The importance of wellness in the workplace

For the first time since Gallup began tracking worker well-being, more U.S. workers are struggling (49%) in their lives than thriving (46%). That shows up at work, as thriving employees miss 53% fewer days because of health problems and are 32% less likely to actively search for a new job. 

The good news is that workplace wellness is something your company can actively improve. An ongoing investment in wellness programs can reduce employee burnout and turnover and increase employee engagement and productivity.

Here’s how to invest in your people and build a healthy culture that starts with a strong wellness strategy. 

Key takeaways

• Workplace wellness is a measure of how your employees are doing both personally and professionally. 
• Employee wellness is important because it reflects how you value your people and because their well-being directly affects the company’s well-being.
• Thriving employees are less likely to burn out or leave your organization. 
• Practical changes like flexible scheduling and clearer work-life boundaries can move the needle on the wellness of your workforce. 
• Technology can be a wellness tool when you use it to make work easier. The right platforms can also help you establish better communication and feedback channels.  

What is workplace wellness?

Wellness in the workplace covers more than career trajectory or job performance. Yes, professional wellness is a component of employee well-being, but it’s just one piece of a broader puzzle that also includes: 

• Physical wellness, which measures the health of the body. Initiatives in this area typically focus on nutrition, exercise, and sleep. 
• Mental and emotional wellness, which measures the health of the mind. Programs in this area tend to concentrate on stress reduction, burnout prevention, and access to mental health support. 
• Financial wellness, which measures the health of the employee’s personal financial situation. Initiatives often center on debt reduction, financial planning, and saving for retirement. 
• Social wellness, which measures the health of relationships and sense of community at work. Improvement strategies frequently include team-bonding activities= and opportunities to volunteer.

Together, these four dimensions form a holistic view of how a team member is doing in every aspect of their life. 

Why is employee wellness important?

There are two reasons to take workplace wellness seriously, and they reinforce each other. The first is straightforward. Leaders genuinely care about the people who work for them. Prioritizing employee well-being is an expression of that.  

The second is financial. Research from Deloitte in the UK found that the cost to employers of poor mental health was £51 billion per year. For every £1 spent on supporting mental health and wellbeing, employers in the UK got about £4.70 back in productivity. Keeping employee wellness at the forefront of your operation can dramatically impact your company’s bottom line.  

Boost productivity and reduce burnout

Now more than ever, wellness in the workplace is a critical factor in driving productivity. People need to be in a healthy state of mind to produce their best work, but stressors such as blurred work-life boundaries and staffing shortages can easily cause team members to become disengaged, burned out, and hunt for a new job.

Employee turnover is a top productivity killer and departing team members leave more work for their remaining colleagues, potentially perpetuating the burnout cycle. 

Organizations can address this problem by supporting the well-being of their employees. This can mean revamping your wellness strategies by offering resources to employees for managing stress and improving work-life balance. 

Employers should also consider the role that technology, such as employee engagement software, plays in employee wellness. Engagement tools like surveys can track employee sentiments and engagement. The regular feedback these tools facilitate provides meaningful insights into how employees are feeling and helps leaders make data-backed decisions to improve wellness strategies.

Initiatives to consider

• Give employees a separate paid time off bank for mental health days (and encourage them to use it) so they can get some much-needed rest without losing vacation time. Dayforce, for example, offers team members two wellness days per year.
• Encourage employees to set professional boundaries, such as not responding to calls, texts, or emails after hours (unless the job specifically calls for this availability), so they can enjoy uninterrupted family and leisure time. 
• Train managers on how to identify early warning signs of employee burnout so they can proactively reach out to their team members. 
• Consider subsidizing gym memberships or other physical wellness benefits. Physical and mental health reinforce each other, and even modest investment signals that the company takes both seriously.  
• Revisit your benefits mix periodically to make sure coverage options reflect what employees need. 

Combat turnover with better balance

Disengagement and turnover are closely linked in the workplace wellness conversation. According to Society for Human Resource Management (SHRM), employees who are highly engaged are 73% less likely to be thinking about quitting. 

Organizations that invest in their people’s well-being give employees a reason to stay that goes beyond compensation. It can make employees feel supported, valued, and respected by their organization. Employees are also more likely to remain loyal to their workplace if it isn’t their main source of stress.  

Initiatives to consider

• Offer flexible scheduling and remote or hybrid working arrangements (when practical) to improve work-life balance. 
• Provide professional development opportunities so team members can feel a deeper sense of purpose and forward momentum. 
• Offer competitive pay and benefits so employees don’t have to worry about money every day and can plan for their future. 
• Establish (or improve) a formal recognition program, so workers feel seen and appreciated. 

Streamline recruiting with a strong culture

Prioritizing workplace wellness is not just great for employees. It's also a powerful business strategy for employers.  

It’s common for employees to talk about their jobs outside of work, covering both good and bad aspects. One thing they likely mention is your organization’s culture. SHRM research found employees in positive work cultures are 5.7 times more likely to have high job satisfaction.

Employees are essentially culture ambassadors of their organization. If you have a great culture that promotes well-being, employees will feel excited to spread the word, improving your brand image. They’re also significantly less likely to burn out or leave the organization. 

Initiatives to consider

• Ensure leaders model wellness behaviors such as taking time off and setting work-life boundaries so employees feel empowered to do the same. 
• Conduct stay interviews so you know how employees are doing and can proactively find ways to improve their well-being. 
• Demonstrate an ongoing commitment to enhancing team member well-being by regularly expanding the company’s wellness offerings, such as adding an employee assistance program (EAP).

Wellness in the workplace is important for business outcomes

The business case for employee wellness is clear, given thriving employees miss 53% fewer workdays due to illness and are 32% less likely to shop for a new employer.  

A strong employee wellness strategy gives you a starting point, but the people who know what your team needs are already on your payroll. Start there.  

For a more detailed look at putting these ideas into practice, explore these 7 ways to promote workplace wellness. 

Frequently asked questions

Why is workplace wellness important?

Workplace wellness is important because most leaders genuinely care about the people who work for them, and prioritizing well-being is an expression of that. Second, the financial case is hard to ignore. Gallup finds that burnout alone can cost organizations 15% to 20% of total payroll in voluntary turnover each year. Taking care of your employees and taking care of your business are the same investment. 

What are the benefits of wellness programs in the workplace?

A well-designed wellness program touches multiple outcomes. Employees tend to miss fewer days and bring more focus to their work. They are also more likely to become advocates for your organization if they are supported by a positive work culture that prioritizes well being. 

Can workplace wellness improve retention and reduce turnover?

It can, and the mechanism is straightforward. Employees who feel supported are less likely to look elsewhere, so investments in well-being can pay off in retention. Research from Deloitte showed 64% of managers were contemplating changing jobs in search of better well-being.  

How does workplace wellness impact productivity?

Workplace wellness and employee productivity are directly correlated. Thriving employees miss 53% fewer days due to health problems, meaning more consistent presence and output. Beyond attendance, employees who feel well bring more energy and focus to their work. And those are qualities that show up in performance over time. 

What makes a workplace wellness program successful?

A successful workplace wellness program is one that provides consistent support to employees in all areas of their well-being, including:

• Physical
• Mental
• Emotional
• Professional
• Financial
• Social

A successful program is also dynamic (adapting to overall workforce needs) and customizable (tailored to individual employee circumstances). 

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