Navigating the Psychological Recession with People Analytics
Throughout the years, our global economy has weathered numerous economic recessions. Yet, one crisis that often slips under the radar is the psychological recession—a profound decline in individuals' overall well-being and mental health, which demands our immediate attention.
Amidst the turmoil of global crises and economic instability, the State of the Heart 2024 Report reveals a disturbing trend. Alongside economic decline, there is a simultaneous surge in stress levels and a decline in individuals' overall mental well-being. This is not just a matter of well-being, it's a financial burden, costing UK organisations a staggering £57.4bn in lost productivity—more than double the £28bn reported in 2023.
This alarming trend highlights one pertinent question: How can organisations effectively navigate this psychological recession?
The Role of People Analytics
Addressing the psychological recession in the workplace begins with introspection. Traditionally, organisations have taken a reactive stance towards mental health issues, waiting until an individual is already struggling before offering support. However, with the power of people analytics, organisations can shift to a proactive approach. By identifying potential stressors and implementing measures to address them before they escalate, people analytics can be a game-changer in our battle against the psychological recession.
Yes, you can look at absence rates, performance metrics, employee turnover and exit interview data - but these only provide limited insights. To get a comprehensive picture of the psychological well-being of employees, organisations need to incorporate and merge data from various sources, including sentiment analysis, Organisational Network Analysis (ONA), and employee engagement surveys. And with AI and machine learning, revealing these insights becomes quicker and more accurate than ever before. This ensures that no aspect of employee well-being is overlooked.
However, it is more than just gathering all the data at your disposal. It is also about using this data to make informed decisions and organisational changes. Ultimately, this resorts to asking the right questions. Here, we are not just talking about asking the right questions during employee engagement and pulse surveys. Asking the right questions entails digging deeper into the data, connecting the dots, and identifying patterns that may not be readily apparent.
What are the root causes of stress and burnout in the workplace?
How do leadership styles impact employee well-being?
Are there any organisational processes or practices that contribute to declining mental health?
Are the networks and relationships within the organisation supportive or detrimental to employee well-being?
Do employees have enough focus time? Are they overloaded with meetings and emails?
Are there any patterns in employee engagement levels before and after significant organisational changes?
Leveraging People Analytics for Employee Well-Being Programs
Once organisations have gathered and analysed the data to their questions, they can use it to develop targeted and effective employee well-being programs. Here are some strategies organisations can adopt to leverage people analytics for employee well-being programs:
Identify Stress Triggers
What is triggering the rise in stress levels among employees? By analysing data from employee surveys, communications engagement, and other sources, organisations can identify patterns and pinpoint potential factors contributing to employee stress. For example, when using Natural Language Processing (NLP) techniques, if there is a spike in negative sentiment on internal communications platforms, with keywords such as "overwhelmed" or "cannot cope" becoming a common theme, this could prompt further investigation into the causation factors.
Measure Employee Engagement
Employee engagement is closely tied to well-being - happy and engaged employees are typically more productive and have better mental health. Measure employee engagement accurately by merging data from various sources such as surveys, performance metrics, and even communication platforms like Slack or Microsoft Teams. This data can provide insights into the factors that impact employee engagement and well-being, such as lack of support or communication patterns and relationships with colleagues.
Optimise Workload Distribution
Work overload is one of the leading causes of burnout in the workplace. By observing patterns in workload distribution and productivity levels through time-tracking tools, organisational network analysis, and performance data, organisations can identify high-performing individuals who may be at risk of burnout.
This information can help managers redistribute work more evenly, provide additional support to those who need it, and prevent burnout before it happens. However, if opting for employee monitoring tools, it is crucial to ensure transparency and ethical use of the data.
Encourage Healthy Work Relationships
Organisational Network Analysis (ONA) can also reveal insights into the relationships and networks within the organisation. By identifying potential sources of stress, such as toxic relationships or high levels of conflict, organisations can take proactive measures to encourage healthier work relationships through training programs or changes in team dynamics.
Measure the Impact of Organisational Changes
Organisational changes, such as mergers or restructures, can have a significant impact on employee well-being. By analysing data before and after these changes, organisations can understand how employees are coping and identify areas for improvement in their change management processes.
Personalise Well-being Interventions
It's important to remember that there is no one-size-fits-all approach to employee well-being. By analysing data on demographics, work preferences, and other factors, organisations can tailor their well-being programs to better meet the needs of their diverse workforce. At the end of the day, what might be causing stress for a single working mother may be vastly different from what causes stress for a young single professional. Personalising well-being interventions can make them more effective and increase employee engagement.
Evaluate the Effectiveness of Well-being Programs
Finally, evaluate the effectiveness of employee well-being programs by measuring
changes in key metrics such as engagement levels, productivity, absenteeism rates, and turnover rates. This allows for more data-driven decisions when it comes to investing in and improving their well-being initiatives.
How People Analytics Can Help Navigate the Psychological Recession and Improve Workplace Well-Being
In conclusion, navigating the psychological recession in the workplace requires a proactive approach that goes beyond traditional methods of addressing mental health issues.
As Jacqui Brassey, Chief Scientist and Director of Research for People and Organisation Performance at McKinsey and Co., states on the Digital HR Leaders, to effectively manage employee well-being in the workplace, it starts by:
"Making mental health a strategic priority, bringing it into the boardroom and really discussing this topic, "What does this mean for our business strategy; what does it mean for our people strategy; and why is this an important topic for us?"
By asking the right questions and leveraging people analytics, organisations can gain valuable insights into the well-being of their employees. With this data, they can develop targeted and effective well-being programs that not only support their employees' mental health but also drive productivity and organisational success.
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