Why Improving Employee Well-being is Crucial for PH Businesses

In the past two years of the COVID-19 pandemic, more Filipinos have begun to value the impact that mental health has in many different aspects of our lives. The way we work has changed drastically from traditional office settings to remote or hybrid working environments, and has also affected the mental well-being of employees.

This brought our attention to numerous issues such as employee stress and burnout, the lack of work-life balance, poor company culture, and rising attrition rates and resignations, which have underscored the importance of ensuring the mental health and overall well-being of employees in our organizations to ensure retention and business survival. Although it is understood that mental health is important in the workplace, statistics have shown that Filipinos from all across the country are internally plagued by the negative effects of the pandemic.

For example, according to the Philippine Council for Mental Health, 3,298,652 Filipinos (or 3.3 percent of the population) live with depression. In another study, researchers found that when surveying the psychological impact of the COVID-19 pandemic on a group of Filipinos, 28.8 percent of the respondents had moderate-to-severe anxiety levels, and 13.4 percent had moderate-to-severe stress levels. While we cannot deny that the COVID-19 pandemic has posed a number of mental health difficulties, it seems that the state of mental health awareness and significance in the Philippines is not as prioritized as it should be.

There are many factors as to why the local mental health system is not able to reach its full potential in the workplace context. For instance, the negative stigma of mental health results in inadequate affordable mental healthcare and lack of HMOs providing coverage for mental health services. More than that, Filipino culture itself becomes an influential barrier of mental health development.

In Filipino culture, mental health is viewed as something to be “treated” rather than maintained. When a person is struggling with a mental illness, it is often automatically attributed to the family. It is this mindset that prevents people from receiving or seeking out mental healthcare when they are in need of it.

This negative stigma of mental health happens in all facets of our environment, such that it can affect households, schools, and most especially the workplace. Given the impact of the pandemic, many Filipinos have been struggling with maintaining their employment status and their personal well-being. The virus prompted most businesses to close down or reduce their staff, and for employees that did remain in their jobs, the state of their mental well-being was compromised.  

A recent study by analytics firm Gallup found that workers in the Philippines are ranked first for being stressed among Southeast Asian employees in 2021. While employee stress in the Philippines dropped from 53 percent in 2020 to 50 percent in 2021, it is still higher than the global average. The Philippines also ranked second in daily sadness, third in daily anger, and seventh in daily worry in Southeast Asia.

Nevertheless, we cannot entirely blame the pandemic for bringing about mental health issues in the workplace since these concerns have existed even before the onset of COVID-19. Each employee has different needs to ensure they are able to perform well and thrive in their work environments. It is therefore imperative to care for an employee’s well-being not only for the benefit of each individual but also for the organization since it could be key to decreasing employee attrition, maintaining efficiency and productivity in operations, and other factors that significantly impact business performance and long-term growth.

What causes resignations in the new normal

Professional recruitment services firm Michael Page expects that the Great Resignation, a phenomenon that started in 2020 due to the global pandemic, will intensify throughout 2022. Rising attrition rates, poor company culture, lack of work-life balance, and employee burnout are just some of the many facets of workplace well-being. While there are other factors that can affect an employee’s mental health, these effects seem to be the most prevalent in the Philippines.

Rising attrition rates

Attrition rate or ‘churn rate’ is the rate at which employees leave a company. A study by human resources (HR) solutions company Sprout Solutions found that the Philippines posted a 176 percent increase in voluntary resignation across all industries. The spike in attrition was due to the abrupt changes in the working setup and uncertainty over the pandemic.

However, we must note that the pandemic is not the only cause for attrition here in the Philippines. Based on the study by recruitment agency Michael Page that studied the latest talent trends for 2022, factors that influence planned resignation also include the need to change career/role, unhappy with salary, looking for career progression, unhappy with the direction of the company.

Poor company culture

The environment that a company promotes plays a vital role in an employee’s desire to stay or leave. Michael Page also underscored the significance of building respect, trust and kindness in the workplace.  Similarly, establishing a people-centered culture could boost team morale, enhance collaboration, and improve overall performance.

Implementing proper Diversity, Equity, and Inclusion (DE&I) policies fosters empathy and care through recognizing and giving importance to employee characteristics such as gender, ethnic groups, sexual orientation, education, age, and disabilities. Policies centered around DE&I indicate that regardless of such characteristics, all employees will be recognized and treated equally. Such policies exhibit the company’s respect for diversity, and show that they care about the employees’ identities and well-being.

