Why organisations need to focus on the fundamentals rather than the ‘glossy perks’

Paul Devoy

CEO, Investors in People

With poor mental health costing UK employers a staggering £56 billion a year and over 35 million workdays lost,¹ employee wellbeing needs to become a priority.

Paul Devoy, CEO of Investors in People, discusses why some companies may fall short in their wellbeing practices. “Organisations have good intentions offering wellbeing solutions such as gym memberships and free food, but when you ask employees what they really value, it isn’t the company perks,” explains Devoy. “The quality of the leadership and flexible working arrangements are some of the strongest predictors of employee wellbeing.”

Organisational culture and wellbeing

Creating an environment where employees feel they can thrive, develop and have ongoing support and flexibility is a key determinant of wellbeing. “The thing that makes people healthiest and happiest is the environment they work in and the culture of the organisation,” says Devoy. “Investing in good leaders has a higher positive impact on long-term organisational culture than any additional perks. If you succeed in creating a positive, healthy culture, your employees will thrive, having a positive impact on key business goals, staff retention and intrinsic motivation.”

The thing that makes people healthiest and happiest is the environment they work in and the culture of the organisation.

Key research insights

A YouGov survey, commissioned by Investors in People, suggests firms must focus on the fundamentals, such as leadership and flexibility. “Low awareness of available perks suggests that key decision-makers place higher value on perks than employees; 59% of employees have never used their gym membership, and only one in four think health and wellness apps are effective,” adds Devoy. “There is no one-size-fits-all approach to good organisational culture; employers need to determine the best decisions based on both organisational needs and the needs of their employees.”

Employee wellbeing in practice

Investors in People have created the ‘We Invest in Wellbeing’ framework to set a standard for health and wellbeing excellence. “This allows us to provide a robust structure for any organisation to nurture a culture of wellbeing,” explains Devoy. The framework is producing quantifiable results.

Construction company Graham Group has seen a huge improvement, with increasing engagement rates and reduced physical and mental health issues. “Graham Group enjoys a 25% lower staff turnover compared to the industry average, with a 35% decrease in absence over the last two years, and 85% of their employees now say it’s a great place to work,” he adds. With three underlying themes based on shaping, owning and living a culture of wellbeing, the framework can be adapted to meet your organisation’s needs.

[1] Deloitte. (2023, September 24). Poor mental health costs UK employers £51 billion a year. Deloitte.