Mental Wellbeing is Key?

Introduction: Why Employee Mental Wellbeing is Key?

Employee wellbeing encompasses their physical, mental, emotional, and social health. The mental health aspect is particularly important—according to WHO data, even 15% of adults in the working age group struggle with mental disorders​weforum.org​jp.weforum.org. It is estimated that 1 in 4 people will experience a mental disorder during their lifetime​weforum.org. Issues such as chronic stress, depression, or anxiety significantly lower employees’ quality of life and impact the functioning of companies. Unfortunately, many organizations still stigmatize the topic—for example, in a survey by an Indian HR company, 60% of employees were afraid to openly discuss their mental health issues at work, and only 15% felt comfortable talking about this topic​prabhasakshi.com​prabhasakshi.com. This means that problems often remain hidden, and employers may not see the full extent of the challenges.

The COVID-19 pandemic highlighted the importance of mental health and accelerated the actions of many companies in this area. In a global Deloitte survey, 80% of HR leaders considered wellbeing to be important or very important for the success of the organization​altruistuk.com. Employees also pay more attention to it—37% declare that they care more about their mental health than before the pandemic​altruistuk.com. However, there are signs that after the initial surge in interest in the topic, the priority for wellbeing programs may decrease as the pandemic fades​weforum.org. However, companies must remember that employee mental health has a direct impact on business performance, and investing in it brings measurable benefits. Below, we present current scientific and industry data on the costs of neglecting wellbeing, the return on investment in health programs, and examples of companies succeeding by taking care of their employees’ wellbeing. A separate section is dedicated to the use of artificial intelligence (AI) – including chatbots and virtual therapists – in supporting employees’ mental health.

The Costs of Poor Mental Health for Businesses

Employee mental health issues generate high costs for companies, both direct and hidden. The World Health Organization (WHO) estimates that reduced productivity caused by depression and anxiety costs the global economy over 1 trillion USD annually​jp.weforum.org. The forecasts are alarming—by 2030, the costs of mental health problems (including lost productivity, treatment costs, and benefits) could reach 6 trillion USD annually worldwide​weforum.org. For comparison, this amount is roughly equivalent to the total GDP of countries like India and France.

Absenteeism and Presenteeism. Poor mental health translates into sick leave and what is called presenteeism (being present at work but unable to perform effectively due to feeling unwell). In Poland in 2022, over 1.3 million sick leaves were issued due to mental health disorders, leading to 23.8 million days of absenteeism—10% of all sick leave days nationwide​mental-benefits.com. In the UK, it is estimated that presenteeism related to mental health accounts for 46% of the total costs of poor health at work​altruistuk.com – employees may come to the office, but operate below their capabilities due to stress or depression. On the other hand, absenteeism and sick leave represent the remainder of the losses, resulting in delays and lower turnover.

Turnover and Talent Loss. Unaddressed mental health issues also lead to increased employee turnover. According to a Deloitte study, 61% of employees leaving their jobs cited poor mental health (stress, overwork, lack of balance) as the main reason​altruistuk.com. In 2021, the cost of employee turnover due to mental health issues in the UK reached £22.4 billion, a significant increase from £8.6 billion in 2019​altruistuk.com. Currently, up to 40% of turnover costs in companies can be attributed to mental health problems​altruistuk.com. Losing an experienced employee and recruiting a replacement incurs specific costs, estimated at the equivalent of 6-9 months of the departing employee’s salary. Importantly, providing adequate psychological support acts as a preventive measure—Mercer studies show that 42% of employees with access to mental health benefits are less likely to leave the company, compared to 27% of those without such support​mercer.com. In other words, investing in psychological help can more than double talent retention.

Decreased Productivity and Engagement. Poor wellbeing impacts daily work results—fatigued, stressed employees perform tasks more slowly, make more mistakes, and are less creative. According to Gallup, the global engagement level has dropped to just 21% (the percentage of employees actively engaged in their work), and the cost of lost productivity due to low engagement is estimated at 438 billion USD in 2024​gallup.com. Gallup also points out that only one-third of employees (33%) declare that they are “flourishing” in life—this percentage has been declining in recent years​gallup.com. This means that most employees are operating below their potential. From an economic perspective, the untapped potential is enormous—Gallup estimates that if global labor force engagement were fully achieved, global GDP would grow by an additional 9%, or +9.6 trillion USD​gallup.com. Similarly, McKinsey & WEF calculated that improving employees’ health and wellbeing could generate up to 11.7 trillion USD in additional economic value by 2030​weforum.org​weforum.org. These figures clearly show that employee mental health is a macroeconomic issue.

