Developing employee wellbeing initiatives in the workplace

Employee wellbeing has become a top priority for organisations across the UK. The lasting impact of the COVID-19 pandemic, growing awareness of mental health, and shifting workforce expectations have made it clear that creating a healthy, supportive workplace is not only the right thing to do - it’s a strategic imperative.

According to a McKinsey report on workplace wellbeing, investing in wellbeing initiatives can also enhance productivity, reduce turnover, and build a more resilient workforce. [1]

This article explores how HR professionals and employers can develop effective, sustainable employee wellbeing initiatives. We'll examine the fundamentals of wellbeing, the associated business benefits, the legal framework, practical steps for implementation, and strategies to overcome common challenges.

What is employee wellbeing?

Employee wellbeing goes beyond physical health. The CIPD identifies seven domains of wellbeing: health, good work, values/principles, collective/social, personal growth, financial wellbeing and good lifestyle choices. [2] A successful wellbeing strategy addresses all these areas while recognising that employee needs differ depending on factors such as age, role, working style, and personal circumstances.

In practice, this means taking a holistic and flexible approach. For example, younger employees might prioritise career development and social connection, while others may be more focused on managing caregiving responsibilities or planning for financial security. Hybrid and remote workers may face different wellbeing challenges than those on-site, such as isolation or blurred boundaries between work and home life.

By using data insights, listening to employee feedback, and offering personalised support, organisations can create an inclusive wellbeing strategy that feels relevant and meaningful to all.

The business case for wellbeing initiatives

According to recent data, around 828,000 employees in the UK suffer from work-related stress, depression, or anxiety each year. [3] This figure highlights the urgency for HR professionals and employers to develop robust wellbeing initiatives. Poor mental wellbeing is estimated to cost UK employers £42 billion to £45 billion annually, primarily through presenteeism, sickness absence, and staff turnover. [4]

A strong wellbeing strategy offers measurable business benefits, including:

• increased productivity and engagement
• lower absenteeism and presenteeism
• reduced recruitment and training costs due to higher retention
• enhanced employer brand and talent attraction
• stronger compliance with legal and ethical standards.

Investing in employee wellbeing delivers tangible returns. Organisations with well implemented wellbeing initiatives report higher engagement, lower absenteeism, and improved retention. A study by Johns Hopkins University notes a decline in employee wellbeing in the UK, but companies that prioritise wellbeing are seeing these trends reverse. [5]

According to the World Economic Forum, 38% of workers globally are at risk of mental health issues, and over 65% report experiencing burnout - but having in place proactive measures can help mitigate these risks. [6]

In the UK, wellbeing programs are associated with a 3% increase in employee engagement and a 1.5% reduction in turnover, according to various studies. Reducing sickness absence also leads to cost savings, as each day lost to stress represents a loss in productivity.

Moreover, a comprehensive wellbeing strategy strengthens an organisation’s reputation, making it more attractive to top talent in a competitive market. The CIPD factsheet, Wellbeing at work, links employee wellbeing to better performance, noting that individuals in supportive work environments tend to be more innovative, collaborative and resilient.

Legal considerations for employers

In the UK, while there is no statutory duty to offer specific wellbeing initiatives, employers do have a legal obligation under the Health and Safety at Work etc. Act 1974 to ensure the health, safety, and welfare of employees.

Further obligations come from:

• The Equality Act 2010: Protects against discrimination related to disability, including mental health conditions, putting a legal duty on employers to make reasonable adjustments for employees with disabilities.
• The Management of Health and Safety at Work Regulations 1999: Requires employers to conduct risk assessments, including those relating to stress.
• HSE Stress Management Standards: Offers a framework to help employers manage work-related stress proactively.

Steps to developing an employee wellbeing initiative

Start with data and dialogue

Before implementing new initiatives, HR teams should use a range of tools to assess the current wellbeing climate.

• Running anonymous employee wellbeing surveys.
• Holding focus groups or listening sessions.
• Reviewing absence data, exit interviews, and performance trends.
• Using tools like the ONS wellbeing measures or CIPD benchmarks to identify pain points, such as high stress in certain departments.
• Conducting a stress risk assessment in line with HSE guidelines.

Set clear objectives and ownership

Wellbeing strategies should align with organisational values and business goals, and include clear, measurable objectives.

• Reducing long-term sick leave by 20%.
• Increasing employee satisfaction scores.
• Improving engagement among remote workers.
• Decreasing stress-related absences across departments.
• Enhancing work-life balance through flexible working options.
• Boosting participation in wellbeing initiatives (e.g. mental health workshops, fitness programs etc).
• Increasing retention rates in high-turnover teams.
• Supporting managers to better identify and respond to wellbeing concerns.

Create a holistic wellbeing programme

A comprehensive wellbeing programme should offer a mix of preventative, supportive, and responsive measures, covering all key wellbeing pillars

Mental wellbeing

• Access to counselling via an Employee Assistance Programme (EAP).
• Mental health first aiders.
• Resilience workshops and mindfulness training.
• Policies on workloads and reasonable adjustments.

