RESEARCH PAPER: W E L L B E I N G
How Employee Wellbeing
Shapes Workplace Cultures
Employee wellbeing is a vital part of any business
strategy. But which aspects of employee wellbeing
contribute to a great workplace culture? This paper will
highlight new findings from a recent study, conducted by
the O.C. Tanner Institute, including the current state of
employee wellbeing, the impact of wellbeing on company
culture, and the powerful symbiotic relationship between
wellbeing and employee recognition.
The current state of wellbeing at work is low.
The state of employee wellbeing has been low for a while
now and not much has improved. We asked employees to
choose where they would place themselves on a ladder
with steps numbered from zero at the bottom (worst
possible life) to 10 at the top (best possible life). On
average, employees rated their current overall feeling of
health and wellbeing a 5.91 out of 10.
Just over half of employees (52%) felt that productivity
and the bottom line mattered more to their organization
than people. 36% went so far as to say that their job has a
negative effect on their physical health. 38% agreed their
situation at work is hurting their ability to be happy in
other aspects of their life. Employees don’t feel they are
living their best lives, and many are negatively impacted
by their work environments.
Wellbeing strategies work
Fortunately, we know that wellbeing initiatives can help.
Companies with a formal wellbeing program see:
• A 17% increase in new ideas and innovation
from employees
• A 20% increase in employees who see a doctor
for a general checkup
• A 13% increase in employees who see a doctor
when they are ill
• A 14% increase in employees’ overall feeling
of wellbeing
Good wellbeing strategies involve more than just counting
steps and tracking sleep. Remember employees who rated
themselves a 10 on the ladder in the first question? Those
people who felt they were living their best lives also felt
they were paid fairly (89%), had adequate paid vacation/
sick/family leave time (88%), had companies that took care
of their future (81% had employer paid retirement plan
contributions), and worked in an environment conducive
to collaboration and making friends at work (81% work
in an open work environment). Companies who take care
of the whole employee, and not just their physical health,
saw higher wellbeing in their people.
83% of these employees who
rated their lives a 10 had a formal
company wellbeing program.
Which wellbeing perks were not as effective? Company
provided daycare, stock options, recreation centers/leisure
activity spaces, and onsite gyms/discounted gym
memberships did not have a large effect on overall
employee wellbeing.
Wellbeing impacts culture
It’s no surprise that having a wellbeing program improves
employees’ health and their outlook on life. But having a What is the best path for
wellbeing program also improves company culture. When
companies have a wellbeing program, they see a: building a best-in-class
• 16% increase in employees who feel a sense of purpose
in their jobs
workplace culture?
• 24% increase in the sense of opportunity for
development and growth at the organization
• 22% increase in people doing great work It all starts with leaders. Leadership, especially direct
• 19% increase in employees’ perception of their leaders managers, directly influences each employee’s positive or
• 24% increase in employees’ perception of senior negative perception of each of the six magnets—especially
leadership wellbeing and appreciation. Great leadership elevates each
• 16% increase in overall employee engagement employee’s sense of wellbeing and appreciation, which
makes people more likely to stay.
• 18% increase in workplace satisfaction

The most important areas of company culture – purpose, Wellbeing and appreciation also work hand-in-hand to help
opportunity, leadership, etc. – can all be influenced by employees feel a sense of purpose and opportunity in the
including wellbeing in your culture strategy. organization, which dramatically increases engagement.
These factors all lead to more great work and success,
The Wellbeing and recognition connection which makes your organization a magnet for great talent.
Research indicates there are 6 essential elements of
a great work place culture. We call them Talent Magnets
because they are what make an organization irresistible
to talent. But how do those 6 magnets interact and
relate to each other?

TIE R 1 TIE R 2

T IE R 3
Wellbeing Purpose

Senior
Leadership Success
Leadership

Appreciation Opportunity

Rentention Engagement Attraction

Recognition has a direct impact on employee wellbeing.
When employees frequently receive recognition, there is:
• A 17% decrease in employees who feel their situation
at work is hurting their ability to be happy in other creating real change and improving the lives of
aspects of their lives
• A 15% decrease in employees who say their job
negatively impacts their physical health
• A 10% decrease in employees who believe productivity
and bottom lines are much more important to my
organization than people
• A 21% increase in employees who report a positive
work/life balance
• A 31% increase in employees who feel a sense of
belonging at work
Recognition has a very clear impact on employee
wellbeing, for both givers and receivers of recognition.
Those who often gave, received, and observed recognition
saw an 8.8% increase in wellbeing and were more likely to
see a doctor (11% increase in checkups, 17% decrease in
illness). Effective recognition yields a 29% increase in
work/life balance, a 33% increase in belonging, and a 27%
increase in overall self-rated health.
Conclusion
Employees may not feel a high sense of wellbeing at
work, but a wellbeing program can turn that around,
employees. With recognition and wellbeing programs
in place to value and care for the entire employee—not
just their physical health or productivity, you can create
a culture that top talent will flock to and employees
will love.
About the study:
This study was conducted by the O.C. Tanner Institute in
Q4 2017 and is based on survey responses from 3,600
working adults at companies with 500+ employees.
The online survey was administered in the U.S., Canada,
Germany, U.K. Australia, Singapore, and India. The
survey was sent to panelists selected at random from
a sample of 1.2 million individuals through a third party
panel company.

By combining recognition and wellbeing efforts,

companies can help both solutions synergize and results
to snowball. Recognition, when done in a meaningful way,
helps reinforce an employee’s sense of wellbeing and
fosters a workplace culture that employees want to work
for, engage in, and stay with for the long haul.

Contact us today at info@octanner.com

Visit our website at octanner.com
Give us a call at 1-800-453-7490