Employee Health Can Unlock $12 Trillion in Economic Value
Employee Health Can Unlock $12 Trillion in Economic Value
Written by: Paula Antalffy 5-6 minute read.
Employee health isn’t just a corporate responsibility in 2025 - it's a business imperative. According to the latest report from The McKinsey Health Institute, proactive healthcare within the workforce could generate up to $11.7 trillion in global economic value. Yet despite this clearly staggering potential, many organisations fail to make meaningful investment in employee health.
In this blog, we break down the key findings from McKinsey’s report, created in collaboration with the World Economic Forum. The report aims to present a compelling case for why businesses must rethink their approach to workplace well-being. Dive into actionable steps and key insights about how proactive healthcare support will create a thriving workplace.
The Business Case for Investing in Workforce Health
The modern workforce is facing rising rates of burnout, chronic diseases, and workplace stress. McKinsey's report shows that 1 in 4 employees are experiencing burnout. What’s more, the aging population, created by people living longer, is setting up the modern workplace for new challenges, as people work until later in life. Here businesses need to take on how they will tackle the rise in non-communicable diseases (such as heart and kidney disease, cancer, mental health challenges etc).
With over 3.5 billion adults spending roughly 90,000 hours of their lives at work, the workplace is a crucial environment for fostering health.
So why is investing in employee wellbeing so important?
McKinsey’s analysis finds that organisations who take a proactive approach to workplace health care, can expect:
Increased productivity: Healthier employees perform better and are more engaged.
Lower absenteeism: Reducing sick days saves businesses billions.
Improved employee retention: Companies with strong well-being programs experience 11% lower turnover rates.
Stronger financial performance: Firms with high employee well-being outperform competitors in stock market returns.
Key Finding: The $12 Trillion Opportunity
The report estimates that improving workplace health could contribute between $3.7 trillion and $11.7 trillion in economic value, roughly 4% to 12% of global GDP.
Where do these gains come from?
$2 trillion - $9 trillion from increased productivity and reduced presenteeism
$900 billion - $2.1 trillion from lower absenteeism
$600 billion from improved retention and attraction
The aging workforce, and evaluation of employee lifespan requires employees to take a proactive approach when it comes to the physician and mental wellbeing of their employees. Companies can build value by recognising that investing in holistic health will directly correlate with future revenue - or more specifically getting ahead of revenue losses due to bad employee mental and physical health.
McKinsey estimates that an average of $1,100 to $3,500 can be generated per persona, per or 17 to 55 percent of average annual pay. Organisations that ignore workforce health are leaving massive value untapped.
The Current State of Workplace Health: A Crisis in the Making?
Despite the benefits, many organisations fail to foster healthy work environments.
A McKinsey survey of over 30,000 employees across 30 countries found that:
Only 57% report good holistic health (physical, mental, social, and spiritual well-being).
22% experience burnout symptoms—rising to 30%+ in industries like retail and accounting.
Employees in low-income groups, women, LGBTQIA+, neurodivergent individuals, report worse health outcomes and a lower overall holistic health score.
Industries Struggling with Employee Health
The survey ranked industries based on employee well-being. The worst-performing sectors include:
Retail (42% of employees in good health, 27% burnout rate)
Accounting (40% in good health, 30% burnout rate)
Agriculture & Fishing (39% in good health, 35% burnout rate)
Conversely, the industries with the highest well-being scores were:
Human Resources (59% in good health, 16% burnout rate)
Construction (58% in good health, 16% burnout rate)
Education (55% in good health, 16% burnout rate)
Demographic Disparities: Who Suffers the Most?
The report found that workplace well-being is not distributed equally:
Women report 8% higher exhaustion rates than men (46% vs. 38%).
LGBTQIA+ employees have 9% lower holistic health scores than heterosexual employees.
Neurodivergent employees report 24% lower well-being than their neurotypical peers.
Younger workers (18-28 years old) are 18% more likely to experience burnout than those over 60.
