As we approach a new year, many employees worldwide are eager to moved past a challenging year for marked by financial pressures from economic shifts, anxiety over global elections and geopolitical uncertainty, and the ongoing struggle to balance work and life demands. These collective forces have taken their toll on employee wellbeing and according to a recent survey from Gallup, just 21% of employees globally strongly agree their organization genuinely cares about their wellbeing.
As HR leaders actively plan for 2025, prioritizing a holistic method of caring for your employees that focuses on the workforce's physical, mental, personal, and professional wellbeing is more important than ever. Here are five strategies to help you do so:
1. Caring for your employees’ physical and mental health
Today, it is standard for employers in the U.S. to support the physical wellbeing of their full time workforce by offering health and dental insurance or short-term disability benefits as part of a broader total rewards strategy. To demonstrate care for both body and mind, organizations have an opportunity to expand their strategy by offering programs that support the mental health of their workforce.
There are various approaches that employers can take to do so. One option is implementing an Employee Assistance Program (EAP), which provides free and confidential services to help employees and their families manage personal and work-related issues. Another option is to adapt health care insurance programs to ensure mental health care services such as therapy or medications are covered. As part of the roll-out of such programs, it may be necessary to implement training and awareness campaigns for managers and employees to help destigmatize mental health care in the workplace.
Regardless of how you choose to support your employees' mental health in 2025, the business imperative is clear. According to research from the American Psychological Association, 81% of employees said their employer’s support for mental health will be an important consideration when they look for work in the future. Including mental health support in the total rewards strategy will be imperative for an organization's ability to attract and retain talent in the future.
2. Implement flexible work models
As employees struggle to meet the demands of work and life, employers can help by implementing flexible work models to provide more autonomy over where and when work gets done. Since the COVID-19 pandemic, employees in every industry and region want workplace flexibility. In fact, according to research from UKG, work-life balance/flexibility and work schedules are two of the most crucial factors that frontline employees consider when choosing an employer, only behind pay/compensation. Moreover, 27% of frontline employees globally say they would resign due to a lack of workplace flexibility.
Flexible work models can take many forms, depending on the organization's operations, departmental needs, or specific job roles. Designing effective flexibility requires tailoring solutions to fit these unique dynamics. For example, hybrid work, often defined as working a combination at a company facility and from home during a typical work week, is a joint flexibility option for some employees but is not appropriate or even possible for others, particularly the frontline workforce, who must be onsite to meet the requirements of their job.
This means flexible work models for the frontline will have to look different. One option is to allow employees to select their schedules by providing days or shift preferences. Another option is to allow frontline employees to adjust their schedules to accommodate personal obligations through shift swapping. To provide frontline employees with more time off, some organizations are exploring alternative schedules. Options include shifting from the traditional five-day, eight-hour workweek to four 10-hour days or even three 12-hour days.
When organizations empower employees to balance their professional and personal lives through more flexible work models, they will see increased engagement, which will lead to higher levels of productivity, retention, and even innovation.
3. Invest in continuous learning and development
Continuous learning and development ensure that employees remain engaged and motivated. Providing them opportunities to grow professionally and personally is essential for their wellbeing. This investment enhances current job performance and prepares employees for future roles within the company, fostering a culture of internal mobility and career progression. As organizational needs for talent continue to evolve, organizations should ensure learning and development programs align with employee goals and organizational needs. For example, in the year ahead, programs aimed at upskilling and reskilling the current workforce will be a crucial aspect of HR’s talent strategy.
Employers can deploy numerous options for continuous learning, such as offering regular training programs and workshops on in-demand skills and technologies; providing access to online learning platforms, which allow employees to learn at their own pace and convenience; or implementing mentorship and coaching programs to pair less experienced employees with seasoned employees, facilitating knowledge transfer and career guidance.
Organizations that invest in employee learning and development often experience higher retention rates. According to research from SHRM, 76% of employees are more likely to stay with a company that offers continuous training, reducing turnover costs and helping to maintain a stable, experienced workforce. Additionally, a commitment to learning and development can help attract top talent, as prospective employees are drawn to companies that offer training programs and pathways for advancement.
4. Foster open communication and transparency
Employees must be able to express their opinions and feel heard to ensure they feel valued and that their well-being is prioritized. Yet, according to research from UKG, 86% of employees believe that individuals in their organization are not being heard fairly or equally. To remedy this, organizations must provide employees with the ability to communicate with leadership while simultaneously ensuring leadership communicates with employees with transparency and openness.
One approach organizations can take is to establish regular forums where employees can voice their opinions, ask questions, and provide feedback. These could be town hall meetings, Q&A sessions, anonymous online surveys, or even suggestion boxes. Another approach is to implement transparent communication channels. This includes using internal communication platforms where updates, decisions, and changes are shared openly with all employees. HR leaders should ensure that these communications are clear, consistent, and accessible to everyone, with special consideration given to language.
Additionally, leaders can lead by example by being transparent about their decisions and processes. Sharing the rationale behind critical choices and being honest about challenges and successes can build credibility and trust. Regularly updating employees on company performance, goals, and changes helps to keep everyone informed and aligned with the organization's vision.
Implementing effective bidirectional communication practices between employees and employers will foster open communication and transparency in the workplace, which is essential to helping employees feel valued and helping employers build a positive organizational culture.
5. Recognize and reward employees
Employee recognition and rewards are vital for fostering a motivated and engaged workforce. Recognizing individual employees' efforts and achievements not only boosts morale and overall wellbeing but also reinforces positive behaviors and performance. Employees who feel valued are more likely to be productive, committed, and loyal to the organization. This, in turn, leads to higher retention rates and a more positive workplace culture. Yet some organizations have the opportunity to improve their recognition practices since, according to Quantum Workplace, 52% of employees want more recognition from their current manager. In fact, according to research from UKG, 19% of frontline employees say their manager never recognizes them.
There are several effective ways that organizations can recognize and reward employees, and it is essential to remember there is no one-size-fits-all approach, as different individuals will have different preferences for recognition. Some employees feel valued through public recognition, such as acknowledgment during team meetings or company-wide announcements, while others may prefer a more personal touch, like a thank-you note from their manager or executive. Monetary rewards, such as bonuses, gift cards, or salary increases, provide a tangible appreciation for employees' hard work. Other options are non-monetary rewards, like extra vacation days, flexible working hours, or professional development opportunities, which can also be highly motivating.
Implementing employee recognition programs, such as "Employee of the Month" awards or peer-nominated recognition, can also create a culture of appreciation. Additionally, celebrating milestones, such as work anniversaries or project completions, helps to acknowledge long-term contributions and achievements for individual employees.
By consistently recognizing and rewarding employees, organizations can build a more engaged, motivated, and high-performing workforce. This provides key benefits for the organization, as research from WorkHuman indicates that employees who receive regular recognition are five times more likely to feel valued and appreciated, six times more likely to invest in their work, and seven times more likely to stay with their current employer for at least another year.
Conclusion
In summary, caring for your employees requires a holistic approach that prioritizes various aspects of their physical, mental, personal, and professional wellbeing. As we move into 2025, demonstrating complete care for your employees is not simply a ‘nice-to-have,’ it’s a business imperative that will help you create a better culture and drive higher levels of engagement and organizational performance.
