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Why should Employee Wellness be important for Organizations?

Employee wellness is important for organizations. Tight deadlines, poor work-life balance, and unhealthy habits are key causes of the deteriorating health of the corporate workforce.

Sadly most organizations, still consider employee wellness programs as perks and benefits for employees. What they fail to understand is that the wellness of employees directly impacts their workplace efficiency and engagement.

That is why the most progressive organizations are investing significantly in wellness initiatives in a big way.

Why Employee Wellness is so Important?

Mindfulness Workshop

Healthy and fit employees are more productive and show a higher level of engagement.

Such employees are also known to be happier and more satisfied with their jobs.

Moreover, it reduces the rate of employee absenteeism by bringing down the number of sick leaves availed by them. This, in turn, can impact organizational growth and success significantly.

Performance and Productivity of Work from Home Employees

When employees have a good level of physical and mental well-being, they are likely to be more engaged and motivated.

Such employees can contribute more towards business growth rather than just going through the motions.

Why are Employee Wellness Programs Important?

Wellness App

The growing awareness has led organizations to make wellness programs an integral part of their benefits packages.

These programs provide incentives, tools, social support, privacy, and strategies to adopt and maintain healthy behavior.

At the same time, such programs help organizations enhance employee productivity and efficiency.

In addition, they have a positive impact on the retention strategies of the organization, besides improving the overall organizational culture.

A few key reasons for organizations to have a really good wellness program in place are discussed below:

1. Lower the organization’s overall healthcare costs

Seek Funding For The Program

The key drive for employee wellness programs is to reduce the overall healthcare and insurance costs of the organization.

Good employee health and wellness programs tailored to meet the needs of the workforce offer greater payoffs.

Studies have shown that organizations with effective wellness programs have 34% more revenue per employee as compared to other organizations.

2. Can help to build a strong employer brand

Employer Branding

If organizations integrate wellness programs with their employer branding, it can provide significant advantages for hiring and retaining top talent.

Nearly ⅔ of organizations acknowledged that wellness programs were part of their employment branding and offered significant benefits.

This has motivated many organizations to put wellness at the core of organizations’ benefit packages.

They make strategic investments in this direction to ensure long-term benefits through enhanced brand goodwill.

3. Reduce turnover rate by increasing employee Loyalty

6 effective strategies to improve employee retention

Most organizations today struggle with high employee turnover rates which affect the organization’s smooth operations and productivity.

An unhealthy work environment is known to be one of the key reasons for employees leaving their jobs.

However, organizations with efficient wellness programs, enjoy higher employee engagement and retention.

Such programs assure employees that they are valuable to the organization and it is concerned about their health and well-being. This naturally enhances their sense of loyalty to the organization and brings down the turnover rate significantly.

4. Establish strong work relationships

Significance of Corporate Culture

Strong work relationships are the key to building stronger teams and this directly impacts employee engagement and efficiency.

An effective wellness program helps ensure better attendance and interaction with others.

Employees feel more motivated when they are surrounded by people who understand and support them.

This helps in building strong work relationships and enhances trust and coordination among co-workers.

This, in turn, inspires them to contribute more towards organizational growth. It also helps to build a healthier and positively competitive work culture.


With high healthcare costs today, employee wellness programs can go a long way in boosting the happiness and satisfaction of employees.

Organizations implementing employee wellness programs can benefit immensely through a healthier workforce besides positively impacting their bottom line.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of corporate and entrepreneurship experience. In the past, Sagar has worked with companies such as Genpact, Infosys, and ICICI Bank, in leadership roles. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn

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HiFives is a global employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. It is used by 100+ large enterprises, small businesses and startups in manufacturing, retail, technology, financial services and media, across 25+ countries.