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New study demonstrates business case for staff wellbeing

24 January 2023

Almost seven in ten businesses that have introduced health and wellbeing policies have seen increases in employee productivity, according to new research.

A UK study by health insurer Vitality in conjunction with the CBI has found that employees are looking for more health and wellbeing support from their employer; at the same time, employers are increasingly prioritising wellbeing as they see the business benefits of supporting staff.

According to the results of Vitality's survey of 352 business leaders and more than 2,000 office workers, 69% of business leaders have seen increased productivity as a main benefit of introducing health and wellbeing policies. Additionally, 52% of bosses say that hybrid working is the most supportive environment for productivity.

Another key business reason given by employers for prioritising staff health and wellbeing is to improve recruitment and retention. Six in ten business leaders say that skills and labour shortages is the biggest issue facing businesses; the third biggest issue is talent retention and attrition (cited by 48%).

Staff wellbeing

Overall, staff wellbeing is seen as a top priority by 64% of employers, after business performance (80%) and staff retention (66%). Even so, only 24% of business leaders say that poor employee mental health and wellbeing is a key issue disrupting businesses right now.

However, 52% of business leaders surveyed said it was challenging to tailor health and wellbeing support to meet the needs of different people within their business. With over a quarter (28%) of businesses not currently measuring health and wellbeing within the workplace, the report suggests that employers may lack significant data on their employee base to understand how to support them.

The importance of hybrid working

The survey results also show that four in ten employers have introduced a formal hybrid working policy since the pandemic and 70% of employers have given employees more flexibility to work in a way that supports their health and wellbeing. In addition, 45% of UK office workers say they would leave their job for another employer that prioritises health and wellbeing as part of a hybrid working approach.

Despite the progress businesses have made on staff wellbeing, the majority of employees polled said they still want more support from their employers:

  • 69% of UK office workers would like their employers to do more to support their health and wellbeing needs;
  • 82% of employees believe their employer now has a greater responsibility to offer health and wellbeing support post-pandemic.

Wellbeing and business resilience

Another new report confirms that employees are more concerned about their wellbeing than ever before. The State of Inclusivity in the Workplace 2023, published by business change platform Rungway, investigates the state of inclusivity in the workplace and how leaders are supporting their staff.

The Rungway platform, which has 50,000 users, allows employees to share their concerns with colleagues and managers in businesses and organisations around the world. Analysis of user behaviour on the platform has revealed that posts related to personal challenges increased by 38% from 2021 to 2022 and posts on the topic of wellbeing increased by 88% in the past 12 months.

Poor wellbeing in the workplace can affect business outcomes, said Julie Chakraverty, founder of Rungway. “If there is a decrease in the wellbeing of an organisation’s staff … the staff and business will become less resilient to change. If a lack of resilience occurs, it’s likely to result in staff becoming less receptive to strategy changes, re-structures and other changes in the workplace, which leads to an increased strain on the leadership team.”

Written by Rachel Miller.

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