Work-related Wellbeing, Intellectual Capital and Value Creation

Besides cost reductions, employees' work-related wellbeing is relevant for the value creation of an organisation. It is a stronger incentive for an organisation to take up initiatives if they are able to understand the business-relevance of these activities.    As increasing share of organisation's value creation is based on intangibles that are not covered by traditional book-keeping methods, we need concepts to analyse these elements. Intellectual Capital is a business administration studies framework to meet these requirements. It consists of three dimensions: human capital, structural capital and relational capital. Human capital covers, for example, skills and experiences we possess as individuals. Structural capital is about communication infrastructure and also organisational culture, i.e. the elements that tie individuals into a work community. Relational capital stands for external connections of the organisation. The essential logic of intellectual capital is that the interaction of these three dimensions forms a basis to value creation.    One of the most advanced frameworks for reporting Intellectual capital is Danish Intellectual Capital Statement. Knowledge narrative gives a description of company's value creation. Management Challenges outline central areas that have to be met to realise the goals set in knowledge narrative. Initiatives are conduced as a response to these challenges. Finally, Indicators are created to measure the effects of the initiatives.      Strategy-based work-related wellbeing -model complements above mentioned framework by explaining the same elements from work-related wellbeing perspective. Wellbeing narrative builds a linkage to core business activities of an organisation as it explains the wellbeing requirements of realising the knowledge narrative. Consequently, other three elements are built for wellbeing, as well.     This approach gives a strategic dimension to promotion of employees' wellbeing. It also helps to position the role of different service providers, such as occupational health and safety professionals, in the organisation's business operations.