How Gross National Happiness model can help HR

Gross domestic product has long been recognised as the indicator of a country’s economic development and prosperity. Ly Tung Van and Fatima Junaid from Massey University argue that Gross National Happiness may be a more meaningful measure for HR.

Humanity is witnessing extremely memorable events or milestones in the 21st century. The appearance of robots and artificial intelligence (AI), climate change, the COVID-19 pandemic and the emergence of new green energy sources are all features of our conversations. These developments are challenging past beliefs, practices and knowledge, necessitating adaptations for future changes.

ANOTHER WAY

For instance, gross domestic product has long been recognised as an indicator of a country’s economic development and prosperity. But it fails to provide a comprehensive picture of social progress, sustainable development, or societal wellbeing. As a result, the emergence of other more comprehensive indicators with greater applicability in the future is inevitable. One such indicator is Gross National Happiness (GNH), which stands out as a promising candidate, emphasising overall societal wellbeing over mere economic metrics.

First introduced in Bhutan in 1972 by King Jigme Singye Wangchuck, GNH is based on the philosophy that national prosperity is determined by the wellbeing of society rather than just economic output.

While HR and strategic HR models are being applied to GNH, we argue that it’s about time for the focus of HR to move from the bottom line to employee experience. For this to happen, HR does not have to reinvent the wheel. Several indices and frameworks are already available based on indigenous wisdom that can be applied to HR policies and initiatives. These indigenous frameworks are broad, holistic and empathetic, and they hold the cultural wisdom of using the values of respect and integrity. GNH is one possible framework that HR (as an employee experience and wellbeing champion) could develop to its advantage alongside what already exists.

The diagram (right) shows the four major pillars of GNH. These are further elaborated into nine domains: (below right) psychological wellbeing, living standards, health, culture, education, community vitality, good governance, balanced time use and ecological integration.

Aligning GNH to HR metrics can be an effective way for HR to demonstrate its value as a wellbeing champion and productivity leader. Through strategic HR initiatives grounded in GNH principles, organisations can create environments that prioritise employee wellbeing, sustainable practices and ethical governance. In turn, this would foster long-term success and societal impact.

For instance, aligning with the sustainable socio-economic development pillar of the GNH model, HR can initiate employee development programmes such as comprehensive training initiatives and long-term career path planning that provide sustainability to its employees, families and communities.

APPLYING GNH TO HRM

The nine domains of the GNH model highlight that people are the most important and that their happiness comes from holistically caring for their wellbeing, making the communities sustainable.

Education, as defined in the GNH model, extends beyond formal schooling to encompass lifelong learning opportunities aimed at achieving a high quality of life. HR serves as a strategic partner in promoting professional growth and continuous learning, aligning these goals with organisational objectives. Community vitality, another GNH domain, promotes justice and minimising inequality, which is critical for achieving happiness and societal advancement. HR policies can be strengthened by adopting initiatives that encourage work–life balance, implementing inclusive parental leave policies, and engaging in community outreach projects that support diversity and equality.

By prioritising wellbeing in comprehensive development, GNH principles have the potential to transform workplace settings and significantly affect Human Resource Management (HRM). While it is a national index and framework, it can also be applied to organisations. Integrating the GNH philosophy into HRM practices can significantly enhance employee wellbeing and organisational performance, contributing to the creation of a high-performing workplace. In promoting good governance, HR has a vital role in fostering transparent management practices and ethical work environments, thereby establishing a workplace characterised by trustworthiness and integrity.

Dr Fatima Junaid is an experienced consultant and educator working within the public and private sector for over a decade and a Senior Lecturer at Massey University. Dr Junaid has done extensive research with marginalised communities including refugees, women, migrants and fishers’ communities. She focuses on developing mechanisms of support for better wellbeing outcomes. linkedin.com/in/fatimajunaid1 employee wellbeing and organisational performance, contributing to the creation of a high-performing workplace. In promoting good governance, HR has a vital role in fostering transparent management practices and ethical work environments, thereby establishing a workplace characterised by trustworthiness and integrity.

Ly Tung Van is a Master’s student specialising in Human Resources Management at Massey University, with five years of experience in HR sustainability within the Vietnamese manufacturing sector. His research interests focus on contemporary HRM challenges, aiming to develop innovative solutions for improving organisational effectiveness and employee wellbeing. He is particularly passionate about making a positive impact on blue-collar workers through his research and practical applications. linkedin.com/in/tung-van-ly-86892418b.