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Solution
Question 1: Wellbeing Strategies benefit Stakeholders within an organisation
Promotion and support of staff wellbeing is at the core/heart of organisations championing better work and working lives. According to CIPD (2023), an effective wellbeing strategies has a positive implication in delivering mutual-based benefits for people, organisations, economies and communities. The wellbeing strategies means creation of an environment which holistically promote state of contentment benefitting different stakeholders within organisations. To achieve this, CIPD (2023) note that the people practice professionals ought to initiate a holistic framework for supporting employees physical health and safety, mental health and offering sources of help including counselling, employees assistance programs (EAP) and Occupational Health Services based on possibility.
In order to explain how promotion of wellbeing strategies can benefit all stakeholders within an organisation, the business case of Riyad Bank can be put into account. As evidenced in Riyad Bank (2024) the organisation is the leader in community development with a set of consistent input on achievement of sustainable developments. To success in the analysis, Mendelow Matrix tool can be appropriately used.
Figure 1: Categories in the Mendelow Matrix for Stakeholders Analysis
In category A in the figure 1 Mendelow Matrix, this include the customers of Riyad Bank and other end-users of their financial planning, cash management, trade finance, investment banking and brokerage services. In Shinwell and Shamir (2018) report which measures impacts of business on wellbeing and sustainability, appropriate link was generated. The report hypothesised that in organisations creating appropriate wellbeing in organisations impact on customer satisfaction levels. Similarly, for Riyad Bank, by investing in wellbeing strategies, employees would benefit from improved clients retention, positive word-of-mouth and eventually increasing organisation success. These findings are supported by Haverila et al. (2020) evaluating customer satisfaction with provided products and services using Servqual Model. The tangibles, reliability, responsiveness, assurance and empathy map are all appropriate predictors of services quality. Further, Astashkina et al. (2018) noted that investing in flexible working strategy as an approach of improving the wellbeing increases customers satisfaction with 75% with the customer lifetime revenues increased with 35%. Hence, by investing in strategies such as flexible working, employees assistance programs, Riyad bank would successfully gain in increased customer satisfaction.
For Category B of stakeholders, this include the employees and people professional department in Riyad Bank. These stakeholders are identified as having high level of interest and low level of power. While identifying employees wellbeing as a holistic approach, CIPD (2023) identify the best practice as informed by unique needs and characteristics of employees and organisation. The report found that appropriate wellbeing initiatives positively increase resilience, improved engagement, less sickness absenteeism and increased performance and productivity. In a specific context, Richemond and Needham (2020) hypothesised that in organisations implementing wellness initiatives, they gain from 67% increased staff satisfaction, 63% increased in financial stability and growth and 50% reduced staff absenteeism. Similarly, for Riyad Bank, Post COVID-19, they have been faced with an increased absenteeism and employees turnover. By investing in wellbeing strategies, unexplained absenteeism would be mitigated, stress leave mitigated and reduced turnover.
Considering Category C, the stakeholders include the employers who have a significant level of power and influencing the health and wellbeing strategy implemented in the organisation. Further, this category is also comprised of the board of directors and management teams who represent the employers. For instance, in Riyad Bank, the management and as an employer, they are interested with initiating appropriate programs for improving their employees wellbeing. The employers benefits from wellbeing strategies despite Gorgenyi-Hegyes et al. (2021) noting that the resources invested and different conceptualisation of wellbeing initiatives by the organisation. Further, for Riyad Bank, they significantly benefit from an improved recruitment of highly qualified employees. In Forbes (2021) report focusing on Great Resignation, it hypothesised that wellbeing is a core criteria in application of new job opportunities. These include financial, mental/emotional, social, physical and career well-being. This is as the employers are working towards filling the 11 million job openings which are of interest to the board of directors and stakeholders in organisations. This means that for Riyad Bank case, by prioritising on wellbeing approaches, they would improve the entire health and happiness of their employees. Concurrently, they would lower the absenteeism rates and foster an increased engagement and commitment of the employees.
The final category of the stakeholders (D), the stakeholders have high-level interest and degree of power directly impacting an organisation practices. For Riyad Bank business case, the stakeholders include the government in Saudi Arabia (KSA) and regulators of banking sector in the country. Also, this category is inclusive of competitors of the organisation operating in the country banking sector. In an earlier study in Pink-Harper and Rauhaus (2017), the government is impacted at the point where they are involved in initiating policies and legislations which are appropriate for the employees in appropriate wellbeing approaches. This is clearly elucidated by Rappleye et al. (2020) highlighting that governments play critical responsibility to steer employers in promoting health and wellbeing of their employees in workplace. For example, in Saudi Arabia (KSA) case, this can include pursuing different regulations strategies, offering appropriate incentives to the organisation and disseminating appropriate and required information. For Riyad Bank business case, they operates the National Strategic Program for Occupational Safety and Health for contributing to employees safety and health. According to My Gov (2023) this is while developing appropriate occupational safety and health standards and practices in modern workplaces. In regard to competitors, organisations operating in highly competitive landscape, investments in staff wellbeing is not just a desirable bonus but similarly strategic imperative. These findings are supported by Werner and Balkin (2021) report which found that organisations with genuine employees wellbeing approaches accrue a distinct competitive edge and hence attract and retain the top talents.
In summary, based on the different published research and focusing on Riyad Bank business case, promoting wellbeing strategies is of immense benefit to all stakeholders. The different stakeholders have been evaluated based on their level of impact and influence on the organisation operations. It is in this regard that the different stakeholders interests noted to be essential to determine the priority in the strategies implementation.
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