Is Your Organisation Truly Committed to Employee Wellbeing?

In recent times, various industries have increasingly acknowledged the crucial impact of employee wellbeing on productivity, work environment quality, and overall success. However, emerging research suggests that some organisations may not be as committed to wellbeing as they profess, engaging instead in what’s termed ‘wellbeing washing.’

A global study conducted last year by the McKinsey Health Institute highlighted a significant disparity between leaders’ perceptions and employees’ actual experiences of mental health and wellbeing within their organisations. The study found a 22 percent gap, with leaders consistently viewing all aspects of wellbeing more positively than their employees. Researchers concluded that many employer initiatives, despite good intentions, failed to address the underlying causes of poor mental health, particularly toxic workplace behaviours which were identified as the primary driver of burnout across all 15 countries surveyed, including Australia.

This misalignment has led some employees to criticise their employers for a performative approach to wellbeing, known as ‘wellbeing washing.’

Understanding Wellbeing Washing 

Wellbeing washing mirrors greenwashing in that it focuses more on the appearance of caring about wellbeing than on genuinely supporting employees. Dr. Kate Daley, Head of Psychology at Unmind, highlights common examples of wellbeing washing:

• Hosting a talk on burnout without implementing strategies to combat it.
• Offering yoga classes while expecting employees to work 60-hour weeks.
• Promoting mental health awareness days on social media without a long-term commitment to mental health.
• Raising funds for mental health charities but neglecting internal support for employees.

Such actions can leave employees feeling unsupported, leading to disengagement and turnover. This suggests the organisation is merely ‘ticking a box’ rather than effectively addressing wellbeing.

A recent report by Claro Wellbeing on wellbeing washing in the UK revealed that nearly 38 percent of employees believed their employer engaged in such practices. While 71 percent of organisations participated in mental health awareness initiatives, only 36 percent offered substantial mental health benefits.

Steps to Align Wellbeing Strategies with Employee Needs

To avoid the pitfalls of wellbeing washing, Daley recommends a three-step approach:

1. Measure: Start by asking employees about their needs. Determine if they require more managerial support, peer support skills, mental health resources, or psychological safety. Measure outcomes that impact employee wellbeing and experience.
2. Understand: Analyse the data collected from employees and leaders to bridge the gap between perceived and actual wellbeing. Ensure that your perceptions are supported by data and that employees are aware of all ongoing wellbeing initiatives.
3. Act: Set clear success metrics to gauge the effectiveness of wellbeing strategies. Measure relevant factors such as stress levels or managerial support before and after implementing initiatives. Transparency is key—inform employees about available resources and any limitations.

Fostering an Authentic Wellbeing Culture

A common misconception is that wellbeing is solely the responsibility of HR. In reality, it involves everyone, especially executive leadership. HR should tailor interventions based on data and monitor company culture’s impact on wellbeing. A healthy culture, characterised by shared values and positive attitudes, is essential.

Leaders should model wellbeing practices, participate in initiatives, and keep the topic on their agendas. Daley emphasises the importance of a data-informed strategy, ongoing reviews, and interventions at individual, team, and organisational levels.

“Never consider wellbeing as ‘completed’—it’s an ongoing journey,” she says.

By taking these steps, organisations can create a genuine culture of wellbeing, moving beyond tokenistic gestures to meaningful support for their employees.

Modern Performance Appraisal Techniques: Enhancing Employee Development

Performance appraisals have long been a staple of the workplace, serving as a tool for evaluating employee performance and fostering growth. However, traditional methods are often criticised for being outdated and ineffective. To address this, many organisations are adopting modern performance appraisal techniques that focus on continuous improvement, real-time feedback, and employee development. Here’s a look at some of the most effective modern performance appraisal techniques and how they can benefit your organisation.

Continuous Feedback and Check-Ins

Gone are the days of annual performance reviews. Modern performance appraisal systems emphasise continuous feedback and regular check-ins. This approach allows managers to provide real-time feedback and address issues promptly, rather than waiting for a yearly review. Continuous feedback helps employees stay on track with their goals, fosters ongoing development, and builds stronger manager-employee relationships.

Benefits:

• Timely identification and resolution of performance issues
• Enhanced communication between employees and managers
• Greater employee engagement and motivation

360-Degree Feedback

360-degree feedback involves collecting performance data from an employee’s peers, subordinates, and supervisors, providing a comprehensive view of their performance. This technique offers a more balanced and objective assessment, highlighting strengths and areas for improvement from multiple perspectives.

Benefits:

• Comprehensive performance insights
• Increased self-awareness for employees
• Encourages a culture of openness and constructive criticism

Objective and Key Results (OKRs)

OKRs are a goal-setting framework that helps organisations align employee objectives with company goals. By setting clear, measurable objectives and tracking progress through key results, OKRs ensure that employees’ efforts contribute directly to the organisation’s success. Regularly reviewing OKRs keeps employees focused and motivated.

