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SHRM-SIOP Science of HR Series

The Bigger Picture of Employee Well-Being:


Its Role for Individuals, Families and Societies

Seth Kaplan Richard P. DeShon Lois E. Tetrick


Department of Psychology Department of Psychology Department of Psychology
George Mason University Michigan State University George Mason University
[email protected] [email protected] [email protected]

Copyright 2017
Society for Human Resource Management and Society for Industrial and Organizational Psychology
The views expressed here are those of the authors and do not necessarily reflect the views of any agency of the U.S.
government nor are they to be construed as legal advice.
Seth Kaplan, Ph.D., is an associate professor of industrial/ organizational
(I/O) psychology at George Mason University. His research focuses on
understanding and trying to improve the subjective experience of work. He
has published papers in this area in journals, including Psychological Bulletin,
Journal of Applied Psychology and Journal of Management, and has received
funding from sources such as the Army Research Institue. He currently is on
the editorial board of four journals and is the director of the George Mason
I/O Ph.D. program. In addition, he served as the head of the Government Relations Team for
the Society of Industrial and Organizational Psychology (SIOP). He earned his B.S. from the
University of Florida and his master’s and doctorate degrees in I/O psychology from Tulane
University.

Richard (Rick) DeShon, Ph.D., is an industrial and organizational


psychologist actively engaged in both research and practice designed to
improve organizational effectiveness and increase the experienced
meaningfulness of work. He was educated in Ohio, earning his B.S. in
psychology at The Ohio State University in 1988 and his Ph.D. in industrial
and organizational psychology at the University of Akron in 1993. He then
joined the Psychology faculty at Michigan State University, where he
remains employed as a professor. His research has been funded by the Air Force Office of
Scientific Research and NASA and published in top-tier journals such as Psychological Bulletin,
Psychological Methods, Journal of Applied Psychology, Organizational Research Methods and the
Journal of Management. He is a fellow of the Society for Industrial and Organizational
Psychology and the Association for Psychological Science and a member of the Academy of
Management. Over the course of his academic career, he has earned numerous awards,
including as the Earnest J. McCormick Award Early Career Contributions from the Society for
Industrial and Organizational Psychology. He recently completed his term as associate editor
at the Journal of Applied Psychology and is currently leading the Healthy Organizations
Initiative at Michigan State University.

Lois Tetrick, Ph.D., is a University Professor in the Industrial and


Organizational Psychology Program at George Mason University. She is a
former president of the Society for Industrial and Organizational
Psychology and a former chair of the Human Resources Division of the
Academy of Management. She is a founding member of the Society for
Occupational Health Psychology and a fellow of the European Academy of
Occupational Health Psychology, the American Psychological Association,
the Society for Industrial and Organizational Psychology and the
Association for Psychological Science. Dr. Tetrick is the editor of the Journal of Managerial
Psychology and a past editor of the Journal of Occupational Health Psychology. Dr. Tetrick has
edited several books and published numerous chapters and journal articles on topics related to
her research interests in occupational health and safety, occupational stress, the work-family
interface, psychological contracts, social exchange theory and reciprocity, organizational
commitment, and organizational change and development.

2
ABSTRACT
A wealth of literature from industrial/organizational psychology and other fields indicates that
the well-being of employees influences various individual job outcomes (e.g., attendance and
productivity) and nonwork
non-workoutcomes
outcomes(e.g.,
(e.g.,disease
diseaseand
andmortality).
mortality).ThisThiswhite
whitepaper
paper
summarizes these results butand also
also goes
goes beyond
beyond them,
them, highlighting
highlighting less
less well-known
well-known findings.
findings.
We show that employee well-being has broadera broader impacts
impact,such
suchasasononthe
theschool
schoolperformance
performanceof
children
of children
of of
working
working
parents
parents
andand
onon
thethe
American
U.S. economy
economyas aaswhole.
a whole.Moreover,
Moreover,
wewediscuss
discuss
that
that work,
work, whenwhen
organized
organized
and managed
and managedin certain
in certain
ways,ways,
can produce
can produce
various
various
positive
positive
individual
individual
and societal
andbenefits.
societalThe
benefits.
paper The
closes
paper
withcloses
a discussion
with a discussion
of how governmental
of how governmental
and and
organizational policies can promote well-being and, in turn, bring about these gains.

