Investing in employee health could generate $11.7 trillion in global economic value, according to a new study. McKinsey Health Institute reportentitled "Thriving workplaces: how employers can improve productivity and change lives"..
The report, produced in collaboration with the World Economic Forum and released for Davos 2025, highlights that organisations that prioritise employee health and wellbeing experience significant improvements in productivity, reduced absenteeism, lower health costs and greater engagement and retention of talent. In addition, a healthy workforce is more resilient and adaptable.
The financial impact of welfare to work
Research from Oxford University has shown a direct correlation between employee well-being and an organisation's financial success. A one-point increase in employee happiness scores is associated with an increase of between $1.39 billion and $2.29 billion in annual profits.
Factors such as work-life balance and job satisfaction are as powerful incentives as salary, especially for Generation Z and those with lower levels of mental health.
Investors are also paying increasing attention to how companies manage the health and well-being of their employees. Today, organisations listed in indices such as the S&P 500 are evaluated not only on traditional financial metrics, but also on factors such as job satisfaction, happiness, stress and purpose at work.
The challenges
A survey of more than 30,000 employees worldwide revealed that only 57 % reported having good holistic health (defined as mental, physical, spiritual and social health).
Employees belonging to groups such as women, LGBTQI+ community, young people, neurodivergent, less educated or in a precarious financial situation tend to report worse results in terms of occupational health. These groups represent 80 % of the surveyed sample.
This underscores the need for personalised interventions to address and prevent health problems, as well as to mitigate the occupational factors that exacerbate them. For example, improving access to treatment for menopause and endometriosis could bring an annual benefit of $130 billion to the global economy by 2040.
Fostering an inclusive environment for LGBTQI+ people can improve their well-being. Similarly, understanding and adapting work to the strengths and needs of neurodivergent employees could enhance their innovativeness and holistic health.
The report stresses that it is not enough to address existing health problems; wellbeing needs to be proactively promoted. With 3.5 billion adults spending approximately 45 years of their lives working, the workplace has enormous potential to impact health. Currently, one in four people experience burnout at work, which, if left unaddressed, will lead to a sicker, unhappier and less productive workforce.
Non-communicable diseases (NCDs) account for 69 % of the global burden of disease today. Over the next 15 years, NCDs related mainly to ageing, such as kidney disease, are expected to increase.
In the United States, cardiovascular disease causes an annual productivity loss of $156 billion. In addition, employees with untreated insomnia cost their employers approximately $2,280 more per year compared to those without sleep problems, due to factors such as absenteeism, poor performance and increased risk of accidents.
The rise of remote working has blurred the boundaries between personal and professional life, creating a work culture that can positively or negatively affect employees' well-being and productivity.
Other impacts
Remuneration is directly related to holistic health. Only 41 % of those with a poor financial situation reported good holistic health, compared to 76 % of those with good financial stability. Those facing financial difficulties also reported 30 % more symptoms of burnout (70 % vs. 40 %).
Job insecurity also impacts mental health (depression, anxiety, burnout) and physical health (backaches, headaches and high blood pressure).
The role of top management is both an asset and a challenge. For managers, the three factors most associated with good holistic health are self-efficacy, sense of purpose and sense of belonging. For non-managerial employees, the key factors are self-efficacy, adaptability and a sense of belonging.
Globally, 10 % of employees care for someone with a mental or physical illness in addition to their paid work. While caregivers are 17 % more likely to experience burnout due to fatigue, they are also more likely to report better holistic health (61 % versus the global average of 57 %), due to greater social and spiritual strength.
Businesses must also prepare for an ageing workforce: by 2050, approximately 30 % of the world's workers will be over 50. Governments may reconsider retirement ages and pension systems in response to this demographic shift.
The solution
There is no one-size-fits-all solution. Leaders must address the diverse needs of different groups through targeted interventions that improve holistic health and reduce burnout.
Effective strategies include
- Training in wellness tools to reduce stress.
- Well-being workshops.
- Active breaks and movement promotion.
- Yoga classes and wellness days.
- Awareness-raising campaigns.
- Access to meditation applications.
The report recommends conducting initial health assessments to establish a baseline of wellbeing. Then develop long-term, evidence-based, sustainable strategies, implement pilot programmes, and adjust strategies based on their effectiveness. To measure success, three to five key metrics should be tracked. In addition, it is recommended to designate a senior executive as a role model and embed a wellness mindset into the organisational culture.
The ideal approach should combine interventions that address immediate needs, tackle underlying causes and help both individuals and teams transform their jobs and work environment.
Success stories
IKEA Canada implemented "Wellness Days", allowing employees to take up to 12 days a year to support a sick family member, participate in community events, volunteer, take care of their health or spend time with a new pet. It also collaborated with the Mental Health Commission of Canada to introduce a digital training platform on self-care, personal leadership, resilience and mindfulness. As a result, employee turnover decreased from 35 % to 24.5 %.
Vitalitya health insurer, introduced health checks, mental health counselling, mental health awareness training, lunchtime leadership walks and medical support. Results included a 50 % reduction in presenteeism, 28 % fewer absences and 46 % faster recovery for employees taking sick leave.
