Employee Wellbeing: Scope, Examples, and Benefits

This report provides an analysis of employee wellbeing, including its scope, nature, and limitations. It explores examples of organizations' initiatives for employee wellbeing and discusses the benefits of implementing such measures. The report focuses on Tesco and Ernst & Young as examples of companies with successful employee wellbeing programs.

Managing
Human
Resources

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Wellbeing of employees, its scope, nature and limitations.....................................................................3
First example of an organization’s attempt at measures for employee wellbeing..................................5
Second example of an organization’s efforts for employee wellbeing initiatives....................................7
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
Human resource management refers to a strategic practice in organizations where people
are effectively managed in order to facilitate achievement of goals and objectives of the
organization (Anderson, 2018). It focuses entirely on management of human resources as they
are the most valuable assets in the possession of the company. It increases employee
performance so that execution of strategies framed by a firm is made possible. It finds out the
problems, issues and grievances of employees so that they can be resolved timely in order to
maintain their efficiency, effectiveness and productivity. It contains different types of functions
and has many roles to play as it is an important component of management. In this report, a
detailed analysis will be made on wellbeing of employees and their scope and examples of
various organizations for ensuring welfare of workers.
MAIN BODY
Wellbeing of employees, its scope, nature and limitations
Employee wellbeing refers to certain measures which firms usually take in order to
ensure that the performance of workers is optimum and they don’t face any kind of issues and
problems while being a part of the organization. They are taken to ensure that the welfare of
employees is given supreme priority in the company. It is a specific function in Human Resource
Management (HRM) in the organizations (Aust and et.al., 2017).
There is a wide scope which employee wellbeing offers to the employers which can be
detailed as follows-
Physical work environment- In physical work environment employee wellbeing can be
ensured by keeping it as much hygienic as possible (Scope of employee wellbeing, 2016). Also it
should encourage creativity and innovation from the workers so that they can develop new ideas
for the benefit of the company.
Physical health investment- This is also a part of employee wellbeing measures and this
can be ensured by regular checking of health of the workers. This will determine whether they
are healthy and fit for job or not. Also, steps such as provision of medical facilities, health
insurance and payment of various expenses can be done on the part of employer.
Mental health investment- Employers have to be sensitive towards ensuring mental
well-being of their employees. Workers are considered as golden assets for any organization and
thus their mental health must be at supreme priority. Different initiatives can be taken by
employers in this regard for ensuring soundness of mental health. These can be providing a

relaxed and stress-free work environment, allowing certain activities for engagement with
workers etc.
Employee relationships- In this, relationships are formed with employees and also their
existing relationships with colleagues is maintained. In creative teams of any organization
conflicts can happen and it is necessary that the conflicts are resolved quickly for the betterment
of the organization.
Employee recognition- It is important in the context of an organization that proper
recognition and respect is provided to a worker where it is due. It is necessary as it acts like a
morale booster for them increasing their level of motivation and need for achievement. Also, if
appropriate rewards are provided by the employer to workers for doing good work then it will
positively influence them to work for achievement of goals and objectives of the organization.
Personal economic health- It is necessary on the part of the employers that they give
heed to personal economic health of the employees. This can be done by providing advance
salary, loans at lower interest rates for different financial requirements etc. This ensures that the
workers are provided financial assistance when they are facing difficulties related to finance.
This increases their concentration at work and facilitates achievement of goals, targets and
objectives of firm.
Nature of employee wellbeing-
The nature of employee wellbeing includes the following-
Physical wellbeing- Physical wellbeing includes different type of hygiene factors which
if not provided create a level of dissatisfaction among employees (Battaglia and et.al., 2016).
Thus it is an important component of employee wellbeing measures being taken by a company.
Mental wellbeing- Mental wellbeing includes measures like ensuring mental satisfaction
from job and also taking care of mental health of the employees. It includes measures like
reducing stress on workers, ensuring their engagement by different activities in the organization
and optimally increasing their efficiency, effectiveness and productivity using various
techniques.
Moral wellbeing- Moral wellbeing means efforts and initiatives on the part of employer
which ensure that the motivation level of staff can be increased considerably. This will help in
increasing their concentration at work (Brewster and Söderström, 2017). This is important as
morale of the workers should be increased in order to raise their efficiency, effectiveness and
productivity at work.
Emotional wellbeing- Emotional wellbeing refers to taking of steps and measures by the
employer for ensuring better emotional health of the employees. This is necessary to increase the
concentration of workers at work.

