Measuring Wellbeing

Wellbeing is both a perception and reality. It is based on the needs, wants and hopes of each individual which we refer to collectively as human drivers. Wellbeing is an assessment of how well each individual achieves their collective driver. This presents are two key challenges to measuring wellbeing. Firstly, we do not have a universal measure of needs, wants and hopes which are different for everyone based on their unique personality, skills and circumstances. Secondly, in the very uncertain world we live in, humans are very inconsistent when it comes to assessing their needs and how well those needs have been met.

The solution is to use use indirect ways to measure wellbeing based on four markers that help us understand the collective state of wellbeing in an economy.

Objective Wellbeing

The reality of wellbeing is directly impacted by how well our physical and emotional needs are met. All humans need a certain amount of food, in terms of calories, nutrients and water. All humans need to be healthy. All humans need to be physically safe from harm. All humans need to feel socially secure, within themselves, their families, their communities and society at large. So we use a number of measures to identify the reality of wellbeing. Here are some examples of what we use to measure the reality of wellbeing:

• Life expectancy

• Number of days where physical or mental illness impairs the individual’s ability to work/study/care for themselves or others

• Quality of relationships

• Availability of leisure time

• Level of engagement in society

• Access to green space

• The level personal of income

Objective Wellbeing

The reality of wellbeing is directly impacted by how well our physical and emotional needs are met. All humans need a certain amount of food, in terms of calories, nutrients and water. All humans need to be healthy. All humans need to be physically safe from harm. All humans need to feel socially secure, within themselves, their families, their communities and society at large. So we use a number of measures to identify the reality of wellbeing. Here are some examples of what we use to measure the reality of wellbeing:

• Life expectancy

• Number of days where physical or mental illness impairs the individual’s ability to work/study/care for themselves or others

• Quality of relationships

• Availability of leisure time

• Level of engagement in society

• Access to green space

• The level personal of income

Subjective Wellbeing

The perception of wellbeing is the self-reported assessment of specific aspects of wellbeing. The perception of wellbeing does not necessarily align with its reality. Someone’s perception of their safety may be influenced by past experiences that may no longer be relevant to person’s current level of safety. Here are some examples of what we use to measure the perception of wellbeing:

• Sense of belonging

• Level of stress or anxiety

• Sense of belonging

• Satisfaction with life

Wellbeing Capacity

The skills an individual has developed to support their wellbeing is an indirect indicator of their likely wellbeing. Here are some examples of what we use to measure a person’s individual capacity to develop wellbeing:

• Resilience

• Emotional intelligence

• Relational intelligence

Wellbeing Economic Strutures

The way society is structured has a direct bearing on many aspects of an individual’s wellbeing. Here are some examples of what we use to measure how well the structures of society support or inhibit individual wellbeing:

• Human rights

• Level of trust in government

• Independence of the judiciary

• The proportion of the population living in poverty

There are many different indices used to assess wellbeing in an economy. Each uses its own range of components to assess some or all of the four markers above.

The Inclusivity Project has an index based on our own economic model that blends the four markers in a way that helps political, economic and business leaders to understand the impact of their policies on wellbeing and individuals to understand how they can improve the quality of their own lives and the lives of those around them.