Are workplace wellbeing programs missing the mark?

Many people equate “workplace wellbeing programs” with free fruit in the kitchen and the offer of lunchtime yoga classes.

But this view of wellbeing misses the mark, says Dr Sarah Cotton, organisational psychologist and co-founder of Transitioning Well. 

“One of the most common mistakes employers make is confusing perks with meaningful support — thinking that fruit bowls and occasional yoga sessions constitute a wellbeing strategy,” Cotton says. 

“These offerings have their place, but they simply don’t address the complex mental health challenges facing today’s workforce.” 

WTW’s 2024 Wellbeing Diagnostic Survey highlights this misalignment between employers and employees regarding wellbeing programs.

While 66 per cent of employers rated emotional wellbeing as their top priority, 59 per cent of employees nominated financial wellbeing as their most pressing concern.

This disconnect explains why many corporate wellbeing programs fail to meet employee needs or improve wellbeing.

But Cotton says a well-crafted wellbeing strategy is an organisational asset. 

“A strategic approach signals to your workforce that their mental health matters, [and that the organisation is] supporting people to do their best work across all of life’s ages and stages. This has become a compelling differentiator in the talent market. 

“As we move into new ways of working, employers who understand this mindset and support their people through life’s transitions will be highly sought after.”  

What happens when organisations neglect wellbeing?

Worker wellbeing is a serious and costly issue. According to the New South Wales Government, mental ill-health costs Australian businesses A$39 billion in lost participation and productivity each year. 

Cotton says when organisations fail to pay attention to wellbeing, problems can escalate gradually until they reach crisis point. 

“What may begin as occasional stress can result in burnout, leading to increased absenteeism and presenteeism, where employees are physically present but mentally disengaged. 

“The hidden costs often accumulate silently — declining productivity, deteriorating workplace culture, and ultimately, talented staff seeking healthier environments elsewhere. 

“By the time leadership notices dropping engagement scores or rising turnover rates, the damage is often extensive and requires significant resources to address.”

What does an effective wellbeing program look like?

The good news is that taking a preventative rather than reactive approach to wellbeing can help mitigate these risks.

“Many organisations still rely solely on Employee Assistance Programs (EAPs) as their mental health solution, failing to recognise that employees often only seek this support at crisis point,” Cotton says.

“A truly effective program takes a comprehensive, evidence-based approach focused on prevention rather than crisis management. It recognises that EAPs, while valuable, shouldn’t be an organisation’s only way to tackle wellbeing.” 

Effective workplace wellbeing programs should be tailored to the needs of a multi-generational workforce and address the different types of wellbeing — emotional, physical, social and financial. 

“While mental and physical wellbeing often dominate the conversation, financial wellbeing represents a critical component of a truly comprehensive approach. Financial stress creates a significant cognitive and emotional burden that directly impacts mental health, work performance and overall life satisfaction,” Cotton says.

In a cost-of-living crisis, financial wellbeing takes on extra significance. 

“Just as we recognise that today’s workforce faces unprecedented mental health challenges, we must acknowledge that financial pressures — from housing costs to economic uncertainty — create substantial stress that can’t be addressed through traditional wellness initiatives alone,” she says.

A holistic wellbeing strategy might include financial education resources, retirement planning or coaching support programs, alongside a more typical offering of EAP access and subsidised gym memberships. 

Leadership also plays a critical role.

“Effective programs require leadership that walks the talk — executives who model healthy work behaviours, conduct regular wellbeing check-ins, communicate clearly about available resources and share their own wellbeing practices,” Cotton says.

“When leaders don’t model healthy behaviours or actively champion initiatives, wellbeing becomes just another HR program sitting on the intranet rather than an organisational priority.”

Why is it important to build wellbeing into workplace design?

Dr Belinda Cham, a research fellow at Curtin University’s Future of Work Institute that runs Australian workplace wellbeing initiative Thrive at Work, says perk-laden corporate wellness programs can obscure problems in job design and culture. 

Cham says perks are often perceived as “bandaid solutions” that can create disillusionment among burnt out staff. 

She recommends taking a more holistic approach that builds wellbeing into the structure of work. 

Much of the strain people experience in the workplace comes from work-related stresses such as high time pressure, unclear role expectations and interpersonal conflict. 

Healthy work, on the other hand, is motivating and uses employees’ skills. 

“Good work is the best wellness strategy,” Cham says. 

The most significant gains in wellbeing are made by giving employees “clarity, choice and control” over their work and ensuring workloads are manageable.

“That way, you’re not then slapping on bandaid solutions that are not very effective,” she adds.

What can organisations do?

The first step for organisations is to ask employees what they need, Cham says.

“That involves asking questions like ‘How do you experience your work? Do you have the right training? Do you have the right skills? Are you clear on your objectives and what you need to achieve at work?’”

Organisations can then use this data to design initiatives that align with employee needs. 

“Too often, organisations take a one-size-fits-all approach or follow the latest trend in what they offer employees without matching it to the pain points in their workplace,” Cham says. 

The data collection shouldn’t stop there. 

Cotton says it is also important to follow up to see what is working to improve worker wellbeing and what isn’t.

“The most effective programs also incorporate metrics to measure effectiveness, ensuring the approach evolves with changing workforce needs.”