Report links workplace well-being to productivity gains
PARIS, FRANCE — Sodexo, a global provider of food and workplace services, has released a white paper report that synthesizes extensive research and establishes a direct correlation between employee well-being and business productivity.
The analysis, developed in partnership with the International WELL Building Institute (IWBI) and SHAPE, provides a data-driven formula for how organizations can combat declining engagement and drive growth by focusing on both physical environments and human psychology.
Martin Boden, Chief Executive Officer (CEO) Global Strategic Accounts at Sodexo, notes, “Workplace experience is shaped by the place itself, the culture and leadership within the organization, and the services that support people every day. When all three come together, the workplace becomes somewhere people feel valued, motivated, and able to thrive.”
Impact of physical workspaces on employee health
Research, beginning with the discovery of Sick Building Syndrome in the 1970s, has provided decades of evidence that the physical workplace is a key determinant of employee health.
In the report, fatigue, respiratory complications, and cognitive decline are directly related to poor ventilation, poor lighting, and humidity.
The WELL Building Standard is a program created by IWBI that identifies 10 priority levers for employers to focus on:
- Clean air
- Sufficient water
- Nutritious food
- The right light
- Enough movement
- Comfortable heat and humidity
- Noise control
- Safe materials
- Less stress
- The human touch
The monetary value of these upgrades is high; McKinsey Health Institute estimates that investing in the health of the entire employee base can unlock up to $9 trillion per year worldwide through enhancing productivity and reducing presenteeism.
The report provides case studies that show the quantifiable results of such investments. As the example of the Cundall London office (which received WELL Certification and has continuously monitored carbon dioxide) shows, staff sick leave dropped by 58%.
Equally, researchers in Building and Environment in 2022 found that workers in WELL-certified spaces reported a 10-point increase in productivity scores. These developments are not just focused on air quality; appropriate lighting and the availability of healthy food are equally imperative.
The report notes that this “[shows] how improvements to working environments and workplace food and services can enhance physical and mental health.”
Psychology of employee performance and well-being
While physical health provides the foundation, the report suggests that true productivity requires “happy people,” a concept linked to the science of flourishing.
Harvard University’s Human Flourishing Program defines this state as one where aspects of life—including mental and physical health, meaning and purpose, character and virtue, and close social relationships—are good.
Studies conducted at Said Business School at Oxford University measure this benefit and conclude that happy employees are 13% more productive.
A separate report cautions that the rate of global interaction is dwindling, with Gallup statistics indicating a decline from 23% to 21% in 2024, and 48% of employees contend with burnout.
The report notes, “Whether you’re aiming for happiness, flourishing, or wellbeing, measuring the success of any intervention relies almost completely on employee feedback.”
Sodexo collaborated with SHAPE, an organizational change company, to elevate the satisfaction surveys. The SHAPE methodology identifies 12 impact areas essential to employee effectiveness and distinguishes between struggling, striving, and flourishing individuals.
The model helps identify the root causes of disengagement, including poor management practices and high levels of distraction in hybrid environments.
Another report from Deloitte indicates that younger generations, especially Gen Z, are doing very poorly, and even 52% of them do not consider their mental health to be good.
“Younger employees also expect their managers to act as supportive guides, working to motivate, inspire, and set boundaries that protect their work-life balance,” the report reads.
Financial cost of disengagement
Sodexo reports that this also shows the dire economic effects of paying little attention to employee well-being, framing it as a direct attack on the bottom line. In 2024, lost productivity cost the global economy billions due to declining employee engagement.
Beyond its impact on involvement, poor health has a dual dividend effect, manifesting as absenteeism, presenteeism, and high turnover. On the other hand, recruitment and retention are higher in companies that invest in holistic health.
As an example, Genentech in San Francisco has implemented a design with more daylight and a Zen garden, claiming that the company has improved recruitment, retention, satisfaction, and engagement.
Sodexo observes that “Human contact boosts well-being and is also helping bring people back to the office.” Their study found that 42% of employees globally would commute more to be with their colleagues, suggesting that the interaction design is one way to offset the costs of remote disconnection.
“By delivering dynamic workplaces that can adapt at pace to support well-being, we can sustain productivity and drive growth,” Sodexo adds.
As Sodexo’s analysis establishes a definitive link between employee welfare and organizational performance, the future of work requires firms to view workplace health as a strategic investment rather than a fleeting asset. Thus, organizations must provide environments that allow people to flourish to combat the rampant lack of engagement and achieve long-term economic growth.