All of these disparities and nuances within the data show that tailored workplace wellbeing is crucial. Creating a one size fits all policy for any area of workplace health is impossible. Therefore, like any holistic approach to policy, managers need to begin by understanding the needs of their employees and then building policy on top of that.
Measuring the ROI Employee Well-being Investments
One of the biggest challenges organisations face when investing in workforce health is proving the return on investment (ROI). Many businesses recognise the benefits of employee well-being programs, yet they struggle to measure the true impact. This can lead to challenges for management, both with pitching employee wellbeing initiatives to a board and with understanding the impact of already implemented policy directly.
Why Measuring Impact Matters
McKinsey's report acknowledges that when it comes to employee wellbeing, most organisations rely on basic metrics like absenteeism and healthcare costs to evaluate workforce health.
However, these fail to capture the full range of economic benefits, such as:
Improved productivity: Healthier employees work more efficiently.
Lower presenteeism: Employees who are looked after are more engaged and present in their work.
Higher retention: Health-focused workplaces reduce turnover, as employees feel valued.
Greater talent attraction: Job seekers prioritise well-being benefits, since competitive salaries are no longer a big selling point for job seekers.
To build a strong business case, organisations need to go beyond traditional health tracking and implement a comprehensive measurement approach. Being able to directly link metrics to employee wellbeing will allow organisations to not only prove the benefits of proactive healthcare programs, but also be able to effectively measure what does and doesn’t work in their organisation.
Key Metrics for Measuring Workforce Health Investments
McKinsey’s report recommends that companies focus on 2 core value drives, when it comes to measuring the success of their workplace well-being investments.
1. Employee Output Metrics
These metrics capture how health investments translate into better performance and efficiency. The key areas the report suggest businesses measure are:
Productivity: Employee output per hour worked.
Presenteeism: Lost work time, where team members are present but unproductive due to poor health
Absenteeism: Sick days and health-related leave
What does this look like in action? A recent study from the University of Warwick found that happier employees are 13% more productive in customer service roles. Measuring work output, in this case the number of calls taken, before and after well-being initiatives can provide a clear business case for investing in health.
2. Talent Management Metrics
These indicators assess how workplace well-being affects hiring, retention, and employee satisfaction. Workplace should consider the following metrics when wanting to measure there:
Retention Rates: Employees staying longer in the company.
Turnover Costs: Money saved by reducing unwanted attrition e.g.: training costs, hiring costs, loss of productivity due to new employee.
Employer Reputation: Employee reviews and company rankings.
What does this look like in action?
Mercer research found that companies which foster a “culture of health” experience employee turnover rates 11% lower than businesses who don’t.
How Employers Can Take Action
While every organisation is different, McKinsey outlines six evidence-based principles to create a healthier workforce:
1. Assess Workforce Health and the Value at Stake
Organisations should measure employee well-being through surveys, focus groups, and real-time analytics to understand key health risks. The best starting point for this is to create short baselines surveys which measure wellbeing prior to any chances, and then returning to these surveys periodically over time.
2. Develop Sustainable Health Initiatives
Rather than reactive policies, businesses should create long-term well-being programs aligned with their corporate strategy. One-off efforts will not cut it when it comes to proactive health. Therefore a wider review of company policy and culture is required in order to be able to embed health initiatives into the very fabric of a business.
3. Pilot Interventions and Track Impact
Organisations should begin the overhaul of their workplace wellbeing programs with small-scale health pilot programs. They should be intentional about the small changes they make and what simple metrics they can use to measure their success. This will allow them to get a far better understanding of what exactly helps their employees rather than making a number of changes all at once, and then being unsure what is truly working.
McKinsey also recommends that you start by measuring just 3-5 KPIs.
