Five years after the COVID pandemic brought mental health and employee wellbeing to the forefront, recent research indicates that many companies are slipping away from those priorities, which could have significant economic consequences.
According to Oxford Professor Jan-Emmanuel De Neve, the current state of work in 2025 isn’t as positive as it could be. While there was an initial surge in focus on wellbeing post-pandemic, many companies are retreating from those efforts.Â
The lack of action is a major concern, especially when considering the economic potential of investing in employee wellbeing, according to a new World Economic Forum report.
Wellbeing Investments Could Unlock Trillions in Economic Growth
The World Economic Forum and McKinsey Health Institute have found that prioritizing employee wellbeing could potentially add $11.7 trillion to the global economy. However, research shows that while most managers acknowledge the value of investing in employees, very few treat it as a core business strategy.
Employee Happiness Drives Profits, So Why Aren’t Leaders Acting?
Data from millions of workers shows that companies with high levels of employee happiness, purpose, and job satisfaction tend to outperform their competitors in terms of profitability, retention, and productivity. Despite this, only about a quarter of workers in major markets like the U.S., U.K., and Canada report being happy in their jobs.
How Social Connections Beat Salary in Employee Satisfaction
The main factors driving dissatisfaction include a lack of social connection and a sense of belonging within organizations. Employees are more likely to stay at companies where they feel valued, supported, and connected to their coworkers, rather than just receiving fair compensation.
Hybrid and remote work setups, while offering flexibility, have introduced new challenges. Without in-person interactions, workers risk feeling isolated, which can affect their engagement and productivity over time. A balanced approach that combines flexibility with opportunities for in-person collaboration may help mitigate these effects.
AI’s Role in Workplaces: Productivity Gains vs. Employee Wellbeing
Technology, particularly AI, is also reshaping the workplace. While automation can free up time by handling repetitive tasks, it also carries the risk of diminishing human interactions that are key to maintaining a positive work environment. The introduction of AI tools in management or day-to-day tasks could potentially undermine employee wellbeing if not carefully implemented.
HR Must Tackle Structural Issues to Improve Wellbeing
To truly improve workplace wellbeing, organizations need to focus on more than just quick fixes like mindfulness apps or wellness programs. The most significant changes must come from a structural level, including fair compensation, manageable workloads, strong leadership, and a culture that encourages trust and openness.
As the World Economic Forum urges organizations to make workplace health a shared priority, HR leaders are becoming increasingly important as cross-functional advocates for people-first strategies.Â
These leaders need to work closely with other senior executives to create a culture that values employee wellbeing, leading to long-term improvements in business performance and employee satisfaction.
