The Importance of Workplace Wellbeing

Wellbeing is being widely accepted as a component of corporate culture and contributes heavily toward employee’s performance and the business. According to the American Psychological Association (APA), a healthy workplace should consist of five components: work-life balance, health and safety, employee growth, employee recognition, and employee involvement. Incorporating wellbeing practices in the workplace can help ensure employee satisfaction and generate a positive impact on the business.

Turnover Rates Reduced

A study from the Queen’s School of Business has shown that engaged employees achieve 26% less turnover, 15% greater employee productivity and 20% less absenteeism. The measurement was based on employee engagement in businesses that employ between 50 and 399 employees. With healthy and content employees at work, it will result in lower turnover rates which will prevent the cost of needing to hire and train new staff.

Health Care Costs Reduced

Employers that invest in employee’s wellbeing helps to reduce health-care expenses for both the employee and employer. Research from Transamerica suggests that companies that sponsor wellness programs addressing chronic illnesses can reduce health-care costs and experience higher returns on investment. Creating worksite wellbeing programs that comply with behaviour change strategies can help to lower elevated health risks such as blood pressure and cholesterol levels.


Increase in Productivity

When employees are healthy both physically and mentally, they perform better. Recent studies about workplace wellness programs have proven to increase productivity. A study in 2017 by the University of California Riverside found that employees who participate in a wellness program improved productivity an average one full workday per month.


Long working hours does not correlate with increased productivity and may be detrimental. According to Indy 100, the most productive countries have the shortest workdays, including Luxembourg, Norway, Switzerland, Netherlands, and Germany. Therefore, it is crucial for companies to acknowledge the importance of promoting work-life balance and workplace wellbeing to drive employee engagement and improve on employee retention.

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