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.
Adapting Leadership Styles: Lessons from Cynefin
- Act decisively to re-establish order.
- Communicate with clarity and directness.
- Focus on finding what works rather than striving for the “perfect” solution.
- Leaders must create environments where patterns can emerge.
- Collaboration and open discussions are key to generating innovative solutions.
- Flexibility and experimentation become critical tools.
The Role of Leadership in the Age of AI
- Embrace Adaptability: AI changes the nature of work, requiring leaders to remain flexible and open to innovation.
- Foster Collaboration: Balancing human and machine involves creating environments where people and technology work together seamlessly.
- Prioritise Ethical Decision-Making: AI introduces new ethical dilemmas, making it essential for leaders to consider the broader societal impact of their choices.
- Invest in Continuous Learning: Keeping pace with AI advancements requires ongoing development of both technical and leadership capabilities.
Leading with Purpose in Australia and New Zealand
- Cultivate innovation while staying rooted in the unique cultural and economic contexts of ANZ.
- Build resilient teams capable of adapting to uncertainty and leveraging AI for positive impact.
- Lead with empathy, ensuring that technology serves humanity, not the other way around.
Leadership for the Future
To find out more about this framework, read the article “A leaders framework for decision making” and/or contact Steople to seek our support in understanding what this means for you and your VUCA world.
https://hbr.org/2007/11/a-leaders-framework-for-decision-making
A fantastic article titled The Future of Work: You Might Be Thinking About the Future of Work All Wrong, published in HRM (Australia) recently caught my eye. It offers thought-provoking insights that are definitely worth reading. I find myself in agreement with many of its key points, which I’ll summarise below. Additionally, I’d like to share some of our own research and offer my personal perspective, particularly given our hands-on experience working in this space at Steople.
One of the first key messages in the article is that total jobs will not be lost, leading to mass unemployment, however there will be mass redeployment because tasks will be automated rather than entire jobs lost. A 2023 McKinsey report estimates that half of today’s work activities could become automated between 2030 and 2060. To cope with these changes, we need to spend time and money learning transferable skills and capabilities to enable us the flexibility to adapt to the future of work.
A related point is that employees will need a plan for their career path and employers will need to proactively provide more opportunities. This is not necessarily about climbing the ladder and will more often be about horizontal opportunities where they can develop skills. A review of more recent research has shown that the top skills needed for future jobs (many of which do not exist today) will include: creativity and innovation; analytical thinking and complex judgement; technology design; emotional intelligence; empathy and listening; and leadership and influence. Organisations will need to invest in learning and development programs in the coming years that deliberately and specifically build these types of capabilities.
Since the pandemic, there have been increased incidences of isolation, loneliness and burnout (amongst other mental health and wellbeing issues). The HRM article states that for every dollar spent on wellbeing by organisations, there is a $2.40 return on the bottom line. At Steople, we’ve seen a massive increase in the demand for our wellbeing services over the last 18 months. Whilst we have been offering various preventative wellbeing services for over 10 years now, the demand for this service has sky-rocketed globally. The best employers are listening to their employees and are investing in helping them to cope with health and wellbeing issues. Some of them are doing this just because it is the right thing to do. Others also know that they will receive a significant return on investment over the long-term.
In 2019, Dr Sean Gallagher from Swinburne Centre for New Workforces argued that “the more digital our workplaces become, the more human we need to be”. Building on this theme, Nemat Shafik, Director of London School of Economics and Political Science, in 2018, stated that “in the past jobs were about muscles, now they’re about brains, but in the future, they’ll be about the heart”. Both of these comments, from extremely well-respected individuals, strongly suggest that the future of work will be (or at least will need to be) more human. Since these comments were made, we’ve all experienced the changes associated with the rise of artificial intelligence and automation. This only increases the need for more human connectedness, however it is likely to be in different ways to the past. Prior to the global pandemic, we had a lot more incidental and unplanned conversations with people and social interactions just happened. Now, with the increase in remote work, Zoom and virtual work environments, we must be more intentional about how, when, and where we connect. It’s important to proactively schedule time for casual interactions, non-work-related discussions, and social engagement to maintain meaningful connections.
In relation to leadership, Dr Brene Brown, a research professor at the University of Houston who has attained a cult-like following over recent years for her work in the area of vulnerability, argued that we need to create more human leaders. To do this we need to be courageous. It requires leaders who are willing to take risks, embrace their vulnerabilities and show up as imperfect, real people. I agree with Brene Brown and add that this is exactly the type of leadership that we need now, and in the future, to create great work cultures and effective workforces in the future. No longer can we separate out work from home. On Zoom or Teams calls we can now see into people’s homes. We can see their rooms, their cats and dogs, their children….and I like this new norm. We get to see real people. This is already becoming more crucial to work cultures across the planet and will only increase in the future.