Work and Employee Well-Being

Work is a fundamental aspect of life. Employees in the U.S. workforce spend much of their

waking hours at work—more hours than in most industrialized countries (Organisation for

Economic Cooperation and Development, 2009). As of 2015, employed persons worked an

average of 7.6 hours on the days they worked, including 5.6 hours on weekend working days

(U.S. Bureau of Labor Statistics, 2015). For women, in particular, the percentage of time spent

doing paid work has nearly doubled since 1965 (Sayer, 2005). Given the amount of time the

U.S. workforce spends working, it is not surprising that work relates significantly to overall

well-being and life satisfaction (Bowling, Eschleman & Wang, 2010). Work also can represent a

primary source of identity, status, daily structure and social relationships (Jahoda, 1982). A vast

scientific literature supports these conclusions.

Beyond affecting employee well-being, the working experiences of Americans have

much broader societal effects:

 The health and well-being of workers’ children and families.

 Organizational and societal productivity and health care costs.

 The well-being of communities.

3
The purpose of this white paper is to provide an overview of the scientific literature on

the impact of employee well-being on individual, organizational, and societal outcomes. We

hope to (1) broaden the discussion of the influence of work and (2) stimulate consideration of

policy recommendations to improve individual, family, community, and societal outcomes. To

this end, we highlight the evidence indicating that work can foster negative or positive

experiences and can hurt or help job-related and more general well-being. Following from this

notion, we provide a set of recommendations for organizations, relevant agencies and

lawmakers to consider in attempting to improve well-being and, in turn, bring about individual,

organizational and societal gains.

The Health and Economic Effects of Work-Related Well-Being

Work and Stress

Although there are many conceptualizations of well-being in the academic literature and

popular press, we define it broadly, as the totality of one’s emotional experiences and

subjective evaluations of one’s work and life circumstances (see Diener, 1984, for a similar

conceptualization).

As noted above, given the amount of time employees in the U.S. spend at work and the

financial and emotional consequences of employment, work has a significant impact on

individuals’ overall well-being. Unfortunately, for


Work is second only to
many Americans, the experience of work is an money in terms of
contributing to stress and is
aversive one. In particular, one key aspect of well- a greater source of stress
than family issues or
being that work affects is stress. According to a recent health.

4
survey conducted by the American Psychological Association (APA), 60% of Americans report

that work is a very or somewhat significant source of stress (American Psychological

Association, 2015). Furthermore, according to the same survey, work contributes to stress

more than family issues or health (with money being number one contributor).

The Effects of Work-Related Stress on Individual Health

Work-related stress, anxiety and depression produce pervasive problems for individuals,

organizations and society at large. Turning first to the effects of work-related stress on

individual health, a large body of literature from various fields (e.g., industrial/organizational

psychology, human resource management, public health and medicine) documents that job-

related stress has several significant health-related consequences (e.g., Chandola et al., 2008;

Cooper, Quick & Schabracq, 2010).

Table 1. Effects of Chronic Work-Related Stress for Employees


 Alcohol use
 Cardiovascular disease
 Clinical depression
 Mortality
 Musculoskeletal problems
 Obesity
 Smoking

The results from a recent quantitative review

based on 228 studies are especially telling (Goh, Workplace stress contributes
to at least 120,000 deaths per
Pfeffer & Zenios, 2014). According to this review, year—more than the number
workplace stress contributes to at least 120,000
of deaths from diabetes,
Alzheimer’s or influenza.
deaths per year. Furthermore, with respect to specific

5
stressors, the authors reported that 1) job insecurity (i.e., fears about losing one’s job)

increased the odds of reporting poor health by 50%; 2) longer work hours increased mortality

by almost 20%; and 3) highly demanding jobs raised the odds of a physician-diagnosed illness

by 35%. As one of the authors notes, “The deaths are comparable to the fourth- and fifth-

largest causes of death in the country—heart disease and accidents . . . It’s more than deaths

from diabetes, Alzheimer’s, or influenza” (Zenios as quoted in Lynch, 2015).

