How Employers Can Improve Workplace Wellbeing
How Employers Can Improve Workplace Wellbeing
May 2026
By the end of March 2026, UK workers had already taken more than five million working days off this year due to mental ill‑health, including stress, anxiety or depression (Simplyhealth, 2026). With mental ill health now the leading cause of long-term sickness absence (CIPD, 2025), this is a stark reminder of how structured, proactive support in the workplace, should be a priority for all organisations.
This blog looks at the benefits of corporate volunteering for businesses of all sizes, including SMEs.
WHY EMPLOYEE WELLBEING MATTERS
Encouragingly, employers are increasingly developing their own wellbeing strategies, with most employees (74%) believing their senior leaders prioritise employee wellbeing (CIPD, 2025a). Investing in employee wellbeing reflects the ‘Social’ pillar of ESG and organisations that prioritise everyday support, recognition, and inclusive leadership demonstrate tangible care for their people, foster a culture of belonging, and contribute to societal wellbeing.
Not only that, but supported employees are usually more engaged, motivated, and collaborative, which drives both individual and organisational performance. Recognition and appreciation strongly influence engagement, with studies showing that trust between employees and employers can increase productivity by 50% and decrease workplace burnout by 40% (Randstad, 2025). In addition, when employees feel appreciated, they are considerably less likely to plan to leave; over half of workers say they would stay at a company longer if they felt more appreciated (Murphy, 2025), and also less likely to be off sick (CIPD, 2025a).
THE CURRENT STATE OF EMPLOYEE WELLBEING IN THE UK
Recent statistics show just how big this challenge is: nearly a quarter of employees say that they feel exhausted, 21% feel under too much pressure, and 25% believe their workload negatively impacts their mental or physical health (Randstad, 2025). Government research also highlights that around a third of UK workers have a long-term health condition, with many continuing to work despite feeling unwell, which can obviously worsen stress and burnout (Department for Work and Pensions, 2026).
Similarly, the CIPD Health & Wellbeing at Work 2025 report also shows that sickness absence is at its highest level in more than 15 years, with mental ill health the leading cause of long-term absence (CIPD, 2025a). The CIPD Good Work Index 2025 also reveals that one in four UK workers report their job harms their mental health, highlighting the urgent need for practical action (CIPD, 2025b).
HOW COMPANIES CAN SUPPORT WORKPLACE WELLBEING, REDUCE EMPLOYEE STRESS AND INCREASE STABILITY
Work-life balance remains a key factor in employee satisfaction and engagement, so what can employers do to help support their staff?
We recommend first ensuring that your core employment practices are fair and supportive and then thinking about other initiatives that you can add to your offering. Here are some areas to consider:
Financial wellbeing & stability: Fair pay, transparent reward structures, and access to financial wellbeing programmes help reduce stress and provide employees with a greater sense of stability and security. Similarly, healthcare benefits such as private healthcare and employee assistance programmes ensure employees feel supported and can access the healthcare they need when it matters most.
ESGmark® Community member Continuum can help you implement an ESG-aligned benefits package that supports financial wellbeing and your organisation’s goals. Continuum is the first UK financial advice firm to achieve ESGmark® Certification. Continuum Workplace is their comprehensive benefits solution, offering companies a tailored package including pensions and protections benefits, financial education and guidance, and an employee loyalty scheme. Continuum Financial Services LLP is authorised and regulated by the Financial Conduct Authority. Get in touch with us to learn more.
Learning, development & progression opportunities: Upskilling initiatives and career development opportunities boost confidence and professional growth, encourage progression, and play an important role in improving overall wellbeing.
Work-life balance, healthy boundaries & company culture: Simple but meaningful actions can make a big difference to morale and engagement. For example, this can include offering flexible hours, encouraging employees to take regular holiday, normalising sick leave, and promoting healthy boundaries outside work hours. Similarly, actively discouraging out-of-hours emails, ensuring employees take proper breaks, and reinforcing the importance of downtime helps create a more sustainable and balanced way of working.
Mental health & emotional support: Creating an environment where employees feel comfortable discussing workloads, supporting one another, and recognising early signs of stress can make a real difference to overall wellbeing.
