UPDATE: WHY CREATING A WELLBEING CULTURE IS SO IMPORTANT RIGHT NOW
As we set about creating the post-pandemic workplace, employee wellbeing is a key consideration for all employers right now. The pandemic demonstrated that employee health really does equate to business wealth. The virus has served as a powerful reminder that people do the work, and when they are unwell, that work cannot be done. We are also seeing some consequential decisions handed down by the courts, that reinforce an employers obligation to provide safe systems of work that promote employee wellness and overall wellbeing. So what does this mean for employers? Why is it so important that employers actively create workplace cultures that support employee wellbeing?
Employee wellbeing, or ‘wellness’ as the more contemporary term is something all employers need to be incorporating as a central element in both their business and people strategies. We know that the ‘Great-resignation’ that has resulted in unprecedented job movements in the employment market right around the world, has been driven off-the-back of employees re-evaluating and acting on what is most important to them when it comes to life and work. This is a strong phenomenon that is altering the workplace and the way we work, as we knew it to be.
Employers currently have an opportunity to seek to deeply understand what is motivating the choices and preferences of their employees in this new post-pandemic world. By doing this, they will ensure that they remain one-step ahead and create a truly unique employee experience that gives them a competitive advantage, both now and into the future of work.
What employees want from work
The World Economic Forum in May 2022 released a white-paper - ‘The Good Work Framework: A new business agenda for the Future of Work’. It includes some key indicators based on research of what elements will be key to the employment experience in the years ahead. The ‘Good work framework’ is critical for all employers to understand and consider, as they go about redesigning work. What employees want from work is clearly set out in the ‘good work’ framework and is made up of five core focus areas:
Promote fair pay and social justice: this is no surprise, as global financial markets grapple with inflation that is putting pressure on basic cost of living, along with Russia’s invasion of Ukraine that makes issues of social justice more prevalent for people then ever before. People want fairness in the way they are remunerated, for both themselves and others. People want global peace and stability in our social systems and for those who commit wrong to be held accountable.
Provide flexibility and protection: during the pandemic people worked differently and flexibility was embraced to ensure work could be performed safely. People want that flexibility to continue, they don’t want it removed from them. People want to be trusted by their employers to get work done and have access to flexible working options protected for both themselves and others.
Deliver on health and well-being: it is not good enough anymore for employers to take a tokenistic approach to employee wellness. People want to work for an employer that cares about their wellbeing. People want their employer to show them that they care, through taking meaningful action that supports and encourages employees to maintain both physical and mental wellbeing.
Drive diversity, equity and inclusion: fairness and equal participation for all people will continue to be central and having a well-defined and implemented approach to diversity and inclusion will be essential for employers. People want to work for an employer that treats people with fairness and respect, regardless of individual characteristics.
Foster employability and learning culture: as the skills required of the future workplace change, accelerated by continued advancements in technology - employers will need to play an active role in bridging the skills-gap that will exist. People want their employer to support them and others, if they need to change careers of jobs. People want to work in workplaces that actively invest in re-skilling and developing new capabilities in their people.
Illustrative case
As we develop wellbeing cultures, it is important to understand that it is not just the ‘good’ or ‘right’ thing to do. Taking action to support employee wellness serves as an important risk-mitigation strategy, as we are finding that our Courts will not take a sympathetic approach to employers who disregard their obligations in relation to the safety and wellbeing of employees. This has been illustrated in a most recent case, that saw the Courts hand down significant damages that send a clear message around employers duties in regards to both physical and mental wellness of employees.
In April 2022 the High Court of Australia awarded over $435,000 in damages to an employee who sustained a psychiatric injury in the case Kozarov v Victoria [2022] HCA 12. In this case, Ms Kozarov worked on serious sexual offences prosecutions involving children. The High Court found that Ms Kozarov’s employer, the Victorian Office of Public Prosecutions (VOPP) were negligent in their duty to prevent psychological injury in the course of her employment as solicitor.
This is a significant decision, particularly for public sector employers. The primary question considered by the High Court was whether the VOPP failed to provide the employee with a safe system of work that exacerbated her psychiatric injury (PTSD and later MDD). The Court found that the answer to this question was “yes” - with the following points highlighted:
The employer has a duty to provide a safe system of work;
The employer has a duty to avoid or reduce the risk of injury, both physical and psychiatric - there is no difference in the view of the Court as to the ‘type’ of injury; and
The employer has a duty to act when made aware of the potential for, or an actual injury - it is simply not enough to rely on they employee ‘knowing’ the work they had signed up to do was inherently stressful.
What does this decision mean for employers?
It means that employers must make wellness and employee wellbeing a high-priority. Actively taking steps to embed a wellbeing culture in your organisation, will ensure that you have more healthy, engaged and productive employees and mitigate the legal risks associated with potential injury related claims. It makes good business sense right now to take proactive action to ensure your organisation has a wellness culture.
Need help?
If you require assistance interpreting what this means for your organisation, Humanify HR Consulting can assist by providing you with workplace relations advice to navigate these changes. Whether it be an assessment of your approach to employee wellbeing, or reviewing your existing HR procedures - we are here to help. You can contact us at hello@humanifyhr.com.au for more information about how we can support your business.
Important Disclaimer: The material contained in this article is provided as general information only. It is not, nor is intended to be legal advice. If you wish to take any action based on the content of this article we recommend that you seek professional advice.
