Workplace wellbeing is crucial for organisational success—not just for productivity but for the people who make up your team. Poor mental health in the workplace costs the global economy a staggering $1 trillion each year in lost productivity (WHO, 2023). But it’s not only about the money—it’s about ensuring that your employees feel valued and supported. When companies invest in their employees' wellbeing, they see increased productivity, lower turnover, and fewer absences. Ultimately, this leads to happier, healthier teams. In this guide, we’ll explore why wellbeing matters, share practical ways to improve it, and show how these efforts can make a genuine difference for both your people and your organisation.
1. The Importance of Workplace Wellbeing
Mental health issues are costing employers a fortune—up to £45 billion each year in the UK alone (NICE, 2023). Beyond the financial burden, poor workplace wellbeing leads to stress, anxiety, and burnout, which can have profound impacts on individuals. Struggling employees experience diminished focus, engagement, and overall job satisfaction, which affects every aspect of their work life.
Poor mental health is a leading cause of absenteeism, with 12 billion workdays lost globally every year because of depression and anxiety (WHO, 2023). However, prioritising employee wellbeing brings significant benefits—better engagement, healthier teams, and higher retention rates. Employees who feel supported are 2.5 times more likely to be engaged and motivated (McKinsey, 2022). Such engagement doesn’t just contribute to individual success—it lifts the entire organisation, creating a positive and productive culture.
2. The Business Imperative
The numbers speak for themselves: poor workplace wellbeing costs the global economy around $1 trillion each year due to lost productivity (WEF, 2023). But the encouraging part is that investing in wellbeing can bring major returns—not just in increased productivity but also through reduced turnover and lower healthcare costs (SHRM, 2023; Deloitte, 2022).
Imagine your workforce like a car: without fuel, it won’t run smoothly. Regularly investing in mental health support, flexible work options, or simply recognising people’s efforts keeps everyone energised. Companies that prioritise wellbeing also see reduced healthcare costs, leading to healthier and happier teams (PwC, 2023).
3. Addressing Common Wellbeing Challenges
Many companies want to improve employee wellbeing but struggle to find a starting point. Heavy workloads are a major stress factor, with 60% of organisations citing them as a key issue (CIPD, 2023). Overloaded employees may miss deadlines, take more sick days, or see their work quality decline—these are all red flags for burnout.
Managers can help by holding regular one-on-one meetings to discuss workloads, setting achievable goals, and redistributing tasks as needed. Encouraging open communication and offering resources for time management can also help employees feel more in control and reduce their stress.
The stigma surrounding mental health remains a significant barrier. Employees may feel uncomfortable discussing their needs, which stops them from getting the help they need. Employers can break down this stigma by creating an open culture where mental health is discussed without judgement and by providing resources like Employee Assistance Programs (EAPs). By actively addressing these challenges, organisations can foster a culture where employees feel comfortable seeking help and are empowered to thrive.
4. Strategies for Enhancing Workplace Wellbeing
Creating a healthier work environment starts with making wellbeing a shared value. Here are some key strategies:
Leadership Engagement: Leaders set the tone. When executives genuinely show that wellbeing matters—by checking in with their teams and listening to concerns—everyone else follows suit. Employees need to see that leadership is committed to their wellbeing.
Flexibility and Work-Life Balance: People value flexibility, and for good reason. It helps reduce burnout, boosts job satisfaction, and makes employees more productive. A study by Future Forum found that flexible work options made employees 45% more productive compared to rigid schedules (Future Forum, 2023; HBR, 2023).
Recognition and Appreciation: A simple “thank you” goes a long way. Recognising hard work isn’t just courteous—it’s powerful. It makes people feel valued and boosts their motivation instantly. Recognition should be frequent and genuine.
Mental Health Support: Providing mental health resources is essential. Whether it’s partnering with mental health professionals for counselling sessions or creating an in-house support team, companies that invest in mental health see a significant drop in stress-related absenteeism (APA, 2023).
Physical Wellbeing Initiatives: Physical health is an integral part of overall wellbeing. Offering gym memberships, organising fitness challenges, or having on-site fitness facilities can help employees stay focused and productive throughout the day.