It is also worth highlighting the indirect costs, which are harder to capture in financial statements but are real. These include a decrease in the quality of customer service (stressed, burned-out staff make more mistakes and provide worse customer service), loss of employer reputation (a company known for a poor work culture struggles to attract talent), or even legal and image risks. For example, burnout among medical staff can lead to mistakes—one hospital in the US implemented a stress reduction program and observed a 50% decrease in medication dosing errors and a 70% reduction in patient complaints and claims​mental-benefits.com. This shows that caring for wellbeing not only affects finances but also operational risks and service quality.

In summary, lack of mental health support costs companies real billions—in terms of lost workdays, lower productivity, lost employees, and missed business opportunities. Fortunately, the growing body of evidence shows that investing in wellbeing can reverse these costs and bring measurable benefits to organizations.

Return on Investment (ROI) in Wellbeing Programs – Hard Data

An increasing number of studies confirm that investing in employees’ mental health pays off handsomely. Despite the historical perception of wellbeing as a soft, “nice but unnecessary” initiative, hard numbers clearly show that it is an investment with a high ROI, comparable to or even better than many traditional business initiatives. Below, we compare key ROI metrics from various sources:

• World Health Organization (WHO): According to WHO’s analysis, every 1 dollar invested in improving mental health generates an average return of 4 dollars​hrminstitute.pl. This fourfold return is mainly due to improved productivity and reduced medical care costs. In other words, investing 100,000 USD in psychological support programs can yield about 400,000 USD in total benefits (increased productivity, fewer absences, etc.).
• Deloitte (UK): The latest Deloitte report from 2022 showed that the average return on investment in mental health initiatives in UK companies is £5.30 for every £1 invested​altruistuk.com. This equates to an ROI of 5.3:1. Moreover, preventive and proactive measures yield the highest return—universal programs promoting a culture of mental health care generated £5.60 return per £1, while proactive interventions (early support for employees with symptoms) generated about £5.10 per £1​altruistuk.com. On the other hand, reactive measures (help only when the problem escalates) yield a lower, but still positive return of £3.40 per £1​altruistuk.com. These data prove that it is better to prevent than to treat—earlier investments translate into higher savings.
• McKinsey Health Institute & WEF: As mentioned, joint analyses by MHI and WEF indicate a macroeconomic potential of 11.7 trillion USD through improving employees’ health​weforum.org. In practice, for individual companies, this translates to an opportunity for a double-digit percentage increase in productivity. McKinsey emphasizes that companies prioritizing employee health report tangible benefits: higher productivity, lower absenteeism, reduced healthcare costs, and higher engagement and retention​mckinsey.com. Investing in wellbeing also helps meet growing ESG (Environmental, Social, Governance) requirements—care for employees is increasingly being evaluated by investors as part of social criteria.
• Harvard Business Review (Case Study: Johnson & Johnson): Johnson & Johnson has been investing in comprehensive wellness programs (covering both physical and mental aspects) since the 1990s. Management estimates that between 2002 and 2008, the company saved about 250 million USD on healthcare costs, which corresponds to a return of $2.71 for every $1 spent​hbr.org. In other words, wellness programs generated nearly three times the return through lower healthcare expenditures (fewer serious illnesses due to preventive care) and reduced absenteeism. Importantly, during this period, J&J also saw significant improvements in employee health—smoking rates among staff decreased by two-thirds, and the percentage of individuals with high blood pressure or lacking physical activity dropped by more than half​hbr.org. This shows that consistent, strategic wellbeing programs deliver lasting health and financial results.
• Other ROI Studies: Meta-analyses conducted over the past 15 years have repeatedly confirmed positive returns from wellness programs. For example, a Harvard analysis (Baicker et al.) found an average of $3.27 in medical cost savings for every $1 invested and $2.73 in savings from lower absenteeism—totaling about $6 return for every $1​westernracquet.com. A 2025 WellSteps study found that 95% of companies tracking ROI from wellbeing programs reported their cost-effectiveness​wellhub.com. Meanwhile, 72% of companies reported a decrease in healthcare costs for employees after implementing a wellness program​sfmic.com. These indicators vary depending on the population and scope of the program, but almost always indicate benefits exceeding the investment.

