Benefits of an effective employee wellbeing strategy
Once upon a time ‘workplace wellbeing’ was seen by many as a fluffy nice-to-have. Considered a vague concept – it was hard to define, hard to measure and often dismissed: “We don’t (have time to) do that stuff here.” Some organisations were keener to explore it, but other things took priority.
Having an employee wellbeing strategy is more than a workplace perk. Businesses can't ignore how your people feel, work, and connect. By implementing an effective employee wellbeing strategy, every business builds a thriving culture and keeps high performing employees from walking out the door.
“Not before time,” forward-thinkers will say. ‘Wellbeing’ is no longer a nice-to-have (fluffy or otherwise) it’s a must-do. And it’s not just a people-friendly add-on. It makes sound business sense. In essence it’s a simple concept: a happier employee is a more productive employee. Wellbeing plays a big part and has a positive impact on several things – recruitment, retention, workplace relationships, employee health, output, attendance and hours worked, job satisfaction and professional development. Engaged, happier employees interact better with customers – something that noticeably impacts hospitality and retail businesses. Additionally, a focus on wellbeing is expected in many quarters – particularly among demographics who will soon make up much of the workforce.
For employers, an increased focus on wellbeing will likely mean greater visibility or awareness of employees who may be struggling – financially or otherwise. It will also position them to build a stronger rapport with their teams and offer additional support.
What is employee wellbeing?
What is ‘wellbeing’ when we think of work?
There are what’s known as the ‘four pillars’ of wellbeing: physical wellbeing, mental wellbeing, financial wellbeing and social wellbeing. Supporting employees across these four pillars has a positive impact on employee and organisation. And it’s a sounder investment and better alternative to continually recruiting ultimately unsatisfied employees. Not only will a wellbeing programme improve the overall health of a workforce, it will also provide a sense of empowerment.
Mental and emotional wellbeing
The world moves fast. Stress is a given. Your wellbeing strategy works when you make support visible and stigma minimal. Money worries eased. When people use their hard-earned money, they’re more prudent than when using a credit card. Even just having visibility of earnings has a positive effect – people who use flexible pay access systems regularly check what they’re owed. Flexible pay reduces stress and can work in a financial education capacity. Seeing what you’ve earned so far in a month can act as a positive in terms of mental health. Money worries, on the other hand, can be catastrophic.
In assessing the impact of flexible pay access, Wagestream found 53% of users felt their financial situation was better. Interestingly, 42% of users felt ‘less distracted at work’ through being able to access their pay earlier.
Flexible pay access integrates seamlessly with MHR’s HR and Payroll software.
- Offer confidential mental health support (access to counsellors, employee assistance programmes)
- Hold workshops on stress management or mindfulness
- Train managers to spot signs of burnout and have genuine check-ins with their teams
- Build a workplace where people can talk honestly about pressure and challenges without fear
A strong mental wellbeing offer is practical, not just performative.
Physical wellbeing
Start with the obvious, but don’t stop there. Offering gym memberships is one thing, but you get more traction supporting people’s day-to-day habits.
- Provide wellness programmes (e.g. lunchtime exercise classes, walking challenges)
- Stock the office with nutritious snacks or subsidised healthy meals
- Encourage short breaks and proper holidays; model this in leadership behaviour
- Offer flexible or hybrid hours so staff can manage health appointments or care needs
It’s about making healthy choices easy, and the workplace more than a desk and a chair.
Money worries impacting financial wellbeing
Not surprisingly money worries impact employee wellbeing.
- Offer financial wellbeing workshops (budgeting, debt management, retirement planning)
- Provide competitive salaries and transparent, benefits-rich packages
- Give staff access to tools or professionals for personal finance advice
There are few more obvious things to consume people than worrying about money. Work performance will likely deteriorate when someone has money concerns. Research shows that many people – particularly in lower-paid hospitality, retail and care jobs – have little in the way of savings. Many would be hard pushed finding £250 for an unplanned expense.
Financial education takes different forms and is something organisations should take on board to help support their people.
One option businesses have to support financial wellbeing is by rolling out a flexible pay access (aka ‘pay-on-demand’ or ‘payment drawdown’) programme. It’s a simple concept – workers can access flexible pay as they have accrued. Worked 14 days and want to get paid? You get paid; all deductions taken care of. Work three days and want to get paid? You get paid. It’s not credit. Neither is it a loan or advance.
Social wellbeing
Isolation kills engagement and creativity. Invest in connection.
- Organise team-building activities, interest groups, and socials (from “Bake Off” days to after-work runs)
- Celebrate milestones together, from work anniversaries to personal wins
- Foster collaboration and pairing between departments or functions
Feeling part of a team drives performance and retention, so bake it into your company culture.
