Workplace well-being in the United States has steadily declined in recent years as companies pull back from the supportive and flexible environments they created during the COVID-19 pandemic, according to a new report.
A survey of over 1.5 million employees at more than 2,500 U.S. organizations found that well-being spiked in 2020 but has since fallen as workers return to offices and lose some of the flexibility that had improved work-life balance.
Lower wellbeing
The report, from Johns Hopkins Carey Business School’s Human Capital Development Lab, also highlights that female, African-American, and younger employees reported lower well-being than their male, white, and older colleagues. This gap, the report notes, shows the need for organizations to focus on equity, inclusion, and belonging for all employees.
All industries saw a decline in well-being, but the hardest-hit sectors were healthcare, retail, and hospitality.
“The pandemic made employers realize how important well-being is, and the best companies worked to create positive work environments,” the researchers explain. “The challenge now is to make these practices a normal part of work life, not just a response to a crisis.”
Wellbeing at work
The study, done with Great Place To Work, looked at key factors that support well-being: mental and emotional support, sense of purpose, personal support, financial health, and meaningful connections.
Companies that excel in well-being prove that “addressing employee well-being is not just good for people—it’s good for business,” the report states. Poor mental and physical health among workers can hurt profits through higher turnover, lower engagement, worse customer service, and higher healthcare costs.
One issue the report raises is the gap between how managers and employees feel about well-being. Executives and managers reported higher levels of well-being, suggesting they may be “out of touch with their employees’ experiences.”
Making things better
“Improving employee well-being is complex,” the authors say. “Leaders need to focus on both the organization’s culture and a more thoughtful management approach to create a positive work environment for everyone.”
Companies where employees trust their leaders and have access to flexible work options reported higher well-being.
The report found that the highest levels of well-being were in companies that prioritized trust in leadership, pride in work, and strong connections among colleagues.
“By involving employees in decision-making, promoting fair management practices, encouraging work-life balance, and connecting employees to meaningful work, companies can create a workplace culture that boosts both satisfaction and productivity,” the report concludes.
