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16 June: Businesses could unlock a significant productivity premium potentially worth billions of pounds by fostering workplace cultures in which employees feel confident to speak openly about their health and wellbeing, according to new global research commissioned by BSI.
Economic modelling by the Centre for Economics and Business Research (CEBR) shows that when employees feel supported to discuss health challenges, from physical and mental health to neurodiversity, and life-stage needs such as menopause and menstruation, organizations benefit from measurable improvements in productivity and retention.
The study, which looked at three major economies to draw conclusions relevant to organizations around the world, found that employees who displayed lower confidence took less frequent, but longer, leaves of absence over the year, overall accumulating more sick days. It also found that employees with lower productivity were more likely to work while unwell, reducing overall productivity, and more likely to leave a job or take extended leave.
While providing support such as redesigning workplaces or providing adjustments may have upfront costs, the analysis suggests there are significant long-term benefits to be realized. Across economies, this represents a multi‑billion-pound opportunity, at a time when many countries are facing labour shortages, rising health-related inactivity, and pressure to improve performance.
The tangible “confidence productivity premium” is linked to higher employee comfort around discussing once taboo issues at work. In the UK, US and Germany this is calculated to be worth annually hundreds or even thousands of pounds per employee, or potentially billions for the national economy (see figures in notes to editor).
Where people are confident about coming forward, the CEBR analysis identifies three global trends and areas of impact:
Kate Field, Global Head of Human and Social Sustainability, BSI said: “While this research zeroes in on three countries, our findings are globally applicable. Workplace wellbeing starts with a culture of trust. When employees are facing health challenges, employers are not powerless. There are easy but meaningful steps they can take to support their people and sustain organizational performance and resilience. Our findings show that, where trust has not been cultivated and support feels difficult to access, employees’ health challenges are more likely to escalate and lead to time away from work.
We know that everyone has moments where their physical or mental wellbeing are not optimal; the support an individual receives at these moments from their employer can make a big impact. Interventions like providing time to recuperate, or simple changes to the way people can work that keeps them in work, impacts not only the individual but the success of the organization and wider society.”
While the stigma surrounding many health and wellbeing issues is gradually reducing, many people still do not feel comfortable asking their employers for help and support. On average, less than a quarter of people across four surveyed countries (22%) who have experienced psychological or mental health challenges feel completely confident raising these with their line manager1. Just a fifth would be completely confident raising it with HR or a team director (19% and 20%) and one in four say the same of an office counselling service. At the same time, 57% said dealing with mental health impacted their career progression. This may reflect limited awareness of the support available in workplaces and a lack of clear pathways for disclosure.
CEBR’s analysis sends a clear message that investing in employee wellbeing has moved from a peripheral cultural initiative to a commercial advantage for global businesses. With competition for talent fierce, a strong culture of support is a powerful differentiator that can significantly enhance employee engagement and productivity by reducing absenteeism, presenteeism, and job separation. As productivity continues to flatline across the globe, the gains from tackling these issues are no longer marginal and ensuring the workforce is healthy, engaged, and operating at its full potential is one of the most direct routes to building a more resilient and successful organisation.
Liam Daly, Senior Economist, Centre for Economics and Business Research (CEBR) said: “Our analysis finds that the productivity premium unlocked when employees feel confident to raise health challenges with their employers is worth billions. Critically, this reframes the employer's role from passive obligation to active opportunity. Fostering a culture of trust and openness is a tangible and achievable goal. Workplaces with stronger standards-based provisions are consistently associated with fewer workplace absences among employees facing health and wellbeing challenges. Health, safety and wellbeing standards give organizations a practical framework to move beyond good intentions, embedding the behaviours, systems, and accountability that build genuine employee confidence.”
BSI publishes clear, practical guidance to help organizations better support employees experiencing a range of health and wellbeing challenges. The research found that 72% globally viewed such guidance as a valuable tool. Adopting health and wellbeing standards can play a critical role in building employee confidence, signalling that workplace is both prepared and committed to providing support, and helping to create a more open, trusted culture. Included in the report are four business guides sharing best practice rooted in standards for quick and effective interventions that can help shape a culture of trust. Recommendations from the report include building confidence that support is available, early intervention and structured provision.