The Connection Between Employee Wellbeing and Productivity
When we talk about employee wellbeing, we often think of physical health metrics: BMI, cholesterol levels and other numbers. But true wellbeing goes way beyond that. It’s emotional resilience, mental clarity, work-life balance and a sense of purpose in the workplace. A supportive culture recognises these aspects, knowing that employees who feel heard and valued are more motivated, focused and productive.
For example, consider an employee who is physically healthy but working in a stressful, demanding environment with no support. They may hit short-term targets but chronic stress will eventually impact their mental health and lead to burnout, mistakes and reduced productivity. Compare that to an employee who feels emotionally supported and mentally engaged and they will bring more creativity, focus and energy to their role and benefit not just themselves but the organisation as a whole.
The Data on Employee Wellbeing and Productivity
Several studies show that prioritising employee wellbeing boosts productivity. A key study by Gallup (2017) on employee engagement (a key part of wellbeing) found that companies in the top quartile of engagement metrics had higher productivity, profit and customer satisfaction than those in the bottom. A meta-analysis by Krekel, Ward and De Neve (2019) aggregated data from over 300 studies and found a wellbeing initiative to productivity link across multiple industries.
Take a manufacturing company that introduced short stretching sessions before each shift. A simple initiative that resulted in a 50% drop in work-related injuries and $800,000 in workers compensation costs. Clearly, small steps towards supporting employee wellbeing can have big returns for both the individual and the organisation.
Suggested Read: How to Care for Your Employees' Wellbeing in the Workplace?
Why Wellbeing Should Be Everyone’s Business
Too often employee wellbeing is seen as an HR initiative – a “nice to have” programme on the side of “real” business goals. But when wellbeing is siloed in HR with no support from senior leaders and line managers wellbeing programmes will fail. For wellbeing initiatives to succeed leaders at all levels must actively support and integrate them into the organisation's core values and daily operations.
Leaders who value employee wellbeing are open, listen to employees and create a culture of trust and respect. That’s where the productive, “energy-inspired” leaders come in. They know their team’s mental and physical energy is directly linked to performance and well-being isn’t a nice to have; it’s a must-have to achieve and sustain productivity.
To boost productivity, leaders need to create a space where employees can recharge, connect and thrive. Here’s how energy-driven leaders boost productivity through wellbeing:
- Clear Communication: When employees are unclear about their role, expectations or future in the company, they channel their energy into stress and anxiety rather than productive work. Research shows clarity increases efficiency by 53% and performance by 25%.
- Trust and Psychological Safety: A culture of trust eliminates unproductive behaviours like territorialism or infighting. Employees who feel safe and respected are more collaborative and innovative, using their energy to focus on work that adds value.
- Setting Boundaries for Rest and Recovery: Many organisations now get downtime. For example, no after-hours emails and “no meeting” times give employees space to recover which is essential for sustained productivity.
- Lifestyle Choices: Leaders who prioritise wellbeing know that sleep, nutrition, physical activity and technology habits impact performance. They model the behaviour by taking breaks, limiting multitasking and advocating for work-life balance which in turn encourages their team to do the same.
Wellbeing ROI: Reduced Turnover and Increased Engagement
Organisations that put wellbeing at the top of the agenda see the results. Employers who invest in the physical and emotional health of their teams have 11% lower turnover and higher engagement as employees feel valued and more connected to the organisation. Conversely, organisations that ignore wellbeing may see higher turnover, absenteeism and presenteeism (where employees are physically present but mentally checked out) all of which eat away at productivity and morale.
An organisation that has team check-ins, mental health days and flexible work schedules has employees who are more likely to stay with the company and are more energised, engaged and ready to contribute.
From Theory to Practice: A Sustainable Wellbeing Culture
Building a wellbeing workplace takes ongoing effort. Here’s how:
- Leaders Model Wellbeing: When leaders model work-life balance, prioritise mental health and take breaks they signal to employees it’s okay to do the same. This cultural shift can have a big impact over time and reduce burnout and increase productivity.
- HR as Wellbeing Champions: HR can design policies, provide resources and offer training that supports wellbeing goals. From employee assistance programs to accessible mental health resources HR have a key role in making wellbeing initiatives work.
- Collect and Act on Employee Feedback: Feedback on wellbeing needs helps organisations refine their programs and respond to changing employee expectations. Organisations that adapt continuously will be better placed to support their teams and see ongoing productivity gains.
How CHOYS Drives Employee Wellbeing and Productivity?
CHOYS is a powerful employee wellbeing app that brings together essential resources like Employee Assistance Programs (EAP), group insurance, virtual GP services, and a range of wellbeing features into one accessible platform. With CHOYS, companies can provide their teams with seamless access to mental health support through EAP, comprehensive healthcare with group insurance, and quick, convenient medical consultations through virtual GP services.
Additionally, CHOYS offers wellbeing tools that encourage stress management, and physical health, foundations for sustained productivity. By integrating these support systems into daily work life, CHOYS fosters a healthier, happier workforce, reducing absenteeism, enhancing engagement, and empowering employees to perform at their peak. For organisations, this means not only meeting the growing demand for employee-centric care but also seeing tangible gains in productivity and long-term employee retention.
FAQs
Q. What’s the link between employee wellbeing and performance?
Wellbeing is linked to performance. When employees feel valued, supported and healthy (physically and mentally) they are more motivated, focused and productive. High wellbeing reduces absenteeism and turnover and increases creativity, resilience and job satisfaction all of which contribute to better overall performance.
Q. What’s the link between employee engagement and productivity?
Employee engagement is linked to productivity. Engaged employees are emotionally invested in their work and company goals and therefore more enthusiastic, dedicated and effortful. This often translates to more output, better quality work and a positive impact on team morale and ultimately the organisation’s success.
Q. What’s the link between good working relationships and productivity?
Good working relationships create a supportive and collaborative working environment. When employees communicate well, trust each other and feel comfortable sharing ideas they are more efficient and productive. Good relationships reduce workplace conflict and stress, improve teamwork and contribute to a strong cohesive company culture which all helps productivity.
Q. What’s the link between employee engagement and wellbeing?
Employee engagement and wellbeing are mutually supportive. Engaged employees are more likely to experience positive emotions and job satisfaction which boosts their overall wellbeing. Conversely, when employees have high wellbeing they are more likely to be engaged contribute fully and feel committed to their role. This synergy creates a healthy and thriving workplace.
Also Read: