In collaboration with

McKinsey Health Institute

Thriving Workplaces:
How Employers can
Improve Productivity
and Change Lives
INSIGHT REPORT
JANUARY 2025
Images: Getty Images

Contents
Foreword 3

Executive summary 4

Introduction 5

Briefing 1 The case for investing in employee health 6

Briefing 2 Current status of healthy workforces 13

Briefing 3A Creating a healthier workforce: measuring the impact 23

of investing in a healthy workforce

Briefing 3B Creating a healthier workforce: developing an action 31

plan with new mindsets and structural interventions

Conclusion 36

Contributors 37

Endnotes 38

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Thriving Workplaces: How Employers can Improve Productivity and Change Lives 2
January 2025 Thriving Workplaces: How Employers can
Improve Productivity and Change Lives

Foreword
Shyam Bishen Lucy Pérez
Head, Centre for Health and Senior Partner, McKinsey &
Healthcare; Member of the Company; Affiliated Leader,
Executive Committee, McKinsey Health Institute
World Economic Forum

Workforce health and well-being are pivotal to a practical approach for creating healthier work
economic vitality and societal prosperity. As burn- environments and identifies cases in which
out rates rise, chronic diseases become more organizations have made a measurable impact.
common and people work longer, there is an It also advocates for a strategic, data-driven
urgent need for organizations, policy-makers and approach to employee health that can measure
stakeholders to prioritize employee health. impact and guide interventions. By embedding
health into organizational culture and aligning it
The economic imperative is clear: investing in with broader business goals, leaders can ensure
employee well-being can substantially improve that good health benefits employees, their families,
returns, enhance productivity, reduce healthcare communities and the economy.
costs and foster a resilient and engaged workforce.
Analysis by the McKinsey Health Institute finds The path forward is clear: looking after the
such investment could yield up to $11.7 trillion health of employees positively impacts the
in global economic value. Such transformation, performance of organizations, the future of work
however, cannot be made by organizations working and the development of economies and societies.
in isolation; it requires collaborative effort across the Everyone has a role to play in creating and
public and private sectors. demanding a healthier workplace, but radical health
transformation at an individual or organizational level
This report highlights the benefits triggered by cannot happen overnight. As basketball coach John
investing in employee health. It reveals the current Wooden once said, “Do not let what you cannot do
state of workforce health and well-being, suggests interfere with what you can do.”

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 3
Executive summary
Investing in holistic employee health can create
almost $12 trillion in global economic value.

As the world grapples with rapid technological their counterparts in the survey. This underscores
advancements, demographic shifts and the need for tailored interventions to address and
evolving work paradigms, it is vital to invest in prevent health challenges and tackle the workplace
employee health. factors that contribute to them.

Why prioritize workforce health? Investing in How can organizations address workforce health?
employee health can substantially increase Although there is no one-size-fits-all approach, given
economic returns. Research indicates that that each organization is different and employees
enhanced employee health and well-being could have varying needs, there are six “evergreen”,
generate up to $11.7 trillion in global economic evidence-based principles for employers seeking
value. Organizations that prioritize health often to make a positive impact: understand the baseline
see marked improvements in productivity, health status of employees and the value at
reduced absenteeism, lower healthcare costs and stake, develop initiatives for a sustainable healthy
heightened employee engagement and retention. workforce, pilot interventions to test and learn, track
They are better placed to adapt to increased three to five metrics to measure success, ensure
regulatory pressures on workplace health and leadership commitment and sponsorship, and
safety standards and withstand greater focus from embed employee health into organizational culture.
investors and the public on how organizations are
meeting environmental, social and governance These actions seem simple but are often hard
criteria. Moreover, a healthier workforce is a more to put into practice. Many organizations do not
resilient and adaptive workforce, more capable of currently see or cannot measure the benefits of their
navigating the uncertainties and challenges of a current investments in employee health. They also
rapidly changing world. don’t allocate resources in the most effective way –
often, the issue is not how much is being invested
What is the current state of workforce health? but the type of investment being made. Rather
Work can and should enhance health, yet it is not than solely addressing the poor health of individual
doing so for a sizeable proportion of employees. employees, developing a healthy workforce
In a McKinsey Health Institute survey of more means taking a portfolio approach – addressing
than 30,000 employees worldwide, only 57% ill health and promoting good health; supporting
reported good holistic health (an integrated view individuals; and creating healthier teams, jobs and
of an individual’s mental, physical, spiritual and organizational environments.
social functioning),1 with important differences
in holistic health and burn-out symptoms found By making work a place that improves health,
across different industries and demographics. For organizations can build a strong, productive and
example, employees who are women, LGBTQI+, engaged workforce and release greater individual
younger or neurodivergent, or who report lower and organizational potential. The choice to demand
education levels or poor financial status, tended a healthy workplace is one every employee and
to report poorer employee health outcomes than investor can make.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 4
Introduction
There is an urgent need to improve employee
health. Stakeholders who take immediate action
will reap substantial benefits.

Health is “more than the absence of disease or and other stakeholders, including more robust
infirmity”, as the World Health Organization (WHO) organizations, vibrant communities and, ultimately,
puts it. Modern concepts of health include mental, a healthier society.
physical, spiritual and social function.2 Today, more
than 3.5 billion working adults each spend roughly
90,000 hours (or about 45 years)3 of their lives at Guidance for developing a
work.4 This underscores the workplace’s potential
to profoundly influence health – not just for the
healthy workforce
benefit of employees but also for their families and
the communities in which they live. This report is a call to action for leaders to recognize
that the health and well-being of their employees
Several trends are impossible to ignore: more is critical to the future success and sustainability of
people working than ever, an ageing population their organizations. While small actions taken today
living and working longer and escalating levels can build towards substantial impact tomorrow,
of burn-out.5 The current state of the workforce, many stakeholders are uncertain how to make the
coupled with these trends, demands a rethink required changes in the most effective way.
of employee health to avoid a potential crisis for
health and business. A healthy workforce is not This report is structured to guide stakeholders
just a matter of corporate and societal on this journey, with the aim of helping them
responsibility; it is a strategic necessity and a feel empowered and enabled to act. The first
substantial business opportunity. chapter outlines the case for investing in a healthy
workforce, and the second delves into the current
The reality that leaders face is stark: failing to state of employee health and well-being globally,
prioritize employee health risks creating a sicker, looking at how health varies by industry and by
unhappier and less productive workforce, burdened demographic group. The final chapters focus on
with higher healthcare costs and diminished measurement and first steps and are particularly
productivity. The good news is that, conversely, the geared towards executives, providing leaders with
path to a healthier workforce can yield substantial the tools and strategies necessary to implement
returns for executives, investors, policy-makers effective health initiatives.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 5
Briefing 1
The case for investing
in employee health
Investing in a healthy workforce delivers
measurable performance gains and benefits
for organizations and communities.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 6
 The workplace needs to foster remote work.8 It also accelerated and exacerbated
long-standing corporate challenges to employee
holistic employee health health and well-being, in particular employee mental
health, with reports of burn-out rising to almost one
Companies of all sizes are entering a period in which in four.9 Many employers started to actively support
it is essential to manage human capital with the and promote brain health – not only to address
same level of discipline as financial capital as part of burn-out but also because analytical thinking, a key
their total business strategy. Globally, more than 3.5 marker of positive brain health, is one of the most
billion people will each spend approximately 90,000 sought-after skills by employers.10
hours, or about 45 years, of their lives at work,6
representing a major opportunity for employers to The evolution in lifespan, age-related diseases, what
nurture the good health of a substantial proportion we work on and how we work will require people
of the world’s population. Improved health benefits to be in better physical and mental health for longer
individuals, their families and broader society, as well and be more resilient and adaptable to change.
as the organizations for which they work. The McKinsey Health Institute estimates that
investing in holistic employee health could generate
This briefing describes why investing in workforce between $3.7 trillion and $11.7 trillion in global
health can boost organizational performance, economic value.11 This equates to approximately
enhance employee outcomes and offer a $1,100 to $3,500 per person, or 17% to 55% of
substantial return on investment. average annual pay. This estimate includes the
impact of reduced attrition,12 absenteeism13 and
presenteeism,14 as well as improved employee
There is a clear investment case productivity,15 attraction and retention. The direct
costs of medical treatments have been excluded
for improving employee health because public, private and employer-sponsored
and well-being insurance options vary by country.

The world is changing – people are living and The biggest potential benefits come from enhancing
working longer, and their roles are evolving due productivity and reducing presenteeism, estimated
to shifts in demography, advances in technology, to be worth $2 trillion to $9 trillion. This is between
globalization, and geopolitical and climate risks. 54% and 77% of the total opportunity identified
For example, non-communicable diseases (NCDs), (Figure 1). Many organizations substantially
such as cardiometabolic diseases, cancers, underestimate these potential benefits. For
substance use, and mental and neurological example, companies may struggle to quantify the
conditions account for 69% of today’s global costs of presenteeism, in which employees are not
disease burden. In the next 15 years, most of the working at their full potential, and instead focus
disease categories predicted to rise will be NCDs, their investment cases on reducing direct costs,
with age-related diseases such as kidney diseases such as attrition and absenteeism, which are more
increasing the most.7 Furthermore, the COVID-19 easily measurable. Yet attrition and absenteeism are
pandemic created a shift in working trends, estimated to account for only between one-eighth
launching many organizations into the world of and one-quarter of the total opportunity.

FIGURE 1: Estimated total opportunity value created by initiatives that improve specific aspects of
employee health and well-being

Low range High range

Attrition ~$300 ~$900

Total direct
costs of poor Absenteeism ~$600 ~$600
employee
well-being

Presenteeism and productivity ~$2,100 ~$9,300

Total benefits
created through
good well-being Retention ~$400 ~$600

Attraction ~$300 ~$300

Note: All figures in $ billions

Source: McKinsey Health Institute analysis

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 7
 All economies benefit from The data on low-income countries was
insufficient to reliably estimate the value at
improving the health of stake or the total number of employees
workforces, but the distribution potentially affected, but there is little doubt
of value varies that employees in these economies would
also benefit from workplace investment
in health.
The case for investing in employee health and
well-being applies beyond high-income countries. Within low- and middle-income countries
Investment in employee health could boost global (LMICs), non-communicable diseases (such
GDP by between 4% and 12%, with high- and as cancer, cardiovascular disease and diabetes)
middle-income countries each contributing roughly meaningfully influence employee health,
half of that total (2% to 5%) (Figure 2).16 well-being and productivity. Premature deaths
due to non-communicable diseases account
However, average salaries are lower in middle- for 80% of deaths in LMICs.18 With limited
income countries, so analysis suggests that these financial security provided by the state and
countries have up to four times as many employees greater pressure on workers to maintain a
who would benefit – an estimated 2.5 billion stable income and afford healthcare,
employees compared to 636 million employees in workplaces in LMICs have a significant
high-income countries.17 opportunity to support good employee health.

FIGURE 2 Total economic value opportunity of investing in healthy workforces in high-, middle- and
low-income countries

All High-income Middle-income Low-income

economies economies economies economies2

Low range 3.7 0.2

1.8 1.7

5.7 5.4
High range 11.7 0.6

Total GDP, $ trillion 100.6 61.2 38.2 1.2

Initiatives’ estimated
share of global GDP, %1
4-12% 2-6% 2-5% Insufficient
data

All High-income Middle-incomes Low-income

economies economies economies economies2

Notes: 1. Costs associated with implementing health and well-being interventions not included in calculation, 2. Low confidence in current estimates for
low-income economies because of insufficient and unreliable data

Source: McKinsey Health Institute analysis

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 8
 Several factors directly United States, employers face an estimated $226
billion annually in absenteeism costs (approximately
contribute to the investment $1,695 per employee), largely driven by chronic
case for employee health and health conditions that could be mitigated through
well-being within an individual preventive care and health programmes.19 Conditions
such as hypertension, heart disease and depression
organization cause substantial on-the-job productivity losses,
exceeding $300 per US employee annually.20
Benefits for an organization can vary widely Cardiovascular disease leads to the loss of $156
depending on the number, sector and location of billion in productivity annually.21 US employees with
their employees (Figure 3). Consequently, when untreated insomnia cost employers approximately
organizations evaluate their investment cases, they $2,280 more per year than those without insomnia
need to calculate all the potential benefits, including because of factors such as absenteeism,
costs that can be avoided. presenteeism, diminished performance and higher
rates of accidents and injuries.22
Major factors which organizations need to
consider as part of their investment case include A survey of more than 1,600 employer benefits
the following: decision-makers in the US (including C-level
executives and human resources/benefits leaders)
1 Direct healthcare costs: Healthier revealed that employers are preparing for medical
workforces correlate to lower healthcare costs inflation, with more than two-thirds budgeting for
and reduced absenteeism healthcare costs to grow at three times the rate
of inflation.23
Although not included in the calculation of the
economic value at stake globally, healthcare claims Globally, total healthcare costs are expected to
often account for the majority of an organization’s continue growing because of cost pressures such as
total employee health and well-being costs in those related to an ageing population.24 In countries
countries such as the United States where employee with universal healthcare, organizations currently
health claims are subsidized by employers. In the avoid most of the direct costs of poor health, but this

FIGURE 3 Estimated economic opportunity of investing in healthy workforces for three example
organizations in differing geographies

Fictive company Company A Company B Company C

Fictive company HQ: High-income country, regional HQ: Middle-income country, HQ: High-income country, global
characteristics activity regional activity activity
Industry: Automotive Industry: Manufacturing Industry: Digital
Number of employees: 20,000 Number of employees: 110,000 Number of employees: 1,500
Average annual pay: $40,000 Average annual pay: $6,000 Average annual pay: $80,000

Total economic opportunity1

Available from investing in ~$138-442 million1 ~$114-365 million1 ~$21-66 million1
employee health and
well-being

Total number of employees

Experiencing the benefits of
20,000 110,000 1,500
investment in employee health
and well-being

Incremental economic value $44,000

per employee, $
$22,000

$7,000 $3,000 $14,000

$1,000

Lower opportunity value per employee Additional higher opportunity value per employee

Notes: 1. Estimation based on MHI Global Business case calculation with standard values, comprising reduced total direct costs of poor employee well-being
(attrition, absenteeism, presenteeism) and increased total benefits created through good well-being (productivity, retention, attraction). Direct healthcare costs are
excluded as these are only relevant to employment in select countries (e.g. USA), and costs vary widely country to country. Numbers do not match the earlier
mentioned 17% to 55% range as these are rounded numbers, whereas model used for calculation uses exact numbers
Source: McKinsey Health Institute analysis

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 9
 Many people with mental illness can continue working without relapse with
appropriate support for their resilience. They can live their lives, support family, disperse
stigma among colleagues, and contribute to corporation and society. Society needs to
realize that people with mental illness are an asset and not a cost.