Benefits:

• Clear alignment between individual and organisational goals
• Improved focus and productivity
• Enhanced accountability and transparency

Continuous Performance Management (CPM)

CPM is an integrated approach that combines goal setting, continuous feedback, and regular performance reviews. This technique moves away from static annual reviews to a dynamic process that evolves with the needs of the organisation and its employees. CPM systems often utilise technology to track performance data, making it easier to monitor progress and adjust goals as necessary.

Benefits:

• Dynamic and adaptable performance management
• Real-time data tracking and analytics
• Greater flexibility in goal setting and achievement

Development-Focused Appraisals

Modern performance appraisals prioritise employee development over mere evaluation. This approach involves identifying skill gaps and providing opportunities for professional growth through training, mentoring, and career development programs. Development-focused appraisals help employees achieve their full potential and contribute more effectively to the organisation.

Benefits:

• Enhanced employee skills and competencies
• Increased employee satisfaction and retention
• Stronger alignment between employee growth and organisational needs

Peer Reviews and Team-Based Appraisals

In team-based environments, peer reviews can be an effective appraisal technique. This method involves team members providing feedback on each other’s performance, fostering a collaborative and supportive work culture. Team-based appraisals can also include assessing the performance of the team as a whole, rather than focusing solely on individual contributions.

Benefits:

• Promotes teamwork and collaboration
• Provides diverse perspectives on performance
• Encourages a supportive and cohesive work environment

Self-Assessments

Self-assessments allow employees to reflect on their own performance, set personal goals, and identify areas for improvement. This technique encourages self-awareness and accountability, empowering employees to take ownership of their development.

Benefits:

• Encourages self-reflection and personal growth
• Enhances accountability and responsibility
• Aligns personal goals with organisational objectives

Implementing Modern Performance Appraisal Techniques

To successfully implement these modern performance appraisal techniques, organisations should:

1. Invest in Technology: Utilise performance management software to streamline the appraisal process, track progress, and facilitate continuous feedback.
2. Train Managers: Ensure that managers are equipped with the skills and knowledge to provide effective feedback and support employee development.
3. Foster a Feedback Culture: Encourage open communication and regular feedback throughout the organisation to create a supportive and growth-oriented environment.
4. Align with Organisational Goals: Ensure that performance appraisal techniques align with the broader goals and values of the organisation to drive overall success.

Conclusion

Modern performance appraisal techniques offer a more dynamic, inclusive, and development-focused approach to evaluating employee performance. By embracing continuous feedback, 360-degree reviews, OKRs, and other innovative methods, organisations can enhance employee engagement, drive productivity, and achieve long-term success. Transitioning to these modern techniques requires commitment and investment, but the benefits far outweigh the challenges, leading to a more motivated and high-performing workforce.

The Role of HR in Shaping Organisational Culture

A strong organisational culture is critical for success. It influences employee behaviour, engagement, and overall performance, serving as the foundation for how a company operates and interacts both internally and externally. Human Resources (HR) plays a pivotal role in shaping and nurturing this culture, ensuring that it aligns with the organisation’s values and strategic objectives. Here’s how HR can effectively shape and maintain a positive organisational culture.

Understanding Organisational Culture

Organisational culture encompasses the shared values, beliefs, and norms that influence how employees think, feel, and behave in the workplace. It is reflected in various aspects of the organisation, including leadership styles, communication patterns, and employee interactions. A strong, positive culture can drive employee engagement, boost morale, and enhance productivity, while a weak or toxic culture can lead to dissatisfaction, high turnover, and poor performance.

The Role of HR in Shaping Culture

Defining Core Values and Vision

HR is instrumental in defining and communicating the organisation’s core values and vision. These elements serve as the foundation of the organisational culture. HR professionals work with leadership to articulate these values clearly and ensure they are integrated into all aspects of the business. This involves:

• Crafting a compelling mission statement
• Developing core values that reflect the organisation’s identity
• Communicating these values consistently to all employees

Recruitment and Onboarding

HR plays a crucial role in hiring individuals who not only have the necessary skills but also align with the company’s culture. The recruitment process should emphasise cultural fit, ensuring that new hires share the organisation’s values and can thrive in its environment. Effective onboarding programs further reinforce cultural norms and expectations, helping new employees integrate smoothly into the workplace.

Strategies:

• Incorporate cultural fit assessments into the hiring process
• Design onboarding programs that highlight the organisation’s culture and values
• Provide ongoing support to help new hires assimilate

Training and Development

Continuous learning and development are essential for sustaining a positive organisational culture. HR should facilitate training programs that reinforce cultural values and promote desired behaviours. This includes leadership development programs that train managers to model and uphold the organisation’s culture.

Strategies:

• Offer training sessions on company values and cultural expectations
• Develop leadership programs that emphasise cultural alignment
• Encourage a culture of continuous learning and improvement

Performance Management

HR is responsible for designing and implementing performance management systems that align with the organisation’s culture. This involves setting clear expectations, providing regular feedback, and recognising and rewarding behaviours that reflect the company’s values. Effective performance management helps reinforce the desired culture and encourages employees to embody it in their daily work.