4. Ensure Leadership Commitment
CEO and executive buy-in is crucial. In order to make these efforts successful, having an appointed member of the board who is in charge of wellbeing and holds the rest of the board accountable for it is important. It is crucial that executives are transparent about their own role in creating a sustainable work life balance, putting their health first, as much as they expect their employees to do the same.
The report finds that leaders play a significant role in shaping workplace health culture so their role has to be intentionally set.
5. Embed Health into Organizational Culture
Workforce well-being should not be an afterthought - it should be a core part of the business strategy. Employee health must be integral to everyday work life and embedded in daily practices, management analytics, leadership behaviors, the deployment of digital tools, policies, and values. A wider culture shift requires continuous cultural engagement, because a shift in workplace wellbeing takes time.
6. Go Beyond Individual Well-being to Structural Change
Instead of focusing solely on individual wellness programs, employers should redesign job roles and team structures to minimise stress and maximize fulfillment. It is important for businesses to look beyond surface level benefits, such as gym memberships or once a quarter team building days. Making wider organisational change requires a complete overhaul of the workplace, starting with daily practices which help reduce stress.
The Future of Workplace Health: A Competitive Advantage
As businesses face increasing scrutiny over their wider impact on society, through ESG metrics, their reputation, employee turnover and more it is important to note that a culture which champions employee wellbeing is becoming a key differentiator. With mounting pressure from both society and governments it is crucial that businesses tackle employee wellbeing head-on - rather than taking reactive measures.
Organisations who fail to act risk financial penalties, reputation damage and overall lower employee engagement.
How myday Can Help Build Thriving Workplaces
The Thriving Workplaces report makes one thing clear: employee well-being is a business necessity, not just a perk. Companies that actively invest in workforce health see higher productivity, stronger retention, and a more engaged workforce. But the challenge lies in turning well-being strategies into real, measurable impact.
This is where myday steps in. As an all-in-one workplace well-being platform and app, myday takes every aspect of employee health and wellbeing and offers businesses one simple tool to tackle prioritising it across their business. This way, businesses can build a healthier, happier and more connected workforce with ease.
How myday Helps Companies Tackle Workplace Well-Being
Community: Building Meaningful Connections
Perhaps one of the areas of health and well being most often ignored by businesses is the power of community, and what a workplace which fosters belonging and a shared sense of purpose can do. The app offers safe, moderated spaces where employees can engage in supportive conversation around topics like mental health, parenting, women’s health, and LGBTQIA+ issues. These groups can help businesses create a wider support net for their team beyond HR initiatives and help remove stigma around the effects that mental and physical health can have on productivity.
What's more, through kudos, shares, and group discussions, employees can form real connections, reducing loneliness and boosting engagement.
Activity: Energizing the Workforce
Physical well-being is key to overall employee health and engagement increases when people move together. myday offers solo, team, and company-wide activity challenges, keeping employees motivated, active, and connected. With leaderboards, weekly trophies, and social interactions, teams stay energised and engaged.
Impact: Creating Purpose-Driven Workplaces
Studies show that employees are more engaged and motivated when they feel they’re making a difference. myday’s Planet Points system allows team members to support causes they care about, earning points through challenges, daily activities, and community engagement. These points are converted into real donations, giving employees a tangible way to create positive change beyond the workplace.
For leaders
Aside from a wide range of wellbeing tools, myday offers leader real-time impact tracking. With a handy portal that measures key ROI statistics around employee well-being initiatives, management can see exactly when and how their wellness initiatives are helping team members.
This way management can not only see what is and isn’t working but also share real time results with board members.
The Future of Workplace Well-Being Starts with myday
The McKinsey report highlights a clear path forward: companies that priorities well-being strategies will see stronger business outcomes. myday makes this easier than ever by bringing together employees' connection, impact, and activity, all in one powerful platform.
By integrating myday into their well-being strategy, companies can create healthier, happier, and higher-performing teams—and build a workplace where employees truly thrive.
Want to learn more about myday and how we can help elevate your wellness strategy to the next level? Book a call with our team today!
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