Exploring the interconnected elements of health: Physical health

Part two: The role of employee physical health and its impact on productivity and morale

To be energised, you need exercise. That holds true for everyone, and it’s why employers should consider supporting employee physical health if they want to help enhance performance and productivity in the workplace. 

Regular moderate physical activity significantly reduces workplace burnout and emotional exhaustion, particularly among desk-based employees. The organisational impact is substantial. Mental health issues, including burnout, cost the EU economy an estimated €170 billion annually. This makes physical activity promotion a crucial strategy for both employee wellbeing and organisational success.

So why does physical activity affect an employee’s level of emotional exhaustion? In short, it’s because there are numerous factors that contribute to someone's overall wellbeing, and they’re all interrelated. Some of the main components of health are mental, physical and financial health, though there are other factors and social determinants in play as well.

Here’s a closer look at physical health, and how it intersects with other elements of health to impact employee engagement, productivity and performance.

What is physical health?

Physical health refers to the body’s ability to function optimally. Regular physical activity is closely linked to good physical health across the lifespan. In order to improve and sustain physical health, physical activity is important.

According to recommendations from the World Health Organization (WHO), healthy adults ages 18 to 64 should engage in at least 150 to 300 minutes of moderate intensity aerobic physical activity (or 75 to 150 minutes of vigorous intensity activity) every week.

Among adults, it helps prevent chronic diseases such as diabetes, cardiovascular disease and cancer. Regular physical activity also reduces risk for mortality overall, especially premature death.

Benefits of physical activity also positively impact mental health, reducing anxiety, depression and stress levels. This too reduces the risk for chronic physical disease. These benefits extend into the workplace. While UK data shows physically inactive workers lose up to four and a half working days annually compared to active employees, this pattern is reflected across Europe.

The connection between physical and mental health

Along with being physically present at work due to reduced absenteeism, employees who stay active also show up for work mentally. A workforce staffed by regularly active people — who are also at reduced risk for chronic disease — offers multiple benefits, including greater creativity, innovation and productivity, more active problem-solving and motivation, and enhanced organisational loyalty, workplace cohesion and team spirit.

On the other hand, having poor mental health often leads to poor physical health. For instance, one study found that people with depression were more likely to be physically inactive, experience serious body pain, have trouble doing everyday activities and rate their own health as worse. In comparison, people with good mental wellbeing were more active and had fewer of these health problems.

The connection between physical and financial health

Employees struggling with financial health and economic stability often experience significant stress, which can manifest in various physical and psychological symptoms. These symptoms include poor sleep, irritability, low energy, anxiety and even physical health conditions like migraines or irritable bowel syndrome — all of which can substantially impact both personal wellbeing and workplace productivity.

About 10% of full- and part-time workers in the EU have missed work due to financial worries, losing almost five days each on average per year. Of these workers who experienced reduced productivity due to financial distress, about 20 percent said their concerns cost them up to one work hour per day, while 29 percent reported they were losing one to two hours each day — and almost one in 10 reported losing three to four hours. More worryingly, 5 percent of the cohort reported losing out on the entire workday due to financial worries.

These kinds of concerns can also limit the time these workers have left to take care of their physical health — and take a toll on the energy and motivation they need to do it.

How employee physical health influences productivity

Harvard Business Review cites a series of studies that were conducted to identify how physical health affects workplace performance and productivity. The researchers found that daily physical activity brings physical, affective and cognitive improvements through a series of mutually reinforcing next-day benefits that they refer to as “resource caravans”.

By enhancing sleep quality and protein synthesis, physical activity empowers people to excel at work by increasing their energy, vigour and focus. More energy can give them the stamina to do their best work without getting worn down. Greater focus can enable them to be alert, pay attention and be more creative in their problem solving, while also improving their ability to retain and concentrate on information.

The September 2024 TELUS Mental Health Index highlights this relationship between physical activity and productivity. In the report, workers who were dissatisfied with their physical health experienced a productivity loss of 77.8 workdays annually; over 25 days more than their colleagues who were satisfied with their physical health.

Why companies need to advocate for physical health

It can be difficult for employees to maintain a physically active lifestyle when they are balancing their time at work with managing other everyday commitments. That means employers have both a responsibility and a vested interest in making space for employee physical health. 

According to a 2025 European study, 85 percent of businesses reported increased productivity with flexible work arrangements. This could include offering flexible start times or extended lunch breaks to allow employees to attend morning fitness classes, prepare nutritious meals or schedule medical appointments during less busy hours. In this way, organisations foster a culture of proactive health management — and access to digital tools gives employees the ability to access support whenever they are.

Moreover, promoting physical fitness in the workplace has been shown to significantly reduce the risk of work-related injuries. A 2024 study found that employees with higher levels of physical activity had a 15 percent lower risk of workplace injuries compared to their less active counterparts. This reduction in workplace accidents not only improves employee wellbeing but also contributes to increased productivity and reduced absenteeism.

Poor physical health can correlate with mental and financial health issues — and so nurturing physical health can play a powerful role in resolving such issues. When employees feel their best, they can achieve their best. 

Enable holistic wellbeing for employees with TELUS Health

Transform employee wellbeing with TELUS Health. Our platforms offer personalised wellbeing tools alongside mental health support to help drive lasting behavioural change.

TELUS Health Engage empowers employees to take control of their wellbeing with locally tailored tools for nutrition, fitness, stress management, and mental health, all backed by a unique rewards system that encourages sustainable behaviour change. Now available in the UK, France, and Germany, with launches coming soon in Italy, Spain, and the Netherlands.

For global workforces, TELUS Health EAP offers early mental health support to help employees address stress before it impacts their physical health - promoting resilience and overall wellbeing, wherever your team is based.

Learn more about the other factors and facets of holistic health, and how TELUS Health supports both employers and employees.