In addition to direct financial ROI, investments in wellbeing translate into value for the organization in a broader sense (VOI – Value on Investment). This includes impact on metrics such as employee engagement, creativity, organizational climate, customer loyalty, and even innovation and company image. While this is harder to quantify, there is strong evidence. In a study involving 30,000 employees in 30 countries, companies with the highest levels of employee health reported significantly higher business resilience and adaptability​mckinsey.com. Analyzing shareholder data showed that publicly traded companies with award-winning wellness programs significantly outperformed the S&P 500 index. For example, investing in a portfolio of companies recognized with the Koop Award (for outstanding workplace health programs) generated an average +26% annual return over 15 years, while the broad S&P 500 index grew by ~11% annually​wellsteps.com. This means that companies focusing on employee wellbeing doubled their value approximately every 3 years, suggesting a strong connection between a health-focused culture and long-term financial success.

In summary, the financial arguments for CFOs/CEOs are clear: well-planned mental health initiatives are not a cost, but an investment with a high return. They improve key performance indicators (productivity, absenteeism, turnover), reduce expenses (treatment, recruitment), and strengthen competitive advantages (better engagement, employer brand, ESG compliance). However, it is important to remember that measuring outcomes is essential—Deloitte notes that only 1-2% of organizations currently measure the ROI of their wellbeing initiatives​deloitte.com. Companies should therefore set clear goals and metrics (e.g., decrease in absenteeism by X%, increase in retention by Y%) and monitor them to ensure that programs are achieving the expected results and continuously improving.

Examples of Companies – Best Practices and Measurable Benefits

Many organizations around the world have implemented comprehensive wellbeing programs and have seen specific, measurable improvements both in employee wellbeing and business performance. Below, we present selected examples:

Company / ProgramMeasurable Effects of ImplementationJohnson & Johnson – wellness programReduction in employee healthcare costs by 250 million USD over a decade; ROI of $2.71 : $1 (approximately three times the investment return)​hbr.org. Since 1995, dramatic improvements in health indicators (fewer smokers, lower blood pressure, etc.)—which led to lower absenteeism and higher productivity.Unilever – Lamplighter (global)Comprehensive health program (physical and mental) led to a 25% decrease in absenteeism due to mental health issues since implementation​eimf.eu. The company also reports improvements in employee resilience and overall satisfaction.Bosch Polska – Boschkostan (Academy of Good Life)Educational-wellbeing program that includes gamification and expert support. 91% of employees are satisfied with the offered activities, and 93% of participants want to continue their involvement​hrminstitute.pl. The percentage of employees regularly engaging in sports increased by 7 percentage points, and the number of employees who rate Bosch’s benefits as better than those of competitors doubled (from 12% to 27%)​hrminstitute.pl. This translated into better wellbeing for the team and likely higher productivity.Hitachi (Japan) – AI experimentJapanese giant used wearables and a mobile app with AI to monitor and increase employee happiness (measured by the “happiness index”). Personalized recommendations based on AI improved employee wellbeing​www.deloitte.com, directly leading to an increase in company revenues and profits—confirming the correlation between employee happiness and financial results​www.deloitte.com.X Hospital (USA) – anti-stress programAfter implementing a stress management program for staff, there was a 50% reduction in medical errors (e.g., medication dosing) and a 70% reduction in formal patient claims​mental-benefits.com. Improving the wellbeing of medical staff directly translated into work quality and safety, reducing costs associated with mistakes and complaints.

Table 1. Examples of Documented Benefits from Wellbeing Programs in Companies. Source: Own compilation based on reports from HBR, Unilever, HRM Institute, Deloitte, and others.

It is worth noting that these effects have been achieved in companies from various industries—from the pharmaceutical sector (J&J) to FMCG (Unilever), industry (Bosch), technology (Hitachi), and healthcare. Regardless of the industry, the principle remains the same: healthy, well-cared-for employees work better, which is reflected in hard metrics: lower absenteeism, better productivity, higher work quality, and lower turnover.

The key to the success of these programs was usually a strategic approach and support from top management. For example, Bosch launched the Boschkostan initiative because the management saw the business sense in WHO’s data on a fourfold return on investment in mental health​hrminstitute.pl. Leaders of such companies set the tone—they communicate that wellbeing is a priority, allocate budget for it, and include it in the strategy. Successful companies often conduct research and evaluations (such as Bosch, which measured wellbeing metrics before and after the program), which helps tailor actions to real needs and demonstrate their effects (hard data helps convince skeptical stakeholders).

Also noteworthy are systemic and long-term actions. Johnson & Johnson has been building a health culture for decades (fitness programs, psychologist support, proactive prevention) and consistently reaps the rewards in the form of a healthier, loyal workforce. Unilever, on the other hand, integrates health monitoring (check-ups) with coaching on nutrition, sleep, and resilience in their Lamplighter program, showing a holistic approach. Integrating wellbeing into the organization’s DNA (HR policies, work design, manager training) yields the best results, in contrast to one-time events or “showcase” benefits.