Benefits of employee wellbeing measures-
Reduced health costs- Taking of employee wellbeing measures can result in lower costs
of healthcare for the employers. It is so because it leads to an improvement in health of workers
and thus reduction in healthcare costs for the employers.
Higher engagement- Introduction of programs for employee engagement has resulted in
increase of concentration of many workers at work. They are now working with enhanced
motivation, more efficiency, effectiveness and productivity to achieve the goals and targets of
the organization.
Improvement in productivity- Introduction of employee wellbeing measures has
certainly enhanced their productivity which can be displayed in their level of work.
Higher employee satisfaction- Wellbeing measures have ensured that the satisfaction
level of employees with their employer is high which can be a good sign for different
organizations (Carpio and Fuller-Wimbush, 2016).
Limits of employee wellbeing measures-
Costly affair- Introduction of employee wellbeing measures are a costly affair for many
companies whose financial position is not that strong to introduce these programs.
Invasion of privacy- These programs can invade the privacy of employees as they may
not find it easy to share certain information about themselves in front of everyone.
Requires upkeep- The employee wellbeing steps are costly and expensive and also
require high-level maintenance which may not be possible for certain organizations.
Not the right fit for everyone- There may be different employees in an organization
who already have a daily routine to maintain their health. Thus, the company’s measures may not
be useful for them and they may not take part in these measures.
First example of an organization’s attempt at measures for employee wellbeing
Tesco is a British company dealing in groceries and general merchandise. It is a leading
player in the supermarket segment of U.K. It has been awarded The Bupa Health and Wellbeing
Award. Its measures taken for the mental and physical well-being of its employees are
exemplary and can be followed by other organizations also (Ketchen Jr, and et.al., 2017).
Measures taken by Tesco for employee wellbeing-
 Health-survey- Tesco regularly conducts a health survey to analyze the status of health
of its staff members. This is important as it enhances the fitness of employees and their
concentration level at work.

 Work-life balance- Tesco is promoting work-life balance for its employees as the
company believes that there should be equilibrium between the work life and personal
life of the workers. For this, the organization plans to not to put excessive strain and
tension on employees by giving them excessive work. Thus it helps in creating a healthy
atmosphere at work.
 Access to health team- Tesco has set up a dedicated health team at its various offices
across the world. This helps the workers to look after their health by getting regular
check-ups and advice from the doctors available. Also, this helps them in finding
solutions for their health problems if any.
 Counseling- Tesco also offers its employees and their families the facility for availing
counseling from expert doctors regarding their health. This ensures that the workers keep
the health of their family members at a priority (Naser and et.al., 2017).
 Summer activities for children- In Tesco, activities are arranged for children of staff
members during the months of summer vacation. This encourages the participation of
children in such activities developing their creativity level ensuring that they learn new
things during their holidays.
 Gym subscription- Tesco pays the expenses for subscription of gym of its various staff
members. It does so to ensure that the employees can take care of their health by being
more aware about it which will ensure their enhanced concentration and focus at work
and help in achievement of organizational goals and objectives.
 Workshops- Tesco arranges many workshops focusing on wellbeing of employees- both
physically as well as mentally so that employees can give their health priority. This
makes them more aware about their physical and mental well-being and if they are
having any issues they can discuss it freely on an open platform. This has a positive
impact on the overall productivity of the workers thereby increasing the efficiency,
effectiveness and the overall productivity. This enhances their concentration and focus at
work which helps in achievement of efficiency, effectiveness and productivity. The staff
members have also acknowledged the need of such workshops and have admitted that
they have been helpful for them.
Effect of employee wellbeing measures on organizational effectiveness-
The measures which have been taken by Tesco for wellbeing of its employees
have led to a creation of a positive impact (Pasban and Nojedeh, 2016). Their effects are
as listed as follows-
 Increase in efficiency- The wellbeing measures taken by Tesco have led to an increase in
efficiency of work of its workers which has raised the overall effectiveness in the
organization. This is a positive development for the company where lack of efficiency of
workers was a long-standing problem.
 Increase in effectiveness- Employee wellbeing measures of Tesco have led to increase in
effectiveness of employees in performing various tasks allotted to them according to their
capabilities. This has positively influenced the overall organizational effectiveness also
which is a good sign for the company.

 Increase in productivity- The employee wellbeing measures of Tesco has positively
influenced productivity of employees at work. This leads to benefit for the organization
as it will result in achievement of various short-term and long-term goals, targets and
objectives.
 Better concentration- The employee wellbeing measures taken by Tesco have increased
the level of concentration which the workers put in their work. This is good for the firm
as it will lead to increase in the overall performance which will benefit it in the long-run.
 Better satisfaction- Tesco’s employee wellbeing measures will lead to an increase in the
overall satisfaction of employees (Polko, 2016). This will enhance their participation in
various activities of the organization leading to organizational effectiveness.
 Healthy environment- Tesco’s initiatives for employee wellbeing have led to creation of
a healthier environment for the workers to work in. Thus it can positively influence them
to work to their full potential for achievement of goals and objectives of the organization.
 Better engagement- The employee wellbeing initiatives of Tesco has led to
establishment of a better connection between the company’s HR department and the
workers. The HR department is now able to quickly identify the problems, issues and
grievances of the employees so that quick and swift action may be taken for their
rectification so that workers are not bothered again by them. Also it is now ensuring
taking steps for increasing health awareness among employees.
 Better relationships- The employee wellbeing initiatives of Tesco have led to
establishment of better relationships between Tesco’s employees. This has enhanced
cooperation, coordination as helping each other during work maximizes organizational
productivity. Thus this will positively influence company’s operations and thus will
facilitate achievement of goals, targets and objectives of the organization which will
definitely help the firm in the long-run.
Second example of an organization’s efforts for employee wellbeing initiatives
Ernst & Young is a multinational professional firm which has headquarters in London,
United Kingdom (Progoulaki and Theotokas, 2016). It is one of the largest firms in providing
professional services all over the world. It gives specific attention to its HRM process and treats
human resources as its valuable assets which will benefit in the long-term. It has implemented
various employee wellbeing measures which have enhanced its reputation as one of the best
companies to work in.
Some of the employee wellbeing initiatives it has taken are as follows-
 Flexible working- The Company offers flexible working for its employees as they are
also allowed to work from home whenever required by them. Also in certain
circumstances and situations of its workers it allows flexible working hours for them by
supporting them. This boosts up the morale and motivation level of its employees which
can be reflected in their work as they work with a renewed energy, enthusiasm,
concentration and focus on achievement of their tasks, goals, objectives and targets.

