Invest in Employee Health! (2025 report says)

The World Economic Forum and McKinsey Health Institute released an updated report on improving employee well-being and its impact on productivity and the economy.

Why Is This Report Important?

It provides data and real-world examples of what leading global companies are doing to improve employee well-being and how these efforts impact their business performance.

Key Insights from the Report

1?? The Business Case for Investing in Employee Health

The report highlights the economic benefits of workplace health initiatives. It addresses rising burnout, health disparities, and the growing need for well-being programs in the workplace.

2?? Current State of Workforce Health

Analysis of different industries and demographics reveals significant health inequalities and challenges. Women, minorities, younger workers, and those in lower-income brackets often report poorer health outcomes.

3?? A Practical Framework for a Healthier Workforce

The report outlines six key principles for organizations looking to improve employee well-being:

? Assess current workforce health

? Develop a long-term health strategy

? Pilot and test well-being initiatives

? Track key health and productivity metrics

? Secure leadership support

? Integrate well-being into company culture

4?? The Economic Impact of Employee Well-Being

McKinsey estimates that investments in workplace health could add $3.7T - $11.7T to the global economy. This translates to $1,100 - $3,500 per employee or 17% - 55% of the average annual salary. The biggest benefits come from higher productivity and reduced absenteeism, valued between $2T - $9T globally.

The Hidden Value of Employee Well-Being

?? Many companies underestimate the financial benefits of improving workplace health.

?? They focus on absenteeism and turnover, but overlook presenteeism—where employees show up but perform below capacity.

?? Presenteeism alone accounts for 75-88% of lost productivity.

Organizations prioritizing employee well-being are:

? More resilient to economic shifts

? Better positioned to meet regulatory standards

? More attractive to investors focusing on ESG (Environmental, Social, and Governance)

Global Perspective: Well-Being Beyond High-Income Countries

Health investments could boost global GDP by 4-12%.

?? Higher-income nations contribute 2-5% of this increase.

?? Middle-income nations stand to gain even more, as they have 4x the number of workers who could benefit.

Workplace Well-Being: The Reality vs. the Ideal

?? A McKinsey study of 30,000 employees worldwide found that only 57% reported having good holistic health(physical, mental, spiritual, and social).

?? Burnout is particularly high among women, minorities, younger workers, and those in lower-income roles.

?? This highlights the need for personalized approaches to workplace well-being.

Six Key Steps for Companies to Improve Employee Health

?? 1. Assess Current Health & ROI Potential

Conduct surveys and collect anonymous health data to understand workforce challenges. Identify financial and non-financial benefits, such as improved engagement and retention.

?? 2. Develop a Long-Term Health Strategy

Move beyond quick fixes—build a sustainable, evidence-based approach. Align with DEI (Diversity, Equity, and Inclusion) initiatives. Give teams autonomy to implement well-being strategies.

?? 3. Pilot Small-Scale Programs First

Test well-being initiatives in small groups before full rollout. Compare performance in intervention vs. non-intervention groups.

?? 4. Track 3-5 Key Health & Performance Metrics

Focus on absenteeism, presenteeism, productivity, and retention rates. Adjust strategies based on real-time data.

?? 5. Secure Leadership Buy-In

Executives must prioritize well-being as a strategic business goal. Appoint health champions at the leadership level. Set an example by participating in company wellness programs.

?? 6. Embed Well-Being into Company Culture

Make employee health a core part of daily operations. Use data-driven tools and policies to create a long-term cultural shift.

What Companies Are Doing Right Now (Case Studies)

?? Novo Nordisk

?? 14% of 64,000 employees reported stress symptoms.

?? Implemented a stress monitoring system and manager training.

?? 20-30% decrease in reported stress levels within two years.

?? On (Sportswear Brand)

?? Launched a mental well-being program with coaching, meditation, and digital resources.

?? 50% of employees joined, resulting in a 11.6x ROI in productivity and retention.

?? Experian

?? Used HR analytics to predict employee turnover.

?? Reduced attrition by 4%, saving $14M in 2 years.

?? Ikea Canada

?? Introduced 12 “Wellness Days” per year for mental health & personal needs.

?? Turnover dropped from 35% to 24.5%.

?? Vitality (Health & Life Insurance)

?? Implemented a five-pronged well-being initiative (physical, mental, social, financial, lifestyle).

?? Employees in the program reported 50% fewer presenteeism days and 28% lower absenteeism.

Final Takeaways

?? Employee well-being isn’t just a moral obligation—it’s a business necessity.

?? Healthier workplaces = higher productivity, lower costs, and stronger retention.

?? Companies that prioritize employee well-being will outperform competitors in the long run.

The data is clear: Investing in workplace health pays off. BIG TIME. ??

P.S. Meet me at the cafeteria, I have donuts ??