5. Building a Wellbeing Programme
Building a successful wellbeing programme isn’t just about offering perks—it’s about creating an environment where people can thrive. Start by assessing where your organisation currently stands. What challenges is your team facing? Use surveys, interviews, and focus groups to understand employee needs.
Tools like SurveyMonkey or Google Forms are useful for assessing employee requirements. Platforms like Officevibe and TINYpulse can gather ongoing feedback, while templates from the World Health Organization can help guide your action plans.
Actionable steps include setting up a wellbeing committee, making mental health resources available, and ensuring the workspace is comfortable. Establishing feedback loops is key—what works today may need adjustments tomorrow. You might also appoint a “wellbeing champion” in each department—someone who can bridge the gap between employees and leadership, ensuring everyone’s voice is heard and wellbeing initiatives are effectively communicated.
6. Measuring the Impact of Wellbeing Initiatives
Measuring the impact of wellbeing initiatives is crucial for understanding what’s working and what needs improvement. Metrics like absenteeism rates, engagement scores, and turnover rates provide valuable insights, but it’s also important to gather qualitative feedback. Ask employees what they appreciate and where they feel improvements could be made.
Tools like the Gallup Wellbeing Index give a broad view of employee wellbeing, while pulse surveys offer quick, real-time insights into how people are feeling. These tools help make timely adjustments to wellbeing programmes.
For instance, one organisation found that offering a monthly wellbeing day-off led to a significant drop in absenteeism and higher employee satisfaction (Mind, 2022). Tracking these metrics over time helps prove the value of wellbeing initiatives to stakeholders and reinforces the importance of continued investment.
7. Practical Steps for Leaders
Leaders have a critical role in fostering workplace wellbeing. Research shows that leaders who model healthy behaviours—such as taking breaks and setting boundaries—boost team morale and productivity by 25% (IES, 2023).
Here are some practical steps for leaders:
Listen Actively: Ensure your team knows they can come to you with concerns. Listening with empathy and taking appropriate action makes a significant difference.
Lead by Example: Show your team that wellbeing matters by taking breaks, disconnecting after hours, and prioritising your own health. When employees see their leaders doing this, it gives them permission to do the same.
Invest in Training: Provide managers with training to help them recognise signs of burnout and stress, and teach them how to have supportive conversations.
Promote Psychological Safety: Create an environment where people feel safe to speak up. Psychological safety is foundational for open communication and better wellbeing.
When leaders genuinely care about their employees’ wellbeing, they inspire a positive shift in workplace culture, resulting in happier, more engaged teams.
8. Engaging Employees in Wellbeing Programmes
For wellbeing initiatives to succeed, employees need to be actively involved. When employees have a say in designing these programmes, they feel valued, and engagement improves significantly. Research from Gallup found that employee involvement can increase engagement by up to 40% (Gallup, 2023).
Set up an employee wellbeing committee with representatives from different teams who can share insights and ideas. This committee can advocate for initiatives like flexible hours, mindfulness programmes, or volunteering days—activities that genuinely make a difference to employees’ experience at work.
9. The Human Experience and Wellbeing
A survey conducted by Mental Health America revealed that 78% of employees believe that workplace wellbeing programs directly contribute to their job satisfaction (MHA, 2023).
Enhancing wellbeing requires a culture of care, understanding individual challenges, and proactively supporting employees to boost engagement and performance.
Psychological safety is vital for employees to feel comfortable sharing ideas and concerns, which directly improves wellbeing and productivity.
Additionally, promoting mental health awareness through workshops, seminars, and training sessions can help break the stigma around mental health. When employees see their organization taking active steps to support mental health, they feel more comfortable seeking help when they need it.
10. The Future of Workplace Wellbeing
A report by Accenture predicts that by 2030, 70% of large companies will have integrated AI-driven personalized mental health solutions into their wellbeing programs (Accenture, 2023).
Workplace wellbeing is a continuous journey requiring regular adaptation. Future trends include AI-powered mental health tools, personalized wellbeing plans, and a greater focus on psychological safety (Accenture, 2023).