Lack of work-life balance

Having a healthy work-life balance seems to hold a lot of value for most employees. 73 percent of employees are willing to forgo a pay raise or promotion if they are guaranteed a better work-life balance, according to the Michael Page study.

More so, 71 percent of Filipino workers do not believe that their company is making any adjustments to performance measurement and appraisals to account for the mental health and well-being of their employees and yet 74 percent believe that mental health should be an important part of performance management and employee relations.

However, the study also found that the emergence of the remote working environment due to the pandemic also caused a work-life imbalance. Merging work life and personal life in the same space can distort an employee’s sense of personal space and can cause distress for them both psychologically and physically.

Employee burnout

The lack of work-life balance during the pandemic also led to an overwhelming amount of work for employees, causing employee burnout to emerge as one of the major issues causing resignations that employers were not prepared for. At the height of the pandemic in 2020, Metro Manila ranked fifth out of 69 cities globally with the highest burnout rates among employees, according to a study compiled by Saavy Sleeper, a think tank run by writers and sleep experts. The study found that the ability to control work schedules and establish boundaries with co-workers could potentially decrease the likelihood of employee burnout.

Why Workplace Well-being Matters

Workplace well-being is crucial for the sake of both the employer and the employee. If a company or organization is unable to showcase any form of care or consideration for their employees’ mental health, workers will most likely leave to find a company with a more thoughtful working environment.

In the perspective of the employers, rising attrition rates indicate that employees cannot find what they are looking for in their current job. Finding capable talent to replace the vacant positions could be an added headache to both HR and operations, which could negatively affect business performance.  

In its State of the Global Workforce study, Gallup also underscored the importance of employee well-being in the ever-changing workplace landscape as low employee engagement costs the global economy $7.8 trillion alone, holding back enormous growth potential for companies.

Prioritizing employee well-being must start with business leaders since they would have control and deciding power over programs, initiatives, and budgets. Without their influence or power, performance management plans may never come to fruition.

At the same time, executives have a significant influence to promote a certain type of culture in their organization. If companies want to reduce employee attrition, they need to focus on implementing programs that focus on the people and their varying needs.

Fostering a culture that is attentive and concerned for the people’s well-being could boost employee morale and performance, as well as maintain employee loyalty. However, it is still crucial to ensure a good balance of consideration for employee well-being and professionalism to prevent complacency.

Workplaces upholding employee well-being in the Philippines

Despite the effects of negative stigma and lack of awareness surrounding mental health in the Philippines, there are some organizations taking strides in employee well-being.

The Department of Labor and Employment (DOLE) has recently mandated the use of mental health programs in the workplace in compliance with the Mental Health Act that was passed in 2018. According to former Labor Secretary Silvestre Bello III, this aims to raise further awareness, prevent stigma and discrimination among Filipino workers with mental health conditions, and provide medical support and access to workers with mental health issues.

Digital outsourcing services company TaskUs has a Wellness & Resiliency Department, a separate department from HR, which primarily focuses on the well-being of its people, and has initiatives such as 24/7 psychological and psychiatric services, digital courses on wellness, yoga and meditation, among others.

Nestlé Philippines, on the other hand, uses the employee kamustahans, people managers’ check-ins, and its Employee Assistance Program (EAP) data to provide them with the most common concerns that the consumer goods giant takes into consideration for the future.

Another example is graphic design platform Canva Philippines, which implemented initiatives such as gym allowances and in-office exercises, daily nutritious meals in its cafeteria, and they even offered free COVID vaccinations for all employees and respective household members. These well-being programs resulted in having a 370 percent increase in job applications.

In a 2021 pulse survey for its employees, 96 percent of respondents acknowledged that the company supported their health and well-being. Canva was also recognized as one of the top three companies in the "Philippines Best Workplaces" list in 2020 and 2021, and the top Best Place to Work in Asia in the small-medium category in 2021.

Fostering a culture of empathy in the workplace

Although the perception of mental health is slowly improving, we are still well on our way to providing a safe space for all Filipino workers. The COVID-19 pandemic has brought on a lot of stress for a majority of employees. Many have feared losing their jobs, have experienced huge losses in their businesses, and have been making less than minimum wage. It is important, now more than ever, that we consider the needs and rights of these Filipinos in order to ensure the quality of their well-being.

