Why Workplace Wellbeing Matters in Business Across the UK

In today’s fast-paced business environment, workplace wellbeing is no longer just a ‘nice to have’—it is a critical factor in a company’s success. A workforce that feels valued, supported, and engaged is more productive, less likely to take sick leave, and more committed to their employer. However, despite increasing awareness of the importance of wellbeing, many businesses across the UK are still not taking it seriously enough. The cost of failing to address employee wellbeing is substantial, both in terms of financial loss and the overall mental health of the workforce.

The Cost of Employee Sickness

Employee sickness is having a growing impact on businesses across the UK. According to the Institute for Public Policy Research (IPPR), workplace sickness now costs UK businesses a staggering £103 billion per year—a £30 billion increase since 2018. One major factor contributing to this is presenteeism, where employees come to work despite being unwell, leading to reduced productivity. On average, employees lose 44 days per year due to working while sick, compared to 35 days in 2018. This ‘hidden’ loss of productivity can have serious consequences, not only for businesses but also for employees who may struggle to recover properly from illness.

Mental Health and Productivity

Mental health issues are one of the leading causes of workplace absence in the UK, with 28% of all sick days being attributed to poor mental health. Stress, anxiety, and burnout are increasingly common, especially in high-pressure industries. Recent research suggests that 61% of UK employees who have left a job in the past year—or are considering leaving—cite poor mental health as a key reason for their decision. This highlights the importance of employers creating a supportive work environment where employees feel safe to discuss their mental health concerns. Without adequate support, businesses risk losing talented employees and facing increased recruitment and training costs.

The Impact of Remote and Hybrid Working

The rise of remote and hybrid working has brought both benefits and challenges to workplace wellbeing. On one hand, flexible working arrangements have given employees greater control over their schedules, allowing for a better work-life balance. Many employees report feeling less stressed and more productive when they can avoid long commutes and work in a comfortable environment. Hybrid working also enables companies to attract and retain top talent by offering greater flexibility.

However, remote working can also lead to feelings of isolation and disconnection from colleagues. Without regular face-to-face interaction, employees may struggle with collaboration, communication, and even their mental health. Studies show that employees who work from home full-time are more likely to experience burnout, as they find it harder to separate work from personal life. Employers must take proactive steps to support remote and hybrid workers by fostering a strong workplace culture, encouraging regular check-ins, and promoting clear boundaries between work and home life.

The Business Case for Investing in Wellbeing

Investing in employee wellbeing is not just about doing the right thing—it also makes financial sense. Research shows that for every £1 spent on mental health initiatives, businesses can see a return of up to £9 through reduced absenteeism, increased productivity, and lower staff turnover. When employees feel supported, they are more engaged, more loyal, and more motivated to contribute to the company’s success.

How Businesses Can Improve Workplace Wellbeing

One of the most effective ways to improve workplace wellbeing is by fostering open communication. Employees should feel comfortable discussing their mental health without fear of stigma. Employers can encourage this by creating a culture of openness and providing clear pathways for employees to access support.

Flexible working arrangements, such as hybrid working, should be managed carefully to ensure employees maintain a healthy work-life balance. Employers should encourage staff to set clear working hours and take proper breaks to avoid burnout. Providing access to mental health resources, such as Employee Assistance Programmes (EAPs), counselling services, and wellbeing apps, can also make a significant difference in supporting employees’ mental health.

Encouraging regular movement and exercise throughout the workday is another important factor. Whether employees are in the office or working remotely, short breaks and physical activity can help improve concentration, reduce stress, and prevent physical health issues. Employers can promote wellbeing by offering wellness initiatives such as virtual fitness classes, mindfulness sessions, or even simple reminders to step away from the screen.

Finally, recognising and rewarding employee contributions plays a key role in workplace wellbeing. When employees feel valued and appreciated, they are more likely to be engaged and motivated. Simple gestures like regular feedback, employee recognition schemes, and team-building activities can help create a positive workplace culture.

The Bottom Line

Workplace wellbeing is not just an HR issue—it is a business priority. Companies that invest in their employees’ physical and mental health will see the benefits in the form of higher productivity, reduced sickness absence, and improved staff retention. The shift towards hybrid and remote working presents both opportunities and challenges, but with the right strategies in place, businesses can create a work environment that supports employee wellbeing, no matter where they are based. Prioritising wellbeing is not just the right thing to do—it’s the smart thing to do. Reach out – hello@smile-box.co.uk – we’d love to help!

A Smile Box is a thoughtfully curated employee gift box filled with delightful treats designed to bring joy and enhance wellbeing. Now more than ever, investing in your team’s engagement and wellbeing is a smart and meaningful choice.