Why Prioritising Employee Wellbeing Isn’t Just the Right Thing to Do — It’s Your Business’s Competitive Edge
If you think investing in employee wellbeing is just a “nice-to-have” or solely HR’s responsibility, it’s time to reconsider. Groundbreaking research from the McKinsey Health Institute (Jeffery et. al., 2025) reveals a compelling truth: companies that genuinely prioritise their people’s health consistently outperform their competitors. And not by a small margin.
Between 2021 and 2024, the “Well-being 100” — a portfolio of companies rated highest for employee wellbeing on the job platform Indeed — significantly outperformed major market indices like the S&P 500, Nasdaq Composite, and Russell 3000. (Jeffery et. al., 2025, De Neve et. al., 2024) This research clearly shows that employee wellbeing is not just an ethical imperative; it’s a powerful business advantage that directly affects your bottom line.
Sourced From: Jeffery et. al. (2025) Thriving workplaces: How employers can improve productivity and change lives. McKinsey Health Institute.
The Reality Check: Where Does Your Workforce Stand?
McKinsey’s comprehensive global survey (De Neve et. al., 2024) of over 30,000 employees across 30 countries paints a sobering picture. Only 37% of employees reported experiencing good holistic health, a broad concept encompassing mental, physical, social, and spiritual well-being. Meanwhile, about 20% showed signs of burnout, an alarming figure for any organisation.
The challenges vary by industry. Higher burnout rates were observed in sectors such as accounting, retail, agriculture, and arts/media. On the other hand, industries like education, engineering, and human resources tended to report better wellbeing scores and lower burnout levels.
One notable insight is the heightened risk faced by employees juggling caregiving responsibilities alongside work, a segment that requires tailored organisational support to avoid burnout and disengagement.
From an economic perspective, McKinsey estimates that improving employee well-being could unlock up to $11.7 trillion in global economic value. This stems from increased productivity, reduced absenteeism and presenteeism (when employees are physically at work but not fully functioning), better talent attraction and retention, and significantly lower healthcare costs.
Why Leadership Is the Critical Link Between Wellbeing and Performance
While these findings are enlightening, they also raise a crucial question: how do organisations translate data and insights into meaningful action?
The answer lies in leadership. The McKinsey research highlights that leadership commitment and behaviours are foundational to embedding well-being into workplace culture. Leaders who understand and model behaviours that promote wellbeing help foster environments where employees feel valued, supported, and motivated, directly impacting organisational success.
At Steople, we have taken these insights to heart by developing the Leading for Performance and Wellbeing Assessment™, a 360-degree leadership assessment designed to identify and cultivate the critical behaviours that drive a healthy balance between performance and wellbeing.
What Does Effective Leadership for Wellbeing Look Like?
The Steople Leading for Performance and Wellbeing model™ highlights seven key leadership capabilities:
- Builds Capability and Accountability: Effective leaders empower employees with the skills and responsibility they need to succeed.
- Purpose and Direction: Leaders provide clear vision and meaning behind work, which fuels engagement.
- Consistency: Predictable, fair behaviours build trust and psychological safety.
- Authenticity and Genuineness: Sincere interactions foster real connection and loyalty.
- Emotional Adaptability: Leaders who demonstrate resilience and flexibility inspire their teams to do the same.
- Supportiveness: Genuine support motivates beyond transactional relationships.
- Trust: The cornerstone of positive workplace relationships and collaboration.
These aren’t abstract ideals; they are measurable behaviours that translate directly into increased employee well-being, engagement, and performance.
How Steople Helps Bring This Leadership Model to Life
We know leadership development requires more than theory—it demands practical tools and measurable outcomes. That’s why Steople offers an integrated approach:
- Organisational Insights: Our bespoke surveys and data analytics reveal your organisation’s unique culture and wellbeing landscape, identifying areas for targeted improvement.
- Engagement, Performance & Well-being Surveys: We measure what truly matters across all levels—from CEO to frontline staff.
- Leadership Assessments & Coaching: Our Leading for Performance and Wellbeing™ assessment delivers personalised insights and development plans to strengthen leaders’ critical capabilities.
- SCORE Program: An award-winning initiative designed to reduce workplace stress and incivility, enhancing retention and overall morale.
- Mental Health Ambassador Training: Our Working Wellbeing program equips employees to become skilled mental health champions who support colleagues and foster resilience.
- Workshops & Espresso Series: Practical sessions on topics such as boundary management, mindfulness, gratitude, and mental health tailored for leaders and teams.
- Acceptance & Commitment Training: Interactive sessions that build psychological flexibility, helping individuals manage stress and stay aligned with personal and organisational values.
Why This Matters — And Why It Matters Now
The McKinsey study—and decades of psychological research—make one thing clear: employee wellbeing is inseparable from organisational success. Happier, healthier employees are more productive, more innovative, and more loyal. They take fewer sick days, perform better while on the job, and stay longer, reducing costly turnover.
But creating this environment requires leaders who are equipped, accountable, and genuinely committed to fostering a culture where wellbeing and performance coexist.
Steople’s Leading for Performance and Wellbeing model™ offers a proven, practical pathway to develop those leaders. Paired with our evidence-based programs, we help organisations unlock their people’s full potential — for the benefit of employees, investors, and customers alike.
Take Action Today: Invest in Leadership, Invest in Your People
The future of work demands that we rethink leadership and wellbeing as inseparable pillars of success. If you want to move beyond talk and make tangible progress in creating a thriving workforce, the time to act is now.
Connect with us to explore how Steople’s leadership and wellbeing solutions can help you build stronger, more resilient teams, equipped to meet today’s challenges and tomorrow’s opportunities.
Whether you’re facing high turnover, low engagement, or simply want to future-proof your organisation, we’re here to partner with you. Together, we can turn insight into impact.
Reach out today at info@steople.com.au for a no-obligation conversation or to schedule a complimentary organisational wellbeing snapshot, or visit steople.com.au to learn more.
Interested in reading the full studies? Find the links below:
Jeffery, B., Weddle, B., Brassey, W., & Thaker, S. (2025). Thriving workplaces: How employers can improve productivity and change lives. McKinsey Health Institute.
De Neve, J.-E., Kaats, M., & Ward, G. (2024) Workplace Wellbeing and Firm Performance. University of Oxford Wellbeing Research Centre.