Study after study confirms that wellbeing programs in the workplace drive results. Organizations that embed wellbeing into their culture experience 10 percent higher retention rates and up to 20 percent higher productivity, according to the Global Wellness Institute. Manager training boosts performance by 20 to 28 percent, according to Gallup, and the McKinsey Health Institute indicates that investing in employee health and wellbeing could generate up to US$11.7 trillion in global economic value.
Workers are increasingly receptive to receiving help. In Europe, 37 percent of employees say they would prefer better support for their wellbeing over a 10 percent salary increase, according to the TELUS Mental Health Index (MHI). In Singapore, that number is 46 percent, while in the United States, 57 percent of workers say they would consider switching to an employer offering the same pay but better wellbeing support. Organizations are responding – large companies spent an average of US$10.5 million on wellbeing programs in 2023, with global corporate spending projected to top US$94.6 billion by 2026.
Yet despite the ROI, clear demand and steep investment, employee engagement dropped in 2024 for only the second time in 12 years – a decline as steep as during pandemic lockdowns, according to Gallup. Anxiety, depression and chronic stress remain widespread across industries, costing organizations nearly 82.5 days in lost productivity per year per employee experiencing depression, and 75.5 days per year per employee experiencing anxiety, according to the MHI.
So where’s the disconnect? The answer often lies in how programs are designed and delivered. Even well-built programs can underperform when engagement, alignment or communication aren’t fully in place. Here are five common oversights that prevent wellbeing programs from realizing their full potential.
Five common mistakes that can derail wellbeing initiatives
1. Implementing without employee input
The issue: Designing wellbeing programs from the top down without understanding what employees actually need.
The consequence: Low adoption and engagement rates, wasted resources.
The solution: Make meeting employees’ requests a top priority. Forty-eight percent of HR professionals say addressing the needs of a diverse, multigenerational workforce drives their benefits decisions – more than cost, customization or available options. Listening sessions, pulse surveys and open feedback channels can help organizations understand what employees truly want. One UK company held more than 50 employee workshops and multiple pulse surveys to co-design its wellbeing strategy, which led to measurable improvements in staff efficiency, engagement and culture. When we interviewed workers in Canada, for example, they mentioned that expert-led sessions on handling stress, mental health and physical health would be most beneficial.
2. Prioritizing scale over personalization
The issue: Choosing one-size-fits-all solutions that ignore diverse employee needs and life stages.
The consequence: Critical life moments go unsupported, impacting productivity, engagement and retention.
The solution: Shift to programs that offer holistic support across the wellbeing continuum – from feeling well to struggling to feeling unwell. Each stage requires different types of support and intervention. These stages are not fixed points, but run along a spectrum that people naturally move across throughout their lives and careers. For example, up to 84 percent of mid-career women experiencing menopause symptoms report a mostly negative effect on their work when unsupported. By contrast, when organizations make menopause support visible, they see measurable improvements in job satisfaction and engagement.
3. Measuring activity instead of outcomes
The issue: Tracking participation rates and app downloads instead of actual wellbeing impact.
The consequence: Programs that look successful on paper but fail to improve employee wellbeing or productivity.
The solution: Shift to outcome-based measurement frameworks that track employee satisfaction, absenteeism and health indicators rather than simple participation rates. The TELUS MHI survey, for example, helps leaders see where strain is rising before it shows up in absenteeism, burnout or turnover. In a recent New Zealand survey, workers with poor sleep had lower mental-health scores, productivity and concentration than those who slept well – showing how small wellbeing shifts can have a big impact on how employees show up at work.
4. Underestimating implementation complexity
The issue: Focusing on technology platforms without addressing change management, communication and manager training.
The consequence: Tools that employees don't use – or don't even know exist.
The solution: Invest in comprehensive rollout strategies that prioritize communication, education and ongoing support. Wellbeing-focused training equips managers with emotional intelligence and stress management skills, enabling them to model healthy behaviors and create psychologically safe environments. Regular check-ins can help identify burnout risks early and help ensure employees understand what’s available, how to access it and that using these resources won't impact their career prospects. In one study, teams that held monthly 30-minute leader-employee check-ins saw significantly lower burnout after a year.
5. Ignoring the link between wellbeing and performance
The issue: Treating wellbeing as a standalone HR initiative that’s separate from business outcomes.
The consequence: Lack of leadership buy-in, unstable funding and difficulty sustaining programs long-term.
The solution: Integrate wellbeing into core business operations – from performance reviews to leadership goals and team metrics. When leaders see clear ROI in productivity, retention and culture, investment can become more sustainable. Research shows wellbeing initiatives can boost productivity by up to 21 percent, with happier employees 13 percent more productive, and organizations with a strong culture of health seeing lower turnover and stronger talent attraction.
Your path forward
Avoiding these mistakes requires a structured approach:
- Assess your current state: Use benchmark data like the TELUS Mental Health Index to help identify gaps between what you offer and what employees need.
- Engage employees in solution design: Involve diverse voices early and often – across departments, demographics and seniority levels. Their input can help ensure programs address real challenges.
- Start small with targeted pilots: Test initiatives with specific teams before scaling. This allows you to refine your approach based on real feedback without overcommitting resources.
- Measure, learn and iterate: Track meaningful outcomes such as employee satisfaction, retention, absenteeism and productivity. Use this data to continuously improve your programs.
- Scale thoughtfully: Once pilots prove successful, expand across teams and geographies. Ensure you have the communication infrastructure, manager training and support systems in place. Solutions that offer centralized hubs that seamlessly integrate into existing HR ecosystems can help ensure employees can access the right support when and how they need it.
Building programs that work
Wellbeing isn't just a benefit today. Organizations that get it right can build resilient, high-performing teams where employees thrive and business objectives are met.
Success requires sustained leadership commitment, cross-functional collaboration between HR, IT and operations, and clear communication about program value and usage. By avoiding common planning and implementation mistakes with a structured approach, leaders can build sustainable programs that can help deliver real results.