The quest for talent is more competitive than ever in today’s fast paced work environment. As organizations struggle for skilled professionals, they are giving more importance to fostering a healthy work- life balance to attract and retain the top- tier talent. This article will look at the relationship between the employee work- life balance and retention with experience from the two companies I have worked in. Previously in the finance sector and currently in the higher education sector.
Let’s first take a look at the link between work-life
balance and employee retention.
Reducing burnout leads to higher retention rates!
What is burnout? Burnout is seen to be an emotive response
to continuous stress, with its essential component being the progressive
depletion of an individual's natural energy reserves over time. Emotional
tiredness, physical exhaustion, and cognitive weariness are the main forms of
energy resource depletion. (Shirom, 2003).
Burnout is a significant predictor of turnover intention. Employees who experience burnout are more likely to seek alternative employment. This was elaborated in the research work of Maslach and Leiter (2016) By promoting a healthy work-life balance, organizations can mitigate burnout, creating a more sustainable and fulfilling work environment.
Enhance job satisfaction and commitment.
Work-life balance and job satisfaction were found to be positively correlated in a study conducted in 2006 by Greenhaus and Powell. Employee loyalty to their companies is higher when they are happy. Employees are more likely to commit to their jobs over the long run when they are encouraged to strike a healthy balance between work and personal life.
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Let's take a practical look into the industry.
In LSEG the previous company I worked in, most employees were highly satisfied in the job role, due to a challenging job they were committed to their work as they found it thrilling. the work done was highly active and vibrant. the organization did not have a rule of "coming everyday to office". As a result of Covid situation the office adopted a hybrid working environment. This was as incentive rather than a demotivator for the employee as they got to engage in work both in office and their homes. this created a work life balance specially for the young mothers who got to spend more time with their kids!
Attraction of top talent
According to research published by the Society for Human
Resource Management (SHRM), job applicants place a high value on work-life
balance. Companies that emphasize and publicly declare their commitment to
work-life balance are more likely to draw top talent.
The current company I work for Esoft metro campus is now adopting a work life balance environment within the corporate structure. Strategies like having employee insurance schemes and yoga sessions are just a few examples from my time here. This has spiked a demand for Esoft as most other higher education institutes in the country do not provide such benefits to the employees in the current context. These benefits will led top talent to get attracted to work in a prestigious organization as such.
Improved employee health and well-being
Allen, Herst, Bruck, and Sutton (2000) conducted a thorough
meta-analysis that shows a link between high levels of work-family conflict and
poor health outcomes. Actively promoting work-life balance within an organization
benefits workers' wellbeing and indirectly affects retention by lowering
absenteeism and turnover.
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Work-Life Integration: A Holistic Approach
The concept of work-life integration goes beyond the
traditional notion of balance. It acknowledges that work and personal life are
intertwined and encourages employees to seamlessly integrate the two. Google,
for instance, is renowned for its commitment to work-life integration. The
company provides on-site services such as laundry, fitness facilities, and even
child care to help employees manage personal responsibilities alongside work
commitments. This holistic approach not only enhances employee satisfaction but
also contributes to a sense of loyalty and commitment.
It is abundantly evident from the data that employee
work-life balance is important for keeping valuable talent on board, not merely
as a catchphrase. Businesses that value work-life balance and take steps to
support it are more likely to have loyal, content, and physically fit staff
members who will contribute to the company's long-term success. Adopting a
work-life balance-promoting culture is becoming more and more important as a
strategy for retaining employees and a competitive advantage in the changing
employment landscape.
References:
Allen,
T. D., Herst, D. E., Bruck, C. S., & Sutton, M. (2000). Consequences
associated with work-to-family conflict: A review and agenda for future
research. Journal of Occupational Health Psychology, 5(2), 278-308.
Greenhaus,
J. H., & Powell, G. N. (2006). When work and family are allies: A theory of
work-family enrichment. Academy of Management Review, 31(1), 72-92.
Maslach,
C., & Leiter, M. P. (2016). Understanding the burnout experience: 43 years
of research and theory. In W.B. Schaufeli, C. Maslach, & T. Marek (Eds.),
Professional burnout: Recent developments in theory and research (pp. 1-16).
Taylor & Francis.
Bock, L. (2015). Work Rules: Insights from Inside Google
That Will Transform How You Live and Lead. Grand Central Publishing.
Shirom, A. (2003). Job-related burnout. In J. C. Quick &
L. E. Tetrick (Eds.), Handbook of occupational health psychology (pp. 245–265).
Washington, DC: American Psychological Association
Society
for Human Resource Management (SHRM). (2018). The evolution of work: The
changing nature of the global workforce. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/pages/2018-evolution-of-work.aspx
Agreed, to your points ; By definition, burnout is a workplace phenomenon; Due to workload, control, reward, community, fairness, and values Employees failed balance work and personal life this is really significant issues on this fast growing global business war; According to Deloitte survey in 2015 found that an incredible 77 percent of professionals surveyed said that they had experienced burnout at their current workplace, and 91 percent agreed that having an unmanageable amount of stress “negatively impacts the quality of their work."
ReplyDeletethanks Shri for your comments. Indeed the statistics point out to the fact that there is a high degree of employee dissatisfaction and burnout among employees, this highlights the importance of having a sound work-life balance amongst employees
DeleteYes True..work-life balance is a critical factor in employee retention as it directly influences job satisfaction, engagement, well-being, and overall commitment to the organization. Organizations that recognize the importance of this "Balancing Act" are better positioned to retain top talent, foster a positive workplace culture, and achieve long-term success in a competitive employment landscape.
ReplyDeleteHi Nilmini, agreed with your comments. to compete in the industry be it higher education or finance it is integral to have a proper work life balance structure. I believe that Sri Lankan companies are moving in the right direction as they are adopting this new and emerging topic.
DeleteHi Mahesh, yes in the western world they consider work life balance as no. 01 in employee retention. Fun fact in Google, they have cabins to sleep, a gym, multi cuisine cafeteria, a gaming zone etc for employees to balance out their work. They even have day care for mothers!
ReplyDelete