 Support- The company offers support to its employees at all levels is it in form of
financial or non-financial assistance. Thus it has created an environment where help is
readily available for workers and their problems, issues and grievances are adhered and
given attention to.
 Family leave- Leaves are provided in the company for various purposes of employees
including paternity, maternity, adoption and surrogacy. This enhances the motivation of
workers as they feel that the organization cares for their needs and requirements and
gives them the highest priority. This helps in the long-term growth of the firm in form of
its sustainable development.
 Discounts on Gym membership- The Company has made tie-ups with various gyms so
as to provide discounts to its employees for joining them (Rahn, 2016). This initiative of
firm helps in increasing awareness among the workers regarding their health and thus
enhances their better concentration, focus and dedication at work which leads to positive
results for the organization. Also this has led to its workers being more fitter which raises
their efficiency, effectiveness and productivity level which leads to enhancement of
profits of the company. This has led to staff members focusing more on their health and
giving it the required attention.
 Private healthcare- This facility is being provided to those employees of the company
who have worked in it for more than five years or more or those who have a managerial
status.
 Seminars- The Company holds seminars every month on topics to help in improvement
of mental and physical wellbeing of employees (Thite, Vashishtha and Sharma, 2019).
These seminars are of great help not just for the staff members but also for the people
sitting in the management itself. This is so because heath awareness is increased with the
information and help provided by these seminars.
Effect of these initiatives on organizational effectiveness-
The steps and initiatives taken by Ernst & Young have created a positive impact
on its operations. It has been explained as follows-
 Better performance- The performance in various operations of company has improved a
lot due to the initiatives of the company. Ernst & Young’s measures have created a
positive impact on the company’s employees.
 Increase in commitment- Ernst & Young’s measures have led to an increase in the
commitment level of its workers towards the work which is positively increasing its
overall performance and will help it in facilitating achievement of goals, objectives and
targets in the future.
 Better health of employees- Ernst & Young has facilitated maintenance of better health
among its employees. Furthermore, it has led to increasing awareness about health among
its various workers. If the workers are more fitter and conscious regarding their health it
naturally needs to achievement of better results and contributes positively in company’s
success.

 Hygienic workplace- Adoption of practices for employee wellbeing has enhanced Ernst
& Young to create a workplace which is hygienic and clean (Yilmaz, 2019). This results
in better concentration and focus among employees on their work. Thus better results can
be obtained easily which will help the firm in the long-run by facilitating achievement of
its goals, targets and objectives.
 Motivated workforce- A motivated workforce leads an organization to achieve better
results. The motivation of workers depends upon many factors among which one is
employee wellbeing measures. These steps which have been taken by Ernst & Young
have facilitated increase in the level of overall motivation of the workers. This helps them
in achieving outcomes of the tasks which have been allotted to them.
 Better results- Better results can be achieved when the employees work with full
commitment and dedication by realizing their full potential (Yusof and et.al., 2016). Ernst
& Young’s employee wellbeing measures have developed the relationship between the
HR department and the workers. This encourages as they feel that the HR department of
the company cares for them and the needs and requirements of their family also. The
measures which have been taken also benefit the workers at different levels which
facilitate better results from them in work. This happens because they focus on the tasks
allotted to them with a renewed energy and enthusiasm which benefits the company both
in the short-run and long-run.
CONCLUSION
From the above assignment, it is clear that human resource management is a very diverse
field of management with its various tasks, goals, objectives and specific functions to perform.
Management of human resources requires adoption of different approaches to ensure that
efficiency, effectiveness and productivity of the enterprise can be maintained. Also the HR
department solves the relevant issues and grievances of the staff members if any. It is the duty of
HR department to take measures which are for the benefit of the workers working in the
organization. One of them is employee wellbeing measures. Employee wellbeing measures with
their scope, nature, benefits to organizations and limits have been discussed. Also, examples of
different organizations using employee wellbeing measures for various purposes have been
explained in detail as a part of this project.

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