Physical wellbeing

• Subsidised gym memberships or fitness classes.
• On-site health checks or virtual GP access.
• Cycle-to-work schemes and standing desks.
• Encouraging walking meetings or movement breaks.

Financial wellbeing

• Financial education and planning workshops.
• Salary advance options or savings schemes.
• Clear signposting to debt or benefits advice.

Social wellbeing

• Team-building activities.
• Mentoring or peer-support networks.
• Encouraging regular manager check-ins, especially for remote staff.

Embed flexibility and autonomy

The rise of hybrid and remote working means wellbeing strategies must be adaptable. Flexibility in where and how people work can significantly reduce stress and improve work-life balance.

Tips include:

• formalising flexible working policies beyond statutory requirements
• training managers to lead distributed teams with empathy and clarity
• allowing employee input into scheduling and workload priorities.

Train and support line managers

Line managers are critical in delivering your wellbeing strategy. They often notice the early signs of burnout or disengagement, and their approach to communication, support, and performance management shapes employee experience.

Provide training on:

• recognising mental health red flags and making reasonable adjustments
• having sensitive conversations
• signposting employees to support services
• managing hybrid or remote workers inclusively.

Encourage managers to prioritise regular 1-to-1s, not just for performance discussions, but to check in on wellbeing, foster inclusivity, and ensure the diverse needs of all team members are met, including those working remotely or in hybrid arrangements.

Measure, evaluate, and evolve

Wellbeing is not a one-off campaign - it’s an ongoing commitment. Establish metrics to evaluate success, such as:

• absence rates and staff turnover
• employee satisfaction or engagement scores
• EAP usage
• survey results on stress, morale, or burnout.

Review initiatives annually and seek feedback to ensure they remain relevant and impactful.

Challenges to anticipate

Implementing a successful wellbeing strategy requires more than good intentions - it demands awareness of the potential obstacles that can limit impact or derail progress. Some key challenges to anticipate include:

Stigma

Mental health, in particular, still carries a stigma in many workplaces. Employees may feel uncomfortable disclosing experiences of stress, burnout, or other mental health concerns due to fears of judgment, potential career repercussions, or a lack of trust in confidentiality. As a result, issues are often underreported, and uptake of available support services remains low.

What helps: Foster a culture of openness by encouraging senior leaders and managers to model vulnerability and talk openly about mental health. Provide training to reduce stigma and build psychological safety across teams.

Inconsistency

Wellbeing efforts that vary dramatically across departments or locations can appear disjointed and insincere. A lack of consistency may lead employees to question the organisation’s true commitment to wellbeing, especially if some teams enjoy robust support while others are left behind.

What helps: Ensure leadership buy-in at all levels and develop a central framework that allows for local adaptation without compromising core values and standards.

Resource constraints

Time, budget, and staffing can all be significant limitations. Smaller organisations or overstretched HR teams may struggle to design and deliver meaningful wellbeing programmes. Additionally, when wellbeing is seen as "extra" rather than essential, it’s often the first to be cut.

What helps: Start small but strategic - pilot low-cost, high-impact initiatives and use data to demonstrate return on investment (ROI). Embed wellbeing into day-to-day management practices and integrate it into existing processes (e.g. performance reviews, onboarding etc).

Engagement fatigue

Employees may be cynical or disengaged, especially if previous wellbeing initiatives felt performative or short-lived. “Wellbeing washing” - where organisations promote wellbeing without backing it up with real change - can lead to mistrust.

What helps: Listen to employees regularly through surveys or focus groups and co-create initiatives with them. Prioritise authenticity and follow through on commitments.

Overcoming these challenges requires more than standalone wellness days or one-off initiatives. To create lasting impact, wellbeing must be embedded into core business planning and culture - not just treated as a side project for HR. This means aligning wellbeing objectives with organisational goals, integrating them into leadership development, and making wellbeing a shared responsibility across the business.

Final thoughts

Developing employee wellbeing initiatives is not just about reacting to burnout or offering perks - it’s about building a sustainable, supportive work culture that helps people thrive.

By taking a structured, inclusive, and data-informed approach, organisations can create workplaces where wellbeing isn’t just a policy - it's a lived experience.

Start today - assess your organisation's needs and take that first step towards a wellbeing-focused future. Your employees, and your bottom line, will thank you.

This article is intended for informational purposes only and does not constitute legal advice. The information is accurate at the time of writing but may be subject to change. For advice specific to your situation, please consult a qualified professional.

[1] McKinsey Health Institute. Thriving workplaces: How employers can improve productivity and change lives, 16 January 2025.

[2] CIPD. Mobilising wellbeing initiatives through technology, 12 November 2021.

[3] Spill. 53 workplace mental health statistics you can’t ignore in 2025.

[4] Mental Health Foundation. Mental health at work: statistics.

[5] John Hopkins University. Fostering Wellbeing at Work in the UK: 2025

[6] World Economic Forum. Why prioritizing employee well-being is good for business, 28 March 2025.