New Models of Healthy Enterprise: Keys to Addressing Current Social and Economic Challenges.
- Inadequate compensation, lack of purpose, and inflexibility are factors contributing to workplace discontent, increasing costs for companies due to their employees' mental health issues.
- The company's social impact becomes the primary factor for attracting and retaining talent.
Climate change, biodiversity loss, unemployment, rising living costs, lack of digital disconnection, social media, and recent wars mean that nearly 6 out of 10 people in the salaried population segment suffer from mental health problems.
Among the productivity figures of companies, there is a variable increasingly weighing down: mental health decreases total productivity by 35% due to increased absenteeism - averaging 31.4 days of work per year - lack of commitment, and reduced innovation and creativity among teams. Beyond the negative impact on the company's reputation, these effects result in losses due to increased employee resignations, which raises turnover rates.
Among the various factors affecting employees' mental health, the top three are inadequate compensation, lack of purpose, and inflexibility affecting work-life balance.
This workplace stress translates into an economic cost, estimated at €20 billion across Europe, as reported by the Ministry of Health.
Mental health is an increasingly concerning issue for the entire population, sharply rising from 15-17% in 2005-2016 to 55.92% in 2021. Another sign of worsening mental health is that Spain ranks first globally in benzodiazepine consumption, prescribed for better sleep due to their anxiolytic, hypnotic, and muscle relaxant effects.
But what can companies do to promote good mental health and increase employee productivity?
Many of the causes require action from the companies where they work, considering that a large portion of the affected population belongs to the economically active population, with more than a third suffering from some mental disorder, anxiety being the most common. This disorder affects women twice as much as men, and its prevalence has increased by 34% in the last two years, reaching nearly 41% among those under 25.
At The Overview Effect, we help companies integrate sustainability into their daily operations and people, aligning with social and environmental impact strategies. This approach strengthens a sense of belonging and retains key team talent.
Furthermore, we establish a culture of holistic and disruptive well-being based on the company's own philosophy and way of working. This solution is tailored to our company, and similarly, we can work with yours:
The well-being we pursue begins with pay equity in a meritocratic culture. We advocate for total transparency; our remuneration system is shared in detail with the team. Pay equity helps significantly reduce wage gaps, eliminate biases, and makes us more demanding and accountable. All company members know the criteria governing our compensation and how salary growth is based on merit and value contributed. We aim for a fair, equitable system that recognizes people's work.
However, it's not just about monetary compensation; pay equity is accompanied by workplace flexibility that allows people to balance their work and personal lives.
This flexibility is part of our culture of freedom and responsibility because to be free, we also need to be responsible to ourselves, the rest of the team, and the client, working towards results and pursuing excellence.
Some of our policies creating this work environment include:
- Unlimited vacations: There's no limit on the number of vacation days a person can take. We foster a goal-oriented culture where employees are responsible for their tasks and encourage rest throughout the year and during work lulls.
- Flexible hours and hybrid work: These allow balancing three variables - individual work, teamwork with clients, and personal life.
- Remote and intensive summer: For two summer months, we work reduced hours and also enable the team to work from places other than Madrid or Barcelona, mitigating the high temperatures of the capitals and promoting work-life balance.
We have an unusual culture, but we're not alone. More and more organizations are adopting innovative policies on compensation and benefits that create a sustainable organizational culture.
Contact us and let's explore how you can transform your organization's culture! While a company's culture is invisible, its effects can be seen and felt.