Beyond the obvious, here are the business benefits of investing in employee wellbeing

• Employers know that prioritizing employee wellbeing is the right thing to do, but there are also business benefits.
• Data from Indeed, analyzed by Oxford researchers, shows that companies with higher employee wellbeing levels have better valuations, return on assets, and profits.
• Indeed offers tools for companies to measure employee wellbeing and cultivate thriving work environments.  

Investing in work wellbeing does more than improve employee morale — it can also drive tangible business benefits.

Oxford recently analyzed Indeed’s work wellbeing dataset and highlighted a strong correlation between company wellbeing and business performance. The findings featured in the 2024 Global Work Wellbeing Report reveal that higher levels of employee wellbeing are associated with improved firm valuation, return on assets, and gross profits. Moreover, companies with higher levels of employee wellbeing consistently outperformed the stock market.

The Indeed-Oxford research also looked into whether happier employees today means better business results later. Based on data from before and after the COVID-19 pandemic, the findings show that companies with happier workers before COVID-19 performed better afterward in all three performance indicators (valuation, return on assets, and gross profits). 

Moreover, the Indeed-Oxford research reveals the long-term business benefits of prioritizing employee wellbeing. Indeed further strengthened the business case for work wellbeing with the launch of the Work Wellbeing 100, an index ranking the top 100 publicly traded companies by their Indeed Work Wellbeing Score.

The Work Wellbeing 100 demonstrates companies with higher wellbeing collectively outperformed leading stock indexes, including the S&P 500, Nasdaq Composite, and Russell 3000, showing that prioritizing wellbeing benefits both people and businesses. This index ranks companies based on their Indeed Work Wellbeing Score, a composite metric on Indeed Company Pages.

“Our hope is that we’re able to use our massive amount of data to actually create change. Employees will stay longer and give more effort if they feel like they have psychological safety and a sense of purpose.”

— LaFawn Davis, chief people and sustainability officer at Indeed

Given these findings, it’s clear that integrating employee wellbeing into your core business strategy is crucial. Yet, the report shows that only 22% of respondents feel they are thriving at work. Here are some ways prioritizing wellbeing can set you apart and drive success.

1. Make your company more competitive for talent

Employee expectations around wellbeing are rising, and employers need to adapt.

In a 2023 study from Indeed and Forrester Research,¹ a substantial portion of millennials (54%) and Gen Z adults (59%) reported that their work wellbeing expectations had risen compared to the previous year. For this demographic, it’s not enough to simply have a job — these individuals want to work for a company that genuinely cares about them. 

These dynamics present an opportunity for employers to differentiate themselves in a competitive job market. Companies that prioritize wellbeing can foster a more engaged and productive workforce. But that requires them to treat work wellbeing as not just an HR effort, but a business strategy.

2. Boost retention by understanding what’s important to employees 

Learning how employees feel enables employers to understand where they are excelling and where they can improve so they can better meet their workforce’s needs. This strategy should include measuring employee wellbeing as a key metric, alongside other initiatives.

For instance, the Indeed Work Wellbeing Score is a composite metric on Indeed Company Pages that measures the key outcomes of work wellbeing: happiness, purpose, satisfaction, and stress. Developed in partnership with leading happiness and wellbeing experts, Indeed also measures and displays key drivers that lead to wellbeing at work — including belonging, fair pay, flexibility, and more.

This initiative from Indeed, based on data from over 25 million surveys, represents the largest global study on work wellbeing. Scores are freely accessible to Indeed users, allowing employers to gauge and improve their standing. This transparency not only helps businesses understand what matters most to their employees, but also serves as a powerful guide for job seekers to find companies where they can thrive. 

3. Build a resilient future through employee wellbeing

In the end, employees who are not thriving at work are not performing at their highest potential — which impacts both individual employee experience and company performance. But every employee deserves the opportunity to thrive at work, and employers have a responsibility to give their employees the chance to do so. 

When companies focus on wellbeing, they not only enhance their appeal to current and potential employees, but also build a more resilient and adaptable workforce. Investing in wellbeing to support and empower that workforce is not a trade-off with other business priorities — rather, it’s an opportunity to drive impactful business-performance benefits.

In an era where the future of work is increasingly focused on the employee experience, incorporating wellbeing into your business strategy is one of the smartest moves you can make.

“The future of work conversation cannot happen without employee wellbeing at the center of it,” Davis said.

Indeed is committed to measuring and understanding work wellbeing to benefit individuals, businesses, and society. To learn more about how companies can strengthen their employer brand by focusing on work wellbeing, click here.

This post was created by Insider Studios with Indeed.