Understanding and assessing employee well-being in the logistics sector

Work plays a central role in determining health and employee well-being. It provides wages and benefits and shapes life opportunities and resources for individual workers and their families. Physical, organizational, and psychosocial conditions at work contribute directly to worker safety, health, and well-being. Employee wellbeing refers to a subjective perception of general satisfaction with and positive feelings towards work. Research shows that employees with a high level of well-being put greater thought and effort into their work (Keeman et al., 2017). 

Understanding working conditions in the logistics sector

Understanding working conditions and practices that are associated with worker thriving can lead to interventions to advance worker well-being as well as outcomes important to the employing enterprise (Sorensen et al., 2020). The well-being of employees is judged through facets such as professional, social, financial, and physical life which organisations influence and should try to promote (Molnár & Papp, 2023).

The logistics sector is made up of workers who endure long hours, strenuous physical work, and high mental strain. (Chari et al., 2018). By focusing on well-being, logistics companies can foster a work culture that is more caring and environmentally friendly. Sorensen et al. (2018) point out that this, in turn, would be advantageous not only to the employees but also to the businesses in terms of stability preservation and compliance with safety laws.

How do employees perceive well-being initiatives by employees?

Wijngaards et al. (2021) in their study opine that when initiatives regarding employee wellbeing are introduced, results can be seen in the form of reduced absenteeism, improved engagement and better job performance. Elsamani et al. (2023) add to the importance of mentioning the growing relationship between the mental and social well-being of an employee with the amount of creative and innovative work they take part in.

The Human Development Index (HDI) of 2021 reveals that India ranks 132 out of 191 countries in terms of HDI while the Global Wellness Index of 2020 shows India ranking 120 out of 151 countries (Biswas, 2024). The Gallup report of 2024 highlighted a low level of employee well-being in India, as only 14% of employees felt like thriving in life while 86% of employees were either suffering or struggling (Das, 2024).

Even an analysis by Institutional Investor Advisory Services India Limited (IiAS) stated that workplace injuries in India have increased from 9889 in FY22 to 10733 in FY23. Furthermore, there has been a rise in high-consequence injuries by 33% i.e. 679 to 907 (Modak, 2024). Among other sectors, the logistics industry is recognized as the sector wherein the physically demanding nature of the industry exposes employees to different occupational hazards. The data published by IiAS showed that the logistics sector has a rise of recordable work injuries from 554 (FY22) to 1210 (FY23) and high consequence injuries from 137 (FY22) to 293 (FY23) (Institutional Investor Advisory Services India Limited (IiAS), 2024).

Best practices to improve employee well-being in the logistics sector

When it comes to ensuring employee well-being, several researchers have acknowledged the critical role of “best practices” of human resources management departments. Some of these practices include:

Training and Development: Providing employees with continuous training and time-to-time skill boosts can help them not only keep up to date with ongoing trends and advancements to help them enhance their performance, and improve their mental satisfaction and competence (Grossmeier et al., 2020).

Leadership: Employee well-being is highly attributed to their immediate supervisors, managers and leaders (Ineoglu et al., 2018). Following integrity in leadership can build a fair and supportive work environment that encourages employee engagement and relations in the workplace.

Health Promotion: initiatives like providing fitness resources, mental health support, and other wellness programs contribute to both physical and mental well-being and reduce stress (Rufeng et al., 2021).

Work-Life Balance: Flexible working arrangements, along with employee-friendly policies in an institution foster a feeling of belonging amongst the employees and allow a reconstructive break, which boosts their output (Molnár & Papp, 2023).

Participation Opportunities: A sense of belonging and autonomy can be built amongst the employees when they are given a chance at the decision-making process. Chari et al. (2018) believe that the power of participation makes employees more interactive and vocal about their needs and issues as well.

Social Support: Employees can work on building social support networks, that can offer social togetherness and enhance wellbeing. Elsamani et al. (2023) believe that such social groups build a sense of community that can help employees fight the feeling of alienation.

Assessing employee well-being of an organisation

To effectively assess employee wellbeing it is vital to comprehend and assess the key concepts that mirror the state of well-being in an organisation. The following parameters are crucial in this regard:

Wellbeing expenditure: This is used to understand and calculate the resources spent by an organisation in building well-being initiatives that support mental health programs, employee assistance programs, and more. Reidhead (2021) in their study talks about how high expenditure shows the involvement of the organisation in the physical and psychological health of its employees.

Training in health and safety: Sorensen et al. (2018) in their paper discuss that training in health and safety along with basic skills required during the job can significantly help employees avoid accidents and provide them with better job satisfaction.

Recording work-related injuries: Chari et al. (2018) believe that measuring the frequency of work-related injuries can help people gauge whether an organisation offers a safe working environment that is essential for employee wellbeing. This frequency can be calculated by dividing the number of injuries by the total hours worked by all the employees multiplied by 200,000 (Zeiger, 2024).

Lost Time Frequency Rate: It is the calculation of work time lost due to any injury that was induced by work. To calculate this frequency, the total number of incidents where no regular duties are performed due to an injury is divided by the total hours worked during the consideration period and multiplied by 1,000,000 (Grossmeier et al., 2020). A lower rate suggests that no employees are being put in harm’s way to cause injuries that will result in lost work hours.

Complaints about working conditions and health and safety: Calculating the complaints that are registered against a workplace, be it about safety or health, can help companies assess their errors and improve the quality of life they provide their employees. This can be measured by dividing the total number of complaints that are lodged by the total number of employees working in the organisation and multiplying it by 100 (Elufioye et al., 2024).

Proportion of differently abled employees and workers: The involvement of differently abled employees brings diversity and inclusivity to a workplace and makes employees feel more welcome. It also shows the institution’s focus on equality. Diversity also promotes interactions, and building employee relations (Passey et al., 2018).

Female representation in the key management: This measure talks about gender diversity at a management level. According to Murphy (2024), the number of women employed in decision-making in an organisation is correlated to the feeling of job satisfaction and support among the employees. Chari et al. (2018) in their study elucidate how women in power are more innovative and responsive to the ever-evolving needs of the market, thus fetching higher profits.

CSR expenditure: Corporate Social Responsibility (CSR) expenditure is the indication of an organisation’s awareness of social and environmental issues. Black et al. (2019) explain that high CSR expenditure by a company reflects their high attention toward social issues. This proves that the organisation has a safe and healthy environment.

References

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