By 2026, global corporate spending on wellness programs is set to top $94.6 billion, yet anticipated improvements in well-being are not being realized, and, in fact, mental health needs are continuing to rise around the world...(Croft, Parks & Whillans, 2024)
Introduction
Workplace wellbeing is a hot topic in today's corporate world, yet it remains one of the most misunderstood and overlooked priorities. Organizations claim to prioritize employee wellbeing, offering wellness programs, flexible work policies, and mental health resources. In fact, in a recent study (APA, 2022), 81% of workers reported that they will be looking for future workplaces that support mental health. However, despite these efforts, workplace stress, burnout, and mental health issues continue to rise. There remains a significant gap between employer offerings and employee utilization of mental health resources (APA, 2023).
The reality is that true workplace wellbeing isn’t just about initiatives on paper —it’s about fostering a culture where employees feel genuinely supported, both personally and professionally. Why does workplace wellbeing still seem out of reach for so many? The answer lies in understanding what it truly means, why it matters, and how we can start making meaningful changes.
This article serves as a starting point for us to rethink how we approach wellbeing at work. Whether you're an employee looking for ways to improve your own mental health or a leader trying to build a better work environment, this guide will help you understand the key aspects of workplace wellbeing and encourage you to prioritize your own wellness.
What is Workplace Wellbeing?
Workplace wellbeing refers to the overall health, happiness, and satisfaction of employees within an organization. It encompasses physical health, mental health, job satisfaction, work-life balance, and the overall quality of the working environment. A thriving workplace doesn’t just focus on productivity; it also fosters an atmosphere where employees feel valued, supported, and engaged.
According to the Chartered Institute of Personnel and Development (CIPD) in their Health and Wellbeing at Work report, workplace wellbeing can be categorized into the following domains:
Health: Physical health, mental health, physical safety, and stress management.
Good Work: Positive work environment, supportive line management, autonomy, fair pay, and effective change management.
Values/Principles: Ethical leadership, inclusion, diversity, and a culture of trust.
Collective/Social: Employee voice, teamwork, and strong interpersonal relationships.
Personal Growth: Opportunities for learning, career development, and creative expression.
Financial Wellbeing: Fair compensation, comprehensive benefits, and financial security support.
The Importance of Mental Health and Wellbeing in the Workplace
Our Mental health is a cornerstone of our overall wellbeing. It directly impacts our productivity and performance at work. When we take care of our minds and our overall health, we show up as our best selves - more focused, motivated, and ready to take on challenges. A healthy employee thrives in both work and life, and this is naturally reflected in their productivity and success.
Awareness of the importance of prioritizing mental health at work is growing. According to the American Psychological Association (APA), 92% of workers stated that it is very (57%) or somewhat (35%) important to them to work for an organization that values their emotional and psychological well-being (APA, 2023).
Growing awareness of workplace mental health is crucial, as its impact extends far beyond individual employees to global economic consequences. The World Health Organization (WHO) reports that 15% of working-age adults were estimated to have a mental disorder in 2019. Globally, an estimated 12 billion working days are lost every year due to depression and anxiety, costing approximately US$1 trillion annually in lost productivity (WHO, 2022).
Organizations that prioritize mental wellbeing see measurable benefits:
Higher Employee Engagement: Employees feel more motivated and connected to their work.
Stronger Team Cohesion: Improved collaboration and communication.
Enhanced Performance: Increased productivity and creativity.
While individual mental health initiatives are valuable, they alone are not enough. A growing body of research highlights the need for broader, systemic interventions to create meaningful workplace change.
Researchers are increasingly aware of the shortcomings of solely individual-based interventions on workplace mental health. Companies often favor 'Cost-effective' solutions, reinforcing the disconnect between leadership and employees. Many companies hesitate to make organizational changes that address deeper systematic issues - often the root causes of poor employee wellbeing.
Common systematic issues include excessive job demands and rigid workplace structures, requiring intervention from senior management and HR. Without openly acknowledging these issues, it is no surprise that employees are likely to view individual interventions as hypocritical and ineffective. Employees may view individual interventions as mere 'excuses' for leadership to evade responsibility and neglect mental well-being.
Neglecting these systemic issues harms both employees and organizations, leading to lower job satisfaction, increased absenteeism, and declining productivity.
