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Employee Well-Being

19.08.2024 4 Min Read
Tinatin Gogmachadze

Research Analyst

Employee Well-Being

Did you know that nearly 60% of employees report feeling emotionally drained by the end of each workday? With the evolution of the labor market, focusing on employee well-being has ceased to be a luxury or a one-off initiative—it has become a necessity for survival and the foundation for long-term success.

The driving force behind a company is its strong employees. The viability of an organization depends on the realized potential and well-being of each worker. Experience and international empirical research show a direct link between employee well-being and their productivity, effectiveness, and commitment to the organization. The higher the employee's well-being, the more they are a team player, show empathy toward others, and are more productive and effective in their work processes, which is the cornerstone of organizational success.

Given this situation, it has become evident to modern HR specialists and managers that well-being is not an additional but an integral value of the company. Consequently, for proactive, development-oriented organizations, one of the primary tasks is to implement a human-centered culture, ensure a safe environment for employees, and promote their well-being. This involves increasingly frequent and prioritized adoption of various supportive approaches and interventions.


The Concept of Well-Being


Well-being is a comprehensive concept that, according to the perspective of positive psychology, extends beyond rational factors to include psychological aspects such as socio-emotional, mental, and cognitive resilience. Various theoretical reviews and empirical studies suggest that achieving employee happiness and well-being in an organization is contingent upon providing various motivational factors and circumstances:


Emotional Well-Being: Numerous studies confirm that employees' emotional resilience, ability to self-regulate and adapt emotions, optimism, and positive attitude toward work significantly influence work motivation, approach to tasks, and the quality of work performed. Conversely, a combination of negative emotions such as anxiety, tension, and irritation can lead to emotional burnout and professional exhaustion. These symptoms often become primary or at least indirect causes of job departure.

 

 Social Well-Being: Considering that employees spend a third of their time at work, the style of interaction in the work environment, opportunities for receiving and exchanging support and empathy, are particularly important. Factors such as cooperation, shared joy, a sense of belonging, pride in achievements, and belief that the environment supports and values you, are guarantees of a safe environment and healthy social interaction, which, in turn, forms the basis for employee retention and the accumulation of positive capital in the long term.

 

 Professional Well-Being: An employee’s perception of their activities and role is a critical component of well-being. Organizations need to be aware: is the employee passionate about what they do? Do they believe in the importance of their work? Do they consider their work valuable? How competent do they feel? Do they have a sense of autonomy? Do they see their contribution to achieving the company's overall goals and vision? These questions determine internal motivation, interest, productivity, and ultimately, employee effectiveness. Providing career paths, opportunities for continuous learning, and recognizing employee achievements are effective strategies for enhancing professional well-being.

It is clear that a high level of professional well-being is key to employee productivity and, consequently, to the effectiveness and success of the organization.


 Physical Well-Being: Beyond physical endurance, a crucial aspect is the feeling of safety and security in the workplace. It is also important for the organization to understand how work conditions and the environment contribute to employees feeling good and being productive.


Financial Well-Being: The importance of this aspect relates to how employees' financial security, fairness, and adequacy of compensation compared to the work performed significantly impact their motivation, attitude toward work, and desire for long-term collaboration with the company.

Thus, focusing on individual aspects of well-being, as well as the overall picture, improves indicators of resilience, engagement, and productivity; strengthens organizational loyalty; creates a healthy and positive work climate; fosters a high-performance culture; and ultimately enhances the organization's internal success, ecosystem, viability, as well as productivity and reputational resilience.

 

Well-Being Diagnosis

 

We believe that the first step towards creating a human-centered, safe environment in an organization is assessing the components whose combination is essential for achieving well-being. Well-being diagnostics allow the organization to understand what employees think and feel, identify issues in organizational climate and culture, and determine which well-being parameters require more attention and targeted interventions.

To this end, ACT has developed a unique model—the Employee Well-Being Matrix—which is based on a holistic view of well-being and symmetrically provides organizations with data on both overall and specific well-being indicators—where it is stable and where it requires support.

