Three reasons why employee wellbeing is critical to employee engagement

Three reasons why employee wellbeing is critical to employee engagement

In today’s increasingly unstable climate, with financial insecurity on the rise, ensuring the health and wellbeing needs of your employees are met is crucial to their engagement within the workplace.

Despite a growing interest in this area and more workplaces stepping up their efforts, employee health and wellbeing is still far from central to the way many organisations operate. In fact, a 2014 poll by Investors in People (IiP) found that 54% of British full-time employees still feel that their employer doesn’t care about their health and wellbeing, as long as they get the job done.

For most people, work forms a huge part of their lives. As a result, their engagement levels not only indicate their performance and successes at work, but also affect the extent to which they enjoy what they do day-to-day, according to a report from Engage for Success. There is a definite self-reinforcing interaction between wellbeing and engagement, therefore achieving a high state of both will ensure a productive and sustainable state for workers long-term.

Ultimately, employee wellbeing drives both individual and business performance, so it’s very much in your company’s best interest to ensure that it promotes a positive working environment, that its employees share a common goal and are committed to contributing to organisational success.

Here are a few key reasons why employee wellbeing is vital to your business’ success and why it may be time to foster a new approach within your workplace to ensure that it thrives.


Happy and healthy employees are far more likely to be motivated, productive and engaged and in turn, be more committed to driving the business forward and its overall success. In fact, Evidence from Engage for Success shows that employee wellbeing and engagement is key in helping to drive both individual and organisational performance outcomes. Committed and healthy employees are more likely to deliver high-value customer service, have increased productivity and, according to CIPD (2010), are almost three times as likely to have positive emotions at work, including enthusiasm and optimism, as opposed to negative ones.

Committed employees also have a significant influence over customer outcomes. There is evidence from Engage for Success that suggests highly engaged workers result in high customer satisfaction and spend. All of this contributes to boosting organisational performance and strengthening your business for the future.


By showing your employees that their wellbeing is central to your business, you’ll also be looking after their mental and physical health, reducing long-term absences and therefore increasing overall productivity.

Further research from CIPD has found that mental ill-health and stress are two of the top three causes of long-term absences, with almost 18 million working days lost in 2019/20 due to work-related ill-health caused by stress, anxiety and depression. CIPD’s report also shows that employees in high engagement companies report significantly less workplace stress, with a contrast of 28% versus 39%.

There is also an evident link between engagement, morale, and quality of life. Employees with higher levels of engagement often have healthier lifestyle habits than their counterparts. By ensuring your company prioritises the health and wellbeing of its employees, you will be able to minimise the long-term costs of decreased productivity and increased absence.

There are various wellbeing tools and services to ensure your employee mental health is looked after. For example, Employee Assistance Programmes offer confidential advice, mental health support and more. Similarly, access to a 24/7 GP gives your team members peace of mind and quick and convenient guidance if and when they need it.


Workplace culture has a huge impact on employee engagement and business performance. With most of us spending the majority of each day working, team members who feel happy, supported and socially satisfied at work are more like to engage with their work and put in that extra effort. Employee wellbeing is essential to creating this positive working environment. If individuals feel stressed and anxious in their personal lives, this may affect their connection with colleagues and enthusiasm for company culture.

By supporting your team members and offering them wellbeing tools to manage their mental and physical health, you will be helping to promote a happy, healthy team, a positive work culture and a business that thrives.


  •     Provide opportunities for your employees to further develop their skills, progress within their careers and feel fulfilled in their roles.
  •     Foster a safe working climate where people can talk openly about mental health and seek help when needed.
  •     Ensure you have sufficient reward and recognition schemes in place, so your staff feel fairly rewarded for their work.
  •     Promote a culture that supports flexible working where possible.
  •     Encourage a participative management style.


So, as you can see, providing employee wellbeing support is an important step to ensuring your team are as engaged and motivated as they can be. Our health and wellbeing solution, the zone, has a variety of tools and services, including an online mindfulness course, a 24/7 GP helpline and a money advice service for employees to utilise in a way that works for them.

For more information about our employee engagement solutions and resources, click here.


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With cost of living increases continuing to create financial challenges for people in the UK, now is the time for businesses to take action to provide valuable, long-term support to help their employees.

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