What is Employee Wellbeing: A Comprehensive Guide

Onsurity Editorial
April 29, 2025
11 min read

Table of Contents

Employee wellbeing refers to the physical, mental, and emotional health of employees, encompassing aspects like work-life balance, job satisfaction, and overall happiness. Thus, it is no longer optional but a strategic necessity.

In today’s fast-paced work environment, employee wellbeing is rapidly becoming more important. Noting this trend, 62% of companies have shifted their focus to employee wellbeing. This is contributing to enhanced productivity, improved morale, and reduced absenteeism.

By facilitating employee wellbeing, businesses can create a more engaged, motivated workforce and drive better performance that contributes to long-term success.

This blog will provide a detailed guide on the significance of employee wellbeing, key components, the best initiatives, challenges, trends, and more.

Also, Read: 10 Ways To Promote Better Employee Health And Wellbeing

The Importance of Employee Wellbeing

Employee wellbeing is closely linked to various facets of work, including:

1. Impact on Organisational Growth

A strong employee wellness program is a catalyst for higher performance. Here’s how:

a) Higher productivity

Healthy employees are more focused, engaged, and efficient at work. A Gallup survey states that within six months of implementing an employee wellness program, 78% of workers reported significant improvement in their mental health. Absenteeism dropped by 40% and overall performance metrics enhanced by 20%.

b) Increased morale

A culture of employee wellbeing promotes a positive and healthy work environment. It boosts employees’ sense of belonging, reduces stress, and makes them feel more appreciated and engaged, leading to increased motivation, positivity, and productivity.

c) Effective collaboration

Employee wellbeing initiatives also focus on developing a team spirit. Such a sense of belonging improves teamwork and collaborative action.

d) Reduced absenteeism

Healthier employees are less likely to fall sick or experience distress or burnout. As such, they will show up to work more regularly and on time. Some sources suggest that effective workplace health programs reduce absenteeism by 14% to 19%.

e) More innovation and creativity

Thriving employees are more likely to contribute innovative and creative ways to the organization. This could grant businesses the “it” factor that helps them stand out.

f) Stronger employer brand

Employees may recommend their company as a “good place to work” if they offer a beneficial employee wellness program. This cements the organisation’s brand as a highly sought-after employer. It also encourages loyalty and retention and reduces turnover rates. A positive employer brand strengthens the company’s overall reputation, ensuring long-term success.

g) Talent acquisition and retention

Today, employees consider the health and wellness offerings when choosing an employer. This makes it a great net to capture top talent. 85% of employees intend to stay at their jobs when offered a rewarding wellness program, making it a great tool to retain said talent.

Also, read: 14 Best Employee Perks to Attract and Retain Top Talent

2. Connection to Employee Retention

A workplace prioritising holistic employee wellbeing indicates that it values and supports its employees.

Here’s a deep dive into what drives this:

a) Higher job satisfaction

Employees who feel more engaged, involved, and cared for are more likely to feel satisfied. This satisfaction drives commitment to the employer.

b) Lower attrition

Employee-centric policies and benefits like health insurance, flexible work hours, remote work, and mental health support significantly reduce the attrition rate.

c) Stronger workplace relationships

Employee wellbeing programs also attempt to strengthen social wellness through team-building activities, which helps the workforce feel more connected.

d) Improved work-life balance

Flexible work hours, remote working, and wellness programs like stress management actively prevent burnout. Further, a work environment focusing on employee wellbeing simplifies workload management. These measures improve work-life balance.

e) Increased sense of belonging

Employee wellbeing measures indicate that the organisation values and cares for its employees. Being heard and acknowledged makes them feel like they belong and strengthens the employee-employer bond.

3. The Financial Case for Wellness

Investing in your employee’s wellbeing is a strategic move that draws a range of financial benefits. Here are some ways that employee wellness programs benefit organisations:

a) Higher returns

On average, the ROI for employee wellness programs is six-to-one. This means that every ₹1 invested attracts a yield of ₹6. Such impressive returns are in the form of higher productivity, lower health insurance premiums, lower absenteeism, and other benefits.

b) Lower healthcare costs

Preventive healthcare and wellness programs, such as regular health check-ups and fitness initiatives, prevent the onset of critical or chronic diseases. This also lowers the overall expense associated with the treatment and also lowers the premiums on health insurance. Perks like employee group insurance offers coverage to employees while keeping the company’s liabilities in check.

c) Improved workforce productivity

An engaged, healthy, and happy workforce will deliver stellar performance. As a result, companies will witness fewer lost working hours and inefficiencies.

d) Decreased recruitment and training costs

In India, the average cost per hire is approximately ₹25,500. This is exclusive of the training costs. Imagine grooming and nurturing talent only to lose them to your competitor. Employee wellness programs save on these costs and efforts.

Quick read: Top 10 Monetary and Non-Monetary Benefits to Offer Employees

Key Components of Workplace Health and Wellness

Employee health and wellness is a cross-functional entity. As such, the wellness program should be equally holistic to cater to every basic requirement. Here are some ways to build your wellness plan across different dimensions:

1. Physical Wellbeing

Physical health is the first and most apparent form of health. Caring for physical health sustains energy levels, prevents chronic illnesses, and improves capacity. Here are some ways in which organisations can promote physical wellbeing:

Fitness challenges: Fitness challenges, like step counting, tap into competitiveness to nudge employees into participating.