 

The Matrix: A Compass for Employee Well-Being


The Well-Being Matrix is like a lens that allows you to see even the most challenging organizational well-being issues. In this labyrinth, the matrix is not just a diagnostic tool but a symbol of balance and clarity. Research identifies pain points, and targeted responses to them make strategic interventions much more effective.

We believe that just as the matrix creates balance, sequence, and structure in complex and sometimes chaotic data, the Well-Being Matrix will bring similar clarity and a clear vision to organizations, serving as an important compass on the path to creating a human-centered, positive climate.


Featured Insights
14.08.2024

When it comes to powerful storytelling in advertising, few stages are as prominent as the Olympics. Brands like Nike and Coca-Cola have long understood the value of emotional connection during such high-stakes global events. But as we’ve seen in recent Olympics, the way emotions are used in advertising can be the difference between just grabbing attention and truly moving people to action.


Take Nike’s “Winning Isn’t for Everyone” ad, for instance. At first glance, it seems like a perfect match for the Olympic spirit with its portrayal of athletes driven by a relentless, almost ruthless ambition. However, there’s a catch. The ad starts with a provocative question: “Am I a bad person?” and then goes on to link greatness with traits like deception, obsession, and a lack of empathy. On paper, this fierce drive looks compelling, but it misses the mark in some key ways.


The problem lies in the ad’s portrayal of greatness. By associating success with negative traits like ruthlessness and a lack of compassion, it creates a misleading picture. True greatness, whether in sports or any other field, is not about trampling over others or losing one’s humanity. It’s about fierce determination balanced with respect for others and a strong sense of personal integrity.


Nike's intention might have been to highlight the relentless drive required to achieve greatness, but the execution fails to address the importance of maintaining a balance between ambition and ethical conduct. Great athletes are known for their dedication and intense focus, but they also understand the significance of compassion, respect, and a well-rounded approach to success. The best athletes manage to channel their drive without compromising their core values or well-being.


 


In stark contrast, Coca-Cola’s “It’s Magic When the World Comes Together” ad excels by weaving a story of unity and upliftment around South African swimmer Tatjana Schoenmaker. Rather than simply showcasing competition, this ad evokes hope, redemption, and togetherness—emotions that connect on a deeply personal level. This approach not only engaged audiences but also fostered a strong emotional connection with the brand. It shows that empathy and shared human experiences can be as powerful as intensity and competition.


 


So, what can brands learn from these two contrasting approaches? The key takeaway is that while competition is a powerful theme, how it’s presented can make a huge difference. Nike’s ad had intensity but lacked the emotional depth needed to create a lasting impact. Coca-Cola, on the other hand, reminded us that the most memorable ads are those that go beyond competition and touch on universal human experiences.


As we look forward to future Olympic advertising, there’s an opportunity for brands to not only celebrate the triumphs of competition but also to explore the softer, more relatable sides of these stories. Whether through humor, hope, or the simple act of coming together, the ads that leave a lasting impression are those that connect with us on a human level.


In the end, the most effective creative work doesn’t just tell us who won—it shows us why it matters. And that’s a lesson worth remembering, not just for the Olympics, but for all brand storytelling.

29.07.2024

In Estonia, replacing the traditional, non-digital model of providing public services with an electronic model is a clear example of good governance. With the X-Road initiative, implemented in stages since 2000, Estonia has successfully digitized 99% of public services offered to citizens, saving 2 percent of its gross domestic product (GDP) annually (2004). .-s., 2004) (Organization for Economic Co-operation and Development – OECD, 2020). In 2023, the savings amounted to 754 million euros.



