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Exploring the interconnected elements of health: Physical health

Written by TELUS Health | 2 June, 2025

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 help support employee physical health if they want to enhance performance and productivity in the workplace. 

Workers in New Zealand who are dissatisfied with their physical health have a lower mental health score and lose 16 more working days in productivity each year compared to workers who are satisfied with their physical health.

So how does physical health affect employees? 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.

Holistic health: The intersection of employee mental, physical and financial wellbeing

Explore the interconnected aspects of employee health and how they affect the performance of individuals and organisations alike.

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What is physical health?

Physical health is the normal functioning of the body that represents one of several dimensions of total wellbeing. It is centered around how your body feels, grows and moves, and how you care for and nourish it.

In order to improve and sustain physical health, physical activity is important. Research highlights an association between an active workforce and outcomes that save costs in the form of reduced absenteeism and staff turnover, and improved productivity.

Workers who feel dissatisfied with their physical health lose 16 more  productivity days each year compared to those who feel satisfied. And highly demanding physical activity isn’t always necessary — adults should aim to do at least 2.5 hours of moderate physical activity over the course of each week, with activities to strengthen their muscles on at least two of those days.

The connection between physical and mental health

Along with being physically present at work due to the reduced need for sick leave, employees who stay active also show up for work mentally. Workers who often engage in physical activity have an annual productivity loss of 45.9 working days per year compared to the 52.6 working days lost by those who engage in physical activity sometimes or not at all.

A number of studies have found that mental illness may manifest in higher rates of age-related illness such as cardiovascular disease and accelerating biological aging. Schizophrenia, for example, has been associated with 10 to 20 years’ reduced life expectancy.

Poor mental health can influence unhealthy behaviors such as lack of exercise, substance use and poor diet — all of which negatively affect physical health. And many mental health conditions and the stress that accompanies them can disrupt sleep, and in turn hurt physical health over time.

The connection between physical and financial health

Employees’ sense of financial health and economic stability can also be a major source of stress in their life if they’re struggling to save money and pay bills. In July 2024, Te Ara Ahunga Ora Retirement Commission conducted a nationwide survey exploring how New Zealanders feel about money in the context of the cost-of-living pressure many experience. The research found that over half of New Zealanders — 56 per cent — feel financially uncomfortable.

Financial stress can manifest in a variety of ways, including physical health issues. It can lead to hypersomnia or insomnia, changes in appetite or weight, depression or anxiety, relationship problems, poor work performance and physical issues such as chest pain, high blood pressure and headaches.

A recent global Mercer study found that people spend an average of 13 hours per month worrying about money at work. This level of persistent worry can further limit the time required to take care of their physical health — not to mention, it can take a toll on the energy and motivation necessary to do so.

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 primes 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.

Why companies should 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.

Building more flexibility into employees’ schedules is a relatively straightforward and impactful change employers can make. Granting people autonomy over their time means they can make space for healthy eating and frequent exercise. Additionally, this permission enables them to access care when and where it best suits them.

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

TELUS Health Wellbeing helps to educate, engage and inspire employees to achieve their personal wellbeing  goals through behavioural change. When stress begins to affect physical health, TELUS Health EAP provides early intervention support, helping employees manage their wellbeing before physical symptoms escalate — ultimately fostering a healthier, more resilient workforce. Employees can access these services anytime, anywhere via TELUS Health One app to help them navigate life’s challenges, transitions and milestones.

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