Tsuyoshi Akiyama, President, World Federation of Mental Health

could change with increasing pressure on healthcare of between 10% and 21%.26 Research by the
budgets and the tightening of fiscal wallets. For University of Warwick found that happier employees
these countries, the goal will likely be to maintain are more productive,27 while a recent University of
quality and accessibility across health systems while Oxford study found that happier employees in a call
controlling costs. Consequently, companies may centre were 13% more productive.28 More high-
be asked to pay for their employees’ healthcare, quality research on the causal links is needed, but
especially if the workplace is found to be a cause of these early insights are promising.
ill health. For example, Japan introduced the Stress
Check Programme in 2015 to tackle an increasing 3 Talent management: A focus on health can
number of work-related mental health disorders. The improve employee attraction and retention
programme requires workplaces with more than 50
employees to offer an annual stress survey and to Investing in employee health and well-being can
facilitate consultations with a physician for those with boost employee retention. Research from Mercer
high stress levels.25 shows that companies which foster a “culture of
health” experience employee turnover rates 11
More recently, the Chilean government introduced percentage points lower than those that do not.29
a mandatory evaluation of workplace environments
and mental health in 2024 to promote the Moreover, investing in employee health and
accountability of employers for their employees’ well-being is increasingly important for attracting
health. The Chilean Safety Association has taken a talent. Research from Saïd Business School finds
leadership role in this policy change by developing that for many employees, factors contributing to
preventive medicine, launching affordable mental their well-being – such as mental and physical
health for communities and convening local health, work-life balance and job satisfaction –
organizations and leaders to collaborate on mental are as crucial as traditional incentives such as
health (including the development of an annual salary.30 This is especially important for younger
Mental Health Thermometer). generations31 in the workforce, born between
1996 and 2010 (also referred to as Gen Z).32 A
Supporting employee health does not need to McKinsey Health Institute survey of more than
rest on employers alone and can be a joint public 42,000 respondents found that at least a third
and private effort. There is no need for employers consider physical, mental, social and spiritual health
to reinvent the wheel: they can benefit from the resources when choosing an employer, with Gen
expertise, infrastructure and goals of public health Z respondents and those with lower mental health
stakeholders through partnerships, especially as scores giving particular consideration to mental
these stakeholders may offer referral pathways. health benefits.33
For example, employers may consider partnering
with a private, non-profit or public healthcare Employers may also wish to consider how to
provider to offer on-site employee health clinics promote the health of older employees. Increases
with a focus on preventive care. This could in life expectancy and advances in healthcare
include cardiovascular, diabetes, cervical will extend working lives: by 2050, about 30%
cancer or mental health screenings that give of the global workforce will be over 50 years
employees easier access to care without taking old.34 Governments may raise the retirement
paid time off. Employers can also consider age or rethink pension structures in response.
one-off events, such as a day of optional flu Consequently, both public and private sector
or COVID-19 shots, eye exams or specialist organizations should expect an increasingly
training to prevent back injuries. multigenerational workforce and tailor their health
and well-being programmes accordingly.
2 Productivity and presenteeism: There is
growing evidence of a potential causal link Employers’ actions are ever more visible to
between employee well-being and increased stakeholders. Platforms such as Glassdoor, Indeed,
productivity and reduced presenteeism Fishbowl and Reddit offer employee insights into
how organizations treat employees and support
While the global investment case for improved their well-being, potentially influencing the decisions
productivity and reduced presenteeism offers clear of recruits, customers and investors. Data from
value, calculating the gain or ROI for a specific these platforms can be harvested to find out
programme within an individual organization can how employees may feel and why they quit. For
be more complex. The literature demonstrates, example, a recent MIT study identified toxic culture
however, a correlation between employee well- at the top of a workplace as a meaningful factor in
being interventions and productivity improvements employee resignations.35

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 10
 At ACHS, we are committed to making Chile the country that best cares for its
workers and their families. A critical part of this is addressing the mental health
challenges that our country faces. We are deploying diverse mental health initiatives
to care for the 3 million workers that we cover. In addition, we have extended access
to mental health care for individuals in the communities that we serve. We hope that in
doing so, we can create healthier communities with healthier families and ultimately,
healthier workers, improving companies’ climate and productivity.

Juan Luis Moreno, CEO, Chilean Safety Association (ACHS)

Additional factors that employers may choose to significantly outperformed major stock market
include in the investment case for employee health indices since the start of 2021, demonstrating
and well-being: that high well-being scores are linked to stock
performance (see Figure 4).37
4 Performance: A healthier, happier and
more engaged workforce boosts company Moreover, today’s workforce needs to adjust
performance and resilience to new roles and technologies in a shifting job
landscape. The rapid pace of technological change
Research from the University of Oxford shows can be overwhelming. It can contribute to job
a direct correlation between employee well- insecurity and require employees to continuously
being and an organization’s financial success. upskill and adapt by, for example, focusing more
Companies with higher well-being scores on creativity, problem-solving, cognitive flexibility
consistently achieve greater valuations, higher and emotional intelligence. The rise of remote
profits and superior returns on assets. For working has blurred the lines between personal
example, a one-point increase in employee and professional life, creating a workplace culture
happiness scores was shown to be associated that can enhance or harm employees’ well-being
with a $1.39 billion to $2.29 billion increase in and productivity. A healthier workforce is a more
annual profits.36 A hypothetical “Well-being 100” resilient and adaptive workforce, better capable
stock portfolio, comprising the top of navigating the uncertainties and challenges of a
100 companies in employee well-being, has rapidly changing world.

FIGURE 4 Stock performance of “Well-being 100” portfolio containing the workplaces with the
highest well-being scores, alongside other stock market indices

Value of $1,000 initial investment

1,600

1,400

1,200

1,000

800
1 Jan 2021 1 Jul 2021 1 Jan 2022 1 Jul 2022 1 Jan 2023 1 Jul 2023 1 Jan 2024 1 Jul 2024

Well-being 100 Nasdaq Composite Russell 3000 S&P 500

Source: De Neve, J-E., Kaats, M. and Ward G. (2024). Workplace Well-being and Firm Performance. Oxford University.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 11
 5 ESG: Investors are increasingly seeing 6 Regulation and compliance: Regulatory
employee health and well-being as an environments may become more stringent,
important component of the ‘S’ forcing employers to act

Some employers may assess the impact on Around the world, governing bodies
suppliers and partners when deciding how increasingly recognize the importance of
to invest in employee health and well-being. employee health and well-being, and regulatory
Prioritizing holistic health is not a task to be pressures are mounting. For example, the
undertaken alone, not least because long-term European Union has introduced stricter standards
health investment benefits business, the workforce for workplace well-being, such as the European
and society. Healthy individuals are more likely Framework Directive on Safety and Health at Work,
to contribute actively to their local communities the Strategic Framework on Health
– volunteering at the food bank, running for city and Safety at Work 2021-2027, the Work-Life
council, coaching their child’s sports team or Balance Directive and the European Framework
shovelling a neighbour’s driveway.38 Agreement on Telework. EU regulations state
that risk management within the workplace
Environmental, social and governance (ESG) should encompass stress, thereby requiring
criteria are becoming important aspects of psychological risk assessments and appropriate
delivering business value. They help to enhance prevention methods.42 In the US, the Occupational
revenue growth, reduce risks, minimize regulatory Safety and Health Administration (OSHA) increased
intervention and increase loyalty and productivity penalties for workplace health and safety violations
among employees. Many executives and to $15,624 per violation in 2023, with non-
investment professionals believe ESG programmes compliance leading to hefty fines, lawsuits and
deliver greater shareholder value and would pay a reputational damage.
premium to acquire companies with a strong ESG
track record.39 Adherence to these regulations reduces
compliance risks and enhances a company’s
To date, environmental and corporate governance reputation as a socially responsible entity.
issues have dominated the ESG agenda, but There is increasing expectation from consumers,
the social pillar – which guides how companies employees and communities that organizations
manage relationships with customers, suppliers, should be transparent about labour practices,
communities and employees – is gaining diversity and inclusion, mental health support
consideration. Investors are increasingly paying and work-life balance. Companies that fail to
attention to how companies manage employee meet these expectations risk losing their
health and well-being, recognizing their criticality reputation and trust among employees and
to long-term organizational success. Also, there customers alike.
is growing scrutiny on labour practices, employee
satisfaction, support for employees’ mental health
and thinking around workforce stability. Companies The time to act is now
listed on benchmarks such as the S&P 500 Index
are now assessed not only on financial metrics but
also on employee factors, such as job satisfaction, By prioritizing employee and health well-being,
happiness, stress and purpose at work.40 Similarly, employers can unlock substantial performance
stock exchanges, including the Hong Kong Stock gains; achieve a healthier, more adaptable and
Exchange, are developing ESG reporting guidelines more resilient workforce; and drive positive change
that mandate disclosures on employee health and in their organizations and communities. Employers
well-being metrics, such as working hours, rest should not wait – decisive action taken today can
periods and equal opportunities.41 secure a healthier, more productive future.

Well-being is the ultimate productivity multiplier. And when companies invest in their
people’s well-being, it’s a win-win — creating workplace cultures where individuals can
maximize their productivity and creativity, which in turn enables businesses to
grow and maximize their impact.

Arianna Huffington, Author of Thrive and The Sleep Revolution

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 12
Briefing 2
Current status of
healthy workforces
No industry or demographic group is immune to
employee burn-out, exhaustion or poor health –
though some are more affected than others.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 13
With more than half of the All industries need to improve
working population reporting workforce health – but some
suboptimal employee health, industries have surprising results
change is imperative
Based on the 2023 McKinsey Health Institute
survey, this report reveals, for the first time, the
Today’s workers face unprecedented challenges state of holistic health across more than 35
across sectors and geographies. Contemporary industries (Figure 5).50 Encouragingly, in only 10%
threats to health include a rise in mental health of the industries surveyed did more than a third of
disorders and obesity; unmet needs from conditions employees report burn-out symptoms. In two-
such as diabetes, cancers, brain health disorders thirds of the industries, however, more than 20%
and cardiovascular conditions; and concerns of employees said they were burned out, and in no
about how climate change will affect food security, industry did more than 75% percent of employees
infectious diseases and access to healthcare.43 say they were healthy overall.51

A 2023 McKinsey Health Institute survey of more Employees reported higher rates of burn-out
than 30,000 employees across 30 countries44 symptoms and lower rates of holistic health in five
found that 57% of employees globally reported industries (reported on their percentage of faring
good holistic health45 (physical, social, spiritual and well): accounting, retail, agriculture/forestry/fishing/
mental health),46 while a fifth of people reported livestock, shipping/distribution, and arts/media/
burn-out symptoms.47 Only 49% of employees entertainment/recreation.52 Conversely, industries
were “faring well”48 – meaning they had positive reporting good holistic health and low burn-out
scores on holistic health and no symptoms of symptoms (reported on their percentage of faring
burn-out.49 There are multiple drivers of negative well) included human resources, construction,
and positive health, but it is clear that the current administrative and support services, education
state of health in workplaces is associated with and engineering/architecture. These results reflect
the choices that employers and societies make. a global snapshot of a specific point in time and
It is within the power of executives to build both should be interpreted as a potential opportunity
healthier workforces and healthier societies. Change for improvement (see box “What was measured”).
is necessary and achievable, with many ways to They do not mean every farmer or artist struggles
improve health within employers’ control. with health, and neither do they negate any of
the hardships a carpenter or human resources
executive faces. Instead, this research offers new
data points for employers seeking ways to improve
employee health.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 14
 FIGURE 5 Cross industry analysis of employee health and well-being survey data
Sample size too small for analysis, <200 Within bottom quartile Within top quartile

