What is an expense, and what is an investment? All too often, employee wellbeing is seen as an expense, perhaps a ‘nice to have’. But organisations who ignore it do so at their own risk. That’s because ignoring employee wellbeing doesn’t save money – it quietly costs far more.
This article should interest anyone focused on long term strategy and productivity. A fit and healthy workforce are an essential part of both. We will show the potential real costs of doing nothing and offer some suggestions of what you can do to build a fitter, more resilient and more productive workforce. And the good news is that this doesn’t need to cost as much as you might think.
So, what is employee wellbeing?
When we talk about employee wellbeing what do we really understand by that term? Is it offering fruit bowls and lunchtime yoga? Or more flexible working? Or does it go deeper than this? Perhaps empowering employees to understand how to work well, feel supported and stay productive without burning out.
Many organisations are still approaching wellbeing as a ‘tick box’ exercise, where too little thought goes into strategic wellbeing planning, and this can have many hidden costs to an organisation.
The hidden costs of doing nothing
With ever tightening budgets, often wellbeing is the first thing which sinks to the bottom of the priority list, but it should be one of the most important. That’s because rising absence leads to lost productivity – and a whole host of other costs.
Ill-health costs the UK economy £150 billion annually (CIPD 2025) and poor mental health remains one of the leading causes of both short- and long-term absence, costing organisations £51 billion annually (Deloitte). £24 billion comes from presenteeism where employees feel they must continue to work even when unwell. The UK workforce loses 22.1 million working days a year due to stress, depression and anxiety. (MHFA)
These are not small numbers and reflect everyday reality: increased stress, long wait times for support and a culture where rest feels like a luxury.
Higher staff turnover and loss of experience
When wellbeing does not lie at the heart of an organisation’s strategic planning, staff turnover rates can be higher, and loss of experienced professionals can do more damage. 73% of workers have left or considered leaving employment due to a lack of wellbeing support. (PM 2025) Replacing staff is expensive and affects service quality, morale, and continuity. And where wellbeing strategies are in place often organisations are not measuring the impact they are having. Without this they cannot see what is working and more importantly, what isn’t.
Cultural decline and employee disengagement
Where wellbeing is not given enough importance, morale drops and low morale leads to work related stress which then can lead to absence and a greater strain on those left holding the fort. Low psychological safety can lead to quiet conflict, poor communication and reduced collaboration.
On the surface doing nothing seems to be a cost-effective option, however all this does is increases costs elsewhere due to overwhelming workloads, small issues becoming big problems, a loss of resilience and accumulated stress. By the time the organisation notices these things the cost both financially and culturally is already significant.
Is your wellbeing activity an initiative – or a strategy?
There are those who believe they are doing enough because they have an employee assistance programme or they have wellbeing initiatives which occur throughout the year, but these are initiatives. Do they feed into a more strategic way of thinking and planning? If the answer is no, then these efforts sit on the surface but the underlying issues remain.
Wellbeing needs to become a priority for the whole organisations from leadership teams through to HR and management teams. Everyone needs to take responsibility for building a good, strategic wellbeing map which has key, measurable outcomes.
What does proactive wellbeing actually look like?
Proactive wellbeing doesn’t need to be expensive or complicated, but it does need to be intentional.
It starts with asking what is our data telling us? Activities such as employee wellbeing surveys, absence data, OH referrals and exit interview themes are a good place to start.
Using this data, set clear, measurable objectives over the next 12-18 months which can be easily reviewed. Then implement a clear strategic plan which includes:
- Preventative initiatives
- Consistent communication
- Skilled confident managers
- Clear expectations
- Psychological safety
- Early interventions
Examples of low cost, high-impact actions
- Training programmes for managers around understanding mental health and how to support employees.
- Early adjustments before issues escalate.
- A proactive Mental Health First Aider presence.
- Clear guidance on employee assistance programme support.
- Ergonomic assessments.
- Regular high quality 1-1 conversations between employees and managers.
Initiatives do not have to cost a lot, but they do need purpose and consistency.
The real bottom line?
Wellbeing isn’t a luxury or an optional extra and should not be a budget burden. We see it as a strategic, financial and cultural necessity. By prioritising wellbeing, organisations protect their people, strengthen their performance, build resilience and reduce risk, alongside fostering a culture where employees want to stay and do their best work.
And when they don’t? Then the real cost is far greater.
If you’d like to find out how to make the right investment in your employee wellbeing and where the priorities lie, please get in touch with us at EOPH.