The Economic Effects of Employees’ Well-Being

As can be seen in Table 2, the well-being of the workforce also has dramatic bottom-line

implications for organizations and the economy as a whole. The figure below presents a simple

depiction of how employee well-being affects these more distal financial outcomes.

Figure 1. Impact of Individual Employee Well-Being on Organizational and Societal


Financial Outcomes
Employee Well-Being Organizational Impacts Societal Impacts

Psychological Factors - Organizational - U.S. productivity


- Stress productivity - Health care costs
- Anxiety/depression - Absenteeism/ - Health insurance costs
- Job engagement presenteeism
- Job satisfaction - Turnover/retention (and
replacement)
Physical Factors - Health insurance costs
- Heart disease
- Musculoskeletal problems

Behavioral Factors
- Alcohol and drug abuse

6
Table 2. Organizational and Societal Financial Impacts of Employee Well-Being
Workplace Stress…

 Accounts for up to $190 billion in health care costs and increases the nation’s
health care costs by 5% to 8% (Goh et al., 2015).

 Contributes to 40% of all job turnover (Hoel, Sparks & Cooper, 2001).

 Results in 50% greater health care expenditures (National Institute for


Occupational Safety and Health, 1999).

Primary Takeaway: Work is consistently rated among the top two or three sources of

stress among individuals in the U.S. This stress contributes to psychological (e.g., depression,

anxiety), physical (e.g., cardiovascular disease, obesity) and behavioral (e.g., increased alcohol

use) problems. In turn, these problems result in decreased organizational productivity and

retention and in higher health care costs. The ultimate downstream effects of this impaired

psychological well-being occur at the national level, where U.S. efficiency and productivity

suffer and health care costs increase.

The Effects of Work on Family and Children’s Well-Being

As mentioned above, most employed adults spend a significant amount of their time awake

performing a job in a work setting away from their families. Research from fields such as

industrial/organizational psychology now clearly indicates that excessive work demands and

negative workplace experiences spill over into family life, adding substantial stress to the lives

of all family members and decreasing family well-being (e.g., Bianchi, Casper & King 2005;

Hammer et al. 2005; Kelly et al. 2008; Korabik, Lero & Whitehead 2008; Kossek & Lambert

7
2005; Major, Klein & Ehrhart 2002).

Parents’ Work and Children’s Well-Being

One way that employees’ well-being affects their families is in terms of children’s well-being.

Several findings demonstrate this impact. For instance, a study of fathers demonstrated that

negative work experiences such as low decision latitude, high


Fathers’ negative
job demands, low job security and high role conflict are work experiences
relate to children’s
associated with fathers’ punishing and rejecting behavior behavioral
problems in school.
toward children and children's behavior problems in school

(Stewart & Barling, 1996). A similar study found that job stress was related to mothers

exhibiting less warmth and acceptance toward their adolescents, who, in turn, were more

likely to demonstrate problem behavior (Galambos, Sears, Almeida, & Kolaric, 1995). More

recently, Johnson and Allen (2013) reported that mothers with greater work demands and less

job control have children who are less physically active and healthy (Johnson & Allen, 2013).

Furthermore, children appear to recognize and lament the job-related stress and tiredness that

their parents endure (Galinsky, 1999).

Work and Marital Well-Being

Worker well-being also affects the quality of other interpersonal relationships outside of work,

such as marriage. For instance, Beatty (1996) found that stress at work is associated with

reduced marital satisfaction. More recently, researchers have shown that work-to-life conflict

is negatively related to experienced marital satisfaction, family satisfaction and life satisfaction

(Allen, Herst, Bruck, & Sutton, 2000). Even more troubling are findings suggesting that spouses

8
who are in certain occupations (Melzer, 2002) and those who experience stressful work events

are more likely to physically abuse their partners (Barling & Rosenbaum, 1986).

