ESSENTIALS FOR LEADERS AND THOSE THEY LEAD

The concept of “wellness” may have become a cornerstone of workplace management strategies today: many organizations now consider ensuring employee wellness a hallmark of effective leadership. As far back as the 1940s, wellness began to be defined as something more than the mere absence of disease, and by the 1990s, it had come to mean a holistic, healthy lifestyle encompassing physical, mental, spiritual, and social well-being. But that expansive definition of wellness can be challenging to implement in practice, especially across an organization. This week, we offer a quick-start guide.

AN IDEA

Prepare for workforce longevity

What are people looking for when they pursue wellness? They generally look for solutions across six dimensions—health, fitness, nutrition, appearance, mindfulness, and sleep. They also want effective, science-backed answers. Our latest Future of Wellness survey of more than 5,000 consumers in the United States, United Kingdom, and China reveals seven areas that may be ripe for investment in the $1.8 trillion global wellness market in 2024. For example, demand for healthy aging and longevity solutions is increasing as populations across developed economies continue to age. “Bringing products and services to market that anticipate the needs of aging consumers will be particularly important,” note McKinsey senior partner Warren Teichner and colleagues. As people live longer, leaders may need to consider how workplaces can adapt to an older workforce, as well as explore other complex issues such as financing long-term healthcare.

A BIG NUMBER

9

That’s the number of common ways in which people orient themselves toward purpose, according to McKinsey researchers. “Since individual purpose directly affects both health and motivation, forward-looking companies will be focusing on purpose as part of a broader effort to ensure that talent is given the primacy it deserves,” they suggest. For example, an employee who puts a high value on caring—one of the nine types of purpose—may prioritize helping loved ones or responding to the needs of family and friends. Leaders who can support individuals in connecting their purpose to that of their organization may help improve both organizational and employee well-being.

A QUOTE

“Better performance and higher well-being lead to healthier workplaces and more consistent organizational performance.”

That’s McKinsey senior partner Aaron De Smet and colleagues on improving employee engagement. Perhaps not surprisingly, workers who report high levels of personal well-being tend to be more satisfied with their work and have a positive impact on team morale. (Our short quiz can help you assess satisfaction levels on your team.) “Managers who move their employees up the satisfaction spectrum toward higher engagement are therefore making a strategic choice,” observe the McKinsey experts. Poor employee well-being can cost an organization up to $20 million in lost opportunity and 15 to 20 percent of total payroll in voluntary turnover costs because of burnout.

A SPOTLIGHT INTERVIEW

Data privacy may be a big concern for consumers—but they may not mind sharing their personal data to get customized wellness products and services. That’s just one surprising finding of our survey of 7,500 consumers in six countries. Another is a growing preference for natural products. “We were surprised at the categories where natural is winning out,” says McKinsey partner Anna Pione in a McKinsey on Consumer and Retail podcast. “It does vary a little bit from country to country, but in all of them, we saw that same pattern, where ‘natural’ is winning over ‘effective’ for many categories.” Players entering the wellness segment may need to recognize that the market stands “at the intersection of healthcare, consumer goods, and digital,” notes partner Eric He. “That means you have to fundamentally think through what your winning model archetype is. What’s your differentiated value proposition? Go back to the business fundamentals.”

– Edited by Rama Ramaswami, senior editor, New York

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