Why employee wellbeing is important
When you get it right, a workplace wellbeing strategy delivers rewards:
- Improved productivity. Happier, healthier employees get more done.
- Lower turnover. People stay longer when they feel cared for, saving money to hire and train new employees.
- Fewer absences and lower healthcare claims.
- Stronger company reputation.
But while the employee benefits are obvious, businesses too often settle for the quickest fixes, like gym memberships or a mindfulness app. Effective employee wellbeing strategies go further.
An opportunity for change
Organisations can change some preconceived ideas about working life. Incorporating an employee wellbeing strategy will help mitigate some of the complexities of work-life mix. After all, that old adage, ‘you only get out what you put in,’ is a poignant reminder to employers. If a business expects improved productivity from a workforce loaded with external distractions, how will they support it?
Having an EAP (employee assistance programme) where workers can access neutral, professional advice on matters sits central to improving and supporting wellbeing. Typically, the organisation will engage external support, provide contact details to their workforce (while sitting out of any communications – it needs to happen anonymously) and pick up the bill for support provided. Underpinning an EAP programme, an organisation should utilise its own workforce by having several mental health first aiders (MHFAs) on board.
Tackling barriers to effective employee wellbeing
Creating a robust employee wellbeing strategy often hits hurdles:
- Budget limitations. Start small. Pilot programmes and measure impact before scaling.
- Management buy-in. Share data linking wellbeing to performance. Invite leaders to own an initiative.
- Staff engagement. Build champions at every level and link wellbeing activities to real needs, not management’s assumptions.
Address concerns openly. Create a feedback loop and show real-time improvements.
Putting your employee wellbeing strategy into action
You can’t improve what you don’t measure. Here’s how to kickstart a strategy that makes a difference:
Assess your starting point
- Survey staff anonymously about their wellbeing and what they need
- Analyse absence data and feedback from exit interviews
- Identify hotspots (overwork, stress, engagement issues) by team or department
Set clear goals
Be specific. “Improve staff morale” is a wish, not a goal. Try “Increase employee reported wellbeing in annual surveys by 10%” or “Reduce average sick days by 20%”.
Develop an action plan
Map out key initiatives, deadlines, and accountable owners.
- Schedule recurring wellness events or drop-in clinics
- Launch new mental health or financial literacy resources, and monitor take-up
Communicate and engage
Share your strategy transparently. Invite feedback through digital channels and face-to-face check-ins.
- Make sure staff can access all resources easily, from apps to in-person sessions.
- Encourage leadership to champion wellbeing openly, not just pay lip service.
Support, train, and adapt
- Train managers to notice signs of burnout and to respond.
- Offer flexibility for those engaging in wellbeing initiatives.
- Collect feedback and adapt your strategy as you learn.
Measuring success and refining your workplace wellbeing strategy
Reviewing impact is vital. Track metrics that matter:
- Employee engagement scores and feedback
- Retention rates and new hire satisfaction
- Days lost to sickness or stress-related absence
- Healthcare costs (where possible)
Run quarterly or biannual wellbeing surveys and pulse checks. Use these insights to adjust your strategy and close gaps.
Benefits for both parties
Flexible pay access helps people budget and balance income against outgoings and avoid getting into debt. Some employees will take on extra shifts if they get paid more promptly – rather than waiting until the end of the month. Faced with an unexpected bill or expense mid-month, the employee can access flexible pay. And for the employer – offering pay-on-demand is attractive in the current it’s-a-jobseekers’ market. It can only help improve retention rates – job satisfaction and wellbeing align with lower employee turnover rates. Considering reduced productivity, advertising and agency costs, recruiting and onboarding, employee retention should be a priority.
So, employee wellbeing – a once seemingly fluffy nice-to-have concept, is finding its place at the core of many organisations. Successfully implemented, a workplace wellbeing strategy and programme is the proverbial employee-employer ‘win-win’. A happier, less stressed-out employee is a more productive employee. Scale that up across the workforce and you’ll find an organisation in good shape. Successful, well-managed, growing organisations attract jobseekers. Organisations that overlook wellbeing will find it increasingly difficult to attract and retain good people – and that’s not a direction they want to go in.
Make employee wellbeing your strategic advantage
People rarely leave organisations with truly great workplace wellbeing strategies. Invest in your people and the returns (loyalty, innovation, resilience) will follow.
You don’t need to get it perfect from day one. What matters is building a plan that’s honest, actionable, and open to improvements.
Want a helpful starting point? Download our employee wellbeing checklist today.
