By Hannah Pearsall, Head of Wellbeing, Hays UK&I

In today’s rapidly evolving work landscape, the question isn’t whether wellbeing should be part of corporate strategy – it’s why any forward-thinking business leader would exclude it. For years, employee wellbeing was viewed as a box-ticking exercise, often peripheral to the real drivers of growth. But the tide has turned, and the evidence is now overwhelming. Placing wellbeing at the heart of business strategy delivers tangible outcomes for shareholders, employees, customers – and increasingly, society at large.

The employee perspective: productivity, retention and engagement

For employees, recognising wellbeing as critical to workplace culture is vital. When people feel seen, supported, and empowered, their levels of engagement soar. According to Hays’ Working Well Report 2025, over half of UK professionals often feel stressed at work, yet only 50% feel supported by their employer’s wellbeing efforts. Bridging this gap is not just a moral obligation – it makes true business sense.

Employers who invest in wellbeing initiatives see measurable improvements in productivity, retention, and how they can attract talent. Happy and well employees are more resilient, take fewer sick days, and show up more fully when they’re present. Importantly, 88% of professionals surveyed in the Hays report cited a strong wellbeing culture as essential to staying in their current role. In an age where competition for talent is fierce, businesses that neglect wellbeing will find themselves on the losing end when it comes to hiring.

The shareholder lens: ESG, long-term value and market performance

For shareholders, the appeal of wellbeing as a business lever is deeply rooted in value creation. Since the COVID-19 pandemic, wellbeing has become central to the “Social” aspect of ESG, marking a shift in investor sentiment toward purpose-led companies. Long gone are the days when quarterly earnings were all that mattered – investors now scrutinise how organisations care for their people.

Research from the University of Oxford has shown that companies with robust wellbeing cultures consistently outperform their peers in the stock market. Wellbeing is no longer just good ethics – it’s good business. The CCLA Mental Health Benchmark further underscores this point by evaluating and scoring the 100 largest UK-listed companies on their public disclosure of how they approach employee mental health. The benchmark opens critical conversations with investors about the role of mental health in assessing the overall health and performance of business. Shareholders increasingly recognise that businesses doing right by their employees tend to outperform in the long run.

The customer experience: empathy, innovation, loyalty – and societal impact

For customers, the benefits of a wellbeing-first culture are felt directly. Employees who are well-supported are more empathetic, innovative, and agile in their approach to problem-solving. Customer service becomes more human. Interactions become more enjoyable. And loyalty becomes more lasting.

But the ripple effect of wellbeing doesn’t stop at the point of sale. Businesses that extend their wellbeing ethos beyond the workplace – into their supply chains, communities, and environmental practices – are increasingly seen as trustworthy and values-driven. A company that supports mental health internally may also be more likely to engage with local communities, invest in sustainability, and advocate for social equity. These broader commitments resonate with customers who are looking for brands that reflect their own values. In this way, wellbeing becomes a bridge between internal culture and external reputation – a strategic asset in building long-term customer relationships.

Expanding to policy: raising the bar for collective progress

If wellbeing is in everyone’s interest, should we rely solely on individual organisations to lead the charge? Or is there a role for government and industry bodies to raise the bar?

There’s a growing case for policy intervention – whether through regulation, incentives, or public standards – to ensure that wellbeing is supported by employers as standard. Governments could consider mandating minimum mental health provisions in the workplace or offering tax relief for companies that invest in employee wellbeing and community engagement. Likewise, business umbrella bodies and institutes have an opportunity to champion voluntary schemes, accreditations, or markers of best practice that help organisations benchmark their progress and inspire others to follow suit.

This is not about bureaucracy – it’s about building a healthier, more resilient economy. And for those inspired to step up, the message is clear: wellbeing is not just a corporate initiative, it’s an entire movement.

The business case: wellbeing is not a trade-off

What’s most striking is that choosing to prioritise wellbeing does not come at the expense of profit – it enhances it. According to the Hays report, workplace wellbeing is not simply an employee benefit. It is a strategic imperative that shapes the future success of organisations.

The best-performing businesses aren’t sacrificing shareholder returns to prioritise their people – they’re boosting returns by investing in what truly matters. The workplace, when designed to support mental and physical wellbeing, becomes a positive determinant of health and high performance. It’s a win-win.

The complex mix of factors that influence employee wellbeing means that there is no one-size-fits-all approach to providing the right support, but there are core actions that all organisations can take to start making a positive impact and empowering their workforce.

In the modern economy, wellbeing is no longer the soft side of business. It’s the smart side. Organisations that get it right generate better outcomes for employees, more sustainable value for shareholders, richer experiences for customers – and a more inclusive, resilient society. Why wouldn’t you want to create conditions that enable everyone to be at their best?

Because when people thrive, performance follows – and that’s when businesses truly flourish.

This article is part of our new ‘Economics to improve lives’ series that explores a question at the heart of PBE’s mission: How do we ensure that wellbeing – the quality of life experienced by individuals – is the ultimate goal of government? 

We’re bringing together thinkers and commentators from across economics, policy, academia, media and civil society to challenge conventional wisdom and consider how we might build an approach to measuring economic success that puts the lived realities of people at its heart and fits the times we live in. Opinions are the author’s own. 

Read previous articles in this series from Lord Blunkett, Diane Coyle, Hetan Shah, Nancy Hey, Sarah Davidson, Jon Franklin, and Ed Humpherson.