Why staff wellbeing of is now a strategic imperative

Progress: Encouragingly, there is evidence that wellbeing is finally being recognised as a strategic priority. Since 2020, the number of employers with a stand-alone wellbeing strategy has increased by 13 per cent to 57 per cent. The statistics suggest senior leaders are increasingly buying into wellbeing initiatives, signalling a positive shift from lip service to genuine commitment. Organisations are also taking a more holistic approach to wellbeing, promoting tailored activities like financial wellbeing, values, and good lifestyle choices.

Pitfalls: It’s not all positive news. The average absence per employee per year has risen to 9.4 days, the highest in over 15 years, with increased working age thought to be a contributing factor. While there is evidence of some investment in preventative measures such as staff surveys and focus groups, stress audits and access to counselling, generally action tends to be reactive rather than proactive. That will need to change if employers want to see improved absence rates in their business longer-term.

Pressing Priorities: The most troubling findings are around mental health – the leading cause of long-term absence, with poor mental health and stress featuring strongly as a cause of short-term ill health. Nearly two-thirds (64 per cent) of organisations are taking steps to identify or reduce stress in the workplace, but only half believe their efforts are effective. In the 2025 report, over half of organisations include non-work factors as a top three cause of stress, reflecting the multi-faceted nature of people’s mental health in modern day life.

Furthermore, the CIPD Working Lives Scotland 2025 report states 26 per cent of Scottish employees say work has a negative impact on their mental health and 24 per cent say it is negative for their physical health. Over a fifth (22 per cent) of Scottish employees find it hard to relax in their personal time due to their job. This combined picture highlights the direct impact working environments have on physical and mental health for individuals, furthering the urgent requirement for meaningful workplace wellbeing strategies to be implemented by Scotland’s employers.

The evidence also confirms that hybrid working is here to stay. The Wellbeing survey highlights that working from home can lower absence and boost productivity, with 36 per cent of employers reporting reduced sickness absences and increased productivity. The Working Lives report confirms strong employee support for hybrid models and unmet demand for flexible working options including four-day weeks, compressed hours and flexitime. It also found that hybrid working strongly correlates with positive mental and physical health compared to no homeworking options.

The message from both reports is clear – wellbeing is now a strategic imperative, regardless of industry. The most successful employers will be those that embed wellbeing into organisational culture, moving beyond tick-box exercises. Just as they say, “culture eats strategy for breakfast”, the same is true of a wellbeing policy which isn’t lived and breathed from the top. The main challenges for employers will be in finding budget for wellbeing initiatives on top of steeply rising business costs; competing priorities for leadership teams; as well as navigating the new regulations being brought in by the Employment Rights Bill. However, in today’s competitive landscape, investment in wellbeing is a business-critical focus that shapes retention, engagement and long-term success.