Why prioritizing employee wellbeing is a strategic business investment

• 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 Introduces the 2024 Work Wellbeing 100, ranking the Top Publicly-Traded Companies for Work Wellbeing in the US.

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. Indeed’s  2024 Global Work Wellbeing Report findings revealed that higher levels of employee wellbeing are associated with improved firm valuation, return on assets, and gross profits. Companies with higher levels of employee wellbeing also collectively outperformed the stock market.

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

The Indeed-Oxford research revealed the long-term business benefits of prioritizing employee wellbeing. Indeed reinforced the business case for work wellbeing by launching the Work Wellbeing 100, an index ranking the top 100 publicly traded companies based on their Indeed Work Wellbeing Score.

The Work Wellbeing 100 demonstrates companies with higher wellbeing outperformed leading stock indexes like the S&P 500, Nasdaq Composite, and Russell 3000, proving 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, integrating employee wellbeing into your core business strategy is crucial. But the report indicates that only 22% of respondents feel they are thriving at work. Here are ways prioritizing wellbeing can set you apart and drive success.

Make your company more competitive for talent

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

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

These dynamics present an opportunity for employers to stand out in a competitive job market. By prioritizing wellbeing, companies can foster a more engaged and productive workforce. But that requires them to treat work wellbeing as a business strategy rather than just an HR effort.

Boost retention by understanding what’s important to employees 

Understanding employee sentiments enables employers to identify strengths and areas for improvement, allowing them to better meet workforce 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 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 of workplace wellbeing, including belonging, fair pay, and flexibility

Based on data from over 25 million surveys, the Indeed initiative represents the largest global study on work wellbeing. Scores are freely accessible to Indeed users, allowing employers to assess and improve their standing. This transparency helps businesses understand what matters most to their employees and serves as a valuable guide for job seekers to find companies where they can thrive. 

Build a resilient future through employee wellbeing

Employees who aren’t thriving at work can’t perform at their highest potential, impacting individual employee experience and company performance. But every employee deserves the opportunity to thrive at work, and employers are responsible for providing that.

When companies focus on wellbeing, they enhance their appeal to current and potential employees while fostering a more resilient and adaptable workforce. Investing in wellbeing supports and empowers that workforce, creating an opportunity for impactful business performance benefits rather than being a trade-off with other priorities.

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 Indeed with Insider Studios.