The Impact of Poor Mental Health
Neglecting mental health in the workplace can have far-reaching consequences:
Employee Impact: Poor mental health leads to low job satisfaction, higher absenteeism, and increased turnover. Employees may experience burnout, anxiety, and decreased motivation, which affects their performance. These struggles often spill into personal lives, straining relationships and diminishing overall well-being.
Organizational Impact: Organizations face reduced productivity, rising healthcare costs, and declining workplace morale. High levels of absenteeism and presenteeism - where employees are physically present but not fully functioning due to mental health issues, significantly reduce efficiency. A toxic work environment not only harms existing employees, but also weakens staff retention and recruitment, making it harder to attract and retain top and skilled employees, ultimately impacting the organization's bottom line.
The hidden cost of workplace sickness in the UK has surged past £100 billion annually, largely due to productivity losses from presenteeism (IPPR, 2024).
The consequences of poor mental health in the workplace are undeniable. The solution isn't just about damage control or problems shooting; it requires a proactive and strategic investment in employee well-being. By fostering a culture that prioritizes mental health, organizations build a resilient, high-performing workforce they can depend on.
Benefits of Prioritizing Mental Wellbeing
Investing in mental health initiatives isn’t just ethical, it’s a strategic and, increasingly, mandatory business decision:
Enhanced Productivity: Employees are more engaged, focused, and efficient.
Improved Retention: A supportive environment fosters employee loyalty and reduces turnover.
Positive Workplace Culture: Encourages collaboration, innovation, and a sense of belonging among employees.
Examples: Companies like Google, Salesforce, and Microsoft set a high standard with comprehensive wellbeing programs. These include flexible work arrangements, mindfulness initiatives, and employee support systems that promote mental health and resilience.
Workplace wellbeing strategies must continuously evolve. Since the COVID-19 pandemic, global trends ( such as flexible working) have significantly reshaped how organizations support mental health.
Emerging Trends in Workplace Wellbeing
The COVID-19 pandemic reshaped workplace wellbeing, introducing both challenges and opportunities:
Remote Work: While offering flexibility, it also has led to isolation and blurred work-life boundaries.
Digital Fatigue: Increased screen time has impacted mental health, contributing to stress and burnout.
Focus on Mental Health: Companies are prioritizing mental health days, virtual team-building, and flexible working arrangements to support employee wellbeing.
Some interventions are still in the early research stage. Our understanding of their strengths and weaknesses, and real-world impact remains limited. It is essential to continuously assess and refine these strategies as they evolve.
Why It Matters
Investing in mental health is not just a short-term fix. It's a long-term strategy for sustainable success.
A workplace that prioritizes mental health fosters resilience, sparks innovation, and fuels long-term success. By understanding what workplace wellbeing is, organizations can lay the foundation for healthier, happier, and more productive teams.
References:
APA. (2023). Workplace Mental Health Report. American Psychological Association. Retrieved from https://www.apa.org/workplace-mental-health
CIPD. (2023). Health and Wellbeing at Work Report. Chartered Institute of Personnel and Development. Retrieved from https://www.cipd.org/uk/knowledge/reports/health-wellbeing-work
Croft, J., Parks, A., & Whillans, A. (2024, October 23). Why Workplace Well-Being Programs Don’t Achieve Better Outcomes. Harvard Business Review. https://hbr.org/2024/10/why-workplace-well-being-programs-dont-achieve-better-outcomes
WHO. (2022). Mental Health in the Workplace: Policy Brief. World Health Organization. Retrieved from https://www.who.int/publications/mental-health-workplace
IPPR. (2024). The Hidden Cost of Workplace Sickness in the UK. Institute for Public Policy Research. Retrieved from https://www.theguardian.com/society/article/2024/jul/31/hidden-cost-of-uk-workplace-sickness
Stay tuned for Part 2: "How to Improve Workplace Wellbeing and Mental Health," where we’ll dive into practical strategies and support systems that can transform your work environment.
Article written by Dr. Tiffany Leung
I'm UK-based chartered psychologist with 13+ years of experience in therapy, coaching, and self-development. Holding a Professional Doctorate in Counselling Psychology from the University of Manchester, I work within the NHS and offer private practice services, supporting diverse clients in English, Cantonese, and Mandarin to achieve emotional well-being and personal growth.
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