Physical wellbeing initiatives: Encouraging activities like walking groups, yoga sessions, step challenges, or even providing quiet spaces to recharge can help employees build healthier habits and maintain their energy throughout the day.
Engagement & connection: Initiatives such as team-building activities, volunteering opportunities, and mindfulness sessions can strengthen relationships, foster a sense of belonging, and help employees feel more connected to their colleagues. Head to our blog on corporate volunteering to learn more.
EMBEDDING WELLBEING INTO COMPANY CULTURE: POLICIES AND ONGOING SUPPORT
Many organisations do have wellbeing policies, covering areas such as flexible working, parental leave and return-to-work support, sickness absence, menopause guidance, and breastfeeding facilities. However, their impact depends on consistent application and active support. This is where clear, accessible resources can really help. We have several practical guides including the Maternity and Paternity Policy Guide and Breastfeeding Policy, along with Menopause at the Workplace Policy Guide, which you might find useful. The full guides and policy templates are available to ESGmark® members through our exclusive Member Library.
Once you’ve set up wellbeing initiatives and policies, embedding them into everyday culture through strong communication and engagement is what makes them truly effective. A supportive work environment encourages employees to feel valued, heard, and able to raise concerns without fear. Gathering feedback through surveys, team forums, or one-to-one discussions helps organisations understand employee needs and shape meaningful initiatives, as well as highlight any inconsistencies.
This is important because while studies show that 80% of executives list employee wellbeing as a top priority, during the same period, 90% of workers felt their work life worsened (Randstad, 2024). This indicates a disconnect between employers' desire to boost employee wellness and their ability to make a real impact. Beyond good intentions, wellbeing strategies need to translate into tangible, everyday experiences.
Employee wellbeing works best when supported at multiple levels. Managers are central to this, and empathy, consistency, and open communication can significantly improve how supported employees feel. Wellbeing is a shared responsibility, with individuals, teams, and leadership all playing a part.
To conclude, Mental Health Awareness Week 2026 is a reminder for organisations to start taking meaningful action when it comes to employee wellbeing. By moving beyond policies to provide a nurturing environment with practical support, you can create workplaces where employees thrive mentally, physically, and socially, while strengthening business performance, resilience, and meeting your ESG commitments.
HOW ESGMARK® CAN SUPPORT YOUR ORGANISATION’S WELLBEING STRATEGY
ESGmark® is the community for people and organisations committed to caring for the planet and society. From practical policies to embedding wellbeing into daily culture, ESGmark® helps organisations take meaningful steps to improve employee experience. To explore how ESGmark® can support your employee wellbeing strategy, drop us a line at info@esgmark.co.uk.
Sources
CIPD (2025b) Good Work Index 2025: Views of employees. Chartered Institute of Personnel and Development. Available at: https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/2025-pdfs/8868-good-work-index-2025-report-web1.pdf
Department for Work and Pensions (2026) Survey of Employees and Self‑Employed Workers 2024–25. GOV.UK. Available at: https://www.gov.uk/government/publications/survey-of-employees-and-selfemployed-workers-2024-to-2025
Murphy, S. (2025) Perkonomics: The great value exodus and the power of feeling valued. Available at: https://www.perkbox.com/resources/blog/perkonomics-thepower-of-feeling-valued
Randstad (2024) The state of workplace well-being across the globe. Available at: https://www.randstad.co.uk/market-insights/employee-engagement/state-workplacewellbeing-across-globe
Randstad (2025) Global and UK Employee Engagement Report, Randstad. Available at: https://www.randstad.co.uk/market-insights/employee-engagement/bestpractices-improving-employee-engagement-0/
Simplyhealth (2026) UK hits five million mental health sick days in 2026. Available at: https://www.simplyhealth.co.uk/news-and-articles/articles/5-million-mental-ill-healthsick-days-202CIPD (2025a) Health and wellbeing at work 2025. Chartered Institute of Personnel and Development. Available at: https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/2025-pdfs/8920-Health-and-wellbeing-report-2025-/