Improving employee wellbeing and commitment could boost productivity among workers in the UK, according to new research by Fruitful Insights, in collaboration with Legal & General Group Protection.
The findings indicate that addressing both individual wellbeing and the cultural drivers within organisations could help the UK economy recover as much as £34 billion annually.
The research highlights that employees with low levels of wellbeing and commitment experience productivity losses of up to £10,500 per year—2.5 times higher than employees with high wellbeing and commitment, whose losses are estimated at £4,200 per year. This disparity shows the considerable impact of wellbeing on workforce productivity and points to a significant opportunity for improvement.
Wellbeing and Commitment as Key Productivity Drivers
Fruitful Insights’ research emphasises that employee productivity is closely tied to how valued and supported workers feel, as well as their ability to balance work and life. However, it also reveals that aiming for 100 percent productivity is unrealistic, as even the most satisfied employees experience some level of productivity loss, typically due to absence or dissatisfaction.
Mike Tyler, Chairman and Co-Founder of Fruitful Insights, noted, “It would be impossible to get productivity loss to zero. Thinking you can might only lead to issues such as work-related stress and burnout. The important point is that the most satisfied employees have a much lower level of productivity loss than the very dissatisfied employees.
“So, our focus should be on bringing the tail up; focusing on where people are dissatisfied, as opposed to expecting 100%. There’s clearly a big prize to be had, in terms of improving wellbeing and commitment, and hence productivity of the UK working population.”
Cultural Factors Play a Critical Role
While subjective wellbeing measures like job satisfaction can provide an indication of a company’s overall health, they do not tell the full story. According to Fruitful Insights, cultural factors such as employees’ sense of control over their work, competence, and the quality of relationships with colleagues are crucial drivers of both wellbeing and productivity.
For example, the research found that productivity loss for an employee without supportive colleagues is calculated at £10,000, compared to £4,700 for an employee with supportive colleagues. For employees who do feel valued by their employers, productivity losses amount to £3,700, whereas employees who do not feel valued experience losses of £10,400. Employees who believe their skills are being utilised appropriately report productivity losses of £3,600, in contrast to £9,800 for those who do not.
The research also challenges the notion that 100 percent productivity is achievable. Even under optimal conditions, Tyler says, some degree of productivity loss is inevitable. Instead, the goal should be to reduce dissatisfaction and increase engagement to improve overall performance.
