The Business Case for Investing in Workplace Wellbeing
Workplace wellbeing is a core part of organisational strategy in 2025, making investment in it a strategic imperative rather than an option.
This article examines some of the tangible benefits of prioritising employee wellbeing, while shedding light on the significant risks of neglect.
We’ve done the research, so you don’t have to, analysing the latest studies and evidence.
The Benefits of a Workplace Wellbeing Strategy
1. Increased Engagement
Effective wellbeing initiatives empower employees to manage challenges, stay engaged, and maintain productivity (Headspace State of Mind Report, 2024). As expectations shift, particularly among younger workers, creating an environment that values purpose and wellbeing is critical.
52% of younger employees are considering quitting their jobs (Virgin Pulse, 2023). This means that, to an extent, these people (half of the team!) are present but disengaged.
Wellbeing strategies are proving effective in engaging workers to feel more valued, supported and purposeful at work (CIPD Health and Wellbeing Report 2023).
2. Enhanced Employer Brand
Employees are prioritising a supportive workplace culture that values wellbeing, inclusivity, and psychological safety (UK 2024 Wellbeing Trends report). With Gen Z and Millennials increasingly making up the workforce it’s imperative organisations enhance brand awareness through updated wellbeing initiatives. A workplace that actively demonstrates responsibility for their employee’s mental health is now expected.
“93% of employees believe their employer is responsible for helping them manage their mental health”
The 2024 Deloitte and Headspace surveys support this shift of expectations; people are prioritising their wellbeing to avoid burnout and anxiety, and are valuing purpose and autonomy in their roles. Effective wellbeing investment demonstrates you’re attending to these dimensions of the employee experience which will help attract and retain the best talent.
3. Reduced Costs
“Training programmes that educate and up-skill employees on mental health (particularly for leaders and managers) are cost-effective and easy-to-implement interventions that generate ROIs of 5:1.”
The high ROI on this kind of intervention stems from the dual impact; better trained employees are more effective at their work, and are also more capable of supporting others and intervening early with appropriate wellbeing help.
The most effective management training programmes are planned as part of the organisation’s annual wellbeing strategy and incorporated into their overall development.
The Costs of Neglecting Workplace Wellbeing
1. Increased Absenteeism
AXA’s analysis of health in the workplace suggests that £102billion has been lost from the UK economy because of poor mental health at work. Other studies suggest around a quarter of employees have had to take sick leave due to poor mental health in the past year.
This is a huge cost for the organisation; absence creates a lack of continuity with work, employees need time to re-integrate and get back up to speed, projects are delayed and productivity takes a hit.
2. High Staff Turnover
“59% of employees would consider leaving their current employer for one that offers better wellbeing benefits.”
This highlights how wellbeing initiatives are not just a nice-to-have but a critical factor in retaining top talent and reducing high staff turnover.
When assessing the impact of wellbeing strategies, it’s essential to account for the full costs of turnover, including recruitment, hiring, training, and ongoing development. By implementing quality wellbeing programs, organisations can significantly reduce these expenses while fostering a more stable and engaged workforce.
3. Reduced Productivity
“A supportive and healthy work environment, fostered by effective wellbeing initiatives, can unlock employees’ creative potential and encourage innovative thinking.”
Poor mental health undermines focus, creativity, adaptability and ultimately performance.
In today’s ‘knowledge economy’ it is hard to measure productively precisely. You can think of it as an outcome of engagement, low conflict, creative thinking, innovation, low stress, and minimising disruption to workflow. When viewed holistically it’s clear; productivity is improved by addressing workplace wellbeing effectively.
The Direction is Clear: Investing in Wellbeing Works
The value of a robust and thoughtful approach to wellbeing is indisputable. More than half of organisations now have a stand-alone wellbeing strategy. The trend is clear; invest in a wellbeing strategy, or face the costs. (CIPD Health and Wellbeing Report 2023)
If you’d like further support, contact us today for a free consultation to explore the next steps in transforming your workplace wellbeing strategy.