Industry Sample size Faring well, High holistic High burn-out

(number) % of respondents health reports, symptoms
% of respondents reports,* % of
respondents

Global average across all industries 29,728 49% 57% 22%

Human resources 310 59% 68% 16%

Construction 1,417 58% 64% 16%

Administrative and support service activities 323 56% 60% 12%

Education 2,023 55% 59% 16%

Engineering/architecture 838 55% 65% 23%

Industrial manufacturing 264 55% 60% 13%

Government 1,273 53% 56% 15%

Information technology/lT 1,004 53% 71% 26%

Real estate 382 53% 62% 20%

Business services/consulting 348 52% 55% 17%

Manufacturing/production 1,568 51% 61% 22%

Automotive 542 50% 55% 18%

Consumer/personal services 292 50% 56% 15%

Financial/banking 1,046 50% 64% 25%

Healthcare/medical 1,940 50% 55% 16%

Fashion/apparel 350 49% 60% 25%

Insurance 305 49% 53% 20%

Non-profit/social services 399 49% 59% 21%

Transport 979 48% 53% 20%

Carpentry/electrical installations/plumbing 323 47% 54% 24%

Consumer packaged goods 336 47% 60% 29%

Hospitality/tourism 576 47% 52% 20%

Telecommunication, communications/phone 744 47% 59% 25%

Wholesale 613 47% 54% 19%

Computer-related products or services 894 46% 61% 30%

Other 1,981 46% 50% 16%

Energy/utilities/oil and gas 537 45% 50% 30%

Chemicals/plastics/rubber 250 45% 52% 26%

Legal 257 45% 50% 17%

Marketing/advertising 503 45% 52% 22%

Pharmaceuticals 263 45% 54% 23%

Food/beverage/restaurant 1,066 44% 49% 21%

Arts, media, entertainment and recreation 392 43% 49% 21%

Retail 1,624 42% 53% 27%

Accounting 613 40% 51% 30%

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 15
 Industry Sample size Faring well, High holistic High burn-out
(number) % of respondents health reports, symptoms
% of respondents reports,* % of
respondents

Agriculture/forestry/fishing/livestock 588 39% 49% 35%

Shipping/distribution 384 39% 44% 21%

Military 101 76% 76% 9%

Computer reseller (software/hardware) 62 60% 75% 27%

Aviation 144 59% 62% 12%

Aerospace and defence 92 55% 60% 18%

Consumer products manufacturing 85 52% 54% 19%

Bio-tech 66 51% 59% 12%

Trade services 40 49% 58% 26%

Training/development 114 49% 55% 15%

Consumer electronics 109 48% 61% 28%

Environmental remediation 37 48% 57% 26%

Technology or business process outsourcing 25 48% 52% 32%

Investment management, investment company 113 47% 59% 20%

Public relations 85 47% 54% 18%

Telesales/telemarketing 39 47% 46% 21%

Waste management 76 45% 51% 27%

Market research 60 43% 55% 38%

Environmental services 177 39% 57% 39%

Environmental services and equipment 14 38% 43% 15%

Design 151 37% 66% 39%

Printing and publishing – other 72 36% 44% 26%

Membership organizations 6 33% 67% 50%

Metals and mining 192 32% 43% 47%

Water supply and sewerage 65 29% 40% 32%

Printing and publishing of computer-related industry
13 23% 23% 46%
information
Brokerage 27 17% 32% 71%

Sample size too small for analysis, <200 Within bottom quartile Within top quartile

*High burn-out scores within top quartile are coloured red, and within bottom quartile are coloured green
Source: MHI Employee Holistic Health Survey 2023

What was measured

From April to June 2023, the McKinsey Health Institute behaviour, interpersonal conflict, workload, work hours,
conducted a global survey of more than 30,000 employees in time pressure, work pressure, physical demands, role
30 countries (Argentina, Australia, Brazil, Cameroon, Canada, conflict, role ambiguity, job insecurity, self-efficacy,
Chile, China, Colombia, Egypt, France, Germany, India, adaptability, access to health resources, leadership
Indonesia, Italy, Japan, Mexico, Netherlands, New Zealand, commitment, career opportunities, career customization,
Nigeria, Poland, Saudi Arabia, Singapore, South Africa, psychological safety, supervisor support, co-worker support,
South Korea, Sweden, Switzerland, Türkiye, the United Arab authenticity, belonging, meaning, job autonomy, remuneration,
Emirates, the United Kingdom and the United States). The person-job fit, learning and growth. Individual self-efficacy
dimensions assessed in the survey included toxic workplace and adaptability were also assessed.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 16
 The data analysis did not reveal clear global trends only; further contextual research is required to
explaining why certain industries outperform understand the underlying causes.56
others.53 Nor did any single aspect of health
drag down the average of low-performing Respondents who self-identified as women,
industries, such as may be expected of jobs that LGBTQI+,57 lacking a high school diploma,58
are physically or emotionally demanding. Instead, neurodivergent59 or low-income60 reported lower
scores were generally low or high for all four holistic health and higher burn-out symptoms
dimensions of health. compared to other respondents. Notably, these
groups make up most of the sample, not the
The data also returned some examples that run minority.61 Only 20% of the employees surveyed
counter to global trends. For example, while the did not identify with at least one of these groups
health of front-line workers is generally worse than – groups which are often underrepresented on
that of managers, people working in construction executive leadership teams. This report can only
report high holistic health.54 In education and report outcomes; more research is needed to
administrative support services, employees report understand the reasons behind those outcomes.
low burn-out symptoms with high job security,
possibly offsetting higher financial instability. Specific demographic findings include the following:

The absence of consistent patterns across Gender: Women were 8 percentage points
industries suggests that for both highly and poorly more likely to report exhaustion symptoms
performing sectors, the drivers of workplace health than men (46% versus 38% for men), despite
are multifaceted and not easily attributable to similar holistic health (55% versus 58% for
specific roles. men) and burn-out symptom scores (23%
versus 21% for men). Although women
constitute half of the global population, they
Minority demographic groups remain underrepresented at all work levels,
regardless of race or ethnicity,62 suggesting a
form the majority and are scoring need for targeted strategies to increase
worse on overall employee health workplace inclusivity and reduce exhaustion.

A much clearer story emerges from an analysis Among the many health conditions affecting
of demographic data, such as gender, sexual women, two notable ones are endometriosis and
orientation, neurodivergence, age, education menopause. Improving access to and effectiveness,
and income. Responses were not assessed for delivery and uptake of treatments and care for those
ethnic diversity because of restrictions in certain two conditions alone would give an annual boost of
countries.55 This report reflects survey responses $130 billion to the global economy by 2040.63

FIGURE 6A Reported employee health based on gender: Men and women report overall similar health
outcomes, although women show more exhaustion symptoms

Demographic group1 Percentage High holistic health reports, High burn-out symptoms Faring well reports, % of
of global % of respondents reports, % of respondents respondents reporting good
population holistic health and low
in group burn-out symptoms
0% 100% 0% 100% 0% 100%
Global sample 100% 57% 22% 49%

Men2 ~50% 58% 21% 50%

Women3 ~50% 55% 23% 47%

Notes: 1. Not all possible demographic groups analyzed, e.g. transgender woman, transgender man, gender queer or other excluded due to too few data points
given it was not surveyed in all countries, 2. Individuals self-identifying as cisgender man, 3. Individuals self-identifying as cisgender woman

Source: MHI Employee Holistic Health Survey 2023

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 17
 Sexual orientation: LGBTQI+ individuals of being an “only” (only person, or one of the
reported 9 percentage points less on holistic only people, of their sexual orientation or
health than heterosexuals (46% versus 55% gender identity) in the workplace than other
for heterosexuals).64 An earlier McKinsey report employees did. Feelings of isolation can
found that more than half of gay, lesbian exacerbate exclusion and can negatively
and nonbinary employees had stronger feelings impact well-being.65

FIGURE 6B Reported employee health based on sexual orientation: Members of the LGBTQI+
community report clear differences in overall employee health compared to the
global average

Demographic group1 Percentage High holistic health reports, High burn-out symptoms Faring well reports, % of
of global % of respondents reports, % of respondents respondents reporting good
population holistic health and low
in group burn-out symptoms
0% 100% 0% 100% 0% 100%
Global sample 2 100% 55% 20% 49%

LGBTQI+1 ~10% 46% 24% 42%

Heterosexual ~90% 55% 19% 50%

Notes: 1. Individuals self-identifying as LGBTI+. Excluding Egypt, Indonesia, India, Nigeria, Saudi Arabi, South Africa, United Arab Emirates, 2. Excluding Egypt,
Indonesia, India, Nigeria, Saudi Arabia, South Africa, United Arab Emirates due to data quality concerns

Source: MHI Employee Holistic Health Survey 2023

Neurodivergence: Neurodivergent employees the extent of neurodivergence in the workplace,

were 24 percentage points less likely to report but more research could help employers better
faring well scores in holistic health and burn- support these employees, enhancing both their
out symptoms compared to neurotypical peers health and performance.67 By understanding
(27% versus 51% for neurotypical).66 They often and accommodating the strengths and needs
face workplace challenges due to inadequate of neurodivergent workers, organizations could
support and pressure to appear neurotypical. significantly boost their capacity for innovation and
Limited data makes it difficult to fully understand improve overall holistic health.68

FIGURE 6C Reported employee health based on neurodivergent status: Neurodivergent employees

report clear differences in overall employee health

Demographic group1 Percentage High holistic health reports, High burn-out symptoms Faring well reports, % of
of global % of respondents reports, % of respondents respondents reporting good
population holistic health and low
in group burn-out symptoms
0% 100% 0% 100% 0% 100%
Global sample2 100% 56% 21% 49%

Neurodivergent1 ~5% 41% 40% 27%

Non-neurodivergent ~95% 57% 19% 51%

Notes: 1. Individuals reporting to be diagnosed or self-identified neurodivergent, 2. Excluding India due to data quality concerns

Source: MHI Employee Holistic Health Survey 2023

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 18
 Age: Employee health varies among generations. pandemic, amid inflation, recession fears,
The youngest workers (aged 18 to 28) were geopolitical conflicts and climate change, has
18 percentage points more likely to report heightened anxiety for younger employees.69 In
burn-out symptoms than the oldest workers contrast, the extensive work (and life) experience
(above age 60) (27% versus 9% for the oldest of the over-60 generation may contribute to their
workers). Entering the workforce during a global improved health outcomes.

FIGURE 6D Reported employee health based on age group: The youngest (18 to 28 years) and oldest
(61+ years70) working generation report clear differences in overall employee health

Demographic group Percentage High holistic health reports, High burn-out symptoms Faring well reports, % of
of global % of respondents reports, % of respondents respondents reporting good
population holistic health and low
in group burn-out symptoms
0% 100% 0% 100% 0% 100%
Global sample 100% 57% 22% 49%

Youngest working generation1 ~20% 51% 27% 42%

Oldest working generation2 ~5% 66% 9% 57%

Notes: 1. Individuals reporting to be part of the youngest working generation, aged from 18-28 years, also known as Gen Z, 2. Individuals reporting to be part of
the oldest working generation, aged 60+ years, also known as Boomers

Source: MHI Employee Holistic Health Survey 2023

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 19
 In the research model analysed,71 for both those older employees bring valuable experience,
aged 61 and over and the youngest working stability and institutional knowledge. Employers
generation the top two predictors for holistic play a crucial role in helping employees adapt
health are self-efficacy and meaning.72 Drivers to longer lifespans by fostering age-diverse
of burn-out differ slightly; in this research, role workplaces and developing products that
ambiguity affects older workers most strongly, meet the needs of younger and older employees.
while a toxic workplace environment affects Research suggests that innovative workforce
younger employees and the overall global cohort planning, including retaining older employees
most strongly (Figure 7). and making the most of their experience, can
enhance organizational performance, while
These disparities highlight the importance of creating age-friendly jobs can help maintain a
understanding differences across age groups to talented and diverse workforce.73
support longevity in the workplace, because

FIGURE 7: Drivers74 of holistic health and burn-out symptoms for youngest generation, oldest
generation and global average

Relative importance of predictors for holistic health and burn-out symptoms1

Percentage of difference in outcome predicted by construct2

Youngest generation (18-28 years) Oldest generation (+61 years) Global (incl. all generations)

100% 100% 100%

Self-efficacy 21% Self-efficacy 20%
Self-efficacy 42% Meaning 7% Adaptability 8%
Belonging 8%
Holistic
health Meaning 11% 50% 50% 50%

Other3 72% 64%

Other3 47% Other3

0% 0% 0%

100% 100% 100%

Role ambiguity 11% Toxic workplace
Toxic workplace 20%
29% Toxic workplace 10% behaviour
behaviour
behaviour Role ambiguity 17%
Burn-out Authenticity 19%
symptoms 50% 50% 50%
Other3 79%
Other3 63%
Other3 52%

