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What is Employee Wellbeing and Why Does it Matter?

By CHOYS Community
29 May 2024

Employee wellbeing is a crucial component of a healthy work culture in an organisation. According to several surveys, companies that care about the wellbeing of employees have seen higher productivity and engagement levels. 

Often wellbeing is associated with only physical health but the complete definition of wellbeing is so much more than that. In this blog, we will be covering the real definition of employee wellbeing, and why it is important for every organisation to address it.

What is Employee Wellbeing?


Employee Wellbeing means a professional’s holistic state of physical, mental, financial, and emotional health. It is influenced by a wide range of factors including their relationships with managers and coworkers, the workplace environment, the scope of career growth, salary and so on. Employee wellbeing has five core components:

  • Career wellbeing: It is the satisfaction employees feel at their work, and how they spend time at their job.
  • Social wellbeing: It refers to the engagement with friends and family, and having meaningful relationships in life.
  • Physical wellbeing: The ability to go through the day by accomplishing all tasks without undue fatigue or physical stress.
  • Community wellbeing: Feeling a sense of belonging in the community or workplace.
  • Financial wellbeing: Having the power to manage personal finances easily.

Suggested Read: Lack of Wellbeing Data Might Be Hurting Your Business Success

Why is Employee Wellbeing Important?

Supporting wellbeing of employees can result in their improved mental, physical and emotional health. These three things can significantly improve the productivity, efficiency and creativity of the employees at the workplace. Thus, employee wellness is the building block of a highly efficient workforce and a successful business. Here are the top five benefits of investing in the wellbeing of employees for your organisation.


Higher Employee Retention

When employees feel more valued and get a sense of belonging then they will feel more satisfied in their current role. Satisfied employees don’t change organisations as quickly as compared to unsatisfied ones. 

Employees with good work-life balance, positive work culture, and advancement opportunities are more likely to stay with the organisation for a long period of time. This leads to improved employee retention and reduces the cost required for onboarding and training of new employees.

Rise in Productivity and Motivation

Employee wellbeing initiatives may look like a small addition, but it has a significant impact on the workforce. When employees are physically and mentally fit, their productivity increases and so does their performance. 

Better Customer Experience

You may be wondering, how employee wellbeing and customer experience are interlinked. Happy employees bring a positive vibe to the customer, which can improve customer experience. Motivated employees understand your products in-depth and serve the customer needs in the best way possible.

Improves Brand Reputation 

Companies with good company values are more likely to succeed. Taking wellbeing initiatives looks more appealing to the clients, new team members and customers. It will definitely improve the brand image as customers connect with brands that have good core values.

Increases Employee Engagement

Employee wellbeing and engagement are linked together, as a happy employee is more likely to feel engaged in work. A work culture where employees feel respected and valued promotes better team collaboration.

What Makes Up Employee Wellbeing at Workplace?

The wellbeing of employees at work shouldn’t have to be complicated. Several factors can significantly improve the overall wellbeing of employees, and they are pretty easy to implement. Here are the foundations of employee wellbeing that you need to focus on first, before implementing other initiatives.

Mental Health

The mental health of employees is one of the key foundations for your organisation’s success. A company with a high-stress environment that promotes unhealthy competition will make employees feel burned out, and it can drastically affect the productivity, and engagement of the employees. So make sure the employees are in good mental health to get the most out of their potential. For this, you can provide mental health support or launch workplace wellness programs.

Physical Health

In the high-stress environment of the corporate world, employees often forget to take care of themselves. It takes a massive toll on their physical health. If employees don’t address it, then it can have a negative impact on their work and your organisation. To tackle this program you must come up with corporate fitness programs, or any challenges that motivate employees to work on their fitness.

Setting Realistic Expectations

If the employees are struggling with a high workload then it’s going to significantly impact their workplace wellbeing. In this scenario, it’s wise to set realistic goals and expectations for the employees. You need to check frequently with your employees about whether they can manage the workload or it will turn out to be a big wellbeing issue.

Listen to People Managers

The people managers have a clear picture of the wellbeing issues within the team. So do pay attention to the wellbeing strategy they have in place. Provide all support required to the manager so they can look after their employees' wellbeing.

Work Engagement

Engaging work is one of the important ingredients of employee wellbeing. Employees who love their work, and are happy with what they are doing are more likely to feel happy compared to those who don’t. To increase work engagement, show purpose, Open communication, provide Growth opportunities and acknowledge and reward good work.

Frequently Asked Questions

Q: What is the meaning of employee wellbeing?

A: Employee wellbeing can be defined as the overall physical, mental, emotional, and financial health of the employees. There are various factors that affect the wellbeing of employees such as relationships with coworkers, workload, work environment, and so on.

Q: How do you define wellbeing in the workplace?

A: Wellbeing in the workplace is about creating an environment that promotes employee wellness at the workplace. It can lead to better employee engagement, reduced sickness absence, higher productivity, and performance,

Q: How do you maintain employee wellbeing?

A: There are so many ways to maintain employee wellbeing. For example, provide a positive work culture, offer recognition and rewards, promote team-building activities, and take care of employees' physical and mental health.

How to Take Care of Employee Wellbeing with CHOYS?

CHOYS offers a unique suite of features designed to improve employee wellbeing in a fun and engaging way. From mood tracking and step challenges to social features and recognition, CHOYS helps employees stay motivated, connected, and feel their best.

Ready to learn more? Schedule a demo with us Today! Or Contact us

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