Work and Family Well-Being

More generally, work experiences and work-related


More than half of employees
well-being can influence the amount of time spent feel that the need to respond
immediately to electronic
with one’s family and the quality of family relations. communications (e.g., texts
and e-mails from supervisors
For instance, studies show that excessive work
and clients) is ruining their
demands and working long hours negatively affect family meals. (

the experienced quality of family time (Major, Klein & Ehrhart, 2002). Furthermore, a recent

study revealed that more than half of employees surveyed feel that the need to respond

immediately to electronic communications (e.g., texts and e-mails from supervisors and

clients) is ruining their family meals (Workfront, 2015). Other studies show that greater job

demands and related stress increase work-family conflict (Kossek, Lautsch, & Eaton, 2006;

Thompson & Prottas, 2006 ) and that employees who experience more job stress tend to

spend more time away from their families, be less involved in family matters and have less

satisfying marriages (Crouter & Bumpus, 2001).

Primary Takeaway: The pernicious effects of excessive work demands and resultant

stress extend beyond employees, affecting their families as well. Such demands and stress

can contribute to various negative consequences, such as marital and family discord,

parents being less available for children and problematic child behavior, among others.

9
Work as a Source of Well-Being

Having just explored how work can harm well-being, we now consider the evidence suggesting

that work, structured in a particular way, has the potential to instead facilitate well-being.

Although work can contribute to various individual, family and societal problems, it need not.

In fact, the evidence indicates that work can have various benefits beyond just economic ones.

As discussed in the final section of this paper, whether work is primarily a source of impaired

versus enhanced well-being largely is a function of governmental and organizational policies.

The Well-Being Benefits of Working

First, important to emphasize is that, although the experience of work can and should be

improved, having a job (versus being unemployed) relates to a host of well-being benefits (e.g.,

McKee-Ryan, Song, Wanberg & Kinicki, 2005). For instance, compared with those who are

unemployed, employed individuals tend to experience:

 Higher life satisfaction.

 Lower depression and anxiety.

 Greater marital/family satisfaction.

 Better subjective and objective physical health.

Notably, these effects are not simply due to the financial benefits of work (e.g., Paul & Batinic,

2010). Studies show that work can benefit even those who do not need to work for financial

reasons. These potential well-being gains accrue because work can help satisfy several

psychological needs, as shown in Table 3 (Jahoda, 1982; Paul & Batinic, 2010).

10
Table 3. Nonfinancial Benefits of Working

Work can provide . . .


 Daily structure
 Social contact, support and friendship
 Status and a sense of identity
 Directed activity and distraction
 A sense of purpose
 An opportunity to learn and achieve

The workplace may be especially conducive to helping individuals meet some of these

needs, perhaps more so than any other context or domain.

It is also important to recognize that, in addition to potentially contributing to negative

emotional states, work can be a source of positive emotional states, such as gratitude (e.g., for

one’s colleagues) and growth. This matters because evidence indicates that well-being is not

simply the absence of negative experiences like stress and anxiety. A necessary condition for

psychological thriving is the frequent occurrence of positive experiences, not just the lack of

negative ones (Diener, 1984; Seligman & Csikszentmihalyi, 2000).

These positive experiences then translate into individual and organizational benefits.

Evidence shows, for instance, that increased happiness is associated with higher productivity

and that more frequent workplace positive emotional experiences relate to higher

performance ratings and more organizational citizenship and helping behavior (Lyubomirsky,

King, & Diener, 2005).

11
Also, from a societal perspective, working can contribute to
More frequent positive
community well-being through practices such as volunteering. emotional experiences
in the workplace relate
Recent support for this claim comes from the U.S. Bureau of Labor
to higher performance
Statistics (2016), which reports that employed people are more ratings and more
workplace helping
likely to be volunteers than are unemployed individuals or people behaviors.

who are not in the labor force. Furthermore, evidence suggest that

corporate volunteer programs increase the number of volunteers (Peterson, 2004), potentially

resulting in extended benefits such as the community organizations being able to provide

greater services (Volunteer Canada Discussion Paper, 2015).

