What Is Organizational Health and How to Achieve It

Owning, operating and leading a business is about much more than earning profits or enjoying measurable growth. While success and growth are inherent goals for organizations, leaders must be aware of other key considerations that could have both direct and indirect impacts on such results and overall organizational health.

What Does Organizational Health Mean?

Some business owners and leaders may think that an organization’s financial achievements lead to organizational health; however, this misconception must be addressed. Rather, organizational health generally refers to a company’s culture, workplace morale and ability to collaborate.

Organizational health can make the difference between a company and its competitors in terms of pursuing new innovations, attracting and retaining employees, adapting to changing market conditions and enduring difficult times.

How to Achieve it

When attempting to establish and maintain a good workplace, business leaders should consider the following factors:

• Employee alignment—Use team-building exercises, social events and other efforts to cultivate cohesion in the workplace. This can help members of an organization collaborate effectively and work efficiently toward common goals.

• Communication effectiveness—Healthy organizations should highly prioritize effective and transparent communication, as this can foster trust, reduce misunderstandings and increase productivity.

• Staff well-being—Helping employees maintain their physical and mental wellness can play a significant role in cultivating organizational health. It can help them feel valued and motivated while also potentially limiting turnover.

• Development opportunities—Provide your staff opportunities to learn new skills and advance their careers. Provide employees with training and education while also encouraging innovation.

• Fairness—All employees should feel valued and respected in the workplace. Establish clear standards and policies regarding behavior and cultivate an environment where everyone feels comfortable reporting issues.

We’re Here to Help

Contact Lyceum Insurance Services today to learn more about organizational health and other subjects related to improving workplaces.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.