In today’s fast-moving business world, conversations about employee wellbeing are everywhere. But in many workplaces, it still feels like lip service. A mindfulness app here, a one-off wellness talk there… yet the lived experiences of professionals tell a different story: burnout is still the norm, boundaries are constantly pushed, and support often feels performative rather than real.
This trend speaks to a deeper issue. Rather than recognising it as a leadership priority or cultural foundation, many organisations still treat wellbeing as a perk, a KPI within the HR department, or a personal issue for employees to manage.
The good news? That mindset is starting to shift. Having and retaining employees who feel well is now rapidly becoming a strategic imperative. And in Singapore, that shift is gaining increasing traction.
In 2023, the Ministry of Manpower, NTUC, and SNEF released the Tripartite Advisory on Mental Health and Well-being at Workplaces, urging employers to embed mental wellbeing into every level of organisational life, from HR policies to performance systems, leadership training, and even after-hours communication norms.
It’s a clear signal: wellbeing isn’t just about being a “nice employer”. It’s about business performance, talent retention, and risk mitigation. When people are well, businesses do better.
In this article, we’ll explore some compelling, evidence-backed reasons why caring for employee wellbeing delivers powerful returns for individuals, teams, organisational culture, and the bottom line. We’ll also spotlight the cultural nuances and strategic shifts that make this particularly relevant for Singapore’s diverse, high-performing workplaces.
Table of Contents
What is Employee Wellbeing?
Employee wellbeing is more than just the absence of illness or stress. It’s about creating the conditions where people can genuinely thrive at work and in life. It encompasses how individuals feel, function, and connect in their workplace, and how the workplace, in turn, supports or hinders that.
The Five Dimensions of Workplace Wellbeing
Drawing on local research, including the Integrated Wellbeing (IWB) model developed in Singapore (Kathirasan, 2015), we can understand workplace wellbeing through five interconnected domains:
Emotional and Mental Wellbeing
How well employees can manage stress, experience positive emotions, and feel psychologically safe. This includes support for mental health, resilience, and self-awareness.
Physical Wellbeing
Encompasses energy levels, movement, rest, and physical health. It includes ergonomic work environments, access to healthy habits, and policies that support rest and recovery.
Meaningfulness and Purpose
Also known as eudaimonic wellbeing, this reflects whether employees find that their actions contribute in a meaningful way, that their work is aligned with their values, and connected to a sense of impact beyond themselves.
Relational and Social Wellbeing
A sense of connection, trust, and support among colleagues and leaders. This includes workplace culture, psychological safety, and a sense of belongingness.
Environmental and Organisational Wellbeing
The physical and cultural environment in which people work—from lighting and layout to workload design, leadership communication, fairness, autonomy, and flexibility.
These five domains highlight that workplace wellbeing is not just about equipping individuals to “fix” themselves. It’s equally about creating healthier systems. When the environment supports the individual, the individual is far more able to contribute meaningfully to the system.
In the next section, we’ll explore six tangible, evidence-backed benefits of what can happen when these five dimensions are supported consistently in the workplace.
6 Benefits of Employee Wellbeing
Increased Productivity
Employees who feel mentally, physically, and emotionally well are more focused, engaged, and motivated. They’re able to bring more mental clarity, focus, and emotional energy to their work and avoid the burden of chronic stress, fatigue, or disengagement.
A seminal meta-analysis by Gallup found that business units with high employee wellbeing had 21% higher productivity and 22% greater profitability compared to those with low wellbeing (Harter, Schmidt & Hayes, 2002).
When psychological safety is present – that is, when people feel safe to speak up, admit mistakes, ask for help, and offer ideas without fear of embarrassment or retribution – teams are more able to respond with focus and collaboration instead of stress and reactivity. Wellbeing creates the internal conditions for consistent, sustainable performance.
Reduced Absenteeism and Presenteeism
Absenteeism (missing work due to illness, stress, or disengagement) and presenteeism (being at work underperforming due to mental or physical strain) are two financially draining yet under-acknowledged issues in the workplace.
According to the World Health Organization (2020), depression and anxiety cost the global economy an estimated US$1 trillion annually in lost productivity.