0% 0% 0%

Notes: 1. Relative importance was conducted for exploratory reasons. While comparisons between global and group-specific drivers can be informative, actions
taken need to consider the specific situation and context due to small sample sizes, 2. Relative importance seen above is scaled to 100%. Explained variance
(differences in outcomes between individuals explained by regression model) for holistic health is 36% for Gen Z, 56% for Boomers/oldest working generation and
49% for global. The explained variance for burn-out is 47% for Gen Z, 67% for Boomers/oldest working generation and 69% for global, 3. ‘Other’ includes all
additional enablers and stressors in the research model

Source: Relative importance analysis, MHI Employee Holistic Health Survey 2023

Educational level: College- or graduate-level Financial situation: The survey assessed employees’
education correlates with reported higher holistic financial situations based on financial status,76 financial
health and reported lower burn-out symptoms. stability77 and remuneration.78 Only 41% of individuals
Individuals without a high school diploma were 20 with poor financial status reported good holistic
percentage points less likely to report good holistic health,79 compared to 76% of those with good financial
health compared to those with graduate degrees status. Those reporting low financial stability reported
(50% versus 70%). Research underscores the 27 percentage points lower holistic health (47% versus
critical role of continuous learning and development 74% for financially stable) and more than 30 percentage
in promoting overall well-being. Learning, points more burn-out symptoms (38% versus 5% for
development, adaptability and self-efficacy are financially stable). Remuneration is positively correlated
core predictors of holistic employee health and vice with holistic health. People reporting positively on
versa in the underlying research model.75 remuneration were 30 percentage points more likely

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 20
 Those reporting to report higher holistic health than those reporting Caregiving can boost holistic
low financial less positively on remuneration (70% versus 40%
for lower scores on remuneration), and they also
health but is associated with
stability reported
27 percentage reported fewer symptoms of burn-out.80 more burn-out symptoms
points lower
Job insecurity: 45% of respondents with high job More people are working while raising children,
holistic health
insecurity81 reported burn-out symptoms compared and more workers are taking care of adults who
and more than 30 to the global average of 22%. Research shows job require care. Globally, the survey found that 10%
percentage points insecurity leads to adverse effects in mental health of employees care for someone with a mental or
more burn-out (depression, anxiety, burn-out) and physical health physical illness in addition to their paid jobs. As
symptoms. (back pain, headaches, high blood pressure).82 the number of caregivers in the workforce grows,
their role in organizations becomes increasingly
Job type: Being a member of upper management83 important. Employers can benefit by understanding
seems to be both a blessing and a curse: 80% of how caring for others affects overall holistic health
these individuals reported good holistic health, but and burn-out.
24% reported burn-out symptoms, which is higher
than the global average of 22%. Front-line workers Caregivers were more likely to report higher
also reported higher burn-out rates (26%), driven holistic health (61% versus the global average of
by exhaustion. The top three factors associated 57%), driven by experiencing better social and
with positive holistic health for managers in this spiritual health. However, caregivers were also
study are self-efficacy, meaning and belonging. 17 percentage points more likely to report higher
For non-managers, the top three are self-efficacy, burn-out symptoms (37% versus 20% for non-
adaptability and belonging.84 caregivers), primarily driven by exhaustion.

FIGURE 8A Reported employee health based on caregiver status: Caregivers report clear differences
in overall employee health compared to the global average

Demographic group Percentage High holistic health reports, High burn-out symptoms Faring well reports, % of
of global % of respondents reports, % of respondents respondents reporting good
population holistic health and low
in group burn-out symptoms
0% 100% 0% 100% 0% 100%
Global sample 100% 57% 22% 49%

Caregivers1 ~10% 61% 37% 39%

Non-caregivers2 ~90% 56% 20% 50%

Notes: 1. Individuals reporting as a caregiver of someone living with mental or physical illness, 2. Individuals reporting as not a caregiver of someone living with
mental or physical illness

Source: MHI Employee Holistic Health Survey 2023

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 21
 Caregivers of children, who accounted for caregivers). A recent report from Harvard Business
approximately 50% of the surveyed employees, School states that the burden of care still falls
reported even higher holistic health (64% versus disproportionately on women, and that women
50% for non-child caregivers), again driven by account for a majority of “hidden workers” who
improved social and spiritual health. However, report that their absence from the workforce is due
men who take care of children reported slightly to caring for children or adults. The same report
lower burn-out symptoms compared to non-child shows that half of women who stopped working,
caregivers (Figure 8), but women who take care of despite wanting to continue, did so because they
children experience higher exhaustion than their could not combine their career with their caregiving
male counterparts (43% versus 35% for male responsibilities for their children.85

FIGURE 8B Overview of holistic health and burn-out symptoms for child and non-child caregivers

Global average Caregiver for an Caregiver for a Female caregiver Male caregiver
adult child for a child for a child

High holistic
health1 per
57 61 64 62 66
segment, % of
respondents

High burn-out2
related symptoms 37
per segment, % of 22 20 22 19
respondents

Global average Higher holistic health vs. global average/Lower burn-out symptoms vs. global average
Lower holistic health vs. global average/Higher burn-out symptoms vs. global average

Notes: 1. Holistic health data represents the percentage of respondents that scored an average of 4 or higher across the four dimensions of health (social,
spiritual, physical and mental) 2. Burn-out symptoms data represents the percentage of respondents that scored an average of 3 or higher across the four.
Dimensions of burn-out symptoms (cognitive impairment, emotional impairment, exhaustion and mental distance

Source: MHI Employee Holistic Health Survey 2023

The opportunity is maximized may involve greater autonomy and empowerment

for teams and individuals to manage their work and
by helping all employees across resources effectively.
diverse demographics achieve
good health Employers and employees must work in partnership
to improve health, as neither can realize the full
benefits on their own. Employers who are not
There is no one-size-fits-all solution; leaders helping every member of their workforce achieve
must recognize and address the varying needs their full potential risk affecting the health and well-
of different groups. By doing so, they can being of their employees, limiting their societal and
develop targeted interventions that enhance economic contributions and missing substantial
holistic health and reduce burn-out. This approach value creation for their organization.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 22
Briefing 3A
Creating a healthier
workforce: measuring
the impact of investing
in a healthy workforce
The return on investment in employee health
can be measured with tailored metrics that go
beyond traditional sickness absence, safety
and injury statistics.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 23
Taking action: How executives 1. Understand the status of employees’ health
and well-being and the value at stake
can build the investment case for
a healthy workforce Conducting comprehensive health and
well-being surveys can diagnose workforce
Many organizations offer multiple employee health needs.
health and well-being programmes, but the
organizational value and ROI of these programmes An S&P Global Corporate Sustainability
are often overlooked. Executives regularly struggle Assessment shows that only 2.2% of assessed
to answer the question, “Is our investment in companies conduct employee surveys with a
employee health driving sustainable improvements core focus on health and well-being.86 Smaller
in performance?” organizations can overcome potential funding
barriers through free tools and training available
This briefing provides frameworks and approaches from not-for-profit providers.
to help organizations develop investment cases,
strategies and tailored action plans for successful Ideally, employers measure aspects of direct health
health and well-being programmes and highlights as experienced by employees (mental, physical,
opportunities to use data and analytics. social and spiritual health and burn-out symptoms),
their associated work experience outcomes (for
example, engagement and satisfaction) and core
No single KPI can measure the work experiences (such as job demands and
resources).87 These measurements identify both
impact of employee health and immediate outcomes and root causes. Employers
well-being investment can assess employee health using quick pulse
checks,88 health assessments, automated text
Every industry or organization has its own unique analyses of comments within annual people
characteristics, meaning there is no single KPI for surveys, focus groups or anonymized voluntary
measuring success. Metrics should be tailored to health data.
each organization’s specific needs. However, a
tried-and-tested approach based on the principles Calculate the investment case opportunity for
described in Briefing 3B should work for most the organization
organizations, whatever their context:
Good-quality, evidence-based data on employee
health and well-being should be combined with
an investment case to guide the development of
strategic health interventions (see Briefing 3B).
Organizations can build an investment case for
employee health and well-being by focusing on
the value drivers identified in Briefing 1. Those
sources of value for the global economy have been
adapted into four drivers which can be used by
any organization to calculate their investment case
opportunity: employee output, talent management
optimization, healthcare cost savings and ability to
attract investment (Figure 9).

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 24
 FIGURE 9 Value drivers to develop investment case opportunity for investing in employee health
and well-being

Employee Talent management Direct healthcare ESG premium2 Investment case

output optimization cost savings1 for contractors
and suppliers2

Productivity Retention Healthcare cost The positive The positive

savings associated goodwill that good impact that good
Absenteeism Attraction with a healthy employee health employee health
workforce and well-being and well-being
Presenteeism Unwanted attrition generates with generates with
investors, contractors and
customers and suppliers
partners

Increase driver to improve total benefits created through good employee health and well-being

Reduce driver to decrease total direct costs of poor employee health and well-being

Notes: 1. Excluded from the calculation, given that costs vary widely country to country, and calculation is a sum of individual savings per employee, 2. Excluded
from the calculation. Calculation is a sum of additional realized investment due to improved employee health and well-being
Source: McKinsey Health Institute analysis

1. Employee output: Employee output can be solutions geared to develop immediate resilience
calculated as a combination of productivity, and track involuntary attrition. In contrast, for
absenteeism and presenteeism. Example employees who are likely to stay a long time,
metrics for each include efficiency of virtual employee assistance options or chronic
completing tasks, innovation rates, sales disease management programmes may be
increase and customer service sentiment more important. In either case, organizations
(productivity), number of workdays lost to may choose to measure ROI.
sickness (absenteeism) and lost time caused
by physically present employees working at Additional elements
reduced levels (presenteeism). For example,
offering free flu shots gives US employers a Organizations may also choose to build the
potential immediate result in lower absentee following elements into their investment cases
rates. A 2021 cost-benefit analysis of employer- (where relevant):
funded influenza vaccinations found that
employers could have saved €10 ($10.82) per 3. Direct healthcare costs: These include what
vaccinated employee per year between 2011 an employee pays when seeking healthcare,
and 2018.89 what the employer covers under any employer-
sponsored insurance and any costs associated
2. Talent management optimization: Developing with work-related injuries. These costs are often
a strong employee value proposition can major for organizations that have employees in
enhance talent attraction and retention and economies with private healthcare systems.
minimize employee turnover. This not only
enriches company culture but also boosts 4. ESG premium: An organization that highlights
business performance, as employees with good employee health and well-being as part
longer tenure have between 12% and 30% of its culture and value proposition may make
higher output than newer employees.90 Example itself more attractive to investors, customers
metrics include average tenure (retention), days and partners.
required from job posting to hire (attraction)
and involuntary attrition (turnover). For example, 5. Investment case for contractors and
industries which have a high number of workers suppliers: Some organizations may also
in their first job who are likely to leave because choose to include the impact on contractors
of burn-out symptoms or exhaustion may focus and suppliers within their investment cases.
on digital mental health applications or other Employers can also consider how to expand

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 25
 interventions in ways that benefit employees by directly supporting farmers and their
both within their organizations and within associated communities.
the broader local community. For example,
executives in organizations with a global Overall, to build the investment case effectively,
presence may consider how to invest in estimates need to assess the value of making the
widescale health education outreach. investment (costs avoided and benefits gained)
One example is Bayer’s support for versus the cost of the intervention required to
mallholder farmers, who represent 11% of address the issue.
their Crop Science’s divisional sales. The
company is introducing access to health Figure 10 provides sample metrics that can be
and nutrition education for members of used to gather data on each of the drivers
their value chain (including farmers) in India, of employee output and talent management
Indonesia and Mexico. This initiative aims optimization, as these two elements are at the
to improve health outcomes and productivity core of any business case.

FIGURE 10 Example approach for calculation of healthy workforce opportunity with standard values
and company-specific KPIs

Value driver category Key value driver Definition Examples of company specific KPIs

The efficiency with which – Increase in number of hours worked/total revenue

tasks and goals are or profit
accomplished at an – Increase in total revenue or profit/FTE
organization, fostered through – Increase in percentage of employees achieving
Productivity creativity and innovation.1 targets
– Company-specific numbers for average value of
productivity (e.g. average daily pay x total number
of employees)

The act of staying at work – Company-specific numbers for productive days lost
longer than usual, or going to (e.g. productive days lost per employee x total
Employee Presenteeism work when you are ill, to show number of employees)
output that you work hard and are
important to your employer.2

Any failure to report for or – Number of absenteeism days due to

Absenteeism remain at work as scheduled, being unhealthy
regardless of the reason.3 – Percentage of long-term vs. short-term absences

An organization's ability to – Percentage rate of unwanted turnover due to

develop a distinct employee being unhealthy
Retention
value proposition and prevent – End-of-year performance review in first and second
employee turnover.4 year vs. average company benchmark performance

How an organization – Employer Net Promotor Score (NPS)

Attraction communicates with potential – Percentage increase in job applications
applicants to attract suitable
Talent candidates for a job vacancy.5
management
optimization
The departure of employees – Percentage rate of unwanted turnover due to
from the organization for any being unhealthy
reason (voluntary or – Actual turnover cost
Unwanted attrition involuntary), including
resignation, termination,
death or retirement.6

Increase driver to improve total benefits created through good employee health and well-being

Reduce driver to decrease total direct costs of poor employee health and well-being

Source: 1. MindManager. (2020). Productivity in the workplace? What is it, and why is it important. https://blog.mindmanager.com/202005202003what-is-
productivity-in-the-workplace. 2. Cambridge Dictionary. (n.d.) presenteeism. https://dictionary.cambridge.org/dictionary/english/presenteeism. 3. van Vulpen, E.
(n.d.). Absenteeism in the Workplace: A Full Guide. Academy to Innovate HR. https://www.aihr.com/blog/absenteeism/. 4. Holiday, M. (2024). What is Employee
Retention? Benefits, Tips & Metrics. Oracle Netsuite. https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention.shtml.
5. De Montfort University. (n.d.). Attraction. https://www.dmu.ac.uk/business/work-with-our-students/make-diversity-your-business/attraction.aspx.
6. Gartner. (n.d.). Attrition. https://www.gartner.com/en/human-resources/glossary/attrition.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 26
 CASE STUDY 1
Novo Nordisk provides support and targeted
interventions to teams reporting high stress levels

Healthcare company Novo Nordisk regularly tools effectively, adhering to the IGLO (individual,
deploys a global survey to measure employee group, leaders and organization) model.91 Stronger
stress levels and mental health using validated support interventions generally demonstrate a
screening questions. About 14% of the company’s 20% to 30% decline in the number of employees
64,000 employees reported symptoms of stress reporting symptoms of stress one to two years
in the 2023 survey. Managers of highly stressed after the intervention. Novo is now implementing
teams receive support from organizational a similar survey focusing on physical health,
psychologists and are trained to use well-being particularly pain.