Read the full HRM Article here
If you would like to find out more, contact your local Steople office today here.
Every day, divisive topics dominate our headlines and conversations, leaving us more polarised than ever. Whether it’s politics, workplace challenges, or societal debates, it can feel almost impossible to bridge the gap between differing views. But what if there was a way to reconnect and find common ground? Charles Duhigg’s book, Supercommunicators: How to Unlock the Secret Language of Connection, offers a powerful framework to do just that—one conversation at a time.
The Challenge of Polarisation
The world is becoming increasingly entrenched in opposing viewpoints. People are often quick to dismiss or misunderstand others’ perspectives. This lack of constructive dialogue isn’t just a societal problem—it’s also a challenge in workplaces, families, and communities. What would it take to truly understand each other? Duhigg’s insights on having better conversations struck a chord with me, particularly his concept of “looping for understanding.”
A Case Study: Gun Violence in the US
Consider the contentious issue of gun violence in the United States. The statistics are staggering: in 2023, over 42,000 people died from gun injuries, and for every person killed, two more were seriously injured. The financial cost of gun violence was more than $557 billion in 2022. Despite widespread acknowledgment of the problem, solutions remain elusive due to deeply entrenched beliefs and political divides.
For example, the Second Amendment protects the private right to bear arms, but its interpretation has been fiercely debated in landmark cases like District of Columbia v. Heller (2008) and McDonald v. City of Chicago (2010). While 58% of Americans favour stricter gun laws, political and cultural differences make meaningful change challenging.
In contrast, Australia’s approach to gun laws offers a striking comparison. Following the Port Arthur massacre in 1996, Australia enacted sweeping reforms, leading to significant reductions in gun deaths. While Australians often view the US gun debate as perplexing, it’s essential to understand the deeply personal stories and values that underpin these perspectives.
The Power of Better Conversations
Duhigg’s “looping for understanding” framework offers a pathway to navigate such contentious issues—whether in society or within our own teams and relationships. The goal isn’t to win an argument but to build trust and understanding. The framework involves three simple steps:
- Ask questions to explore the other person’s views.
- Summarise your understanding of their perspective.
- Confirm accuracy by asking if you got it right.
The ultimate aim is to ensure the other person feels genuinely heard and understood. Neuroscience shows that this kind of dialogue can create “neural entrainment,” where brain activity aligns between participants, fostering trust and connection.
Real-Life Example: A Pro-Gun Rights Advocate
In Duhigg’s book, he shares a compelling example of a pro-gun rights advocate. Through open-ended questions, listeners discovered her fear of being powerless – rooted in a traumatic experience where a relative was assaulted in her home. She explained, “That gun is my peace of mind. When people say they want to take it away, what they’re saying is they want me to feel powerless again.”
A participant summarised: “You see your gun as a symbol that you won’t let anyone hurt you. Did I get that right?” She responded, “It’s proof that I deserve to feel safe, and I belong here as much as anyone else.”
This conversation didn’t erase differences but created a foundation of trust, allowing participants to find areas of agreement and potential solutions.
Applying the Framework in Leadership and Life
In workplaces, polarised views often arise around changes, performance expectations, or team dynamics. Leaders can use the “looping for understanding” framework to foster psychological safety and trust within their teams. By prioritising understanding over control, leaders can uncover the values and experiences driving their team members’ perspectives, enabling more constructive collaboration.
For example, during a difficult performance review, instead of focusing solely on outcomes, a leader might ask:
- “Can you help me understand how you approached this project?”
- Summarise: “It sounds like you were prioritising X because of Y. Is that correct?”
- Confirm: “Have I understood your perspective accurately?”
These steps demonstrate respect and a willingness to listen, paving the way for meaningful dialogue and shared solutions.
The Stories Behind Our Beliefs
Well-known researcher Sheila Heen reminds us that everyone has a story that shapes their beliefs. Understanding these stories doesn’t mean abandoning our own values – it’s about building a bridge. As Duhigg highlights, when we genuinely understand the emotions and experiences behind someone’s perspective, we can begin to address the real issues at hand.
A Call to Action
The next time you encounter a polarised discussion – whether it’s in the boardroom, at home, or online – pause and try Duhigg’s approach. Start with curiosity. Ask questions. Listen deeply. Summarise what you’ve heard. Prove to the other person that you’ve truly understood their story. You might not resolve the issue overnight, but you’ll take a vital step toward connection and trust.
Let’s commit to having better conversations. Together, we can bridge divides and create a more empathetic, collaborative world – one dialogue at a time.
If you would like to find out more, contact your local Steople office today here.