But in 2010, a meta-analysis of workplace wellness programmes published in Health Affairs found that every $1 spent on wellness programmes resulted in $2.73 reduction in absenteeism-related costs (Baicker, Cutler & Song, 2010).
By creating systems that proactively listen to employees’ wellbeing needs, organisations can redesign workloads and work policies to not only reduce sick days, but also foster an environment that sustains energy, motivation, and mental clarity.
Lower Healthcare and Insurance Costs
When stress becomes chronic, it doesn’t stay in the mind. It shows up in the body. High blood pressure, sleep issues, gastrointestinal problems, and even cardiovascular disease are often linked to prolonged psychological strain.
Research by Goetzel et al. (2014) showed that companies with comprehensive wellbeing programmes reported lower healthcare costs and insurance premiums over time.
Another review found that medical costs fall by $3.27 for every $1 spent on wellness initiatives (Baicker et al., 2010).
By reducing stress-related illness and promoting preventive care, organisations not only support healthier employees, they also manage long-term financial risk.
Higher Employee Retention and Lower Turnover
Replacing an employee is costly for companies. And when employees feel cared for, they stay, and they advocate for their workplace.
The WorkWell Leaders initiative in Singapore has highlighted the link between human-centred leadership and employee loyalty. Otis Asia Pacific, for instance, saw a 15% drop in voluntary attrition after rolling out a wellbeing strategy grounded in leadership and inclusivity (Ong, 2025).
People don’t just leave bad jobs. They leave environments that ignore their wellbeing. And today’s talent is actively seeking employers who value mental health, flexibility, and purpose.
Increased Customer Satisfaction and Higher Performance
The link between employee wellbeing and customer experience is direct. When employees are energised and engaged, they deliver better service, collaborate more effectively, and go the extra mile.
Based on Gallup’s research, units with higher engagement and wellbeing not only performed better financially, they also reported 10% higher customer satisfaction (Harter et al., 2002).
Wellbeing influences emotional regulation, patience, empathy, and communication: all essential skills for frontline roles, especially in hospitality, healthcare, and customer service sectors.
Greater Innovation and Creativity
Creativity requires psychological space. When teams are stuck in survival mode, there’s no capacity for divergent thinking, curiosity, or experimentation. Wellbeing, particularly psychological safety, is the soil in which innovation grows.
Google’s Project Aristotle found that psychological safety was the #1 factor distinguishing high-performing, innovative teams (Duhigg, 2016).
Research also shows that positive emotions (a key output of wellbeing) broaden cognitive flexibility, enabling people to see more possibilities, generate ideas, and collaborate more openly (Fredrickson, 2001).
When people feel safe and supported, they take risks, speak up, and create value together.
Taking Small Wellbeing Steps Forward
It’s one thing to understand the benefits of employee wellbeing, but how can leaders turn that insight into meaningful change?
Workplace wellbeing is often mistaken for surface-level perks like yoga classes, or team-bonding activities. While these can be helpful, they’re only one small part of the picture. True wellbeing is about creating a culture where people feel safe, supported, and able to thrive: mentally, emotionally, and professionally.
Whether you’re managing a team, coaching colleagues, or simply leading by example, here are a few small, high-impact ways to support wellbeing from where you are.
Lead with a Strengths-Based Approach
Rather than focusing solely on fixing weaknesses, great leaders help people discover and use their natural strengths. Research in positive psychology shows that employees who regularly use their strengths at work are more engaged, more productive, and significantly more resilient to stress (Clifton & Harter, 2003).
One simple way to support wellbeing and uncover strengths is through regular, mindful 1-to-1 conversations. Rather than using these check-ins to track performance, leaders and managers can use them as opportunities to help employees identify, explore, and apply their strengths at work.
This is especially powerful because when people are encouraged to use their strengths, they tend to feel more energised, confident, and engaged, since they’re doing what they naturally enjoy and do best.
The first step of identifying strengths can happen through open, reflective dialogue. These conversations help team members tune into what energises them and where they feel most confident. Beyond cultivating a strengths-based culture, these moments also open space for connection, self-awareness, and meaningful development.