CASE STUDY 2
On achieved 11.6x ROI annually ($2.9 million)
through employee health intervention

Sportswear company On implemented an accounts representing an approximate 50%

employee health intervention, via Kyan Health, uptake. The intervention has gained the company
to over 2,500 employees within their organization. $2.9 million annually (11.6x ROI). This consists
The intervention gave employees access to a self- of $1.3 million productivity gains due to 5%
care library (including mediation, relaxation and improvement in presenteeism related productivity
breathing practices), 12 coaching sessions and loss, $1.1 million driven by 30% reduction in
internal well-being workshops. Since its voluntary attrition and $0.5 million reduction in HR
launch in 2022, 1,240 employee have created costs to manage mental health cases globally.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 27
2. Develop initiatives for a sustainable initiative portfolio, organizations should
healthy workforce consider their current initiatives to understand
how much is currently spent on employee health
Executives may consider how to use the and well-being, how effective they are and where
baseline and investment case created using there is room for growth. The initiatives can be
the above principle to develop a targeted focused on direct employees or include suppliers
intervention strategy aligned with the overall and the wider communities from which the
organizational strategy. When developing an workforce is drawn.

CASE STUDY 3
Swiss Re’s metabolic health programme targeted
interventions based on an onboarding survey

Reinsurance provider Swiss Re partnered with sessions and a further five completed a seven-
Combe Grove (a metabolic health centre) and day residential programme with virtual follow-up
Gro Health (a digital well-being platform) to deliver support for 12 months.
a pilot programme focused on optimizing the
metabolic health of their 1,100 UK employees. The With full pilot outcomes expected in May 2025,
intervention began with a survey on risk factors interim results indicate that the programme is very
for metabolic ill health – the primary cause of relevant (59% of surveyed employees showed
many chronic diseases which today contribute some degree of metabolic ill health and were
to the majority of global ill health and deaths highly motivated to improve this), and that the
(including heart disease, diabetes, certain cancers, intervention is effective: high-risk participants
musculoskeletal diseases and mental ill health) achieved an average of 6% body weight loss,
– that asked employees about their motivations 20% improvement in blood fat profile and 50%
to participate. More than 220 employees improvement in well-being, sleep and diet
participated in the survey, and many more have quality. As well as these clinical improvements,
since accessed the diverse resource offerings, wider programme rollout post-pilot will aim to
including a digital well-being platform focusing on demonstrate on a broader scale the day-to-day
nutrition, sleep, exercise and mental well-being. impact many colleagues have noted: “My energy
Forty individuals (identified from the risk factor has increased”, “I’m sleeping better”, “I’m more
survey) participated in one-on-one health planning focused at work”.

CASE STUDY 4
Novartis Foundation funded cardiovascular
health interventions in Senegal

The Novartis Foundation funded the Better activity, stress and tobacco use and was
Hearts Better Cities initiative, which was delivered in collaboration with 18 companies,
designed to improve cardiovascular health reaching 36,000 employees. Outcomes included
in Dakar, Senegal. The programme provided hypertension screening of 21,000 employees
education about healthy lifestyles, including and improved blood pressure for 34% to 39%
information about blood pressure, diet, physical of employees in six months.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 28
3. Use pilots to test the effectiveness of rate, direct impact on employee health and
an intervention well-being (for example, anonymous and
voluntary data on health scores), distress levels
Pilots help organizations test interventions on and burn-out symptoms, cost analysis, and
a small scale before full implementation, helping ROI can all be used to measure success.
to justify investments and refine interventions. Investment returns can be measured by
They can compare intervention and non- comparing the cost of the intervention with
intervention groups or assess pre- and post- outcomes. Some companies also look at
intervention outcomes within specific employee cultural ROI, such as improvements in employee
subgroups or locations. Metrics such as adoption sentiment or scores from experience surveys.

CASE STUDY 5
ASICS piloted a Movement for Mind intervention

To address the potential inactivity of desk-bound limited to ASICS staff), the programme showed
employees, often caused by insufficient time, clinically significant improvements in mental well-
facilities or motivation to be active, sportswear being (Warwick-Edinburgh Mental Well-being
company ASICS developed the Movement for scale and WHO-5), low mood (PHQ-2 scale)
Mind initiative. The programme is an audio series and anxiety (GAD-2 scale). Of those taking part
with movement instructions for all fitness levels, in the pilot, 71% said they felt happier and 70%
aimed at improving mental health through a reported being more active after completing
range of techniques. Participants listened to two the programme. Following this successful pilot,
30-minute sessions per week for eight weeks. the initiative recruited nearly 3,000 additional
Initially piloted with 189 people (including but not participants worldwide over an 18-month period.92

4. Monitor employee health and well-being well-being programmes. Depending on their starting
improvements over time point, organizations can tailor their approach.
Those starting on this journey can begin with a few
Regular, ongoing monitoring helps ensure that data points and refine measurement over time,
interventions are effective, identifies areas for while advanced organizations may be able to use
adjustment and helps organizations track progress advanced analytics and modelling, depending on
and assess the impact of employee health and their resource levels.

CASE STUDY 6
Wellhub shows that interventions become self-reinforcing
when adoption rates are more than 20% to 25%

Wellhub, a wellness platform, connects clients’ compared to simply offering the intervention.
employees to physical, mental and nutritional The platform finds that interventions surpassing
interventions, such as local gyms and meditation an adoption rate of 20% to 25% tend to be
apps. Tracking more than 15,000 employees self-reinforcing. One possible explanation is that
over time, Wellhub found an average adoption when at least one in five employees participate,
rate of 15% to 25%, but clients in the top quartile a microsociety of participants forms, which starts
achieved a 40% to 70% adoption rate and an changing the organization to become healthier.
average year-on-year adoption rate growth of Practically, this means colleagues influence
approximately 42%. Wellhub’s study suggests each other, share recommendations on helpful
that fostering a healthy workforce culture could interventions or invite each other to attend workout
increase the adoption of employee health and classes together, all of which help foster a thriving,
well-being interventions by up to 12 times healthy workforce culture.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 29
 CASE STUDY 7
Audi introduces Checkup programme,
reaching 10,000 employees

Audi, a German automotive manufacturer, began preventive programme. The 75-minute check-up
its Audi Checkup programme in 2006 to enable includes blood tests, an electrocardiogram, biometry,
employees to identify their health risks and help tissue analysis, a lung test, an eye test, a hearing test
prevent chronic illnesses. More than 90% of and the SF-12® Health Survey. Since 2006, more
employees opt in to the voluntary examination and than 10,000 employees have taken part.93

People and organization and appropriate privacy standards are in place,

can be used for predictive analysis. It could help
analytics are an important guide decision-making on effective interventions
enabler of successful employee by providing a view of upstream drivers, real-time
health and well-being strategies indicators and key enablers to improve employee
health and well-being.95 As data analytics evolve,
now is the time to incorporate health metrics into
Integrating employee health and well-being into organizational measurements.
core organizational strategies is crucial. Robust
information management and people and Beyond analytics, high-quality AI-enabled systems
organization analytics approaches help achieve this. can enhance employees’ understanding of health
Organizations often track financial and supply chain benefits, streamline onboarding and scheduling,
metrics, but many overlook comprehensive health and increase flexibility. They can even assist leaders
and well-being data. Rapid advancements in data in improving workplace interactions and provide
infrastructure, analytics and AI, however, are helping real-time feedback to employees. Participation
to bridge this gap. A recent McKinsey global could be boosted by allowing employees to track
survey of more than 1,200 respondents found that their health status through innovative tools such
12% are regularly using generative AI in HR and as opt-in wearables. This not only promotes well-
seeing meaningful cost reductions.94 “Big data” being but also fosters a culture of health within
can be collected and, provided it is of good quality the organization.

CASE STUDY 8
Experian reduces global attrition, saving $14 million over
two years, by using predictive workforce analytics

Experian, a data analytics and consumer credit the company developed a solution that equipped
reporting company, faced resignation rates 4% global HR teams with advanced insights into
above the industry benchmark, creating a strain on employee needs and motivation, enabling tailored
growth and innovation. Initially, Experian looked to approaches to support employee health and well-
tackle this by focusing on recruitment and simply being. The platform analyses up to 200 employee
managing the high resignation rates, resulting in attributes (including core HR and people data) to
decreased attention to workplace initiatives for the create a comprehensive assessment of the risk that
existing workforce. employees will leave. HR teams can now make
informed decisions on the most effective support
Subsequently, Experian turned to data analytics. By for employees, reducing global attrition by 4% and
using HR data and in-house analytics capabilities, saving Experian $14 million over two years.96

Lack of data is not a constraint measuring how much physical activity they do in a
week, how many hours they spend on social media
to acting or how much water they consume in a day. Any
journey to improvement must start with a baseline.
Lack of data should not be an excuse for inaction Executives have an exciting opportunity to leverage
by executives. Organizations can tailor metrics health metrics to improve sustainable performance,
to meet their unique needs much like individuals enhance employee well-being and foster a thriving
tackle improving their own health: they may start by organizational culture.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 30
Briefing 3B
Creating a healthier
workforce: developing
an action plan with new
mindsets and structural
interventions
A portfolio of investments that address poor
health and promote good health can unlock
full workforce potential.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 31
By taking decisive steps towards building a 3. Pilot interventions to test and learn: Deploy,
healthy workforce, organizations will not only test and learn. Set up pilot programmes to
benefit employees but also enhance performance. try out and refine strategies. This allows for
Executives often view employee health and targeted testing, continuous improvement,
well-being programmes as a cost rather than as learning from failures and ensuring that only
a strategic opportunity with a positive ROI. This the most effective interventions are scaled.
report aims to change that. Yet, many executives Begin with small, manageable programmes
would not know where to begin even if they were addressing immediate needs to start building
convinced of the need for change. momentum and create longer-term impact.
Interventions do not need to be complicated –
simple actions, such as encouraging employees
Where to start? Six principles to to take “movement breaks” during work or
training managers to discuss mental health
address employee health with their teams, can be highly effective. Shift
away from offering reactive interventions at an
Each organization has unique needs and individual level in favour of implementing more
opportunities to address employee health and proactive interventions, especially those aimed
well-being, based on size, organizational set-up, at teams.
geographic spread and level of resources.
This report suggests six simple principles 4. Track three to five metrics to measure
each organization could follow to create a success: Start with three to five KPIs that
successful employee health and well-being drive workforce health and organizational
intervention portfolio: performance, ideally ones already tracked or
easy to implement.98 Refine these KPIs for
1. Understand the baseline and value at stake: optimal insights. Assess broader effects by
As described in Briefing 3A, start by assessing updating the investment case and re-surveying
the baseline health status of employees through employee health. Use these insights to steer
surveys. Alongside the baseline, it is important the strategy – whether that means stopping,
for each organization to understand the redirecting or scaling interventions. Systematic
potential value of revising a workforce strategy measurement validates the investment in a
and the risks associated with doing nothing. healthy workforce.

2. Develop initiatives for a sustainable healthy 5. Ensure leadership commitment and

workforce: One-off efforts will not build a sponsorship: Real change starts in the
healthy workforce. Achieving sustainable results boardroom with executives making employee
requires a long-term, systemic approach with health and well-being a strategic priority.
high-quality, evidence-based interventions.97 Executives must set the vision, hold themselves
This should be complemented by a clear accountable and integrate health and well-
vision of what the organization is attempting being into the core organizational strategy.
to solve, leading to a targeted approach to They should also nominate an executive-team
improving health, in alignment with the overall sponsor and a board sponsor as a signal of
organizational strategy. Short-term projects leadership commitment. The sponsor does not
may yield immediate benefits, but real change need to be the chief HR, people or medical
comes from a complete plan that includes clear officer; it can be very powerful if another
leadership behaviours and effective tools. The executive takes the sponsor role. Executives will
updated strategy can then build on current need to be transparent in their communication
efforts, such as programmes focused on and authentic in how they role model. They also
diversity and inclusion and psychological well- need participate in health initiatives to create a
being. This strategy should be sponsored by the supportive environment where employees feel
board and empower lower-level teams to drive encouraged to engage and be open about their
autonomous, aligned interventions. health challenges.

