What is a wellbeing strategy and why is it important?

‘A well-executed wellbeing strategy is a performance driver – not just a perk or a ‘nice to have’.

There’s no denying wellbeing is becoming more popular in the workplace!

In fact, our research has found that 89% of companies have reported that their employees are much more likely to discuss their wellbeing in the workplace, with 62% of employees also looking for a greater choice of wellbeing benefits.

But how do employers ensure that they’re getting it right?

For starters, implementing a wellbeing strategy is key. It’s designed to improve and support the overall health of individuals in the workplace. Prioritising the physical, social, financial and emotional wellbeing of colleagues.

In our recent webinar, ‘Is it working? How to assess and evolve your employee wellbeing strategy’, Wellbeing Consultant for Zest, Ruth Hutchinson, dived deeper into the ins and outs of a wellbeing strategy, and why having one should be an absolute priority for employers.

Zest: What is a wellbeing strategy?

Ruth Hutchinson: A successful wellbeing strategy is more than a long list of benefits—it needs to be holistic, data-led, and embedded into your culture.

There’s been lots of talk about how leaders support wellbeing, but I can’t stress enough the importance of a top-down leadership approach to ensure it creates an environment that fosters a wellbeing culture.

Typically, it focuses on four key pillars: emotional, physical, social and financial wellbeing.

Rather than a health & wellbeing strategy that employees might access once they’re ill, it should be a strategy that is proactive, providing employees with access to the support and resources that will help them improve and/or sustain their overall wellbeing. Often employers will focus their investment on the at risk or sick rather than the working well population.

The statement ‘A wellbeing strategy is no longer a “nice-to-have” has been around for a while now but it’s now a business imperative.

Burnout is a real issue and it’s escalating. There’s also a lot of evidence from the industry that links a successful wellbeing strategy to top performing organisations. Strong wellbeing cultures see lower turnover, higher engagement, and better customer satisfaction, so it makes business sense.

Alongside this evidence, we’re seeing a shift in employee expectations, putting more pressure on the employer to prioritise wellbeing.

Some of the latest research says that Millennials and Gen Z are actively seeking employers who prioritise their wellbeing. Gen Z are also looking for flexible working environments, companies that focus on supporting their mental health and financial security (the UK’s Mental Health Burnout Report shows that this generation are more susceptible to burnout with many which taking unpaid leave). *Gen Zs and millennials at work, pursuing a balance of money, meaning and wellbeing, June 2025, Deloitte

Younger generations are also digital natives, meaning that there’s a need for strategies that are digital first in order drive engagement.

And finally, there’s a broader societal context. The UK’s NHS is under immense pressure, with over 7.4 million people on waiting lists for treatment. Employers who align their wellbeing strategies to support access to care—whether through digital health, mental health support, or preventative services—are not only helping their people but also contributing to easing systemic strain.

Wellbeing reflects your culture, your values, and your commitment to people—especially relevant in the context of ESG, where the “S” stands for Social, or how you care for your people.

A well-executed wellbeing strategy is a performance driver—not just a perk or ‘nice to have’.

Let’s break it down:

Reduced absenteeism and presenteeism: According to the CIPD, poor mental health alone accounts for more than half of long-term absences in UK workplaces. A proactive wellbeing strategy can reduce both absenteeism and presenteeism—where employees are physically present but not fully functioning due to health issues.

Improved engagement and morale: Employees who feel their employer cares about their wellbeing are more likely to be engaged. Gallup research shows that engaged employees are 21% more productive and 22% more profitable for their organisations.

Enhanced team performance: Wellbeing isn’t just about the individual—it impacts team dynamics. When people are less stressed, more focused, and feel psychologically safe, collaboration and innovation thrive.

Support for high performance cultures: High-performing organisations often have a culture of care. They understand that sustainable performance comes from balancing ambition with wellbeing. It’s not about working harder—it’s about working smarter, with the right support in place.

In essence, a wellbeing strategy is a strategic lever because it can help create the conditions where people can do their best work—consistently and sustainably.

What else do companies need to be thinking about in the current climate to ensure they keep the strategy current and look to the future?

Companies need to be ready to constantly adapt and change their wellbeing strategy in line with what’s happening at a societal level and also to remain competitive in their industry.

Some thoughts for the future are:

Clear Ownership – making sure you identify key people across the organisation who own different elements of the strategy, and that the business understands what’s involved to ensure it is communicated effectively and measured over time. So having areas of responsibility is going to ensure you are more efficient and effective.

Strain on the NHS – we know as I mentioned before there is huge pressure on the NHS and employers can ease this pressure by introducing more preventative measures and implement benefits that bridge the gap between the NHS and private services i.e. Perci. Keep an eye on new and emerging digital benefits which tend be low cost, high value and accessible.

Financial pressures on budget – given the current squeeze on budgets there needs to be a focus on re-balancing on spend and maximising the existing provisions rather than introducing of whole range of new benefits that may not be fit for purpose. Putting a plaster over an issue, will not be beneficial long term or get to the root cause of an ineffective strategy.

Employee benefits can play a major role in any workplace wellbeing strategy. To find out how Zest’s technology can help, book a demo with our team today.