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The Impact of Well-being on Your Job Performance

May 15, 2024

Understanding Well-being in the Workplace

Well-being in the workplace is a factor that greatly affects employee productivity and job performance. Well-being is not merely a personal sensation of happiness or satisfaction, but is also shaped by collective and social elements. Recent studies have clarified how psychological capital (PsyCap), social capital, workplace well-being, and employee engagement are related to task performance. In a study in Saudi Arabia, psychological capital and well-being were shown to have a positive relationship with engagement and performance. (Al Kahtani & S. M. M., 2022).

Workplace health promotion as part of Corporate Social Responsibility (CSR) activities has a twofold impact on employee well-being. Research in Hungary has revealed that axes of internal control, such as mental health and emotional well-being, and external control, such as healthcare support, affect well-being. Internal control leads to well-being but does not have a direct impact on satisfaction or loyalty. On the other hand, external control not only affects well-being but also impacts satisfaction and loyalty (Gorgenyi-Hegyes, Nathan, & Fekete-Farkas, 2021).

The impact of well-being is also significant in specific occupational groups. For example, when the well-being of language teachers is high, the effectiveness of education improves, relationships with learners become more positive, and learning outcomes increase. There is research on factors that affect teachers' well-being, such as workplace culture, social relationships, a sense of meaning and purpose, position, and physical well-being, but these factors are considered equally important in other professions as well.

Thus, understanding well-being in the workplace is essential for improving individual productivity and performance, and it is a critical element that contributes to the success of the entire organization.

The Impact of well-being in the Workplace on Job Performance

The Positive Effects of well-being on Productivity

well-being in the workplace is a critical element that has a direct positive impact on employee productivity and job performance. According to a comprehensive meta-analysis by Gallup, as studied by Krekel, companies with high employee satisfaction show significant improvements in multiple business performance metrics, including productivity, customer loyalty, and profitability. This study analyzed data from 1,882,131 employees across 49 industries in 73 countries and 82,248 business units, with results consistent across industries and national borders.

Employees with high well-being tend to have greater creativity and problem-solving abilities and are more efficient in their daily tasks. Laboratory tasks and actual workplace activities have shown a positive correlation between well-being and productivity, strongly suggesting that well-being is a contributing factor to increased productivity.

Furthermore, companies with high well-being have lower employee turnover rates and higher customer loyalty. This indicates that a workplace environment where employees are satisfied enhances the quality of customer service, which in turn leads to customer retention. Additionally, companies selected as 'America's Best 100 Companies to Work For' have achieved stock returns that exceed the industry average, indicating that well-being positively affects corporate performance in the stock market.

Thus, the positive relationship between psychological capital and workplace well-being has been made clear in a survey of 395 employees in Saudi Arabia (Al Kahtani & S. M. M., 2022). An environment where employees can find opportunities for self-actualization and feel their role in the workplace is valuable is essential for corporate success.

The Consequences of Ignoring well-being

Ignoring well-being can have serious consequences for employees. In particular, burnout is a common issue arising from a lack of workplace well-being. Burnout refers to a state of psychological and physical fatigue and exhaustion caused by prolonged occupational stress, characterized by a loss of passion for work, emotional depletion, and a decline in personal accomplishment.

The European Foundation's 2018 report "Burnout in the workplace: A review of data and policy responses in the EU" examines the reality of burnout experienced by workers in the EU and the policy responses to it. The report explores how burnout is perceived as a medical or occupational disease, investigates the determinants of work-related burnout, and examines psychosocial and physical work factors, work intensity, and the impact of work organization.

Burnout significantly affects employees' psychological and physical health, known to cause psychosocial impacts such as anxiety, depression, and decreased satisfaction in the workplace. These can negatively affect employee productivity and engagement in the workplace. Physical effects include sleep disorders, a weakened immune system, and high blood pressure, all of which can lead to long-term health problems.

Burnout not only costs individuals but also the entire organization. The consequences of ignoring employee well-being can directly affect the company's bottom line in the form of reduced productivity, employee health issues, and consequently, high turnover rates. Therefore, maintaining and enhancing well-being in the workplace is essential for the sustainability and success of a company.

Strategies for Enhancing well-being in the Workplace

Creating a Culture of well-being

To enhance well-being in the workplace, it is essential to create a culture that prioritizes well-being throughout the organization. This includes developing policies centered on employee health and happiness, leadership commitment, and promoting employee participation. By integrating well-being into the organizational culture, employees are more satisfied, motivated, and as a result, more productive.

Practical Steps for Employers and Employees

Employers are called upon to improve the workplace environment and listen to the voices of their employees as practical steps to enhance well-being. Specifically, this includes improving working conditions, ensuring adequate rest periods, and providing mental health support. Employees themselves must also enhance their self-management skills and strive to maintain stress management and work-life balance.

The research by Niks et al. has revealed that factors affecting well-being in the workplace interact in complex ways. This study uses causal loop diagrams to understand the interactions between factors related to well-being. Causal loop diagrams show how positive changes create feedback loops that lead to further positive outcomes. For example, enhancing employees' well-being can lead to reduced stress, which in turn improves the workplace atmosphere, creating a positive cycle that further enhances overall well-being. Such feedback loops are crucial mechanisms for sustainably improving well-being in the workplace. By understanding and leveraging these interactions, employers and employees can fundamentally improve workplace well-being, simultaneously enhancing productivity and satisfaction.

Conclusion

well-being in the workplace is deeply connected to employee productivity and job performance. Employees with high well-being tend to be more creative and have better problem-solving abilities, efficiently completing daily tasks. On the other hand, ignoring well-being can lead to burnout, dissatisfaction in the workplace, and decreased productivity. Companies can maximize these positive effects by creating a culture that enhances well-being and taking practical steps.

Strategies to enhance well-being include shaping the workplace culture and taking practical steps for employees and employers. This involves forming feedback loops and reflecting employees' opinions. Additionally, workplace health promotion and corporate social responsibility activities are important elements in enhancing well-being.

Through this article, it should be understood that well-being contributes not only to individual health but also to the overall success of the organization. well-being is an essential element for improving productivity and performance in the workplace, and for companies to achieve sustainable growth, prioritizing employee well-being is necessary.

Reference

Al Kahtani, S. M. M. (2022). The Role of Psychological Capital, Social Capital, and Job well-being on Employee Engagement and Task Performance in Saudi Arabia.

Gorgenyi-Hegyes, E., Nathan, R. J., & Fekete-Farkas, M. (2021). The Impact of Workplace Health Promotion on Employee well-being, Loyalty, and Commitment in Hungary.

Babic, R., et al. (2022). The Positive Face of Human Capital, Psychological Capital, and Well-Being.

Krekel, C., Ward, G., & De Neve, J.-E. (2019). Employee well-being, Productivity, and Firm Performance. Saïd Business School WP 2019-04. Available at SSRN: https://ssrn.com/abstract=3356581 or http://dx.doi.org/10.2139/ssrn.3356581

Eurofound. (2018). Burnout in the workplace: A review of data and policy responses in the EU. https://www.eurofound.europa.eu/publications/report/2018/burnout-in-the-workplace-a-review-of-data-and-policy-responses-in-the-eu

Niks, I. M. W., et al. (2022). Individual Workplace Well-Being Captured into a Literature- and Stakeholders-Based Causal Loop Diagram. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9331132/

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