Rewarding Psychologically Healthy Companies

It stands to reason that employees who are happy, healthy, and mostly unstressed would make a high-quality work force. But how do you create a company culture that contributes positively to employee mental health? At a time when many businesses are laying off workers and cutting benefits, some local companies are improving productivity, lowering turnover, retaining talented employees, and minimizing missed work days by fostering a psychologically healthy workplace.

The Minnesota Psychological Association (MPA) awards companies that provide a healthy environment for workers with the Psychologically Healthy Workplace Awards each spring. Winning companies can also be nominated for the national awards administered by the American Psychological Association.

Dr. Jack O’Regan, dean of the college of psychology and behavioral sciences at Argosy University’s Eagan campus, is the chair of the MPA’s psychologically healthy workplace committee and one of the judges for the program. Applicants, which can be self-nominated or are recommended by MPA members, complete an extensive application and questionnaire. If chosen as finalists, they must submit to an employee survey and site visit. Each year, the MPA has awarded anywhere from zero to five awards, depending on the quality of the submissions.

Entrants are judged on elements that are present in a psychologically healthy workplace: employee involvement, work-life balance, employee growth and development, health and safety, and employee recognition.

“A psychologically healthy workplace fosters employee health and well-being while enhancing organizational perform-ance, thereby benefiting both the employees and the organization,” O’Regan says.

Happy Workers

A recent survey by glassdoor.com, a Web site that tracks worker salaries and benefits, found that 40 percent of employees would be willing to take a pay cut, and 34 percent would be willing to take unpaid time off if it was necessary in order for them to retain their jobs. So why, in this economy, should employers devote time and resources to fostering a psychologically healthy workplace?

Consider this: The average turnover rate among this year’s five national psychologically healthy workplace winners is just 11 percent compared to a typical turnover rate of 39 percent. An average turnover rate is hard to ascertain, O’Regan says, mostly because it varies widely by industry. But he says that a drop of just a few percentage points in turnover rates can save companies a significant amount of time and money on finding, hiring, and training new employees.