Does wellbeing improve employee engagement? Data says yes

Work wellbeing and employee engagement go hand in hand. Each one supports the other. When people are happy and fulfilled at work, their health gets better. When they feel healthy, supported, and mentally well, they are more likely to enjoy their jobs. This creates a positive cycle that organisations can choose to support or ignore.

For HR and business leaders, this is a great opportunity to improve engagement, performance, and retention at the same time. Engagement is not just a business result; it also affects health. Wellbeing is not only personal; it strongly drives engagement. Organisations that see and act on this link can build healthier teams, better cultures, and lasting results.

Learn how wellbeing affects employee engagement rates, what the data shows about the impact of full wellbeing strategies, and how HR and leaders can include them in their engagement programs. If you want to improve results for the long term, start by understanding this connection.

Employee engagement is a challenge in the UK

Low employee engagement is a growing issue in the UK. In 2024, only 10% of employees reported feeling engaged at work, compared to the European average of 13%. The UK placed around 30th out of 38 European countries for employee engagement.

The emotional impact of disengagement makes this issue even more urgent. About 26% of UK workers say they feel sad every day, 17% report feeling lonely daily, and 41% experience stress each day. These numbers highlight the daily emotional struggles associated with low engagement. This is not just a temporary issue. The share of employees who report being engaged at work has dropped from 20% in 2009 to 10% in 2024. 

The high cost of employee disengagement for companies

Disengagement shows. It spreads negativity, lowers morale, and hurts performance. It's costly, too. An actively disengaged employee costs $3,400 for every $10,000 of salary (34% of pay). If many disengage, costs rise quickly. 

Even when building engagement takes effort and investment, the benefits are clear. Engaged employees outperform disengaged ones and show more loyalty.

How does wellbeing help employees become more engaged at work?

Did you know that six out of ten engaged employees think their work helps their physical health? For disengaged employees, this drops to 39%, and for those who are actively disengaged, it is only 22%. More than half of disengaged employees say their work life hurts their health and wellbeing.

The difference is even bigger for mental and emotional health. Eight out of ten employees say their work helps them mentally. For disengaged employees, this falls to 48%, and for those who are actively disengaged, it is just 15%. More than half of actively disengaged employees say their work harms their mental health, while far fewer disengaged and engaged workers say the same.

62% of engaged employees feel their work positively affects their physical health. 

State of the Global Workplace, Gallup

When employees feel good, they have more energy, can focus better, and recover from stress more quickly. To fully understand the impact, it's important to see what happens when high engagement aligns with high wellbeing across multiple areas of life. Research comparing engaged employees shows a clear difference between those with strong wellbeing in four or more elements versus those with strong engagement but weaker wellbeing overall.

Adding wellbeing does not just make people feel better. It improves attendance, performance, confidence, adaptability, and retention. It turns engagement into something sustainable. Here is what changes when employees have high engagement and high wellbeing across at least four out of five key elements (physical, mental, emotional, social, and financial):

• 30% more likely to miss no workdays due to poor health in any given month
• 70% fewer workdays missed due to poor health over the course of a year
• 42% more likely to evaluate their overall lives highly
• 27% more likely to report excellent performance in their own job
• 45% more likely to report high adaptability in the presence of change
• 37% more likely to report always recovering fully after illness, injury, or hardship
• 59% less likely to look for a job with a different organisation in the next 12 months
• 18% less likely to change employers within a 12-month period
• 19% more likely to volunteer their time in the past month

These numbers show the impact. Wellbeing is the foundation for engagement. Healthy employees attend work more and recover from stress quickly, reducing long-term issues. When people adapt easily, change feels less stressful, and they bring more energy to their jobs.

The role of wellbeing programmes for better engagement 

Employee wellness programs at work also play a big role in engagement. A recent survey found that most companies think these programs help employees get more involved, and many started them to boost engagement. This means employers see wellbeing as more than a nice extra—they see it as a way to build a better culture and improve results.

More than 70% of executives said that they had seen the value of employee wellbeing strategies

Virgin Pulse Survey

Our report’s data shows the same trend. Employees connect wellbeing with better performance and expect their employers to support them. Our reports found:

• 85% say wellbeing at work is as important as salary
• 86% agree their employer has a responsibility to help them tend to their wellbeing

These expectations affect how engaged people feel. Next, consider how employer support or neglect of wellbeing impacts real engagement at work. When employees see that their wellbeing matters and is supported, they try harder. If employers ignore it, engagement can drop quickly.

Our data also shows that wellness programs help engagement by making wellbeing support available during work hours. Further exploration reveals that the availability and timing of support are crucial for participation. When employees have time and are encouraged to participate, more people do. That’s when results start to get better:

• With a programme, 79% say work allows time for exercise, counselling, or mental health breaks when needed. Without a programme, that drops to 55%.
• For example, among Wellhub members, 48% incorporate wellness activities into their workday at least once per day. Among non-members, that is 20%

Ultimately, this is what helps engagement rates go up. Rather than just being told to look after themselves, people actually get the chance to do it, as shown before. This lowers stress, enhances focus, and prevents burnout.

Wellbeing is a sign of trust

Beyond day-to-day wellbeing, trust is another reason why it boosts engagement. When employees believe HR and leaders truly care, they are more likely to join in, give feedback, and stay committed. Our insights shows there is a big trust gap:

• With access to a wellness programme, 77% believe HR genuinely cares about their wellbeing. Without access, only 38% say the same.
• Among Wellhub members, 64% believe HR genuinely cares. Among employees without Wellhub, 29% believe HR genuinely cares.