In summary, there is a growing list of case studies that can convince management teams: investments in wellbeing pay off. Moreover, in the era of competition for talent, good wellbeing practices are becoming the standard—approximately 90% of large global organizations declare that they offer some form of wellbeing program​lewissilkin.com. However, just having a program is not enough— as McKinsey’s report showed, despite the prevalence of programs, overall employee health and wellbeing scores remain low​lewissilkin.com. Companies must therefore ensure the quality and effectiveness of these initiatives (based on evidence) and their relevance to the workforce’s needs—modern technology, including artificial intelligence, can play an increasingly important role in this.

Using Artificial Intelligence in Wellbeing

Artificial intelligence (AI) opens new possibilities in supporting employee mental health. With AI, health solutions can be more personalized, scalable, and available 24/7. Here’s how new technologies are being used in practice to improve wellbeing in companies:

• Chatbots and Virtual Therapists. The market for virtual mental health assistants, such as Wysa, Woebot, Replika, and Youper, is growing. These AI-based chatbots can engage in emotionally supportive conversations using techniques such as cognitive-behavioral therapy or mindfulness. They provide immediate and anonymous support—users can share their concerns or moods at any time and receive interactive help (e.g., breathing exercises for stress, tips on dealing with anxiety)​globalwellnessinstitute.org. Such tools reduce the stigma barrier—employees can seek help without fear of stigma or judgment from others. Of course, this does not replace professional therapy entirely, but it can serve as a first line of support or complement an Employee Assistance Program (EAP). Even before the pandemic, the popularity of such apps was rising, and after 2020, the trend accelerated—according to a Deloitte study, 36% of employees reported using digital tools to manage their mental health, and resistance to such solutions significantly dropped​altruistuk.com. For example, Wysa (a chatbot developed by specialists from India) has already handled millions of conversations, helping users in over 30 countries reduce stress and depression. Some companies provide their employees with subscriptions to such apps as part of their benefits package.
• AI in Monitoring and Proactive Interventions. AI can analyze data from wearables and sensors to detect early signs of stress or burnout. An example is the mentioned Hitachi project, where employees wore sensors that collected activity data, and AI algorithms analyzed happiness levels—based on movement patterns and social interactions—and suggested individual actions to improve wellbeing (e.g., breaks, walks, habit changes)​www.deloitte.com. Many modern wristbands and watches (Fitbit, Oura, Apple Watch) can detect elevated heart rates, shallow sleep, or other signs of stress. These data, aggregated in wellbeing platforms, enable proactive interventions—for example, an app can suggest a relaxation exercise if it detects elevated stress levels at an unusual time. For companies, this means the ability to intervene early before stress turns into absenteeism or health breakdowns. Privacy issues are, of course, critical—collected data must be anonymous and used with employees’ consent.
• Sentiment and Engagement Analysis. Employee experience platforms based on AI, such as Peakon, Culture Amp, Glint, are becoming more popular. They can analyze employee feedback in real-time from surveys, emails, or chats to detect the overall organizational climate, satisfaction levels, and potential problems. By processing natural language (NLP), AI identifies recurring emotional patterns—e.g., frequent mentions of “burnout,” “stress from deadlines”—and alerts HR or managers to areas requiring attention​globalwellnessinstitute.org. This allows companies to quickly identify teams overloaded with work or conflicts affecting wellbeing. Some systems (e.g., Microsoft Viva Insights) also analyze behavioral work data—time spent in meetings, frequency of sending emails after hours—to detect overload risks and suggest, for example, a “focus mode” or time management training. This way, AI helps create healthier work environments, providing leaders with insights into team wellbeing that they previously didn’t have at such scale.
• Personalization of Training and Support. AI can help match the right type of help to a specific person. For example, wellbeing platforms use algorithms to match employees with the appropriate therapist or coach (considering their preferences, needs, and communication style) or to plan a support path—from chatbots to mindfulness courses to psychologist consultations—depending on the severity of the issue​unmind.com. This makes the support more effective. AI can also track progress (e.g., whether an employee is using resources, how they are progressing with exercises) and adjust recommendations accordingly.