Equally, we must remember that awareness alone is not enough to improve workplace well-being. Employers must take responsibility for managing the well-being in the organization to gradually shift perceptions and work cultures to prioritize mental health. Implementing more concrete and thoughtful policies and employee programs is valuable and impactful for employees to realize that their employers care for them and their overall well-being.

Applying these changes could result in better employee loyalty and performance and thereby, better business results in the long run. Without the proper care and guidance to ensure an employee’s mental well-being is at its most productive, the organization and the workers themselves could be at risk of business continuity and stagnant growth.

References:

Abarca, C. M. F. (2022). Most PH healthcare workers suffered psychological stress due to Covid-19 pandemic – expert. Manila Bulletin. https://mb.com.ph/2022/03/11/most-ph-healthcare-workers-suffered-psychological-stress-due-to-covid-19-pandemic-expert/

Baluyot, J. (2021). How these workplaces protect employees’ mental health. CNN Philippines.  https://www.cnnphilippines.com/life/culture/Workplace/2021/10/29/workplace-mental-wellness.html

Campos, O. (2022). Study reveals rising employee attrition rate in PH. Manila Standard. https://manilastandard.net/business/biz-plus/314210305/study-reveals-rising-employee-attrition-rate-in-ph.html#:~:text=A%20survey%20conducted%20by%20Filipino,in%202020%20was%201.31%20percent

Dela Peña, K. (2022). Gallup poll finds PH workers most stressed in Southeast Asia. Inquirer.net. https://newsinfo.inquirer.net/1621483/gallup-poll-finds-ph-workers-most-stressed-in-southeast-asia

DOLE mandates mental health program in workplaces. (2020). Department of Labor and Employment. https://www.dole.gov.ph/news/dole-mandates-mental-health-program-in-workplaces/

Employee well-Being: Going beyond mental wellness. (2021). Great Place To Work. https://www.greatplacetowork.com.ph/reports/employee-well-being-going-beyond-mental-wellness/

Hastwell, C. (2021). How to fix a major cause of employee burnout. Great Place To Work. https://www.greatplacetowork.com.ph/reports/how-to-fix-a-major-cause-of-employee-burnout/

Ibañez, J. P. (2021). Mental health problems weighing on PHL workforce, study finds. BusinessWorld. https://www.bworldonline.com/economy/2021/06/30/379391/mental-health-problems-weighing-on-phl-workforce-study-finds/

Mental well-being in the workplace: Policies and compliance for private sectors. (2021). Sprout Solutions.  https://sprout.ph/blog/mental-well-being-in-the-workplace/

Philippine Council for Mental Health. (2019). Mental health strategic plan 2019-2023. Department of Health Philippines. https://doh.gov.ph/sites/default/files/publications/Mental%20Health%20Strategic%20Plan.pdf

Rivera, A. K. B., & Antonio, C. A. T. (2017). Mental health stigma among Filipinos: Time for a paradigm shift. Philippine Journal of Health Research and Development, 21(2), 20-24. https://www.researchgate.net/publication/326412761_Mental_Health_Stigma_Among_Filipinos_Time_For_A_Paradigm_Shift

Tee, M. L., Tee, C. A., Anlacan, J. P., Aligam, K. J. G., Reyes, P. W. C., Kuruchittham, V., & Ho, R. C. (2020). Psychological impact of COVID-19 pandemic in the Philippines. Journal of affective disorders, 277, 379-391. DOI: 10.1016/j.jad.2020.08.043

The great x. (2022). Michael Page. https://www.michaelpage.com.ph/talent-trends/the-great-x?utm_campaign=TT22PR

Three-quarters of workers in PHL say their job is the main source of mental health challenges. (2022). BusinessMirror. https://businessmirror.com.ph/2022/06/30/three-quarters-of-workers-in-phl-say-their-job-is-the-main-source-of-mental-health-challenges/

Vega, K. V. (2021). World Mental Health Day: Why is it important to provide employee wellness programs?. Sprout Solutions. https://sprout.ph/blog/mental-health-law-of-the-philippines/

Young, N. (2022). Most Filipino employees prefer work-life balance than higher pay or promotions: Poll. Yahoo!News. https://ph.news.yahoo.com/most-filipino-employees-prefer-work-life-balance-than-higher-pay-or-promotions-poll-080925584.html

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