WELLBEING A FRAMEWORK FOR GOOD BUSINESS
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1 WELLBEING A FRAMEWORK FOR GOOD BUSINESS Dr Paul Litchfield Chair of the What Works Centre for Wellbeing & Chief Medical Officer BT Group plc Work, Learning & Wellbeing University of East Anglia 12 January 2017
2 Wellbeing A framework for good business Work and what people want from it is changing Employee Perception Customer Perception Investor Perception Societal Perception Hazards Risks Demands Location Time Control Security WELLBEING More than Money Force for Good Sustainability Corporate Citizenship
3 Economists are revising their focus and their measures Source: Girol Karacaoglu, Chief Economist, NZ Treasury. March 2016 Source: Organisation for Economic Cooperation & Development (OECD)
4 Wellbeing means different things to different people Wellness 福祉 The Wellbeing Industry confuses the issue
5 Wellbeing A framework for good business So what do we mean by Wellbeing? Wellbeing, put simply, is about how we are doing as individuals, communities and as a nation and how sustainable this is for the future. We define wellbeing as having 10 broad dimensions which have been shown to matter most to people in the UK as identified through a national debate. The dimensions are: the natural environment, personal well-being, our relationships, health, what we do, where we live, personal finance, the economy, education and skills and governance. Personal wellbeing is a particularly important dimension which we define as how satisfied we are with our lives, our sense that what we do in life is worthwhile, our day to day emotional experiences (happiness and anxiety) and our wider mental wellbeing. ONS Model UK Office for National Statistics ONS Reflections on Measuring National Well-being July Measures / 10 Domains
6 Wellbeing A framework for good business Does work matter for wellbeing? Greatest determinants of adult wellbeing are in childhood: Genetics Parenting Schooling But impact is life long As adults: How is adult life-satisfaction predicted by adult outcomes? Coeff. (s.e.) 0.20 (0.02) 0.04 (0.02) 0.88 (0.13) Employment Relationships Emotional Health matter most Source: BCS data ( ) 0.05 (0.01) 0.69 (0.03) 0.11 (0.01) 0.35 (0.01) R 2 = 0.147
7 Wellbeing A framework for good business Does wellbeing matter for work? Theoretical and practical work shows wellbeing improves productivity and makes high performance sustainable Figure A4: Those exposed to the randomized happiness treatment in the laboratory have higher productivity in Experiment III Additions Additions Female Additions Male Attempts Untreated Treated Figure A6: Individuals with a recent Bad Life Event (BLE) have lower productivity in Experiment IV Additions Additions Female Additions Male Attempts No BLE BLE Source: Happiness and Productivity - Andrew J. Oswald, Eugenio Proto, and Daniel Sgroi University of Warwick, UK, and IZA Bonn, Germany - March 2014 David Macleod & Nita Clarke - Engage for Success
8 Most companies take a scatter gun approach What they need is an evidence based strategy and focus (the evidence needs to be better and more accessible) Source: CIPD Absence Management Report 2015
9 BT has had a consistent framework for over a decade Underpinned by Good Work Consistent use has delivered results But the focus has been only on Health & Safety Lost Time Injury Rate (Incidents per 1 million working hours) Work Related Ill Health (Cases per 10,000 people in post)
10 Wellbeing A framework for good business We ve moved to a wellbeing conceptual model How we are doing PURPOSE Belief Engagement Commitment HEALTH Physical Psychological Emotional WELLBEING at work SECURITY Physical Financial Emotional All elements count They affect each other Health is important But it s more than that What matters RELATIONSHIPS Family Work Community And not just fruit & Pilates!
11 Many elements contribute to wellbeing Mid-career divorce Volunteering Financial Wellbeing 64% borrow for basic needs 37% use credit cards 8% use payday lenders Source: DNA of financial wellbeing - Neyber Source: ONS Statistical Bulletin Source: NCVO UK Civil Society Almanac Relationship counselling Psychological support Legal advice Skills benefitting community Reinforcement of purpose Higher engagement Workplace financial advice Loan consolidation Credit Unions But don t forget health!
12 Wellbeing A framework for good business Moving from concept to action grid Wellbeing Primary Prevention Secondary Intervention Tertiary Resolution Health Physical Psychological Emotional Security Physical Financial Emotional Relationships Family Work Community Purpose Belief Engagement Commitment Nutrition Exercise Smoking Resilience Mindfulness EAP OHS Rehabilitation Sick Pay Pensions Hardship Funds Safety Road Risk Agile Working Parental Leave Volunteering Childcare Sports Teams Works Councils Job Design Autonomy Change
13 Consider the individual and the organisation Organisational Justice Distributive Centre Procedural Director Interactional Source: New Economics Foundation Source: UK Health & Safety Executive Good Work promotes Wellbeing Bad Work destroys Wellbeing individuals find meeting their line manager the least pleasant moment of the day Source: Kahneman et al
14 Look at job design & management competencies Job Characteristics Model (Hackman & Oldham) Core Dimensions Skill Variety Task Identity Task Significance Autonomy Feedback Psychological States Meaningfulness of work Responsibility for outcomes Knowledge of results Outcomes Work motivation Job satisfaction Quality of work Quantity of work [Absenteeism & Turnover] Plus: Social motivation / Job crafting / Teams Promoting good work and avoiding harm Management Competencies (UK Health & Safety Executive) Respectful & Responsible Integrity Managing emotions Considerate approach Work Style Proactive work management Problem solving Participative / Empowering Behaviour Personally accessible Sociable Empathetic engagement Reasoning Managing conflict Use of organisational resources Taking responsibility for issue resolution Plus: Organisational justice / Fairness
15 Workplace wellbeing can drive public wellbeing Ripple effect WORKFORCE FRIENDS & FAMILY COMMUNITY SOCIETY Good Corporate Citizenship
16 A vehicle for social responsibility Wellbeing Health Purpose Physical Mental Security Environ ment Relation ships Financial Cyber Volunteering Human rights Energy Sustainability Family Community Health Wealth & Happiness for the Workforce Customers & Community
17 Promoting wellbeing at work is good for business Accidents Litigation Disengagement Absenteeism Presenteeism Healthcare costs Bad Work Harms Good Work Improves Wellbeing Wellbeing Bad Wellbeing Harms Work Good Wellbeing Improves Work Motivation Fitness Purpose Productivity Innovation Engagement And good for society
18 Thank You
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