As the executive sponsor of the well-being agenda at Standard Chartered,

I believe that well-being at work is at the core of employee engagement and
productivity. We want our people to feel able to bring their best selves to work and
deliver sustainable high performance. I am passionate about using my role to help
create a positive and healthy work environment. This means listening to colleagues
about their needs and supporting them to build well-being-related skills – such as
resilience and adaptability, empathy, and personal energy management. Having an
executive sponsor outside of the traditional HR setting demonstrates that well-being
is for everyone and it’s a shared responsibility.

Diego De Giorgi, Group Chief Financial Officer, Standard Chartered

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 32
6. Embed employee health into organizational continuous engagement, regular evaluation
culture: Creating a sustainable and healthy and flexible interventions to meet needs as they
workforce is a long-term journey requiring a evolve. This approach will help break down
systemic shift in organizational mindset and some barriers, such as privacy concerns from
culture. Employee health must be integral employees or stigma about mental health.
to everyday work life and embedded in daily Fostering a culture of health and well-being is
practices, management analytics, leadership not just about immediate outcomes; it is about
behaviours, the deployment of digital tools, building resilience and long-term sustainability in
policies and values. This cultural shift demands the organization.

CASE STUDY 9
Ikea Canada implements Wellness Days, reducing
employee turnover from 35% to 24.5%

Furniture and home-goods company Ikea event, volunteering at a not-for-profit organization,

Canada found through its 2019 annual employee self-care, inclement weather, or spending time
engagement survey that employees cited family with loved ones or a new pet. In response to
obligations, personal illness and stress and the COVID-19 pandemic, it partnered with the
that employees wanted a healthier lifestyle. In Mental Health Commission of Canada to introduce
2020, the company introduced Wellness Days, training and a digital programme that develops
allowing employees to take 12 days off per year self-care, self-leadership, resilience and
for personal illness or injury, supporting a family mindfulness practice. Executives have credited the
member with an illness or injury, taking care of a focus on mental health with contributing to a drop
personal emergency, participating in a community in employee turnover from 35% to 24.5%.99

Create a portfolio of evidence- individual employees, but mental health apps

and gym access alone are not enough if systemic
based interventions for a problems remain.
sustainable healthy workforce
So where does a chief executive officer/chief human
Many employers care deeply about their resources officer/chief people officer/chief medical/
employees’ health and well-being, introducing health officer start if they want to create a portfolio
interventions designed to help, including yoga of effective interventions? How can leaders select
classes, meditation apps, wellness days and the right evidence-based employee health and well-
awareness campaigns. Often, however, the being interventions?
portfolio of interventions is not a coherent whole
that significantly moves the needle to address The ideal portfolio aims to address both immediate
specific workforce needs. To make interventions needs (reactive) and root causes (proactive)
effective, employers must understand and and is made up of a complementary variety of
proactively address employees’ needs at the interventions, some of which are designed to help
individual, team and organizational level. individuals and teams, some to reshape jobs and
Companies often provide ways to help some to change the organization (Figure 11).

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 33
 FIGURE 11 Data-driven distribution suggestion of employee health and well-being interventions by
levels of an organization targeted100

Level in organization Address effects Address drivers

“Reactive” “Proactive”

Burn-out symptoms Holistic health

Organization-wide ~1% ~10%

Team ~35% ~40%

Job ~60% ~20%

Focus of most interventions

Individual
offered today ~5% ~30%

Proposed weighting of well-being interventions targeting

each organizational level

Proposed weighting of well-being interventions targeting each organizational level

Source: MHI Employee Holistic Health Survey 2023, expert interviews

The reason a portfolio approach is important is making roles clearer and helping teams and
that work and health-related outcomes are team leaders reduce confusion and role conflict.
influenced by both enablers and drivers.101 Enablers Additional interventions include offering high-quality
are the aspects that can provide positive energy, mental health awareness training, managing teams’
such as meaningful work and psychological ways of working, creating space for recovery and
safety. In comparison, demands are challenges at adjusting roles to enhance control and autonomy.
work that require sustained cognitive, physical or
emotional effort, such as toxic workplace behaviour The best place for an organization to start
and role ambiguity. addressing demands and building enablers for
employees is at the team and job levels.102 Notably,
Holistic health is most strongly influenced by team-level drivers are predictive of both holistic
enablers, such as the employee experience health and burn-out symptoms. Middle managers
of having self-efficacy, adaptability, feelings of are crucial to team health and well-being, serving
belonging, meaningful work and psychological as the link between leadership and employees.103
safety. Interventions that address these drivers Their engagement is vital for the successful
include self-efficacy and adaptability training, implementation of employee health and well-being
purpose workshops, and psychological-safety interventions. Empowering and training middle
leadership and team training. Other interventions to managers to prioritize the health and well-being
support holistic health include workplace nutrition of their teams can unlock employee growth and
programmes, peer mentoring, job crafting and productivity. Investing in middle management pays
physical-activity nudges. off: research shows that organizations with top-
performing middle managers generate 3 to 21 times
In contrast, burn-out symptoms are more strongly more in total shareholder returns.104 Additionally,
associated with demands, such as the employee including employees in the decision-making
experience of toxic workplace behaviour, role process through surveys, focus groups and well-
ambiguity and role conflict. Interventions related to being committees ensures that subsequent actions
these drivers focus on eliminating toxic behaviours, meet their needs and realities.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 34
 CASE STUDY 9
Vitality provides personalized health interventions
to create a healthier workforce

Vitality is a health and life insurer whose well- employees to the one action that would have
being strategy for employees comprises five the biggest impact on their health, based on the
pillars – physical, mental, social, financial and results of their annual online health review, and
lifestyle – and features on-site health checks, directs them in how to make this change.
mental health counselling, mental health
awareness training for managers, lunchtime The organization’s focus on employee well-being
leadership walks and life-stage-specific medical has delivered a healthier, happier, more productive
support. The Vitality Programme provides workforce, reflected in employee experience
incentives and rewards for employees to take survey outcomes. Vitality research shows that
actions that support healthier living, and 72% of employees who are highly engaged with the Vitality
participants report that the programme inspired Programme lost 50% fewer days to presenteeism,
them to make positive lifestyle changes. Vitality’s recorded 28% fewer absences and took 46% less
Next Best Action feature alerts members and time to recover from sickness.

Each organization is unique, and tailoring and promote well-being. Leaders should commit
interventions accordingly is crucial for improving to long-term, systemic approaches, supported
overall employee well-being. The good news is that by evidence-based interventions and proactive
this often involves investing smarter rather than involvement at all organizational levels. True
more. To realize the full potential of their workforce, progress requires smart investment that tackles
organizations should develop a strategic portfolio both symptoms and root causes, fostering a
of health investments that address poor health healthier and more productive workforce.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 35
Conclusion
Work is a cornerstone of many people’s lives. LGBTQI+, younger, neurodivergent, or with lower
However, it should not leave people less happy, levels of education or income report poorer health
less healthy or less fulfilled. Physical, mental, outcomes than their counterparts. It is therefore
social and spiritual well-being is intricately tied to important to understand the root causes of poorer
work, productivity and performance. Investing in health and create inclusive workplaces. A one-
employee health and well-being is both an ethical size-fits-all approach will not reap the full rewards;
obligation and a strategic organizational imperative leaders must recognize and address the needs
with tangible returns. of different demographic groups and develop
targeted interventions that enhance holistic health
This report offers a plan that goes beyond the and reduce burn-out. Employers and employees
behaviour of individuals. It sets out the mechanism must work in partnership to improve health, as
for changing a company’s culture, addressing neither can achieve the best results on their own.
specific workplace requirements and improving Unless employers help all employees achieve their
health and well-being at every level of the full potential, they risk limiting the health and well-
organization – thereby developing a healthier, more being of their workforce, restricting their societal
productive workforce. It shows why prioritizing a and economic contributions, and missing out on
healthy workforce is essential and beneficial, as substantial value creation for their organization.
well as providing practical guidance that will help
employers feel enabled and empowered to seize Finally, leaders should address workforce health by
the opportunity. taking a strategic approach, committing to making
smart investments that tackle both symptoms and
Firstly, the case for investing in holistic employee root causes and measuring the impact of those
health is substantial. With more than 3.5 billion investments over time.
people dedicating a substantial portion of their
lives to work, the workplace plays a crucial role in Returns on investment can be evaluated using
fostering holistic health. Investing in health presents customized metrics that extend beyond the
a global economic value opportunity worth 17% traditional markers of sickness, absence, disease,
to 55% of average annual pay per employee. safety and injury. A four-step approach to
Organizations that invest are likely to reduce building an investment case requires employers
healthcare costs, enhance productivity, improve to understand the status of employee health and
talent management, boost company performance well-being within the organization, calculate the
and strengthen organizational resilience. investment case opportunity, use pilot programmes
Increasingly, investors are emphasizing employee to measure intervention effectiveness, and monitor
health and well-being as a crucial component of improvements over time. Advances in data analytics
the social element of ESG criteria, recognizing its and artificial intelligence (AI) offer substantial
impact on long-term organizational success and opportunities to integrate health metrics into core
shareholder value. Regulatory pressures are also organizational strategies. For example, AI could
mounting globally, with stricter standards and be used to translate specific workplace safety
compliance requirements being introduced to information, customize health-emergency protocols
ensure workplace well-being, such as those from for a building, or aggregate reputably sourced
the EU and the United States’ OSHA. Applying health tips and links into an employee newsletter.
these rules not only reduces the risk of breaking
them but also improves a company’s reputation In conclusion, leaders should recognize that
as socially responsible. This helps meet growing creating a healthier workforce is not an isolated
demands for transparency made by consumers, goal but a foundation of organizational performance
employees and communities. and resilience. By prioritizing employee health,
organizations can transform work into a source of
Secondly, disparities in holistic health and burn- life enhancement, unlock human potential and reap
out symptoms across various industries and financial benefits. This report provides the evidence
demographics underscore the need for tailored and tools for leaders to feel empowered and
interventions. Employees who identify as women, enabled to take those crucial steps today.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 36
Contributors
World Economic Forum McKinsey Health Institute

Ruma Bhargawa Jacqueline Brassey

Lead, Health and Healthcare Senior Fellow, McKinsey Health Institute; Co-Leader,
Healthy Workforces; Director of Research Science
Andrew Moose
Head of Health and Wellness Barbara Jeffery
Partner, McKinsey & Company; Co-Leader, Healthy
Jahanara Rahemtulla Workforces
Lead, Health and Healthcare
Shail Thaker
Senior Partner, McKinsey & Company

Brooke Weddle
Senior Partner, McKinsey & Company

Acknowledgements

The World Economic Forum and McKinsey & Case study contributors
Company would like to acknowledge the valuable
Alessandra Del Pino
contributions of the following experts who
Director, Engagement and Growth, On
contributed to the development of this document
Nadia El-Salanti
Ameena Adileh
Organisational Psychologist, Novo Nordisk
Business Analyst, McKinsey & Company
Minke Bergsma Caroline Fisher
Associate, McKinsey & Company Head, Communications, Asics

Yasper Bos Lisa Fujisawa

Junior Associate, McKinsey & Company General Manager New Ventures, Wellhub
Erica Coe Vlad Gheorghiu
Partner, McKinsey & Company; Co-Leader, Co-Founder and Chief Executive Officer, Kyan Health
McKinsey Health Institute
Rogerio Hirose
Hans De Witte
Senior Vice-President, New Ventures, Wellhub
Full Professor Work Psychology, KU Leuven
Deepak Jobanputra
Ishan Khalsa Chief Sustainability Officer, Vitality
Early Careers Programme, World Economic Forum
Jennifer Kaczmarek
Sophie Merckelbach
Vice-President; Head, Strategic Messaging
Engagement Manager, McKinsey & Company
and Engagement, Global Consumer Health
Roxy Merkand Communications, Bayer
Research Science Specialist, McKinsey & Company
Stephanie McCahon
Elizabeth Newman Global Propositions Manager, Swiss Re
Executive Editor, McKinsey Health Institute
Caroline Meledo
Wilmar Schaufeli Vice-President; Head, Sustainability Integration and
Emeritus Professor, Work & Organizational Inclusive Growth, Bayer Consumer Health
Psychology, Utrecht University
Ryan Montgomery
Frédérique Schellekens
Head, Sport Business and Governance, Asics
Fellow, McKinsey & Company
Liseli Sumbwanyambe Verena Schär
Associate, McKinsey & Company Learning and Development Manager, Swiss Re