A New Model of Public Administration in the Post-Soviet Space


With independence from the Soviet Union, the Estonian public sector faced a new challenge, which in turn meant an urgent need to modernize the public services offered to citizens. In 1992, the objective of the public administration reform dictated by the new constitution was to prepare for future sector and national initiatives by strengthening the principles of accountability, efficiency and transparency in public institutions (Office of the United Nations High Commissioner for Human Rights – OHCHR). In parallel with the problems in the public sector, the Estonian authorities began to care about universal access to the Internet. In 1996, within the framework of the so-called Tiger Leap (Est. Tiigrihüpe) program, the Estonian government provided Internet access to all public schools in the country within five years. Although the aforementioned program was implemented only in public schools, it is considered fundamental in the process of building a digital society (Education Estonia, 2024). The significance of the Tiger Leap is emphasized by the government's reference to the achievements in the field of education in 1998 when drafting the document defining the Principles of Estonian Information Policy (Electronic Governance Academy – EGA, 1998). The document outlined the future directions of the development of the digital society in Estonia.In order to raise public awareness of the rapidly changing situation in the public sector and reduce scepticism towards e-governance, the government established the Data Protection Inspectorate (Estonian: Andmekaitse Inspektsioon) in 1999.

An indirect result of the productive work of the said agency was the adoption of the legal framework for electronic signatures in Estonia in 2000, which, together with the electronic tax system (e-Tax) approved in the same year, significantly changed the financial situation in the sector (EUR-Lex, 2000). Currently, more than 95 percent of tax returns in Estonia are completed electronically, which in turn reduces the bureaucratic and financial resources spent on this process (Invest in Estonia, 2024).

The first stage of digital transformation in Estonia in 2001-2002, with the start of preparations for e-elections and within the framework of the United Nations Development Programme, the Government of Estonia, the Open Society Foundation (OSF) and the Bratislava Regional Support Centre (Bratislava Regional Support Centre (BRC) Within the framework of the common initiative, the non-governmental organization “E-Governance Academy” was established (National Interoperability Framework Observatory – NIFO, 2017). It is significant that in the parliamentary elections held in March 2005, the majority of votes - 51 percent - were recorded online, using the “i-Voting” system (e-Estonia, 2023).



X-Road Initiative: Digital Citizen in a Digital State


With the advent of digital information systems in Estonia, the authorities began to care about creating a secure data exchange ecosystem. The new “X-Road” platform, created in 2001, in addition to regulating the databases necessary for the provision of public services, also ensured their safety.

The success of the initiative has led to its implementation in other countries. Today, the platform is used not only by Estonia, but also by more than 52,000 entities from 20 countries and more than 3,000 services offered by them. The efficient data exchange process provided by the initiative is on average 1,407 times faster than it would be without the platform (e-Estonia, 2024) (E-Estonia, 2019).

Among the services provided by the Estonian platform, the following have the status of “critical importance”:

• The digital taxation and settlement system (e-Tax), created in 2000 by the Estonian Customs and Tax Board, which allows citizens to fill out financial declarations online. The said system not only ensures greater transparency, but also - significantly reduces the time required to complete the said procedure to an average of 3 minutes (Invest in Estonia, 2024);

• Electronic health system (e-Health), which aims to provide health services to users anywhere in the country by exchanging data from private and public health service providers. In addition to digitizing 99 percent of patient health data, Estonia began issuing digital medical prescriptions and referrals in 2019, allowing its citizens to receive fast health services in other EU Member States (Council of Europe, 2024);

• Digital justice system (e-Justice), implemented by the Estonian Ministry of Justice in first and second instance courts, which allows citizens to apply to city and appellate courts at any time, twenty-four hours a day (e-justice). Estonia, 2024);

• The Digital Residence (E-Residency) program, established in 2014, which provides over 100,000 foreign citizens with the right to remote access to Estonian services and the opportunity to register and manage a business in the European Union, adding 60-70 million euros to the Estonian budget annually (Enterprise and Innovation Fund – EISA, 2024);

• The Estonian Data Embassy in Luxembourg, based on the Vienna Convention on Diplomatic Relations, is an outstanding example of innovative use of cloud technology. The aforementioned data center, located in Luxembourg under the fourth level of protection, allows the authorities to safely host state information outside the country, which in turn ensures the continuity of state processes in the event of a cyberattack on Estonian infrastructure (Electronic Estonia, 2019).