Strategies:

• Align performance metrics with cultural values
• Use performance reviews to provide constructive feedback on cultural alignment
• Recognise and reward employees who exemplify the organisation’s culture

Employee Engagement and Wellbeing

A positive organisational culture is closely tied to high levels of employee engagement and wellbeing. HR should implement initiatives that foster a supportive and inclusive work environment, promoting employee satisfaction and retention. This includes wellness programs, work-life balance initiatives, and opportunities for employee input and feedback.

Strategies:

• Conduct regular employee engagement surveys to gauge cultural alignment
• Develop wellness programs that support physical and mental health
• Create channels for employee feedback and involvement in decision-making

Communication and Transparency

Transparent communication is a cornerstone of a healthy organisational culture. HR should ensure that communication channels are open and that information flows freely throughout the organisation. This helps build trust, align employees with the company’s vision, and foster a sense of community.

Strategies:

• Implement regular town halls and Q&A sessions with leadership
• Ensure consistent and transparent communication across all levels
• Use internal communication platforms to keep employees informed and engaged

Handling Workplace Conflicts

Conflict is inevitable in any workplace, but how it is handled can significantly impact the organisational culture. HR should develop and implement conflict resolution strategies that promote a respectful and harmonious work environment. Effective conflict management helps maintain a positive culture and prevents the escalation of issues.

Strategies:

• Provide training on conflict resolution and communication skills
• Establish clear policies and procedures for addressing conflicts
• Foster a culture of respect and open dialogue

Conclusion

HR’s role in shaping organisational culture is multifaceted and vital to the success of any company. By defining core values, recruiting for cultural fit, promoting continuous learning, aligning performance management, fostering engagement, ensuring transparent communication, and managing conflicts effectively, HR can cultivate a positive and robust organisational culture. This, in turn, drives employee satisfaction, retention, and overall organisational success.

A strong organisational culture does not happen by chance; it requires deliberate and consistent effort from HR and leadership to nurture and sustain it. As the custodians of company culture, HR professionals have the unique opportunity to shape an environment where employees feel valued, motivated, and aligned with the organisation’s mission and values.

How Liquid HR Helped a Higher Education College Save $150K Annually and Build a Stronger Recruitment Function

In the dynamic world of HR, finding cost-effective solutions that enhance efficiency and compliance is crucial. Liquid HR had partnered with a prestigious higher education college to manage its HR compliance and advisory needs, uncovering significant opportunities for cost savings and process improvements along the way.

The Challenge: High Recruitment Costs

When Liquid HR began its engagement with the college, the primary focus was on ensuring HR compliance and providing advisory services. However, during the annual client review, Liquid HR’s consultant identified a substantial and unexpected expenditure: the college was spending nearly $200,000 per year on external recruitment fees. This excessive spending was not only straining the budget but also highlighting inefficiencies in the recruitment process.

The Solution: Bringing Recruitment In-House

Recognising the need for a more sustainable and cost-effective approach, Liquid HR recommended a strategic shift. Instead of relying on costly external recruitment agencies, Liquid HR proposed the appointment of a part-time Consultant to focus solely on recruitment. This consultant would be embedded within the college’s HR team, focusing on developing a robust and proactive recruitment and selection function.

Implementing the Change

The transition to an in-house recruitment model was seamless, thanks to Liquid HR’s expertise and proactive approach. The internal recruiter took charge of the entire recruitment process, from sourcing candidates to conducting interviews and managing onboarding. This not only reduced reliance on external agencies but also allowed for a more personalised and consistent candidate experience.

The Results: Significant Cost Savings and Enhanced Recruitment

The impact of this strategic shift was profound. By bringing recruitment in-house, the medical college saved approximately $150,000 annually. These savings were redirected towards other critical areas, enhancing overall operational efficiency. Additionally, the internal recruitment function developed by Liquid HR proved to be more robust and proactive, ensuring the college could attract and retain top talent effectively.

Building a Proactive Recruitment Function

Beyond cost savings, the new recruitment strategy fostered a more proactive approach. The internal recruiter worked closely with department heads to understand their specific needs and anticipate future hiring requirements. This proactive stance allowed the college to build a talent pipeline, reducing time-to-hire and ensuring that the best candidates were readily available when needed.

Conclusion

The engagement with Liquid HR not only fulfilled the initial scope of HR compliance and advisory needs but also uncovered a significant opportunity for improvement in recruitment processes. By recommending and implementing a recruitment solution, Liquid HR helped the college save $150,000 annually and build a stronger, more proactive recruitment function. This case exemplifies the value of strategic HR partnerships and the impact they can have on an organisation’s efficiency and success.

For organisations looking to optimise their HR functions and reduce unnecessary expenditures, Liquid HR offers tailored solutions that drive tangible results. Our expertise in identifying inefficiencies and implementing effective strategies ensures that your organisation can achieve its HR goals while maintaining compliance and enhancing overall performance.

About Us

Liquid HR is a leading HR consulting firm helping businesses of all sizes to navigate the complexities of human resource management, while providing tailored HR services based on their unique requirements, including HR Outsourcing, Recruitment and HR Advisory Services.

With offices in Melbourne, Sydney and Brisbane, we work with businesses across Australia.

For more information, please contact us on 1300 887 458 and speak with one of our HR Consultants.