Why wellbeing IS performance

After last month’s Deep Dive, I was asked how you balance workplace wellbeing and performance. 

This isn’t an unusual nor silly question, I get asked it all the time, but my response is always the same; wellbeing IS performance. This isn’t idealism; it’s backed by data. 

When people feel valued, they contribute. When stress dominates, performance tanks. Let’s unpack why.

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The problem

Large UK employers spend an average of £11 million a year on wellbeing programmes, yet employees persistently report high stress, burnout, and feeling unrecognised.

There’s often a disconnect between leaders believing wellbeing is supported and people actually feeling that support. The traditional way of slicing wellbeing into separate parts (physical, mental, financial) misses the point; people live holistic, interconnected lives. 

Managers, often on the front line of support, feel ill-equipped to open up these conversations. When psychological safety is lacking, employees keep their struggles to themselves for fear of judgment or repercussions.

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Why this matters

To be blunt, the cost of neglecting employee wellbeing is staggering. 

Poor mental health alone drains the UK economy of £74 to £99 billion annually in lost output. Presenteeism, where people show up but can’t engage, costs around £24 billion each year. When you add up all the sickness-related absences and economic inactivity, the total bill hits £150 billion annually, which is a whole lot of cash! 

But this isn’t just about numbers. 

Innovation suffers when employees are disengaged and don’t feel safe enough to speak up or share ideas. That stifles creativity and collaboration at every level. Retention also takes a hit. When people feel undervalued, they’re twice as likely to walk out the door, and replacing them can cost anything from 50 to 200% of their annual salary. Loneliness in the workplace only compounds this problem.

It’s not just a financial risk, either, it’s a legal one too. 

Under UK employment law, employers must protect the mental health of their employees. Falling short doesn’t just harm people; it harms your reputation as a desirable employer and makes it harder to attract talent in the future.

Wellbeing is performance

The individual impact

Supporting individual wellbeing boosts productivity, plain and simple. 

Nearly half of employers say they’ve seen performance improve when wellbeing is prioritised. CEOs report productivity gains of up to 40% when psychological safety is part of the culture. Absenteeism also drops. BT Group, for example, managed to reduce mental health-related absence by 30% through targeted interventions.

When employees feel seen and supported, they stay. Retention soars, with 73% of CEOs noting stronger loyalty among their teams. People who are thriving are 32% less likely to look for another job elsewhere.

Thriving teams

On a team level, wellbeing fuels energy, engagement, and purpose. 

When employees feel psychologically safe, they contribute more willingly and take healthy risks. Organisations with high levels of employee engagement don’t just feel better to work in, they’re 21% more profitable and experience 59% lower turnover. 

In essence, psychological safety isn’t a warm-and-fuzzy bonus, it’s a key to consistent team performance.

Organisational success

For organisations, the return on investment speaks for itself. 

A massive 82% of CEOs say their wellbeing investments have paid off, with 30% reporting returns of more than 100%. Far from being a cost centre, wellbeing is emerging as a strategic asset. 

Beyond ROI, companies that genuinely support wellbeing build trust. They create cultures where people bring their best, show up more fully, and stick around longer.

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A real-life story: Steve at a UK University

I once worked with a large UK university training their line managers on the Conversation Canvas. 

After one of the sessions, a manager (let’s call him Steve) pulled me aside. He shared with me that he was perfectly comfortable having conversations about performance, but he struggled with what he called the “softer” stuff. 

The Canvas gave him a framework and the confidence to approach these conversations in a different way. 

Since then, his team has thrived. Steve’s story is far from unique; it highlights exactly how wellbeing, when supported properly, can unlock performance. This isn’t a credit to my teaching, it’s because he gave himself permission to try something new. 

Embed, equip, and cultivate

I believe wellbeing isn’t a perk, it’s a strategic lever for performance. 

The Conversation Canvas is a tool that I’m really proud of. It’s a semi-structured conversation guide that equips managers like Steve with the confidence to discuss wellbeing without fumbling or fear. 

These aren’t tick-box check-ins; they’re meaningful moments that build trust and fuel performance.

What sets the Canvas apart is its grounding in trusted psychological models, particularly the Five Ways to Wellbeing (Connect, Be Active, Take Notice, Keep Learning, Give) and Maslow’s Hierarchy of Needs. This gives managers a shared, accessible language to discuss wellbeing in a way that feels human and actionable. 

The Canvas prompts reflection across the individual, team, and organisational levels using Me, We, and Us. This ensures that wellbeing is approached holistically, tackling root causes rather than applying surface-level fixes.

You can download the Conversation Canvas for free here.

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Conclusion

By getting this far, I hope that I’ve convinced you that wellbeing is performance. 

When people are emotionally supported and psychologically safe, they engage more deeply, innovate more boldly, and stay more loyally. Ignoring wellbeing is no longer an option, not if you care about your bottom line or your people.

Supporting wellbeing fuels productivity, drives innovation, and improves retention. The tools are there. The data is clear. And the impact is profound.

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