How to develop a workplace Wellbeing Policy that benefits everyone

A Wellbeing Policy is a key tool that helps organisations set out their approach to supporting staff and fostering a supportive and productive workplace. In this comprehensive guide, Vix Anderton shares her advice on creating an effective Wellbeing Policy and explores the benefits to both employers and employees.

What is workplace wellbeing?

Workplace wellbeing is the state of health, vitality, and performance of employees within the work environment. It goes beyond simply the absence of illness or injury and encompasses a multi-dimensional approach to employee health and wellbeing. It considers how work design, organisational culture, and management practices can impact employees’ physical, mental, emotional and social wellbeing.

Ultimately, a healthy and supportive work environment helps people to thrive and supports them in achieving their personal and professional potential.

With 1 in 4 predicted to experience a mental health problem of some kind each year, and 1 in 6 people reporting experiencing a common mental health problem (like anxiety and depression) in any given week in England, this is a pressing issue that employers need to take seriously.

Workplace wellbeing is not just a moral imperative, it’s a critical business issue. A well-designed workplace Wellbeing Policy can be a powerful tool to address these challenges and create a healthier, happier, and more productive workforce.

But what should be included in your Wellbeing Policy and how should it be implemented? We explore this in more detail alongside the benefits and implementation considerations.

QUICK LINKS

• The cost of poor staff wellbeing
• Embedding a wellbeing strategy
• What is a Wellbeing Policy?
• Rewards of a Wellbeing Policy
• What to include in your Wellbeing Policy
• Creating your Wellbeing Policy
• Implementing your Wellbeing Policy
• Investing in wellbeing is investing in success

The cost of poor staff wellbeing

Mental ill health, such as clinical depression, is the leading cause of long-term absence and three-quarters of respondents (76%) reported some stress-related absence, with heavy workloads and management style most commonly to blame.

For organisations, this translates to a substantial cost, not just in terms of productivity loss, but also in increased healthcare costs and presenteeism (employees physically present but mentally disengaged).

A 2024 study by Deloitte found presenteeism costs businesses roughly three times as much as mental health-related absenteeism. This highlights the importance of not just focusing on absences, but also on employee wellbeing and engagement.

The same report found that 35% of respondents expect support for themselves and their children / immediate family (for example by providing an employee support line, childcare support, or flexible working arrangements) but only 26% of respondents felt their organisation did enough to support them and their family.

Embedding a wellbeing strategy

Wellbeing initiatives, like many other initiatives, can have limited effectiveness if they operate in isolation from the day-to-day business. For true success, employee wellbeing needs to be woven into the fabric of the organisation. This means embedding wellbeing principles in the company culture and leadership practices, as well as everyday people management processes.

Developing a shared understanding of what a wellbeing strategy would look like at leadership level is an important step in defining a Wellbeing Policy. By taking this holistic approach, organisations can ensure that wellbeing initiatives are embedded as an integral part of the work environment, driving long-term positive outcomes for both employees and the business.

So what is a Wellbeing Policy and why have one?

A Wellbeing Policy outlines an organisation’s commitment to supporting these various aspects of employee wellbeing, tailored to the organisation and workforce’s needs. It serves as a roadmap for creating a work environment that promotes employee health and happiness, reduces stress, and fosters a positive work culture.

A well-designed Wellbeing Policy isn’t just a feel-good initiative – it’s a strategic investment that delivers tangible benefits for both employers and employees.  Here is how a strong well-being policy creates a win-win situation for both employers and employees.

The benefits of a Wellbeing Policy for organisations include:

• Productivity and performance: Reduced absenteeism, presenteeism, and employee turnover translate directly to increased productivity and improved business performance.
• Improved engagement and retention: When employees feel valued and supported by their organisation’s commitment to their wellbeing, they’re more likely to be engaged and motivated, leading to higher retention rates.
• Stronger employer brand reputation: A focus on employee wellbeing can attract top talent and enhance your company’s reputation as a caring and responsible employer.

The benefits of a Wellbeing Policy for employees include:

• Reduced stress and anxiety: By providing resources and support for mental health and wellbeing, a policy can help employees manage stress and improve their overall mental wellbeing.
• Improved work-life balance: Initiatives promoting flexible work arrangements and healthy boundaries can help employees achieve a better balance between work and personal life, leading to increased satisfaction and reduced burnout.
• Increased job satisfaction: Feeling valued and supported by their employer contributes significantly to employee satisfaction. A well–being policy demonstrates the organisation’s commitment to its employees’ well–being, fostering a more positive work environment. 
• Feeling valued and supported by the employer: A well–being policy sends a clear message to employees that their well–being matters. This can lead to increased trust, loyalty, a stronger sense of belonging within the organisation and increased job satisfaction.

By investing in a Wellbeing Policy, organisations can create a healthier and happier workforce, leading to numerous benefits for both employers and employees.

What to include in your Wellbeing Policy

A Wellbeing Policy serves as a roadmap for your organisation’s commitment to employee wellbeing. There is no one-size-fits-all approach but an effective, holistic Wellbeing Policy should at least consider these key elements:

1. Statement of commitment
This section clearly outlines an organisation’s intent to support employee wellbeing. It should express a genuine desire to create a healthy and positive work environment for all staff.