Primary Takeaway: Although the experience of work can be aversive, it need not be. In

addition to providing income, work also can provide various well-being benefits. More

positive work-related emotions and evaluations then can lead to outcomes such as greater

productivity and more workplace helping behavior. In the section that follows, we provide

some research-based recommendations that governments and organizations should consider

to help facilitate these positive experiences and, in turn, the consequences they help create.

Recommendations for Governmental and Business Policy and Practice

In sum, work can be a source of both negative and positive experiences and well-being.

Ultimately, the well-being of employees and the downstream effects for them, their families,

their organizations and the nation as a whole largely reflects governmental policy and

organizational practices. That is, government bodies as well as public and private organizations

can influence these broader, more distal outcomes by influencing the well-being of U.S.

12
employees. In this sense, work, and the organizations where such work occurs, can be seen as

a lever, if not the linchpin, through which to achieve these benefits.

Given these conclusions, we offer several practical recommendations for how policy

makers can improve workplace well-being and, in so doing, positively affect society.

Aligning Policies with Scientific Findings on the Promotion and Benefits of Well-Being

The Case of Presenteeism

Presenteeism is reporting to work when sick. Research


When employees come to
clearly demonstrates that presenteeism has a negative work sick, it appears to cost
employers considerably
effect on worker productivity and safety. Moreover,
more in medical expenses
presenteeism costs employers considerably more in than when sick employees
stay home.
terms of medical costs than does absenteeism (e.g.,

employees staying home when sick), with estimates that between 18% and 61% of employer

total health care costs are due to presenteeism (Johns, 2010).

Research suggests that organizations could reduce presenteeism by offering paid sick

leave and by avoiding disciplinary action for absenteeism (Johns, 2010). Thus, we encourage

organizations and lawmakers to consider policies to promote paid sick leave and also

encourage educational initiatives to teach organizational leaders about the downstream

financial effects of presenteeism.

The Case of Recovery Time

Americans use far fewer of their vacation days than they did in past decades. According to a

recent survey of 1,500 Americans, the majority of U.S. workers do not use all of their allotted

13
vacation days, and 42% did not use even a single allotted vacation day in 2014 (Skift, 2015).

Furthermore, the U.S. is the only industrialized country that does not require employers to

offer paid vacation leave (Center for Economic and Policy Research, 2013).

At the same time, research conclusively demonstrates that time spent for psychological

recovery benefits employees. A lack of recovery is related to depression, reduced task

performance and health problems (e.g., Fritz & Sonnentag, 2006). Thus, both employees and

organizations may be suffering when employees do not use their allotted vacation days. As

such, we would encourage organizations and lawmakers to consider policies to promote, or

even mandate, the provision and use of sick/vacation time. Other options include providing

more time off for certain populations such as younger employees (to pursue schooling) and

shift workers (so they can spend more time with family). Also, organizations could provide

more time off for employees who volunteer in the community and engage in civic activities.

Recommendation 1: Encourage organizations to align policies with consideration for

employee well-being, which ultimately affects organizational well-being and bottom-line

outcomes.

Recommendation 2: Develop legislation promoting paid sick leave and develop clearer

guidelines for excusable absences.

Conduct Rigorous Evaluations of Workplace Wellness Programs

Organizations are adopting wellness programs at an increasing rate (RAND, 2013). Research

suggests that workplace wellness interventions can lead to positive outcomes such as smoking

cessation, weight loss, and lower cholesterol and blood pressure (RAND 2013). However, as

seen in Table 4, several important concerns and questions about these programs and their

14
potential benefit remain.

Table 4. Significant Concerns and Questions about Workplace Wellness Programs


 Low participation rate
Only 24% of employees at companies that offer a wellness program actually participate in it
(Gallup, 2014). Also, only 12% of employees strongly agree that they have substantially higher
overall well-being because of the wellness program.

 Focus on physical well-being, neglecting psychological well-being


As the above statistics make clear, psychological well-being also has significant organizational
and societal implications.