The digital identification (e-Identity) and electronic signature system, created in 2002, helps citizens use the above-mentioned services. It provides Estonian citizens, regardless of their place of residence, with a state-issued digital identity document. Using an electronic signature speeds up the receipt of the above-mentioned services, which allows each citizen to save an average of 5 days a year (e-Estonia, 2024).



Improving the digital landscape in Estonia


Despite the successes achieved in the area of e-government, the Estonian authorities are actively working to eliminate the problems that have arisen in the context of improving the country's digital ecosystem. Among the main problems that exist today, the following are significant:

• Improving data security - with a high level of "digitization" of the population, which, in turn, is evidenced by the active use of electronic ID cards by 98 percent of citizens, the Estonian authorities are aware of the cybersecurity risks associated with large-scale transformations (Electronic Estonia, 2017). In order to combat cyber threats, the NATO Joint Cyber Defence Training Centre (CCDCoE) operates in Estonia in cooperation with Western partners, which has a positive impact on the country's National Cyber Security Index (NCSI). According to the index, Estonia's level of national cyber security ranks fifth after the Czech Republic, Poland, Belgium and Australia (NCSI, 2024);

• Strengthening digital equality - despite the high level of successful access to public services offered to them electronically by a significant part of the population, the Estonian authorities take into account a small group of citizens who do not have access to the above-mentioned services. In this direction, the framework document developed by the Estonian Ministry of Economic Affairs and Communications - "Digital Agenda 2030" (eng. Digital Agenda 2030) focuses on increasing the digital awareness of citizens (Estonian Ministry of Economic Affairs and Communications, 2021);

• Creating conditions for technological progress. In line with the above-mentioned digital agenda, the Estonian authorities are aware of the potential of integrating artificial intelligence into the provision of public services and e-governance. At this stage, state and public institutions are actively using the virtual assistant “bureaucrat” (Estonian: bürokratt), created on the principle of artificial intelligence, the purpose of which is to “track” citizens in the process of receiving digital services. It is significant that today the mentioned initiative is enjoying great success and 68% of Estonian citizens rate the “bureaucrat” as positive and safe (e-Estonia, 2023).



Summary


The Estonian e-governance model is exemplary in the world in terms of taking into account the interests of citizens. Since gaining independence from the Soviet Union, thanks to the successful transformation of the public sector, Estonia has created a constantly evolving national digital landscape that provides citizens with simple, fast and effective means of accessing public services.

 

 

Resources used:

e-Estonia (2024). E-Governance Portal;

Organisation for Economic Co-Operation and Development (OECD) (2020). Seizing the Productive Potential of Digital Change in Estonia;

Office of the United Nations High Commissioner for Human Rights (OHCHR) (nd). Estonia's Constitution of 1992 with Amendments through 2015;

Education Estonia (2024). Tiger Leap;

E-Governance Academy (EGA) (1998). Principles of Estonian Information Policy;

EUR-Lex (2000). Estonia;

Invest in Estonia (2024). Estonia’s Advantageous Tax System Brings Companies to Grow Here;

National Interoperability Framework Observatory (NIFO). Estonia Shares its e-Governance Practices;

e-Estonia (2023). How did Estonia Carry Out the World’s First Mostly Online National Elections;

e-Estonia (2019). Data Economy in Estonia and Public-Private Collaboration;

Invest in Estonia (2024). e-Tax System;

Council of Europe (2024). Digital Health System – Estonia; 

e-Estonia (2024). Justice & Public Safety;

Enterprise and Innovation Foundation (EISA) (2024). Estonian E-Residency Success Metrics are Impossible to Verify;

e-Estonia (2019). Data Embassy – the Digital Continuity of a State;

e-Estonia (2017). Estonian e-ID Card: Entering the Contactless World;

National Cyber Security Index (NCSI) (2024). Order = Rank;

Estonian Ministry of Economic Affairs and Communication (2021). Digital Agenda 2030;

e-Estonia (2023). #bürokratt.

Appendix 1. To illustrate the article. Author: Eiko Ojala