2. Relevant definitions and principles
This section defines key terms related to wellbeing, such as stress, work-life balance, presenteeism and mental health. It can also outline your core principles regarding wellbeing, such as promoting a respectful and inclusive work environment.

3. SMART objectives
Setting Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) objectives allows you to track progress and measure the impact of your wellbeing initiatives. Quantifiable metrics might include reducing employee absenteeism by X% over 3 years or increasing employee participation in wellbeing programmes by Y%. Conversely, it’s also important to include qualitative feedback that provides deeper insights into employee sentiment such as pulse surveys and townhalls. Measuring and monitoring your progress towards these objectives will help ensure your wellbeing policy is having the impact you hope for.

4. Roles and responsibilities
Define the roles and responsibilities of various stakeholders in upholding the Wellbeing Policy. This might include:

• Senior Leadership: Championing wellbeing initiatives and embedding them within the organisational culture.
• Line Managers: Providing support to employees and ensuring the implementation of wellbeing initiatives within their teams.
• Employees: Taking responsibility for their own wellbeing and utilising the resources available.

5. Support initiatives
This section details the specific initiatives an organisation offers to support employee wellbeing. Examples could include:

• Employee Assistance Programs (EAPs): Providing confidential access to professional counselling and support services.
• Flexible Working Arrangements: Offering options like remote work, flexi-time, or compressed workweeks to promote a better work-life balance
• Access to Health and Wellness Resources: Signposting resources and information on healthy living, stress management, and mental health awareness.
• Social Activities and Events: Encouraging employee interaction and fostering a sense of community through social events and team-building activities.

6. Aligning with other policies
Your Wellbeing Policy should complement and align with other existing organisational policies. Examples of the top policies your organisation needs might include:

• Equality, Diversity, and Inclusion Policy
• Learning and Development Policy
• Sickness Absence Policy
• Grievance, Bullying and Harassment Policy
• Ways of Working or Flexible Working Policy
• Attendance and Leave Policy
  
• Menopause Policy
• Health and Safety Policy 

Creating your Wellbeing Policy

An effective mental health and Wellbeing Policy is a living document that should evolve alongside your organisation. Whether you’re starting from scratch or revisiting an existing policy, here’s a roadmap for the process:

1. Review what you already have in place

Assess effectiveness: Conduct surveys, focus groups, or one-on-one interviews to understand employee experience and gauge the effectiveness of the current policy.
Capture what’s working: Build on existing initiatives and programmes, even they haven’t been articulated in a formal policy.
Identify gaps: Analyse the feedback to identify areas where the policy falls short or doesn’t address current needs.

2. Employee involvement is key

Establish a working group with employee representation to ensure diverse perspectives are considered throughout the process.

3. Research best practices

Explore current trends and best practices in workplace wellbeing that align with your organisation’s specific needs and industry.

4. Legal compliance

There’s no legal mandate for employee wellbeing per se, but employers have a duty of care to ensure employee health and safety under the Health and Safety at Work Act 1974. You should also consider other relevant legislation like the Equality Act 2010, the Flexible Working regulations, and the Worker Protection Act.

5. Gaining stakeholder and staff buy-in

Building strong leadership and staff support is crucial for a successful Wellbeing Policy.

• Present a compelling business case: Gather data and statistics showcasing the benefits of a Wellbeing Policy for both the organisation and employees.
• Collaboration is key: Involve key stakeholders in the development process to foster ownership and understanding.
• Open communication: Address concerns and answer questions transparently throughout the process.

EW Group can support you in reviewing and updating your existing policies, creating new ones if they don’t exist, and training staff in their implementation. By working together, we can create a Wellbeing Policy that fosters a healthy and productive work environment for all your employees.

Implementing your Wellbeing Policy: Putting knowledge into action

A Wellbeing Policy is only as effective as its implementation. Training managers and staff on the policy is crucial for its success.

Many employees feel uncomfortable discussing mental health and wellbeing concerns. While line managers aren’t expected to be mental health experts, equipping them with the skills to listen effectively, identify signs of stress or struggle, and signpost employees to appropriate resources is crucial. Training empowers managers to have open conversations, offer support, and create a safe space for employees to seek help.

For employees, understanding the policy’s contents, available resources, and their rights and responsibilities empowers them to take charge of their wellbeing and access the support they need.

EW Group’s mental health & wellbeing training equips managers and staff with the knowledge and skills to navigate wellbeing conversations and support a healthy work environment.

Investing in wellbeing is investing in success

Workplace wellbeing isn’t just a buzzword; it’s a strategic investment that benefits both businesses and their employees. An effective Wellbeing Policy is key to creating a healthy and productive work environment.

The benefits of a strong Wellbeing Policy are undeniable and foster a win-win situation. By prioritising employee wellbeing, organisations can create a thriving and productive work environment, while employees experience a more positive and supportive work experience.

EW Group can be your partner in developing and implementing a Wellbeing Policy that empowers your workforce and drives success for your organisation. Explore our services or contact us today to learn more.