Wearable technology is expected to play an important role in monitoring and improving employee health. Devices that track physical activity, sleep patterns, and stress levels can provide employees with valuable insights into their wellbeing, helping employers create more personalised programmes. For example, BP introduced a wellness programme using Fitbit devices to monitor employee activity levels, leading to a 25% increase in physical activity among participants. This contributed to improved overall wellbeing and reduced healthcare costs.
For companies that prioritize these initiatives, the rewards are immense—increased productivity, higher engagement, and a culture where people genuinely thrive.
Conclusion
The importance of workplace wellbeing cannot be overstated. By addressing the core issues that lead to stress, burnout, and disengagement, organisations can create an environment where employees feel valued and supported. Investing in wellbeing isn’t just about improving individual experiences—it’s about driving the success of the entire organisation.
Take the first step today. Assess your current wellbeing initiatives using tools like the Gallup Wellbeing Index or an employee wellbeing checklist, and identify areas for improvement. By prioritising employee wellbeing, you’re investing in the long-term success of your organisation—creating a workplace where everyone has the opportunity to thrive.
Quick Tips for Workplace Wellbeing
Assess Current Wellbeing: Use surveys and focus groups to understand employee needs.
Engage Leadership: Ensure leaders actively participate in wellbeing programs and model healthy behaviors.
Prioritize Flexibility: Offer flexible work options to support work-life balance.
Recognize Contributions: Regularly acknowledge and appreciate employee efforts.
Measure and Adapt: Continuously evaluate the effectiveness of wellbeing initiatives and adjust as needed.
Further Reading and Resources
Gallup (2022): Research on the impact of employee wellbeing on productivity. Available at: https://www.gallup.com/research/389515/employee-wellbeing.aspx
NICE (2023): The financial impact of mental health on employers. Available at: https://www.nice.org.uk/news/article/mental-health-costs-to-business
WHO (2023): Insights into absenteeism and its connection to poor wellbeing. Available at: https://www.who.int/news-room/fact-sheets/detail/mental-health-in-the-workplace
McKinsey (2022): The link between wellbeing and employee engagement. Available at: https://www.mckinsey.com/business-functions/organization/our-insights/wellbeing-in-the-workplace
World Economic Forum (2023): The cost of poor workplace wellbeing on the global economy. Available at: https://www.weforum.org/reports/workplace-wellbeing-impact
SHRM (2023): Business benefits of investing in wellbeing programs. Available at: https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/wellbeing-programs-reduce-turnover.aspx
Deloitte (2022): Insights on the return on investment in mental health. Available at: https://www2.deloitte.com/global/en/pages/about-deloitte/articles/mental-health-and-well-being-report.html
CIPD (2023): Causes of workplace stress related to heavy workloads. Available at: https://www.cipd.co.uk/knowledge/culture/well-being/stress-workload-report
Future Forum (2023): Research on the effects of flexible work options on productivity. Available at: https://www.futureforum.com/research/flexible-work-impact
Harvard Business Review (2023): Case studies on the impact of flexible work policies. Available at: https://hbr.org/2023/03/how-flexibility-reduces-employee-burnout
American Psychological Association (2023): Employee perspectives on workplace wellbeing programs. Available at: https://www.apa.org/news/press/releases/stress/2023/workplace-survey
PwC (2023): Insights into cost savings from comprehensive wellbeing programs. Available at: https://www.pwc.com/gx/en/services/people-organisation/wellbeing-survey.html
Mind (2022): The impact of wellbeing days on employee satisfaction. Available at: https://www.mind.org.uk/news-campaigns/news/2022/wellbeing-days-impact
Institute for Employment Studies (2023): The impact of leadership on team morale and productivity. Available at: https://www.employment-studies.co.uk/resource/leadership-wellbeing-impact
Mental Health America (2023): Employee perspectives on workplace wellbeing programs. Available at: https://www.mhanational.org/workplace-wellbeing-report
Accenture (2023): Future trends in AI-driven workplace wellbeing solutions. Available at: https://www.accenture.com/us-en/insights/future-workplace-wellbeing