Nearly half of UK employers who actively support staff wellbeing say it leads to greater productivity, according to new research.
In a survey of 500 HR decision makers conducted by research firm Opinium in January for GRiD, the industry body for the group risk sector, 47% of employers who measure the impact of health and wellbeing initiatives reported that employees were more productive when they knew their wellbeing was being supported.
Overall, 63% of employers said they evaluate the business impact of such support, and 98% of those reported a positive outcome. GRiD said it was “pleased to see employers categorically recognise the business benefits of supporting the wellbeing of their workforce”.
Positive Impacts Beyond Productivity
The research found that wellbeing initiatives have a wide-ranging effect on organisational health. Among those that measure impact:
- 42% said it demonstrates the company cares about its people, which boosts employee loyalty and engagement
- 41% said it helps manage absence by reducing the frequency and duration of sick leave and supporting quicker returns to work
- 38% believe they are more likely to succeed financially when employees are healthy
- 37% said wellbeing support aligns with their company values and helps achieve business objectives
- 33% reported a direct return on investment or other financial gain
- 32% said it helps with recruitment and retention by differentiating the business from competitors
- 31% said potential clients were interested in how well the company looked after its staff, and that this influenced business opportunities
GRiD encouraged organisations not already measuring the impact of wellbeing strategies to start doing so, suggesting they may be “pleasantly surprised with the results”.
Good for People, and Business
While improved productivity and reduced absence offer clear commercial gains, GRiD said the findings also reflect a wider cultural shift in how businesses view their responsibilities.
“Supporting staff is, and always will be, good for business,” the organisation said of the research. “But good business practice is no longer solely about profit-making. As shown in the responses from employers, supporting staff also has a positive impact on ensuring a business operates ethically, contributes positively to society, and builds strong relationships with all its stakeholders.”
This broader view is in line with a growing trend across sectors for organisations to consider their social impact as part of long-term strategy, especially regarding employee engagement, public trust and client expectations.
A Holistic Approach to Wellbeing
GRiD emphasised the importance of supporting all four pillars of employee wellbeing: financial, physical, mental and social. It said effective wellbeing strategies now go well beyond one-off perks or general wellness schemes, and instead offer tailored, integrated support across these areas.
Group risk benefits — such as employer-sponsored life assurance, income protection and critical illness cover — were highlighted as examples of comprehensive support. These benefits often come with a range of additional services, such as early intervention, mental health support and vocational rehabilitation.
Many benefit providers also offer assistance to employers themselves, helping HR teams to understand, implement and maximise the value of the programmes on offer.
Measuring What Matters
Katharine Moxham, spokesperson for GRiD, said tracking outcomes was not just about proving ROI but also about protecting resources and ensuring continuity.
“Supporting the wellbeing of staff is a virtuous circle: staff are more likely to remain in the business and work more productively,” she said. “This in turn means that the business is financially successful, but also seen to be having a positive impact in other areas, which in turn attracts new clients and new staff.”
She added that with “business purse-strings now tighter than ever, measuring the impact of supporting staff has never been more important to help HR departments retain their benefits budget and look after their people”.
GRiD’s findings come at a time when employers are under increasing pressure to demonstrate not just good financial management but care and responsibility towards their people too. For many, wellbeing strategies are now seen not just as a “nice to have”, but as essential to performance, retention and long-term resilience.