Study: Workplace Well-Being On Steady Decline As Employees Forced Back To Office

As more employees get forced back into the office and out of remote work, studies show workplace well-being is on a steady decline. The numbers are even lower when looking at Black workers.

A new report from Human Capital Development Lab at Johns Hopkins Carey Business School in partnership with Great Place to Work revealed that workplace well-being peaked in 2020. But the annual survey of over 1.5 million people across more than 2,500 firms measured the “climate of well-being” and found that it’s been steadily declining since 2020, Fortune reports.

The decline varied when looking at industries and certain demographics. Companies in the health care and retail/hospitality field saw the lowest number while Black, female, and younger workers scored lower well-being numbers than white, male, and older employees. Southern staffers rated higher in well-being than their counterparts.

“The COVID pandemic heightened employers’ awareness of the importance of well-being, and many of the best organizations worked to create a positive work climate,” Michelle Barton, Ph.D., an associate professor of practice at Carey and coauthor of the report, said. “The challenge now will be to integrate those practices into everyday work life, rather than simply as a crisis response.”

Researchers used five criteria to measure each company’s “climate of well-being”: financial health, meaningful connections, mental and emotional support, personal support, and Sense of purpose. Employers who invest in their employees’ well-being, both financially and emotionally, received higher scores.

Male employees consistently reported higher workplace well-being scores than female employees, a reflection of the gender pay gap which widened in 2023 for the first time since 2020. Meanwhile, Black workers were reported to have the worst well-being from 2021 through 2023 compared to white workers who held the top spot, and Asian employees who were the only group whose well-being matched or surpassed that of white workers over the five-year period.

Black women had by far the worst well-being compared to Asian men who had the highest well-being score and the largest gap compared to their female counterparts.

“These significant differences highlight the ongoing need for organizations to address equity, inclusion, and belonging for all employees,” the report said.

The report found a clear positive correlation between flexible work arrangements and improved employee well-being. Companies where 75% or more of employees could work remotely part-time had the highest well-being score, while those where fewer than 25% of employees had remote work options recorded the lowest scores.

“For workers, flexibility provides the means to effectively manage work-life balance, addressing personal and family needs such as child care and elder care,” the report said. “For employers, it may cultivate higher levels of engagement and productivity among employees while fostering a climate of well-being.”

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