 Focus on decreasing negative outcomes (e.g., obesity), not on enhancing positive ones
(e.g., developing resilience, gratitude)
However, research conclusively shows that well-being reflects both the absence of negative
factors and the presence of positive ones.

 Center on individual outcomes, ignoring family and community outcomes

 Poor-quality program effectiveness evaluation


Most evaluation consists of case studies, which are not best practice for evaluation. The
bottom-line impact of these programs and the factors influencing their effectiveness are
largely unknown (RAND, 2013; SHRM Foundation, 2014).

Given these factors, there is a need for scientifically developed and evaluated

programs. Also, given their knowledge about the workplace and workplace well-being,

organizational scientists (e.g., industrial/organizational psychologists), in addition to health

care professionals, should be central in these efforts.

Recommendation 3: Encourage organizations and governmental agencies to develop

quality research demonstrating and evaluating the effectiveness of workplace wellness

programs.

15
Attending to Special Populations

Research and policy focused on certain populations could provide the most value, both to

those groups and to the economy as a whole. International research has demonstrated that

workers experience a decline in their work ability based on the external environment. This can

include such aspects as society, culture, legislation, educational, social and health policy, as

well as employees’ immediate social environment at work and their family. However, there are

still many unanswered questions concerning work ability and aging, as well as among

unemployed, handicapped and disabled people (Ilmarinen & Ilmarinen, 2015).

More specifically, given the aging workforce, more research is needed on retirement

security/well-being of aging employees. There is evidence that positive work experiences have

long-term effects on daily living independence in later life. Furthermore, the recent economic

recession highlighted the need to understand and combat underemployment for high-skilled

workers. Also, research is needed on recruiting and retaining workforces in low-income/rural

areas. Finally, scientific evidence is needed on Veterans in the workforce, especially with

respect to strategies to help them gain appropriate employment.

Recommendation 4: Design and evaluate programs meant to attend to special

populations.

Encouraging Managers to Adopt Evidence-Based Practices

Managers and supervisors generally are the place “where the rubber meets the road” in terms

of organizational impact on employee well-being. Organizations may adopt formal policies,

but front-line management must institute those policies. Research offers several evidence-

based strategies that organizational leaders as well as front-line supervisors can use to help

16
enhance employee well-being.

Recommendation 5: Train and motivate managers and supervisors to adopt evidence-

based practices to improve employee well-being.

Table 5. Strategies that Managers and Supervisor Can Use to Improve Well-Being

 Provide employees with control and autonomy


There is a tremendous amount of evidence linking job control, autonomy and decision-making
authority to various psychological and physical outcomes, including morbidity and mortality
(Goh et al., 2015). Furthermore, greater control at lower levels frees up managers’ oversight
and decision-making time. Managers should be trained and encouraged to allow their
employees to make decisions over how, when, where and with whom work tasks are done.

 Train and incentivize managers to behave fairly


As with job control, there is significant evidence linking managers’ fairness to employee well-
being (e.g., Goh, 2014). Fairness is not just about what outcomes employees receive, but also
about “how” decisions are made and what the type of everyday, interpersonal treatment
employees receive. Simple practices that reflect fairness include using the same standards for
all employees, allowing employees a voice in decisions that affect them, meeting with
employees regularly (e.g., weekly) to keep them informed and asking employees for feedback
about the managers’ performance.

 Incentivize employee well-being practices for managers and supervisors


Managers and supervisors often neglect employees’ well-being because they fear that efforts
to enhance well-being will result in lower productivity and, in turn, reflect poorly upon their
leadership. As such, executives often implement policies (e.g., allowing employees to
telework), but managers and supervisors refuse to enforce them (e.g., granting specific
telework requests). Thus, the policy fails or, worse, is viewed as disingenuous and
manipulative. Organizations that are serious about improving well-being must ensure
alignment and compliance among all of management. They can do so by mandating or
incentivizing managerial practices that foster well-being and by establishing norms that would
compel managers to follow these practices.

17
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