Wellness programs: Subscriptions to gyms or yoga sessions encourage employees to get active.

Ergonomic workspaces: Ergonomic chairs, standing desks, walking platforms, ambient lighting, etc., make the workplace comfortable.

Rather than picking out activities individually, businesses can also select Onsurity packages to get health check-ups, fitness memberships, and wellness programs all wrapped in one. These packages are specially curated depending on workforce size, company budget, and wellness programs to tick all your boxes.

2. Healthcare Support

Health emergencies can be quite distressing. In such trying times, employer support can be an absolute blessing. Here’s how you can extend it:

Preventive health check-ups: Regular health screening and checkups detect potential health problems and chronic diseases early on, reducing long-term healthcare costs.

Corporate health insurance: A comprehensive health insurance plan offers financial security while granting access to healthcare. From covering medical expenses to emergency hospitalisation, it reduces stress for the employee and their family.

Mental health support: Stress management workshops, mindfulness programs, and counselling services help employees manage their mental health better.

Onsurity’s Health Membership offers a flexible corporate health insurance plan. With Onsurity, you get cashless healthcare services, OPD benefits, preventive healthcare, and even mental health support.

Relevant Read: Book Health Check-ups With The Onsurity Super App

3. Financial Wellbeing

Employees often stress or get anxious about their financial standing. You can support them during financial stresses in the following ways:

Salary advance: It provides financial support during emergencies, helping employees stay focused.

Insurance coverage: Health, life, and disability plans offer a safety net in tough times.

Financial literacy programs: Conduct budgeting, saving, and investing workshops to empower smart financial decisions.

4. Social Wellbeing

Your employees spend a good part of their daily lives at work. This means that the work environment greatly influences their health.

Here’s how you can improve the working conditions:

Team-building activities: Organise company retreats, casual outings, sporting events, and volunteer programs for your employees to strengthen workplace interpersonal relationships and foster a team spirit.

Diversity, Equity, and Inclusion: Promote the principles of DE&I to make every employee feel welcomed and valued to make them feel like they belong.

Recognition programs: Celebrate employees’ contributions and milestones to drive employee engagement.

Top Employee Wellness Initiatives

We’ve seen the building blocks of employee wellbeing programs. It now boils down to how you implement these health and wellbeing initiatives at work. Here are a few examples to inspire you:

1. Health Insurance Packages

Corporate health and wellness plans, such as those offered by Onsurity, offer employees security in the face of health issues. These policies protect employees from medical expenses and hospitalisation costs and grant coverage for topics related to their mental health.

2. Flexible Working Hours and Remote Work

Employee-friendly policies such as flexible work hours and remote work transfer power and responsibility into the hands of the employees. This promotes accountability and trust while giving them control over their schedule at work. Such a healthy work-life balance helps manage stress and prevent burnout.

3. Nutritional Programs and Healthy Cafeteria Options

Promote a healthy and balanced diet in the workplace. After all, you are what you eat. Emphasise the role of nutrition in health and encourage employees to make healthier food choices. Offer healthy snacks and food options in the cafeteria at work and even for corporate gifts.

4. Routine Health Assessments and Screenings

Conduct wellness webinars, health camps, mental health sessions, and yoga classes to help employees refocus on their health. Follow it up with routine medical check-ups and health screenings to prioritise employee wellbeing.

5. Regular Training and Mentorship Programs

One-on-one mentorship programs and regular training and upskilling sessions encourage employees to live up to their potential. It unlocks avenues for their career advancement. Such a conducive environment promotes their emotional wellbeing at work and alleviates any career-related concerns that they may have.

6. Periodic Corporate and Wellness Retreats

Now and then, schedule a corporate or wellness retreat. These are even more crucial for high-pressure roles and after high-stakes situations.

For example, plan a retreat for your sales team after finalising a deal. These retreats don’t even have to be overly extravagant. A simple day off where the team proceeds on a guided tour of their city can do wonders in keeping burnout at bay.

Recommended read: What is Employee Morale?

Challenges in Implementing Employee Wellbeing Programs

Although employee wellbeing programs offer a ton of benefits, companies often face obstacles while implementing them. Below are some common challenges, along with possible solutions, that come with promoting wellbeing in the workplace:

Common Barriers	Possible Solutions
Employee Wellbeing Programs Are Cost Intensive	Partners like Onsurity offer flexible health membership plans covering essential healthcare without the costly price tag.
Employee Participation Can Be A Challenge	Design the employee wellbeing program to match your employees’ specific requirements and expectations. Also, find ways to include employee engagement elements like challenges or gamification to pique their interests.
Lack Of Customisation In Wellbeing Programs	Run employee surveys and feedback to tap into what your employees truly want. Then, invest in a flexible solution that can cater to your primary requirements. Health tech solutions like Onsurity curate custom wellness packages depending on your needs, budget, and workforce health.
Tracking Wellbeing Outcomes	Identify key KPIs (some of which we’ll discuss below) and track them to measure and demonstrate tangible outcomes.
Benefits Not Accessible For Remote Employees	Opt for a digital wellness solution and consider hosting webinars and sessions in hybrid mode to involve everyone.
Cuts Into Work Productivity	Embed wellness into their daily routine—short wellness breaks, healthy cafeteria meals, post-lunch guided meditation, and more

