benefits saw the greatest increase with 20% of employers indicating they increased offerings. The estimated cost of employer sponsored health care benefits is approaching $15k per employee in 2020. As a result of rising healthcare costs, health related benefits will continue to encompass a greater percentage of overall benefits spend. Consequently, this will lead to declines in other benefits. Some other Family Friendly and Wellness Benefits included providing child or elder care benefits that can be a big differentiator for companies. The proportion of companies offering part-time telecommuting as well as standing desks and on-site quiet rooms also expanded. Other trends included open (unlimited) leave, fully or partially subsidized onsite cafeterias, relocation lump sum payments, nap rooms, etc.
Speaking of nap rooms, if you believe in the right to snooze at work, you're not alone - atleast not in India! Up to 86% of Indian employees want a dedicated nap room in their offices, which, they say, will immensely improve productivity. Over 40% of them also suffered from irregular sleep due to work related stress or curtailed sleeping hours. The results are part of a report titled Right to Work Naps, conducted by the online sleep solutions startup Wakefit.co. The startup surveyed 1,500 respondents across Indian cities regarding irregular sleep patterns, most productive hours for working, and general levels of well-being at the workplace. The results point to an awareness of wellness at the workplace but a lack of its prevalence. While few companies have paid attention to creating offices that promote an overall sense of contentment among employees, they seem to be exceptions rather than the rule. 70% of those surveyed didn't have a nap room in the office. Nearly a fifth of the respondents felt sleepy at work all the time. This validated Wakefit's Great Indian Sleep Scorecard survey earlier this year, which found that 80% of the employees felt sleepy between one and three times a week. The reason is the rise in levels of stress among corporate employees. So if organizations don't want their employees to sleepwalk at work, they better do something about their wellness - starting maybe with a nap room! #EmployeeWellness