Trust matters. When employees feel cared for, they do extra work and stay engaged even in tough times.

Social and financial wellbeing also plays an important role

Alongside trust, social wellbeing also helps engagement by creating a sense of belonging. People keep up healthy habits more easily when they have support from others, and shared activities can help hybrid teams reconnect: 

• 66% of UK employees say community or social support is extremely or very important for maintaining long-term wellness habits.
• 56% feel very connected to others during shared wellness activities.
• 65% say they are motivated to engage in wellbeing when they do it with others.

Stronger relationships reduce loneliness, improve teamwork, and boost morale—all closely linked to engagement.

Just as social connection matters, financial well-being affects engagement more than many organisations realise. When money stress is high, capacity drops. Sleep suffers. Healthy routines become harder:

• 95% agree that physical, mental, emotional, and social health are interconnected

A complete approach to wellbeing drives engagement. Because these areas are linked, engagement can’t improve if employees face stress outside work. Support must address every part of a person’s life.

How can HR and leadership adopt wellbeing strategies into their engagement programmes?

To improve employee engagement, wellbeing should influence how work is planned, managed, and experienced. This goes further than just offering benefits—it’s a connection to performance, culture, and daily management.

Here are some practical ways for HR and leadership teams to incorporate it into their engagement programs:

Invest in wellbeing holistically, not selectively

Employee wellbeing is about more than just nutrition and fitness. Engagement will not improve if support focuses on only one area of health. Because people experience work holistically, wellbeing strategies should cover all aspects too.

HR teams should create programs that support every part of a person, such as:

• Mental and emotional wellness
• Stress management and recovery
• Sleep and energy management
• Physical health and movement
• Social connection and belonging
• Financial wellbeing and stability
• Professional growth and purpose

Our data shows that most employees see these health areas as connected, and that money and time pressures often make it hard to focus on their self-care. A holistic approach helps remove these barriers and encourages participation, which leads to better engagement.

Don't missed out: How to build an effective employee wellbeing strategy in 2026?

Align goals with performance and productivity goals

Wellbeing and productivity are closely linked. Engagement gets better when healthy habits support how people work. Leaders can align goals by encouraging habits that boost focus, energy, and resilience at work, such as:

• Normalising regular breaks during the day
• Encouraging movement or short walks when stress rises
• Reducing back-to-back meetings
• Providing access to nutrition tools
• Providing access to meditation and mindfulness apps
• Facilitating going to the gym and classes (before and after work)
• Supporting flexible schedules where possible

Foster a visible, healthy culture

A wellbeing strategy is most effective when it is part of daily culture. Employees watch leaders for examples. If leaders do not show healthy habits, the benefits of engagement will be limited.

HR can support leaders by helping them:

• Actively encourage participation, not just approve it
• Speak openly about stress, recovery, and balance
• Model breaks, movement, and realistic workloads
• Treat wellbeing as part of how teams succeed, not as an extra

Encourage participation while respecting personal choice

Leaders can also influence engagement by how they set expectations. Encouraging people to join wellness activities shows health matters. Engagement-focused programs let employees:

• Choose wellness activities that suit their goals and preferences
• Participate in ways that fit different roles and schedules
• Engage socially or independently, depending on comfort level

This approach makes expectations clear while respecting each person’s choices.

Recognise achievements as well as work outcomes

Recognition boosts engagement because it shows what the organisation values. When work wellbeing is recognised, employees see health as part of performance, not something separate.

HR and leaders can:

• Acknowledge participation in specific initiatives
• Celebrate healthy habit milestones in team settings
• Recognise teams that support each other’s self-care
• Include wellbeing contributions in broader recognition programmes

Employees who feel cared for are more likely to stay engaged. Recognition keeps this going by encouraging positive actions. Mak these wellbeing activities simple to highlight the most important parts.

Recognition is important, but it is also key to explain how each activity supports overall health. Leaders can do this by linking each initiative to areas like physical, mental, social, financial, or emotional health.

This helps managers:

• Personalise conversations around wellbeing
• Support employees based on individual needs
• Create more focused and achievable goals

Clear communication also shows that leaders care about employees as people, not just as workers. This message directly affects engagement and participation.

Involve employees in shaping initiatives

Employee input is key to engagement. When employees share ideas and feedback, they feel more ownership of the program and are more likely to take part.

HR teams should:

• Ask employees which initiatives are working
• Invite suggestions for new activities
• Test ideas through pilots and feedback loops
• Adjust programmes based on real usage data

Engagement increases when employee opinions lead to real change.

Include wellbeing goals in performance and development conversations

Employee wellbeing should be part of regular talks between managers and employees. Leaders can incorporate it by:

• Asking simple, supportive questions during check-ins
• Discussing energy, workload, and recovery alongside goals
• Setting small, achievable milestones
• Offering support rather than solutions

This approach makes any strategy practical and personal. It also creates the trust needed for lasting engagement.

The strategic payoff for HR and leadership

When work wellbeing is part of engagement programs, organisations benefit. Employees become healthier and happier. Engagement and performance improve, and retention improves. Also, by making wellbeing part of the engagement strategy, HR and leaders can simultaneously build a healthier workforce and a stronger culture.

To summarize: include it in all HR and leadership work, connect it to performance, build a visible healthy culture, encourage participation while respecting choice, recognise achievements, involve employees, and have supportive conversations. 

Start now: Get a free quote and begin building a program that supports your employees across every dimension of their wellbeing.