2012 Workplace Trends Report: Psychological Health in the Workplace

BRIEF: Psychological Health in the Workplace

By David Ballard PsyD, MBA
Guest Contributor from the American Psychological Association

Fostering Employee Well-Being & Organizational Performance
Creating a psychologically healthy workplace takes a firm commitment even in the best of times, and as the recession hit full swing, many organizations (even healthy ones) had to make some difficult decisions.  In a 2009 survey conducted by the American Psychological Association, 68 percent of employed Americans reported that their employers had taken steps such as putting a freeze on hiring or wages, laying off staff, reducing work hours, benefits or pay, requiring unpaid days off or increasing work hours because of the weak economy.

Employers who understand the link between employee well-being and organizational performance strived to maintain a work environment characterized by openness, fairness, trust, and respect, even when difficult actions were required.  These employers are positioned for success in the economic recovery and will have a distinct competitive advantage in their ability to attract and retain the very best employees.

Although there is no “one-size-fits-all” approach to creating a psychologically healthy workplace, the practices that help create a healthy and productive work environment can be grouped into five categories: employee involvement; health and safety; employee growth and development; work-life balance; and employee recognition.

Employee Involvement
Efforts to increase employee involvement empower workers, involve them in decision-making and give them increased job autonomy. Employee involvement programs can increase job satisfaction, employee morale, and commitment to the organization as well as increase productivity, reduce turnover and absenteeism and enhance the quality of products and services.

Health and Safety
Health and safety initiatives improve the physical and mental health of employees through the prevention, assessment and treatment of potential health risks and problems, and by encouraging and supporting healthy lifestyle and behavior choices.  Health and safety efforts include a wide variety of workplace practices that can help employees improve their physical and mental health, reduce health risks, and manage stress effectively.  By investing in the health and safety of their employees, organizations may benefit from greater productivity and reductions in healthcare costs, absenteeism, and accident/injury rates.

Employee Growth & Development
Opportunities for growth and development help employees expand their knowledge, skills, and abilities and apply the competencies they have gained to new situations.  The opportunity to gain new skills and experiences can increase employee motivation and job satisfaction and help workers more effectively manage job stress.  This can translate into positive gains for the organization by enhancing organizational effectiveness and improving work quality, as well as by helping the organization attract and retain outstanding employees.  By providing opportunities for growth and development, organizations can improve the quality of their employees' work experience and realize the benefits of developing workers to their full potential.

Work-Life Balance
Programs and policies that facilitate work-life balance generally fall into two categories: flexible work arrangements and resources to help employees manage their non-work demands.  Conflict between work and other life responsibilities can diminish the quality of both work and home life for employees, which in turn can affect organizational outcomes such as productivity, absenteeism and turnover.  Efforts to help employees improve work-life balance can improve morale, increase job satisfaction and strengthen employees' commitment to the organization.  Additionally, the organization may reap benefits in terms of increased productivity and reduction in absenteeism and employee turnover.

Employee Recognition
Employee recognition efforts reward employees both individually and collectively for their contributions to the organization.  Recognition can take various forms: formal and informal, monetary and non-monetary.  By acknowledging employee efforts and making them feel valued and appreciated, organizations can increase employee satisfaction, morale and self-esteem.  Additionally, the organization itself may benefit from greater employee engagement and productivity, lower turnover and the ability to attract and retain top-quality employees.

The Importance of Context
It is important to note that the success of any workplace effort is based in part on addressing the challenges unique to the particular organization and tailoring programs and policies to meet its specific needs.  Workplace practices do not exist in isolation and creating a healthy workplace culture goes well beyond a wellness program or health promotion initiative.  Each workplace practice functions in relation to other programs and policies the organization has in place as well as internal and external environmental factors.  The complex nature of these relationships highlights the importance of taking a comprehensive approach to creating a workplace in which both employees and the organization can thrive.