Corporate wellness has become a hot topic within companies in recent years. Organizations are increasingly realizing the importance of investing in the health and well-being of their employees to improve productivity, reduce absenteeism and attract and retain talent. Two concepts often confused in this context are Corporate Wellbeing and Corporate Welfare , but it is essential to understand the differences between the two.
In this article we will see what is the meaning of wellbeing, the definition of wellbeing and the difference with corporate welfare.
What is meant by corporate welfare?
First of all, corporate welfare is a term widely used to describe the benefits and services offered by a company to its employees. These can include health care, insurance coverage, day care, counseling services, and more. Corporate welfare focuses mainly on support measures offered to employees, both in terms of their physical and mental health.
What does wellbeing mean in the company?
Corporate Wellbeing goes beyond the concept of benefits and services. It is a more holistic approach that aims to create an organizational culture oriented towards well-being in all its aspects. Corporate Wellbeing involves the implementation of strategies and programs that promote the physical, mental and emotional health of employees, in order to improve their overall well-being.
Why is corporate welfare no longer enough?
We find ourselves in a complex and fast world, where the offer of services is not lacking. However, thinking of improving corporate well-being and organizational culture with a welfare plan is a rather short-sighted view.
Welfare certainly benefits people, especially in economic terms, by allowing easier access to certain services. However, corporate well-being is another thing. It means creating sustainable working environments where people can express themselves freely, an environment where there is psychological security. To find out the key dimensions for creating a culture of well-being, you can read our article: The 8 dimensions for creating a culture of well-being: practical advice
What is the difference between welfare and wellbeing?
While Corporate Welfare focuses mainly on the services provided, Corporate Wellbeing places a particular emphasis on evaluating the results and monitoring the effectiveness of the implemented wellness initiatives. This allows companies to identify areas that need improvement and make the necessary changes to optimize employee benefits. Working on Corporate Wellbeing requires a series of strategic actions. First of all, it is crucial to develop a clear vision and a coherent strategy for corporate well-being. This may include identifying company-specific goals in terms of employee well-being and creating a detailed action plan to achieve them. If you want to find out how to design a wellbeing strategy for your company thanks to Trainect tools, read our article: How to overcome Wellbeing Washing through an effective strategy
In short, as we at Trainect say, "Foosball is no longer enough" because the people-centric revolution is underway and we need to change the organizational culture to create sustainable work environments that are truly attentive to the well-being of workers. On the other hand according to the AXA Mind Health Report 2023 - IPSOS on a csample of 30,600 people aged between 18 and 74 in 16 countries (Italy, France, United Kingdom, Germany, Spain, Ireland, Switzerland, United States, Mexico, Turkey, China, Hong Kong, Japan, Thailand, Philippines) there are several red flags on the subject of corporate wellbeing strong> to watch out for:
Only 18% of the Italian sample declares a state of full well-being, making it the most affected population compared to other countries
Stress is the most widespread mental disorder globally, in Italy it is felt by 56% of the sample (+8 pp vs 2022)
We live in a condition of isolation: 48% of Italians feel alone, the worst figure in Europe
Women are more victims of hardship, reporting a worse condition than men in all age groups
All of this has an impact on productivity: only 15% of the sample declare a highly productive state of mind at work
And the costs of malaise are high, including increased turnover. Every time a company replaces an employee, it spends an average of 6 to 9 months of extra salary per year. year. For a manager earning $50,000 a year, that's about $30-40,000 in additional recruiting and training expenses (Society for Human Resource Management)
In conclusion, it is essential to go beyond welfare plans to include corporate wellbeing initiatives capable of creating sustainable work environments.