Key takeaways 

• Employees who are stressed are twice as likely to be searching for a new job 
• Companies with the highest Work Wellbeing Scores consistently outperform stock benchmarks like the S&P 500 
• Wellbeing expectations are highest among millennials and Gen Z, who make up more than half of today’s workforce (and growing)

According to Indeed’s 2025 Work Wellbeing annual report, only one out of four employees is thriving at work. Yet, despite poor worker sentiments and rising employee burnout rates mirroring COVID-era highs, employers are doubling down on return-to-office (RTO) mandates. Some are even more bluntly calling for workers to fall in line, ‘or leave’. 

While many employers frame this shift towards a ‘hardcore’ work culture as a means to boost collaboration and productivity, sceptics may see the move as an employer power grab following years of workers holding the upper hand in the job market. 

But is reclaiming control at the expense of worker wellbeing ultimately worth it? 

‘Everyone’s feeling these economic pressures, and business leaders are reverting to their comfort zones. For anyone who is numbers-focused, it’s really easy to underestimate the value of wellbeing’, says Indeed Senior Talent Strategy Advisor Kyle M.K. ‘But we've finally got data and evidence to show why feelings matter and that, when the employee’s expectations are met, the business’s expectations are met, too’.

Using data from the report How Work Wellbeing Fuels Performance, we’ll look at how a positive employee experience translates to business value and explore the long-term organisational costs of sidelining employee wellbeing.

The business case for worker wellbeing

As the old saying goes, money can’t buy happiness. But the data shows that the inverse is actually true: the happier your employees are, the better your business performance will be. 

An analysis of Indeed’s data set on wellbeing shows a clear positive correlation between employee wellbeing and business performance. The greater the levels of employee wellbeing are, the greater the profits, return on assets and company valuation are. 

Taking it a step further, researchers simulated a stock market portfolio based on the top 100 publicly listed companies with the highest Work Wellbeing Scores. In the simulation, this ‘Work Wellbeing 100’ consistently outperformed major benchmarks such as the S&P 500 and Nasdaq composite across a four-year window. 

Data from the report also shows that, on an individual level, workers with higher Work Wellbeing Scores are also more likely to achieve their goals, demonstrate higher levels of creativity and be more adaptable to AI – markers that are all closely tied to business KPIs such as productivity and retention. 

‘Workplace happiness is no longer just a nice-to-have; it’s an actual driver of productivity and fuels a business’s ability to innovate’, M.K. notes. 

The cost of cutting worker flexibility (and what to do instead)

The upsides of prioritising wellbeing are clear, but the data also points to steep long-term costs of scaling back worker flexibility. From higher employee turnover rates to lagging productivity and innovation, here are some of the ways that neglecting wellbeing can backfire on your business: 

Cost #1: More employee turnover

Employees who are unhappy or stressed aren’t just causing a drain on morale – they’re more than two times likely to be looking for employment elsewhere. Stress is also one of the leading reasons why people seek new jobs, second only to higher pay. On top of the time and resources it takes to address turnover, employee attrition tends to have a domino effect and could leave costly knowledge and operational gaps in your workforce.

Try this instead: Companies that prioritise and measure wellbeing are nearly three times more likely to excel in it. If you haven’t already, start measuring your wellbeing efforts with a baseline survey to identify the biggest employee pain points, and focus wellbeing efforts on areas where employees report the most dissatisfaction. Even small, targeted improvements on a limited budget can deliver a large impact. 

Cost #2: Less productivity and innovation

AI tools and technology have become a necessity for forward-thinking businesses. That said, organisations that rush to adopt AI but neglect employee wellbeing may be setting themselves up to fail. Research shows that stress puts people into narrow, survival-focused thinking modes; in other words, you lose the ability to think in the broader and more creative ways that drive innovation. And, AI aside, it’s also worth noting that workers with high wellbeing are 1.5 times more likely to achieve their goals. 

Try this instead: The top drivers of wellbeing – energy, belonging and trust – create the psychological safety people need to take creative risks. Make sure employees have space to experiment, fail and learn. Launch a listening campaign to gather qualitative feedback from employees on the challenges they’re facing, and use that data to determine what opportunities you have to improve your workplace culture. 

Cost #3: Poor worker sentiment and trust

Employee wellbeing expectations are higher than they were just a year ago, with expectations highest among Gen Z (66%) and millennials (53%). Millennials currently make up the largest share of the labour force and, combined with Gen Z, they represent most of today’s workers. Companies that dismiss these expectations signal to their workforce that what they want doesn’t matter – and that’s not likely to be a successful approach by any measure. 

Try this instead: With at least a fifth of US workers seeing a lack of flexibility as a dealbreaker, experts say that ‘smart companies are providing options over mandates’ wherever possible. Examine whether there’s room for flexibility in your RTO policy and hiring locations to avoid unnecessarily narrowing your recruitment pool. 

Cost #4: Wasted resources on talent attraction

A whopping 95% of jobseekers say they want to see wellbeing data during their job search, and 48% want to see that data before they even apply. Additionally, 69% believe companies have a responsibility to create environments where workers can thrive. In other words, candidates won’t even consider you during the job search if you’re not leading with wellbeing as part of your employer brand.

What to try: In addition to amping up your talent attraction strategy, reassess your employee experience to ensure your existing workforce has got plenty of growth opportunities. Shifting focus to developing existing talent within your workforce, along with an investment in learning and development programmes, can improve both wellbeing and retention – all while reducing the overall cost of hiring. 

Good for morale means good for business

With this data, the cost and downstream implications of dismissing work wellbeing as ‘just feelings’ are clearer than ever. But so is the potential for boosting productivity, innovation and the bottom line for companies that look beyond the current ‘like it or leave’ moment to prioritise worker retention and wellbeing. 

‘The most successful companies understand that wellbeing isn’t just about making people happy for happiness’s sake’, says M.K. ‘It’s about creating the conditions where people can do their best work, thrive and achieve’.