How do employees experience the climate of their workplace when it comes to well-being? The link between employee well-being and performance has prompted leaders to explore how maximising these once-overlooked factors may be central to increasing organisational success. To better understand the situation with employee well-being, we recently launched a new study in our Johns Hopkins Human Capital Development Lab. Before we get to the findings, it is important to clarify the context.

About well-being at work

A positive workplace climate for well-being has been identified as a significant factor associated with engagement and work outcomes. Research from longitudinal studies on workplace climate suggests that a positive work climate is linked to lower odds of diagnosed depression, increased overall well-being, mental health, physical health, social connectedness, and financial security. Moreover, researchers indicate that a positive climate can decrease distraction at work and increase productivity, potentially contributing to enhanced job satisfaction. These findings underscore the importance of fostering a positive organisational climate, which could be achieved through various initiatives aimed at building trust, recognition, and supportive relationships among employees. Such interventions not only benefit employee health and well-being but also contribute to improved work-related outcomes, aligning with the principles of humanistic management and ethical caring in the workplace.

Providing an organisational climate of well-being may sound like a relatively straightforward practice to implement, yet this involves several facets of work that are not easily controlled or manipulated in the short term. A climate of well-being is closely anchored to organisational culture, management practices, and HR processes since it relates to how a member of the workforce experiences their life at work. In our study, we measure several key dimensions that have been shown to contribute to a climate of well-being. These include:

• Mental and emotional support – when employees sense that they have the mental support of others, they are more likely to have a positive or optimistic attribution, which can build energy, hope, and confidence.
• Sense of purpose – when employees have a sense of meaning, progress, and fulfilment through their activities at work, they are more likely to have higher resilience and a positive view of their employer.

• Personal support – when employees have the support of their manager regarding their unique personal situation, priorities, goals, and interests, they are more likely to have positive engagement and commitment to the employer.

• Financial health – when employees have adequate financial means to feel stable and there is equity in the compensation (and promotion) practices, they can avoid anxiety and fear.

• Meaningful connections – when employees can develop social relationships with others at work, they are more likely to feel a sense of teamwork and belonging, which can enhance the employment experience.

It is important to note that the actual well-being of an individual requires a precise method of targeted questions – this study is aimed at the climate of well-being in the workplace. To provide an indicator, we use factors to measure the above dimensions and assess the organisational climate that promotes positive employee well-being.

Changes in well-being at work

The study highlights the decline in the climate of workplace well-being since the COVID-19 pandemic through a comprehensive analysis of more than 1.5 million survey respondents each year from over 2,000 organisations in the US. For this effort, we partnered with Great Place To Work® to leverage their comprehensive dataset.

As it turns out, the well-being scores vary by industry, demographic group, and organisation, yet a similar pattern emerges. The study showcases the rise and decline of the climate of employee well-being across industries over the past five years while considering influences like tenure, management level, confidence, and work arrangements, along with demographic differences based on gender and age. As shown in Figure 1, we see a rise in well-being scores at the start of the pandemic followed by the gradual decline toward the pre-pandemic levels. The results shown are based on a 1 to 5 scale, with 5 being the highest score. These results may be slightly different in each country, yet this general pattern of high scores during the COVID-19 crisis followed by decline is consistent globally.

Figure 1: Well-being at Work 2019-2023

The overall findings show what many employees experienced in the first year of the COVID-19 pandemic: organisational leaders addressing the impact of this crisis by taking extra care to meet employee needs. We note that employees experienced a spike in the positive climate of well-being at the early periods of the pandemic. However, as workplaces transitioned back to pre-pandemic norms and more employees returned to physical office spaces, the overall climate of well-being often regressed to the pre-pandemic level.

The data from the report confirms that there is a link between remote work opportunities and a climate of well-being, suggesting a need for employers to address work-life balance challenges for the workforce. However, since managers typically encounter lower stress levels than their junior employees, some managers may not fully appreciate these needs. We also note that there are important differences by gender and ethnic groups, showing that well-being in the workplace is still consistently lower for women.

Improving the climate of well-being

Improving employee well-being can be complex – our research highlights a need for leaders to address organisational culture factors coupled with a more nuanced management approach to create a climate of well-being for all. Rather than a prescription for success, we focus on a few steps toward building a trusting culture and a healthy climate of well-being in organisations:

Level skipping – The sense of well-being is higher as people move up the managerial ranks. It is important for senior managers to not only skip one level but multiple levels to gain a clearer understanding of what the work life is like for others in the organisation. The data shows that executives may have a distorted view if they rely on their perceptions.

Confidence building – A team is needed to address culture change and foster a positive climate of well-being. This requires everyone in management to work toward earning the confidence of the workforce. Direct discussions about the actions that both inspire confidence, as well as those that create distrust, are important to put on the table and address as a team.

Active listening – Understanding and appreciating those who may be in the minority can be difficult across levels and organisational boundaries. Starting with active listening and thoughtful questions are the right first steps. Through empathetic listening and building trust, managers can learn more about what is important to groups that may be different from their own.

The COVID-19 pandemic was a worldwide crisis, yet organisational leaders proved to the world that they can do better in taking care of their workforces. While this focus has waned in recent years, the bar has been raised. As organisations navigate the evolving landscape of work, perhaps these findings will serve as a prompt for fostering resilience, equity, and well-being in the workplace of tomorrow.

To download a full copy of the report, please visit the Johns Hopkins Human Capital Development Lab website.