The ROI of Workplace Health: Why It’s a High-Return Investment

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In today’s competitive business landscape, prioritizing employee well-being is no longer just a “nice-to-have” — it’s a must have and high-return investment that drives organizational success. A recent study conducted by Oxford University in collaboration with Indeed provides compelling evidence of the positive correlation between employee well-being and business performance. Based on a survey of over 15 million workers, the research shows that companies with higher well-being scores generate significantly better profits, command higher valuations, and outperform the stock market. Whereas a recent report from Deloitte found that for every £1 spent on supporting the mental health and wellbeing of their workforce, employers get (on average) about £4.70 back in increased productivity. New  mental health research from also revealed that the cost to UK employers of poor mental health is £51bn per year. Presenteeism is the largest contributor, where people work in spite of illness and not perform at their full ability, which is costing employers around £24 bn annually.

The Business Case for Employee Health and Success

While the importance of employee well-being may seem intuitive, the actual impact on business outcomes is often underestimated. Oxford’s report sheds light on why investing in the mental, physical, and emotional health of employees isn’t just an ethical choice—it’s a strategic one.

1. Higher Profitability

The report highlights that companies with stronger employee well-being scores consistently outperform their peers in profitability. Well-being initiatives—whether mental health programs, wellness resources, or work-life balance initiatives—contribute to higher employee satisfaction and engagement. These employees are more motivated, productive, and committed to their work, which translates into improved output and profitability for the company. In fact, organizations that prioritize well-being see measurable improvements in both top-line revenue and bottom-line results.

2. Improved Valuations

Oxford's research also shows that companies with higher employee well-being scores command higher valuations. Companies that cultivate a positive work environment where employees are supported, trusted, and respected build stronger reputations, which can lead to greater investor confidence and better financial performance. A workforce that feels valued is more likely to drive innovation, customer loyalty, and sustainable growth, all of which positively impact a company’s valuation.

3. Stock Market Outperformance

Perhaps one of the most striking findings from the report is the correlation between employee well-being and stock market performance. Companies with higher employee well-being scores have outperformed the stock market. This suggests that workplace well-being should not only be a human resources concern but also a key factor for investors look for when assessing a company’s potential. Healthy, engaged employees are likely to be more productive and less prone to absenteeism, turnover, and burnout—factors that ultimately impact a company’s performance on the stock market.

The Hidden Costs of Neglecting Wellbeing

While the positive impact of employee well-being is clear, many companies still neglect to invest in this critical area. The hidden costs of poor employee well-being are significant, including:

• High Turnover and Recruitment Costs: Poor well-being can lead to burnout, dissatisfaction, and high turnover, which can result in costly recruitment efforts and lost productivity.

• Presenteeism and Decreased Engagement: Employees who feel stressed, overworked, or unsupported are less likely to be engaged with their work, leading to lower productivity and a less vibrant company culture.

• Health Costs: Chronic stress and poor mental health can lead to physical health problems, increasing healthcare costs for employers.

• By contrast, investing in well-being programs reduces turnover, improves employee engagement, and helps lower health-related costs, making it a win-win for both employees and employers.

What Can Companies Do to Invest in Health and Success?

So, how can businesses translate these findings into action? Here are a few ways to enhance employee well-being and unlock the ROI:

• Offer Mental Health Support: Create a supportive environment for employees to support their mental health, offer classes, counseling services, and provide resources that help manage stress and anxiety.

• Promote Work-Life Balance: Encourage flexible work hours, remote work options, and policies that promote a healthy work-life balance, preventing burnout and improving employee satisfaction.

• Foster a Psychologically Safe Work Culture: Build a culture of respect, psychological safety, inclusivity, and recognition, where employees feel valued, heard, safe and supported. According to Google, psyhological safety is a key contributor to high performing teams and it boosts morale and encourages engagement.

• Focus on Physical Well-being: Provide access to wellness programs, fitness benefits, or gym memberships to encourage physical health and reduce absenteeism related to health issues.

• Support Professional Development: Offering growth opportunities and supporting employees in their career development can increase job satisfaction and productivity.

Conclusion

The findings from Oxford University and Deloitte’s reports are a wake-up call for companies to recognize that employee well-being isn’t just about doing the right thing—it’s also about doing the smart thing. Organizations that invest in the health and happiness of their employees see direct benefits in profitability, valuation, and overall business performance. In today’s world, where the competition for talent is fierce, prioritizing employee well-being is not just a luxury; it’s an essential component of a successful business strategy.

By embracing mental fitness, holistic health and soft skills development as a core part of your company’s culture, you’ll not only enhance the lives of your employees but also set your organization up for long-term success. As the study shows, the ROI of workplace well-being is clear, and it’s time for businesses to reap the rewards of this powerful investment.

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At Wondersource, our mission is to empower every employee and business professional to live mentally and physically healthy lives, unlock their potential and tap into their genius, live with more joy and ease and thrive. Our Signature Mind, Body, Work program helps individuals break free from limiting beliefs and embrace their unique power. We even cover abundance mindset! By fostering mental fitness, holistic health and soft skills development we empower people to lead healthier, more successful lives—both inside and outside the workplace.

If you're ready to amplify your own growth or your team's potential and health and foster a culture of holistic growth, reach out to us at hello@wondersource.co or book in a call to learn more. We offer 1-1 coaching services, and team classes, workshops and more to empower employees to thrive! Let's embark on a journey towards thriving together.

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