Maxime Velzeboer Tobias Schiergens

Fellow, McKinsey & Company Senior Global Medical Officer, Swiss Re

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 37
 Endnotes
1 Holistic health encompasses physical, mental, social and spiritual health.
2 Wüthrich-Grossenbacher, U. (2024). The Need to Widen the Concept of Health and to Include the Spiritual Dimension,
International Journal of Public Health, vol. 69. https://doi.org/10.3389/ijph.2024.1606648.
3 Calculation assumes an eight-hour day for 250 working days a year over 45 years.
4 Pryce-Jones, J. (2011). Happiness at Work: Maximizing Your Psychological Capital for Success. Wiley.
5 Dewhurst, M. et al. (2022). Living longer in better health: Six shifts needed for healthy aging. McKinsey Health Institute.
https://www.mckinsey.com/mhi/our-insights/living-longer-in-better-health-six-shifts-needed-for-healthy-aging; Brassey,
J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health. McKinsey Health Institute. https://
www.mckinsey.com/mhi/our-insights/reframing-employee-health-moving-beyond-burnout-to-holistic-health.
6 Calculation assumes an eight-hour day for 250 working days a year over 45 years; Brassey, J. et al. (2024). Working nine
to thrive. McKinsey Health Institute. https://www.mckinsey.com/mhi/our-insights/working-nine-to-thrive.
7 Ungerman, D., et al., (2024). How to achieve great health for all? Start in your city. McKinsey Health Institute. https://
www.mckinsey.com/mhi/our-insights/how-to-achieve-great-health-for-all-start-in-your-city.
8 Lund, S., et al. (2021). The future of work after COVID‑19. McKinsey Global Institute. https://www.mckinsey.com/
featured-insights/future-of-work/the-future-of-work-after-covid-19.
9 Brassey, J. et al. (2022). Addressing employee burn-out: Are you solving the right problem? McKinsey Health Institute.
https://www.mckinsey.com/mhi/our-insights/addressing-employee-burnout-are-you-solving-the-right-problem.
10 Moose, A., Enomoto, K., Harris, E. (2024). Brain gain: How improving brain health benefits the economy. World Economic
Forum. https://www.weforum.org/stories/2024/09/brain-gain-how-improving-brain-health-benefits-the-economy/.
11 Brassey, J. et al. (2024). Working nine to thrive. McKinsey Health Institute. https://www.mckinsey.com/mhi/our-insights/
working-nine-to-thrive.
12 “The departure of employees from the organization for any reason (voluntary or involuntary), including resignation,
termination, death or retirement,” from: Gartner. (n.d). Attrition. https://www.gartner.com/en/human-resources/glossary/
attrition.
13 “Any failure to report for or remain at work as scheduled, regardless of the reason,” from: van Vulpen, E. (n.d.).
Absenteeism in the Workplace: A Full Guide. AIHR. https://www.aihr.com/blog/absenteeism/.
14 “The act of staying at work longer than usual, or going to work when you are ill, to show that you work hard and are
important to your employer,” from Cambridge Dictionary. Presenteeism. In Cambridge Dictionary. https://dictionary.
cambridge.org/dictionary/english/presenteeism
15 “The efficiency with which tasks and goals are accomplished at an organization, fostered through creativity and
innovation,” from: MindManager. (2020, 5 May). Productivity in the workplace? What is it and why is it important.
MindManager. https://blog.mindmanager.com/202005202003what-is-productivity-in-the-workplace/.
16 Brassey, J. et al. (2024). Working nine to thrive. McKinsey Health Institute. https://www.mckinsey.com/mhi/our-insights/
working-nine-to-thrive.
17 Ibid.
18 World Health Organization. (2023, 16 September). Noncommunicable diseases. https://www.who.int/news-room/fact-
sheets/detail/noncommunicable-diseases; NCD Alliance. (2017). Tackling noncommunicable diseases in workplace
settings in low- and middle-income countries. https://ncdalliance.org/sites/default/files/resource_files/Tackling%20
noncommunicable%20diseases%20in%20workplace%20settings%20in%20LMICs_WEB.pdf.
19 CDC Foundation. (2015, 28 January). Worker Illness and Injury Costs U.S. Employers $225.8 Billion Annually. https://
www.cdcfoundation.org/pr/2015/worker-illness-and-injury-costs-us-employers-225-billion-annually.
20 Goetzel, R. et al. (2004). Health, absence, disability, and presenteeism cost estimates of certain physical and mental
health conditions affecting U.S. employers. Journal of Occupational and Environmental Medicine, vol. 46, no. 4, pp. 398-
412. https://doi.org/10.1097/01.jom.0000121151.40413.bd.
21 Virani, S. et al., (2020). Heart Disease and Stroke Statistics-2020 Update: A Report From the American Heart
Association. Circulation, vol. 141, no. 9. https://doi.org/10.1161/CIR.0000000000000757; U.S. Centers for Disease
Control and Prevention. (2024, 16 September). About the Division for Heart Disease and Stroke Prevention. https://www.
cdc.gov/nccdphp/divisions-offices/about-the-division-for-heart-disease-and-stroke-prevention.html.
22 Kessler, R. et al. (2011). Insomnia and the performance of US workers: results from the America insomnia survey. SLEEP,
vol. 34, no.9. https://doi.org/10.5665/SLEEP.1230.
23 Gupta, A. et al. (2024). Reimagining US employer health benefits with innovative plan designs. McKinsey & Company. .
https://www.mckinsey.com/industries/healthcare/our-insights/reimagining-us-employer-health-benefits-with-innovative-
plan-designs.
24 Organisation for Economic Co-operation and Development (OECD). (n.d.). Health spending and financial sustainability.
https://www.oecd.org/en/data/indicators/health-spending.html.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 38
25 Kawakami, N., Tsutsumi, A. (2016). The Stress Check Program: A new national policy for monitoring and screening
psychosocial stress in the workplace in Japan. Journal of Occupational Health, vol. 58, no. 1. https://doi.org/10.1539/joh.15-
0001-ER.
26 Krekel, C., Ward, W., De Neve, J. (2019). Employee Wellbeing, Productivity, and Firm Performance. Said Business School.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3356581; Oswald, A., Proto, E., Sgroi, D. (2015). Happiness and
productivity. Journal of Labor Economics, vol. 33, no. 4. https://doi.org/10.1086/681096; Sorenson, S. (2013). How
Employee Engagement Drives Growth. Gallup Business Journal; Gallup. (2020, 14 October). Gallup Q12 Meta-Analysis.
27 Oswald, A., Proto, E., Sgroi, D. (2015). Happiness and productivity. Journal of Labor Economics, vol. 33, no. 4. https://doi.
org/10.1086/681096.
28 Bellet, C., De Neve, J., Ward, G. (2019). Does Employee Happiness have an Impact on Productivity? Said Business
School. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3470734.
29 Umland, B. (2018, 10 April). The surprisingly strong connection between well-being and turnover. Mercer. https://www.
mercer.com/en-us/insights/us-health-news/the-surprisingly-strong-connection-between-well-being-and-turnover/.
30 Bellet, C., De Neve, J., Ward, G. (2019). Does Employee Happiness have an Impact on Productivity? Said Business
School. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3470734.
31 In this report, generations are sometimes referred to as Gen Z, Millennials, Gen X and Boomers. The authors are aware
that some academic research is discussing the usefulness of generations as a concept (see e.g. Costanza, D., et al.
(2023). Are generations a useful concept? Acta Psychologica, vol. 241, https://doi.org/10.1016/j.actpsy.2023.104059.
Generations are referred to in the text for ease of reporting and pragmatism given that they are well-known with the
audience of this report. However, to clarify, Gen Z refers to people born between 1996 and 2010, Millennials refers to
people born between 1981 and 1995, Gen X refers to people born between 1965 and 1980 and Boomers refer to people
born between 1946 and 1964.
32 Wellhub. (2023). The State of Work-Life Wellness. https://wellhub.com/en-uk/resources/research/work-life-wellness-
report-2024/.
33 Coe, E., et al. (2023). Gen Z mental health: The impact of tech and social media. McKinsey Health Institute. https://www.
mckinsey.com/mhi/our-insights/gen-z-mental-health-the-impact-of-tech-and-social-media.
34 Grimm, M., Holzhausen, A. (2023, 7 June). The right to work versus the right to retire. Allianz. https://www.allianz.com/
en/economic_research/insights/publications/specials_fmo/ageism-global-demography.html.
35 Sull, D., Sull, C., Zweig, B. (2022, 11 January). Toxic Culture Is Driving the Great Resignation. MIT Sloan Management
Review. https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/.
36 De Neve, J., Kaats, M., Ward, G. (2023). Workplace Wellbeing and Firm Performance. Wellbeing Research Centre
University of Oxford. https://ora.ox.ac.uk/objects/uuid:8652ce7e-7bde-449f-a5e7-6b0d0bcc3605/files/s6d56zz16v.
37 Ibid.
38 Nelson, N., Sloan, J., Chandra, A., (2019). Examining Civic Engagement Links to Health: Finding from the Literature and
Implications for a Culture of Health. Rand Corporation. https://www.rand.org/pubs/research_reports/RR3163.html.
39 Koller, T., Kane, S. (2020). The ESG premium: New perspectives on value and performance. McKinsey & Company.
https://www.mckinsey.com/capabilities/sustainability/our-insights/the-esg-premium-new-perspectives-on-value-and-
performance.
40 S&P Global. (n.d.). Corporate Sustainability Assessment. https://www.spglobal.com/esg/csa/.
41 Hong Kong Exchange (n.d.). Environmental, Social and Governance Reporting Guide. https://en-rules.hkex.com.hk/
rulebook/appendix-c2-environmental-social-and-governance-reporting-guide-0.
42 European Agency for Safety and Health at Work. (2022, 9 September). Policy, law and guidance for psychosocial issues
in the workplace: an EU perspective. https://oshwiki.osha.europa.eu/en/themes/policy-law-and-guidance-psychosocial-
issues-workplace-eu-perspective.
43 Coe, E., et al. (2022). Adding years to life and life to years. McKinsey Health Institute. https://www.mckinsey.com/mhi/
our-insights/adding-years-to-life-and-life-to-years; von Hammerstein, C. (2024). Health-related climate adaptation:
How to innovate and scale global action for local needs. McKinsey Health Institute. https://www.mckinsey.com/mhi/
our-insights/health-related-climate-adaptation-how-to-innovate-and-scale-global-action-for-local-needs; Rugulies, R., et
al. (2023). Work-related causes of mental health conditions and interventions for their improvement in workplaces. The
Lance, vol. 402, no.10410. https://doi.org/10.1016/S0140-6736(23)00869-3.
44 A self-assessment survey with comparative analysis. Responses may vary because the survey is based on self-
assessment by individual employees and because individuals can, for example, be more likely to report symptoms of
exhaustion rather than other aspects of burn-out symptoms, as the former may be more socially acceptable.
45 Definitions of holistic health elements according to the World Health Organization (WHO). Total holistic health data
represents the percentage of respondents who reported an average of four or more per sub-dimension or an average of
four or more across the four dimensions of health.
46 Data on mental, physical, social and spiritual health represents the percentage of respondents scoring an average
of four or more on a five-point scale (strongly disagree, disagree, neutral, agree, strongly agree) on items for each
dimension. Data on holistic health represents the percentage of respondents scoring an average of four or more across
all dimensions.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 39
47 Data on cognitive impairment, emotional impairment, exhaustion and mental distance represents the percentage of
respondents scoring an average of three or more on a five-point scale (never, rarely, sometimes, often, always) on
items for each dimension. Data on burn-out symptoms represent the percentage of respondents scoring an average
of three or more across all four dimensions (12 items of the short-BAT see: Burnout Assessment Tool. (n.d.). https://
burnoutassessmenttool.be/start_eng/).
48 The percentage of those “faring well” is represented by respondents reporting low burn-out symptoms and high holistic
health as explained in Brassey, J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health.
McKinsey & Company. https://www.mckinsey.com/mhi/our-insights/reframing-employee-health-moving-beyond-
burnout-to-holistic-health.
49 Data on total burn-out symptoms represents the percentage of respondents who reported an average of three or more
per subdimension (exhaustion, cognitive impairment, emotional impairment and mental distance) or across all 12 items
constituting overall burn-out symptoms.
50 Based on Dynata taxonomy.
51 Burn-out refers to employees reporting burn-out symptoms, including the following: exhaustion, mental distance,
cognitive impairment and emotional impairment, as measured by the Burn-out Assessment Tool (BAT). Employee health
refers to employees self-reporting their holistic health, including mental, physical, social and spiritual health. See Brassey,
J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health. McKinsey Health Institute.
52 Not all industries could be included in the analysis due to insufficient data points caused by, for example, low sample size.
53 For many of the subgroup analyses, sample size becomes too small to draw strong conclusions or perform advanced
analytics. Because outcomes and context can vary between groups and situations, it is recommended that organizations
establish their own baseline measurements in context to identify potential opportunities for improvement.
54 For example, mental health challenges may be more pronounced in certain countries or industries compared to others.
Since the focus here is on holistic health functioning and burn-out symptoms, specific mental health issues may not be
immediately evident in the global data. For instance, addiction and substance use are known to be significant problems
among US construction workers. See: Kaliszewski, M. (2024, 23 August). Construction Workers & Addiction: Statistics,
Recovery & Treatment. American Addiction Centres. https://americanaddictioncenters.org/workforce-addiction/blue-
collar/construction-workers.
55 The examination of different demographic factors varied by country due to various limitations. In some cases, definitions
were unclear or not aligned, and in others, country regulations imposed restrictions. As a result, several demographic
factors are excluded from the global analysis.
56 The varying sample sizes for industries globally poses a challenge, as differences in response style can influence results
– e.g. if a country with a high survey response style bias has an uneven spread in the specific sample or subsample, it
could skew results positively or negatively. Future research needs to explore these nuances.