Workplace Wellness Trends to Watch in 2025

Consider incorporating the following defining workplace wellness trends to stay ahead of the crowd:

1. Tech-driven Wellness Programs

Cutting-edge technology like artificial intelligence (AI) will examine various facets of employee wellness. Think AI-powered fitness coaches, dynamic wellness apps, and smart wearables to enable real-time health tracking.

2. Personalised Wellness Programs

As a byproduct of the tech infusion, we will also see an increase in personalisation. Whether it is an employee diet plan or their workout routine, employers can tailor everything based on the employees’ health data analytics and their inputs. This will enhance employee participation in the wellness programs.

3. Hybrid Wellness Initiatives

As remote and hybrid work finds work in modern offices, businesses will have to roll out virtual wellness programs, telehealth consultations, and online fitness sessions. Making these wellness programs remote-friendly will increase participation and help meet organisational objectives.

4. Emphasis on Preventive Care

Whether it is preventing burnout through effective workload management or avoiding long-term health issues through preventive check-ups, this trend will rise. Businesses will look for ways to mitigate problems.

5. Mental Health Support

Mental health has become an integrated part of overall employee health. As such, there will be an increase in mental health support through webinars and sessions for individuals and groups. We will also move towards a more empathetic workplace.

Also, read: Top 11 Health and Wellness Gifts for Your Employees

Measuring the Success of Employee Wellness Programs

As seen in the challenges, measuring the success of employee wellness programs can be quite challenging.

Fortunately, here are some key performance indicators (KPIs) that you can track to make this job easier:

Absenteeism rates: Monitor employee attendance to understand their health and engagement status. Absenteeism rates should decrease.

Employee satisfaction surveys: Collect regular feedback through surveys and pulse checks to understand how employees perceive the wellness initiative. The satisfaction scores should be high.

Employee retention rate: Measure employee turnover to measure employee loyalty. Aim for higher workforce stability and lower attrition.

Healthcare costs: Evaluate savings on expenses like medical reimbursements and insurance claims. A reduction in these costs means that the wellness measures are working perfectly.

Employee engagement: Measure participation rates in fitness challenges, health screenings, and other wellness workshops. Higher participation rates indicate that the program is effective.

Workforce productivity: Track project completion rates, task efficiency, and employee output to monitor workforce productivity. It should increase.

Also, read: 10 Ways to Improve Employee Experience in the Workplace

Why Choose Onsurity for Corporate Wellness?

Onsurity is the frontrunner of employee wellness solutions. We have tailored and cost-effective solutions to promote workplace health and wellness.

Here’s why our clients trust us:

Customisable and affordable healthcare plans to suit businesses and workforces of any size
Hassle-free outpatient care includes doctor consultations, diagnostic tests, and pharmacy benefits
Access to expert-curated fitness memberships, mental health support, and preventive healthcare
Affordability without any compromise on service quality. We offer maximum coverage at the best costs.

Onsurity helps you build a happier and healthier workforce—minus the avoidable costs!

Conclusion

Employee wellbeing is the cornerstone of business success. Whether it takes the form of a healthy work-life balance or career advancement opportunities, it enhances employee health, drives engagement, reduces turnover, and heightens productivity.

However, the key consideration is to create a wellness program that meets your employees’ immediate and long-term requirements. Fortunately, Onsurity is an expert at knowing what your employees need.

Request a demo to explore our flexible packages to lay the foundation of a healthy and more productive workforce!

FAQs:

1. What is the meaning of employee wellbeing?

Employee wellbeing is an employee’s all-round physical, mental, financial, and social wellness at work.

2. What are the five ways of working wellbeing?

The five ways of boosting workplace wellbeing include promoting physical activity, practicing mindfulness, building strong relationships, aiming for growth, and contributing to your team

3. What is the concept of employee wellness?

Employee wellness is a proactive approach to promoting the health and wellbeing of the workforce.

4. What are the seven dimensions of workplace wellbeing?

The seven dimensions of workplace wellbeing include physical, emotional, social, financial, intellectual, environmental, and spiritual wellbeing.

5. How do you improve employee wellbeing?

Employers can boost employee wellbeing by offering health insurance, creating employee-friendly policies, supporting mental health, providing financial aid, and promoting a positive workplace culture.

6. Why should employers invest in employee wellbeing?

Employers should invest in employee wellbeing to increase productivity, drive engagement, reduce absenteeism, cut down healthcare costs, enhance employee retention, improve job satisfaction, and solidify employer branding.

7. How can employee wellbeing in the workplace improve company performance?

Employee wellbeing enhances company performance by increasing employee morale and motivation, driving efficiency, reducing productivity losses, increasing employee engagement, and lowering employee turnover.

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