All these applications make psychological support more accessible, continuous, and tailored to individual needs. However, caution must be exercised—AI cannot replace human empathy where it is necessary. Ethical challenges also arise: for example, some chatbots, without proper supervision, may give incorrect advice. The case of an experimental bot, which instead of helping, worsened the user’s emotional state (highlighted in a report by NPR​npr.org), became well-known. Therefore, experts emphasize that AI in mental health should be used responsibly, as a complement (not a replacement) to professional help. It is important to test these tools and ensure that, in case of serious crisis signals, they direct users to qualified specialists.

Despite these caveats, the potential of AI in the wellbeing space is enormous. It enables companies to scale support for thousands of employees simultaneously, reach those who would normally not seek help, and collect data to improve wellbeing strategies. For example, aggregated chatbot analysis might show that, for instance, during the winter season, general negative mood increases within the company—which may prompt the employer to initiate team-building or anti-stress activities during this time. AI also makes support more “on-demand”—employees can decide when and what kind of help they need instead of waiting for a once-a-year training.

In summary, artificial intelligence is becoming a valuable tool in the HR departments’ arsenal for caring for employees’ health. When combined with traditional methods (such as resilience training, access to psychologists, promoting work-life balance), it creates a comprehensive wellbeing ecosystem that can work more effectively than ever before.

Conclusions: Wellbeing as Part of Business Strategy

Both global data and the experiences of many organizations lead to the clear conclusion that caring for employees’ mental wellbeing should be an integral part of a company’s business strategy. It is no longer just an issue of image or fulfilling employee expectations, but a hard factor influencing financial outcomes, productivity, and competitive advantage.

From the CEO’s perspective, investments in wellbeing lead to a more innovative, engaged organization, ready to meet market challenges. From the CFO’s perspective—they generate high financial returns and reduce hidden costs that would otherwise burden the budget (absenteeism, recruitment, lost productivity). As McKinsey’s report puts it, companies that prioritize employee health “are better prepared for increasing regulatory pressure on health and safety, as well as investor expectations regarding ESG criteria,” and also build a more resilient and adaptive workforce​mckinsey.com.

However, to fully reap these benefits, organizations must move from declarations to actions. Key steps include:

• Leadership engagement – the management board should officially recognize wellbeing as a priority, designate a leader or team responsible (e.g., Chief Wellness Officer or cross-functional project), and lead by example (e.g., promoting vacation use, personally participating in health initiatives). Tone from the top is crucial—when the CFO asks every quarter about the results of the health program just like about sales, it sends a signal that this is important.
• Investment and resources – allocating an adequate budget for support programs (training, consultations, digital tools). Analyses show that companies often spend too little or in the wrong areas—sometimes simple changes (e.g., flexible working hours, an extra day off, or coaching for managers) can have a greater effect than expensive one-time events​deloitte.com​deloitte.com. It is important to recognize the real needs of employees (e.g., through surveys, focus groups) and address specific issues.
• Measurement and optimization – as Deloitte’s motto suggests: “if you value it, you must measure it”​deloitte.com. Companies should set KPIs for wellbeing (e.g., stress level, absenteeism rate, eNPS regarding health support, ROI of the program) and monitor them regularly. This will allow them to demonstrate effectiveness (or make adjustments). Currently, most companies do not set goals or track the effects of wellbeing programs​deloitte.com – this is a gap that needs to be filled with a professional analytical approach.
• Culture and prevention – the best results come from embedding health care into the organizational culture. When employees feel genuine care, they are more likely to engage with support and participate in initiatives. This includes training line managers to talk about mental health and support the team (without stigma), promoting work-life balance (e.g., a no-email-after-hours policy), and appreciating wellbeing-friendly behaviors (e.g., a leader praising an employee for taking care of themselves and taking time off, rather than glorifying workaholism). Prevention should precede problems—e.g., a mental resilience program, stress management workshops before burnout becomes widespread.

Today’s work reality—hybrid, full of change and pressure—means that wellbeing will not disappear but will only increase in importance. Organizations that invest in their employees’ mental health now will gain the loyalty and full engagement of their teams. In the long run, they will win—achieving better financial results, lower turnover, and a reputation as an employer of choice. As we’ve shown, the business arguments are overwhelming—from billions in savings to multiple returns on investment. Wellbeing has ceased to be a soft slogan and has become a hard business imperative.

Bibliography (Selected Sources): Deloitte, McKinsey Health Institute, World Economic Forum, WHO reports; Gallup and Mercer data; HBR case studies; industry articles (HRM Institute, Global Wellness Institute); materials in Chinese, Japanese, and Hindi on global wellbeing practices. All numerical data and quotes in the text are backed by sources indicated in parentheses (e.g., 【8】 for Deloitte, 【18】 for WEF, 【45】 for GWI, etc.), according to the attached references.

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