57 Groups were identified based on responses to the question “What is your sexual orientation?” Response options included
the following: heterosexual or straight, homosexual (gay or lesbian), bisexual, not listed and don’t know/not applicable.
Due to country restrictions, data could not be collected from Egypt, Indonesia, India, Nigeria, Saudi Arabi, South Africa or
the United Arab Emirates.
58 Lower education defined as no high school degree.
59 Divergent respondents self-identified as having a neurodevelopmental condition, such as autism spectrum disorder (ASD),
attention deficit hyperactivity disorder (ADHD), dyspraxia, Tourette syndrome or any other neurodevelopmental condition
(diagnosed or not diagnosed). This was gathered via the question “Have you been diagnosed with a neurodevelopmental
condition such as ASD, ADHD, dyslexia, dyspraxia, Tourette syndrome or any other neurodevelopmental condition?”
Response options included “yes”, “no”, “I think I have a neurodevelopmental condition but have not been diagnosed”,
and “don’t know/not applicable”.
60 Remuneration score based on combined scoring of three statements – for example, “The pay I receive at my job is
enough to cover my basic needs (e.g. housing, food, utilities, transport)”.
61 In this survey, population-representative samples were collectec across 30 countries, matching country-specific targets
on six quota variables: age, gender, tertiary education, industry, position (blue collar versus white collar versus manager)
and employer size (number of employees). Additional quotas were added based on the country (e.g. race, region in the
US, language).
62 The sample size for non-cisgender individuals in the survey was too small for a separate analysis. However, when
comparing cisgender men with non-cisgender individuals (including those self-identifying as women, transgender women,
transgender men, genderqueer and others), significant differences in employee health emerged: cisgender men reported
better overall health compared to non-cisgender individuals.
63 Ellingrud, K., et al. (2024). Closing the women’s health gap: A $1 trillion opportunity to improve lives and economies.
McKinsey Health Institute. https://www.mckinsey.com/mhi/our-insights/closing-the-womens-health-gap-a-1-trillion-
dollar-opportunity-to-improve-lives-and-economies.
64 World Health Organization (WHO). (n.d.). Improving LGBTIQ+ health and well-being with consideration for SOGIESC.
https://www.who.int/activities/improving-lgbtqi-health-and-well--being-with-consideration-for-sogiesc.
65 Jacobson, R. et al. (2022). Active allyship: Do your LGBTQ+ employees feel supported and included?, McKinsey &
Company. https://www.mckinsey.com/featured-insights/diversity-and-inclusion/active-allyship-do-your-lgbtq-plus-
employees-feel-supported-and-included.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 40
66 Neurodivergent respondents self-identified as having a neurodevelopmental condition, such as ASD, ADHD, dyspraxia,
Tourette syndrome or any other neurodevelopmental condition (diagnosed or not diagnosed). This was gathered via the
question “Have you been diagnosed with a neurodevelopmental condition such as ASD, ADHD, dyslexia, dyspraxia,
Tourette syndrome or any other neurodevelopmental condition?” Response options included “yes”, “no”, “I think I have a
neurodevelopmental condition but have not been diagnosed”, and “don’t know/not applicable”.
67 Heron. R. (2024). How neurodiversity in the workplace can drive business success. World Economic Forum. https://www.
weforum.org/stories/2024/10/neurodiversity-neuroinclusion-workplace-business/.
68 McKinsey & Company. (2024). “Understanding what neurodivergent employees need to succeed”. https://www.
mckinsey.com/capabilities/people-and-organizational-performance/our-insights/understanding-what-neurodivergent-
employees-need-to-succeed.
69 Bruick. Z. et al. (2023). Impacts of climate change on Black populations in the United States. https://www.mckinsey.
com/bem/our-insights/impacts-of-climate-change-on-black-populations-in-the-united-states; Arora, L, et al. (2022). Heat
waves, the war in Ukraine, and stigma: Gen Z’s perspectives on mental health. Mckinsey Health Institute. https://www.
mckinsey.com/mhi/our-insights/heat-waves-the-war-in-ukraine-and-stigma-gen-zs-perspectives-on-mental-health.
70 The sample size for age group 61 and older is 1,068.
71 Brassey, J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health. McKinsey Health Institute.
72 Self-efficacy was measured using three items of the Schwarzer Generalized Self-Efficacy Scale (see: Schwarzer, R.,
Jerusalem, M. (1995). The General Self-Efficacy Scale (GSE). Free University of Berlin). The items included were “I am
confident that I could deal efficiently with unexpected events”, “Thanks to my resourcefulness, I know how to handle
unforeseen situations” and “I can remain calm when facing difficulties because I can rely on my coping abilities”.
73 McKinsey Health Institute. (2024), The ‘evergreen economy’: Harnessing the power of healthy longevity. https://www.
mckinsey.com/mhi/our-insights/the-evergreen-economy-harnessing-the-power-of-healthy-longevity.
74 “Drivers” means predictive correlations as tested in an extensive regression model. It does not mean causal, as the
results were collected with one survey instrument at the same time. Employee experience factors based on the job
demands and resources model were regressed on outcomes such as burn-out symptoms and holistic health in a similar
way to a previous publication: Brassey, J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic
health. McKinsey Health Institute.
75 Brassey, J.et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health. McKinsey Health Institute.
76 Financial status was measured by the question: “What best describes your financial situation?”. Possible answers were “I
face serious hardship”, “I can get by with current resources”, “I live comfortably but cannot afford to indulge”, “I can live
comfortably and indulge in activities I like” and “Prefer not to answer”.
77 Financial stability was measured with the combined scoring of five negatively framed items (e.g. “I don’t have money left
over at the end of the month”). Responses were reported on a five-point scale: strongly disagree, disagree, neither agree
nor disagree, agree and strongly agree. Low financial stability is represented by a consistent combined agree/strongly
agree score. Financial stability was represented by respondents with a consistent combined strongly disagree and
disagree score.
78 Remuneration was measured with the combined scoring of three items: “The pay I receive at my job is enough to cover my
basic needs (e.g. housing, food, utilities, transport)”, “My company pays me enough to feel financially secure” and “My pay
is sufficient to support myself and/or my family”. Responses were reported on a five-point scale: strongly disagree, disagree,
neither agree nor disagree, agree and strongly agree. The result was taken as an average across the three answers.
Respondents with a consistent ‘strongly disagree’ and ‘disagree’ score were reported as low remuneration (or as described
in the text: ‘reported less positively on remuneration’). Respondents with a consistent ‘agree’ and ‘strongly agree’ score
were reported as high remuneration (or as described in the text: ‘reported positively on remuneration’).
79 Financial status was measured with the question “What best describes your financial situation?”. Possible answers were
“I face serious hardship”, “I can get by with current resources”, “I live comfortably but cannot afford to indulge”, “I can
live comfortably and indulge in activities I like” and “Prefer not to answer”. Poor financial status are those respondents
that chose: “I face serious hardship” compared to respondents that report good financial status and chose: “I can live
comfortably and indulge in activities I like”
80 Brassey, J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health. McKinsey & Company.
81 Job insecurity was measured by respondents’ responses to the question, “I feel like there is a good chance I could lose
my job”. Responses were reported on a five-point scale: strongly disagree, disagree, neither agree nor disagree, agree
and strongly agree. Those who responded one or two reported low financial security. Those who responded four or five
reported high job insecurity.
82 Asfaw, A. G., Chang, C. C. (2019). The association between job insecurity and engagement of employees at work. Journal
of workplace behavioral health, vol. 34, no. 2, pp. 96-110. https://doi.org/10.1080/15555240.2019.1600409.
83 Measured with the question “Which of the following best describes your current role at your employer?”. Possible
answers were front-line worker, individual contributor, frontline manager, middle management or upper management.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 41
84 Self-efficacy was measured using three items of the Schwarzer Generalized Self-Efficacy Scale (see: Schwarzer, R.,
Jerusalem, M. (1995). The General Self-Efficacy Scale (GSE). Free University of Berlin). The items included were “I am
confident that I could deal efficiently with unexpected events”, “Thanks to my resourcefulness, I know how to handle
unforeseen situations” and “I can remain calm when facing difficulties because I can rely on my coping abilities”.
Belonging means that individuals report feeling connected with others at work and that they feel like they belong at
their company. Meaning is defined as employees reporting that their work gives them a sense of purpose, they find
meaning in their work every day and they feel a sense of accomplishment through their work. Adaptability refers to an
employee’s underlying potential to effectively adjust or anticipate task-related, environmental and vocational demands.
Adaptability comprises three components: cognitive, affective and behavioural. In McKinsey Health Institute’s survey,
affective adaptability was measured by: van Dam, K. Meulders, M. (2020). The Adaptability Scale: Development, internal
consistency, and initial validity evidence. European Journal of Psychological Assessment, vol. 37, no. 2.
85 Fuller. J, Raman. M, Hintermann F. (2024). Hidden Workers: The Case For Caregivers. Harvard Business School. https://
www.hbs.edu/managing-the-future-of-work/Documents/research/Hidden%20Workers%20The%20Case%20for%20
Caregivers%20100324.pdf.
86 Podshadley, E. et al. (2024). Prioritizing employee wellbeing may help stem the tide of rising turnover. S&P Global.
https://www.spglobal.com/esg/insights/featured/special-editorial/prioritizing-employee-wellbeing-may-help-stem-the-
tide-of-rising-turnover.
87 Companies often tailor these to their own needs. What is important is that they are validated and based on high-quality
evidence. For an example of what these surveys may include, see: Brassey, J. et al. (2023). Reframing employee health:
Moving beyond burn-out to holistic health. McKinsey & Company.
88 Often, pulse checks contain a relevant subsection of annual people surveys and specific outcomes involving health or
engagement.
89 Verelst, F. et al. (2021). Workplace influenza vaccination to reduce employee absenteeism: An economic analysis from the
employers’ perspective. Vaccine, vol. 39, no. 14. https://doi.org/10.1016/j.vaccine.2021.02.020.
90 Steffens, N. et al. (2014). Organizational Tenure and Employee Performance: A Multilevel Analysis. Group & Organization
Management, vol. 39, no. 6. https://doi.org/10.1177/1059601114553512.
91 Nielsen, K., Yarker, J., Munir, F., Bültmann, U. (2018). IGLOO: An integrated framework for sustainable return to work in
workers with common mental disorders. Work & Stress, vol. 32, no. 4, pp. 400-417. https://doi.org/10.1080/02678373.201
8.1438536.
92 Asics. (2024). Movement for the mind. https://www.asics.com/gb/en-gb/mk/asics-movement-for-mind.
93 European Agency for Safety and Health at Work. (2024). Audi voluntary medical check-ups – Germany. https://osha.
europa.eu/en/publications/germany-audi-voluntary-medical-check-ups.
94 Singla A. et al. (2024). The state of AI in early 2024: Gen AI adoption spikes and starts to generate value. McKinsey &
Company. https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai.
95 Varley, T., Glaser, J. (2023). Using Data to Improve Employee Health and Wellness. Harvard Business Review. https://hbr.
org/2023/11/using-data-to-improve-employee-health-and-wellness.
96 Experian. (2024). Safeguarding talent and saving c.$14m with predictive workforce analytics. https://www.experian.
co.uk/assets/background-checking/case-studies/predictive-workforce-analytics-case-study.pdf.
97 Or aimed at designing evidence-based interventions. For example, where they do not exist yet in an adaptive way.
98 As with most core KPIs, these metrics likely have detailed KPIs below them, but these are often tracked by an
implementation team, not at the board level.
99 Opening Minds. (2021). Case Study: Ikea and Mental Health First Aid. https://openingminds.org/case-studies/ikea-and-
mental-health-first-aid/.
100 Brassey, J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health. McKinsey Health
Institute. These percentages are an indication and based on the research model of the research performed by McKinsey
Health Institute. Naturally, emphasis for different levels and drivers is related to the designed research model. In this
research, demands at the team and job level were more strongly represented in the constructs measured, whereas the
constructs included on enablers had a wider spread across four levels: individual, job, team and organization. Every
organization needs to do its own investigation of what is most relevant to it and its unique contexts, though insights from
a well-researched model such as the job demands and resources model, may be helpful reference to get started.
101 Brassey, J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health. McKinsey Health Institute.
102 Brassey, J. et al. (2023). Reframing employee health: Moving beyond burn-out to holistic health. McKinsey Health Institute.
103 McKinsey & Company. (2023). Stop wasting your most precious resource: Middle managers. https://www.mckinsey.
com/capabilities/people-and-organizational-performance/our-insights/stop-wasting-your-most-precious-resource-middle-
managers.
104 Field, E. et al. (2023). Investing in middle managers pays off – literally. McKinsey & Company. https://www.mckinsey.
com/capabilities/people-and-organizational-performance/our-insights/investing-in-middle-managers-pays-off-literally.

Thriving Workplaces: How Employers can Improve Productivity and Change Lives 42
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