Prompts for leaders to explore their team strengths:
- “What tasks have felt most energising for you lately?”
- “What part of your role do you wish you could do more of?”
- “When do you feel most confident or ‘in flow’ at work?”
- “What’s one strength you feel is underused in your current role?”
Over time, these micro-moments of recognition build trust, clarity, and motivation, while signalling that each person’s unique value is truly seen and supported.
Encourage Work-Life Harmony (Not Just Balance)
In Singapore’s high-performance culture, “work-life balance” can feel like an unreachable ideal. Work-life harmony offers an empowering alternative – work and life can be interconnected, and that both can flourish when aligned with a person’s values and needs.
This concept is especially relevant in today’s flexible and always-on work environments, where the boundaries between work and home are increasingly blurred. It’s not about working less – it’s about working more sustainably.
To support this, leaders must do more than acknowledge the concept. They need to offer flexibility, empathy, and trust, helping their teams discover what harmony looks like for them in practice.
How to shift towards work-life harmony:
- Role-model healthy boundaries (e.g. not sending non-urgent emails after hours).
- Be flexible when possible with hours or location, especially during high-stress periods.
- Acknowledge the whole human, not just the job title.
Small acts of flexibility, like honouring quiet hours, encouraging annual leave, or checking in during transitions, can have a lasting impact on trust and wellbeing.
Normalise Open Conversations About Mental Health
One of the most powerful things a leader can do is make it safe to talk about stress, anxiety, or emotional fatigue without fear of judgement or consequences.
Local research by Yip, Machin & Goh (2024) found that employees consistently said they valued leaders who were transparent, supportive, and willing to listen, even if they didn’t have all the answers.
Some suggestions for having mental health conversations at work:
- Begin team meetings with a quick “How’s everyone doing this week?” check-in.
- Be willing to share (appropriately) your own moments of challenge – it gives others permission and models for others to do the same.
- Encourage the use of mental health days or Employee Assistance Programmes (EAPs), and reassure staff that seeking support is a strength, not a weakness.
Creating psychological safety is less about having all the answers, and more about how we show up. When leaders listen openly, respond with empathy, and model vulnerability, they create the trust that teams need to thrive. These everyday moments, when paired with deeper training and support, can spark lasting cultural change.
Small Shifts, Big Ripples
Let’s be honest: creating a culture of wellbeing isn’t easy.
In fast-paced, target-driven environments, leaders are constantly balancing KPIs, deadlines, and competing demands. With so much on the line, wellbeing can feel like yet another item on an already full agenda.
But this is exactly where small, intentional shifts can make a big impact.
Every culture shift begins with a conversation, a decision, a gesture. Whether you’re a team leader, manager, or a professional seeking to shape healthier workplaces, you may not control every policy, but you can create microclimates of wellbeing within your sphere of influence.
When people feel seen, supported, and safe, they don’t just perform better, they become changemakers too.
If this article has sparked something in you – if you’ve ever wished you could design better systems, influence culture, or bring the science of thriving into your work – consider taking the next step.
The Postgraduate Diploma in Positive Organisational Psychology and Leadership (PGDPOPL) at The School of Positive Psychology is designed for professionals like you: Leaders, managers, consultants, educators, and changemakers who want to move beyond awareness and develop the tools, frameworks, and evidence-based strategies to lead sustainable workplace transformation.
This one-of-a-kind, part-time programme blends research and practice, helping you apply the principles of positive psychology across leadership, organisational development, and team wellbeing. From psychological safety and strengths-based cultures to systems thinking and resilience, you’ll gain the mindset and skills to lead people and performance forward.
Thriving workplaces don’t just happen. They’re built by people who care enough to lead the way.
Ready to take the first step? Explore the PGDPOPL programme and find out how you can become a catalyst for positive change in your organisation and beyond.
References
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Clifton, D. O., & Harter, J. K. (2003). Investing in strengths. In K. S. Cameron, J. E. Dutton, & R. E. Quinn (Eds.), Positive organizational scholarship: Foundations of a new discipline (pp. 111–121). Berrett-Koehler.
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