Employee wellbeing: A key driver of business performance in the Netherlands

Employee wellbeing: A key driver of business performance in the Netherlands

As organizations in the Netherlands navigate an increasingly complex business landscape, employee wellbeing has emerged as a critical factor in driving both human capital and financial performance. Recent research by WTW has uncovered several key themes and insights that highlight the importance of effective wellbeing strategies for Dutch employers.

The impact of wellbeing on absence and productivity

One of the most significant challenges facing Dutch employers is managing absence and productivity. WTW research reveals that companies with highly effective wellbeing strategies report financial and human capital results that are two times higher than those with less effective approaches. This stark difference underscores the critical role that wellbeing plays in organizational success.

The data paints a clear picture of the relationship between employee health and productivity:

• At-risk employees have absence levels almost four times higher than employees who are thriving.
• Overall days lost due to physical absence and presenteeism are also four times higher for at-risk employees.
• Employees with poor mental health lose twice the number of days in absence and presenteeism compared to those who aren't struggling.

These statistics highlight the urgent need for employers to prioritize wellbeing initiatives to reduce absence rates and boost productivity.

Mental health and resilience

Emotional wellbeing has become a top priority for Dutch employers, particularly as mental health issues rise among younger workers. The shift to remote work has had mixed effects, improving work-life balance for many but also creating challenges for employers in maintaining connections with their workforce.

WTW's wellbeing research provides valuable insights into the current state of mental health in Dutch workplaces:

• Almost 40% of employees in the Netherlands report above average or high stress levels.
• Only three in ten employees believe that their employer's wellbeing programs effectively improve their mental health.
• Employees reporting burnout have on average eight more days of absence, are more likely to be disengaged, and experience other health problems.

These findings emphasize the need for targeted mental health support and resilience-building programs.

Financial wellbeing: A critical gap

The ongoing cost-of-living crisis across Europe has brought financial wellbeing to the forefront. WTW's research reveals a significant disconnect between employee needs and employer priorities in this area (figure 1):

• Financial wellbeing is the largest area of disconnect between employees and employers.
• Four in ten Dutch employees said financial issues had impacted their overall wellbeing in the last year, including missing medical appointments and struggling with their mental health.
• Employers have not prioritized financial wellbeing, despite it being the area where employees most need support.

Figure 1: Please rank how your organization will prioritize the following aspects of your wellbeing programme over the next three years

Employer versus employee wellbeing priorities

Q: ^*Which area would you like your employer to help you with most over the next three years? Please rank the top areas on order of importance, where 1 is most important, 2 is second most important, etc.

Note: Percentages indicate item selected in the top two.

Source: 2024 Wellbeing Diagnostic Survey, Netherlands.
2024 Global Benefits Attitudes Survey, Netherlands.

This gap presents an opportunity for organizations to differentiate themselves by addressing their workforce's financial concerns.

Diversity, equity, and inclusion (DEI)

EU Pay Transparency legislation will require Dutch employers to disclose compensation information to their employees, which will include employee benefits and leaves. Many employers are increasingly focused on aligning their benefit programs with DEI strategies to address any imbalances in advance of legislation coming in to force.

WTW's research highlights the positive business impact that an intentional and robust DEI and wellbeing strategy can have for an organization:

• There are clear links between employee engagement, productivity, recruitment, retention, and DEI. Employees who rate their organizations DEI strategy poorly have absence levels that are a third higher than those who think their employer is doing well.
• Employees who feel valued and respected by their employers have lower levels of burnout.
• Under-represented groups place the greatest priority on DEI but are most likely to feel they are treated inequitably.
• Employee Resource Groups (ERGs) have high levels of engagement, but only two in five Dutch employers offer them.

By prioritizing DEI in wellbeing strategies, employers can create more inclusive and supportive work environments.

Employee experience and market complexity

The complexity of the health tech market and evolving employee expectations have made the employee experience a top priority for Dutch employers. Key challenges include:

• Employees expect organizations to deliver a personalized and flexible benefits user experience, aligned to other consumer experiences that they engage with such as Netflix or Amazon.
• Lack of integration between employee benefit providers, proposition overlaps, and minimal differentiation within the health and wellbeing market make provider selection challenging for employers and navigation challenging for employees.
• Employers must navigate these complexities to create cohesive and engaging wellbeing programs.

Five actions for employers

To address employee health issues and improve human capital and business performance, Dutch employers should consider the following actions:

1. 01

   Implement comprehensive wellbeing strategies

   Develop holistic wellbeing programs that address physical, mental, financial, and social aspects of employee health. Ensure these strategies are data-driven and aligned with organizational goals.

2. 02

   Prioritize mental health support

   Invest in accessible mental health resources, including employee assistance programs, stress management workshops, and resilience training. Foster a culture that destigmatizes mental health discussions.

3. 03

   Enhance financial wellbeing initiatives

   Introduce financial education programs, personalized financial planning tools, and benefits that address immediate financial concerns. Consider partnering with financial wellness providers to offer comprehensive support.

4. 04

   Integrate DEI into wellbeing programs

   Ensure that wellbeing initiatives are inclusive and address the diverse needs of all employee groups. Regularly assess and adjust programs based on feedback from underrepresented groups.

5. 05

   Optimize the employee experience

   Leverage technology to create a seamless, personalized benefits experience. Invest in integrated platforms that simplify access to wellbeing resources and provide data-driven insights for continuous improvement.

As the research clearly shows, investing in employee wellbeing is not just a moral imperative but a critical business strategy that can lead to significant improvements in human capital and financial outcomes.