Published on October 3, 2025 12:17:42PM by Alifia
Employee wellness isn’t just about giving them a range of perks and benefits. A well-curated employee wellness program will positively impact your employees as well as your organization.
The term ‘wellness’ is sometimes used interchangeably with ‘healthy’, yet each concept has a different perception and definition. The Global Wellness Institute defines wellness as an active pursuit that leads to a state of holistic health. Aside from maintaining physical and mental health, it involves intentionally doing things that lead to one’s optimal state of health.
On the other hand, according to the WHO, health is a state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity. Being healthy is the outcome of one’s wellness journey—it’s the end goal, it’s when someone is able to achieve something that makes them not hurt or injured.
Based on these definitions, employee wellness is something that will always be in an ongoing state. Employee wellness means encouraging employees to pursue a healthy working lifestyle. It’s not only about giving benefits—it’s about creating an environment that can maintain that healthy level of work-life balance. For this to happen, their employers need to have structured programs and initiatives that support employees’ individual wellness needs.
An employee wellness program is beyond just giving perks and employee benefits. Ideally, it’s incorporated in the company culture, ensuring a structured and consistent practice. For example, flexible or hybrid working arrangements are a part of the benefits that also support employee wellness. Another example is offering company-funded mental health insurance.
However, going this far just for employees’ needs might be off-putting for a lot of companies. Here are several reasons why employee wellness is worth the investment.
Organizations that prioritize their employees’ wellness are most likely to have a positive working environment. This includes but is not limited to encouraging open and honest communication between employees and managers, setting clear work-life boundaries, and recognizing and appreciating employees’ contributions. Having an uplifting work environment will make the organization an attractive place to work. This creates a ripple effect, leading to better employer branding and contributing to the overall success of the company.
This might not have been the case a few years ago, but the modern workforce is more aware of their mental health today. Employees are more likely to quit when they aren’t feeling valued by the organization. Thus, providing a safe working environment that encourages a healthy working style will increase the retention rates. This will greatly reduce the cost associated with employee turnover.
A McKinsey report cited research by the University of Warwick, which found that happier employees are more productive. By working in a positive environment, employees don’t have to worry about unnecessary burdens and can direct their energy towards the business process. It also reduces absenteeism, because employees already have their dedicated time to rest and refresh their energy without reducing their working time.
Furthermore, healthy employees tend to be more resilient and adaptive towards changes. With how the world progresses rapidly today, organizations rely on their employees and their ability to solve problems creatively and effectively. Without healthy employees, it will be difficult for businesses to navigate these challenges.
In relation to previous benefits, all efforts in investing in employee wellness eventually lead to overall organizational success. For instance, the same McKinsey report cited research from the University of Oxford, showing that there is a direct correlation between employee well-being and an organization’s financial success. This is the impact of reduced absenteeism and presenteeism.
Furthermore, McKinsey stated that investors are increasingly paying attention to how companies manage employee health and well-being. This shows that more organizations consider employee satisfaction as part of long-term organizational success.
Encouraging employees to pursue a healthy working life is a worthy long-term investment for any organization. While it needs comprehensive planning, employee wellness will improve employee productivity, enhance the cost-effectiveness in various aspects, and eventually lead to significant financial returns.
