Co-authored by Mike Hesch (Head of UK Employee Benefits, Engage Health Group) and Katy Henrickson (Co-Founder, WellFi)
8 minute read
Committing to employee wellbeing is no longer a nice-to-have. It is a performance strategy. Give people the tools, resources and autonomy to look after themselves and they bring their whole selves to work: more focused, more committed, and genuinely feeling cared for by their employer. The payoff is real, from reduced stress and absence to sharper focus and greater productivity.
Wellbeing, however, has more than one dimension. It rests on three pillars: physical, mental and financial. None stands alone. Each supports, and can undermine, the others, which is why they need to be treated as one connected picture rather than managed in silos. In this article we look at each pillar in turn and what employers can do to strengthen all three.
Physical wellbeing
Physical health encompasses everything about your body and inside it, including your organs, muscles and bones (musculoskeletal system), immune system, reproductive health and more.
Often we immediately think about the importance of physical exercise and diet, which are of course very important, but we shouldn’t overlook areas like rest and recuperation, including most crucially, sleep!
Our physical wellbeing can also be affected by our mental wellbeing. For example, high levels of stress can flood the body with adrenaline and cortisol which is fine in small doses, but when it’s prolonged, it can overload the body and cause all manner of physical ailments.
The cost of poor physical health
Poor physical health can have a negative impact on a business in two ways.
Most obviously, an employee might not make it into work. But even if the employee is able to overcome pain, discomfort or extreme fatigue to make it into work; it’s unlikely they’ll be performing at their best. They may clock up hours, but they might have little to show for it!
The DWP’s Keep Britain Working report found that poor workplace health costs the UK economy £85bn a year, with £21bn of that lost through presenteeism.
The biggest causes of workplace absence
Sometimes the biggest causes of workplace absence are the most mundane. For example, the CiPD found that minor illnesses such as colds and flu were the biggest cause of short-term sickness (up to 4 weeks). Meanwhile, musculoskeletal issues were the second biggest cause of long-term absence (four weeks or more) – secondly only to mental health.
Impact on mental and financial health
It’s of course true that anyone suffering from a physical ailment will struggle to be at their most enthusiastic. Depending on the health issue, they might spend limited time outside or with other people. For short periods this is manageable, but for prolonged periods it’s much tougher and that’s when it can impact on mental health.
Long-term physical health issues can also impact people financially. Statutory sick pay does not cover a person’s full wage, and only lasts for a limited period.
Research by Vitality found that one in three UK families could be pushed into financial hardship within three months, if they were unable to earn for a prolonged period.
What can employer’s do?
The world of work can have a major impact on the physical health of employees, so it’s important that employers do all they can to look after their staff. After all, people spend much of their week working and that time can be spent building healthy or unhealthy habits.
Here are a few things that can help keep them healthy:
- Workspace ergonomics: make sure staff have appropriate seating and screen set-ups that promote good posture and minimal eye strain.
- Health & safety protocols: all workspaces should have appropriate health and safety standards – it’s not just a box-ticking exercise, so take it seriously.
- Access to preventative healthcare and reactive healthcare: company health insurance or group health cash plans can provide everything from fast GP access and diagnostic scans through to prompt inpatient and outpatient treatment when it’s needed.
- Little things that make a difference: encouraging walk and talks (in place of seated meetings where appropriate), promoting the joys of leaving the desk at lunch, providing healthy snacks and any other small changes you can think of.
- Extra perks: Cycle to work schemes and discounted gym memberships also encourage healthy physical activity.
As we have seen, though, physical health rarely stays in its own lane. When the body struggles for long enough, the mind usually follows, which brings us to the second pillar.
Mental wellbeing
Mental wellbeing is best described as a positive state of mind through which people feel able to take on life’s challenges and connect with those around them.
A study by Adelaide University and Be Well Co identified six dimensions of mental wellbeing:
- Meaning and purpose: Feeling that life is worthwhile and goal-orientated
- Life satisfaction: Feeling that your life is overall good
- Self-acceptance: Feeling generally positive towards yourself
- Connection: Feeling close to others in caring relationships
- Autonomy: Feeling in control of choices and able to express yourself
- Happiness: Feeling frequently positive and cheerful
The cost of poor mental health
Mental health has been one of the biggest public health concerns of recent times. The WHO estimates that over a billion people are suffering with mental health conditions around the world.
Closer to home, we can see how it’s affecting businesses and the people they employ. According to the Purple House Clinic, 119 out of 150 businesses have experienced mental health related absence over the past two years.
Yet, it’s possible that rates could be even higher than this. According to Aviva, more than a third of employees say they have taken time off due to mental health but only 18% gave the true reason to their employer.
This suggests that for all the public discussions around mental health, some stigma still remains.
Can employers do more?
The causes of mental health problems are many and varied. Work-related stress, financial stress, family relations, bereavement, illness and insomnia are just a few of the factors that could be at play.
While it’s impossible for employers to solve every issue, they can at least ensure that work is not the root cause and provide some form of support for when an employee may be struggling.
Ensuring people feel valued and supported is a key starting point. A few things to consider:
- Providing mental health training for line managers
- Supporting personal development goals where possible
- Encouraging a healthy work-life balance (make sure they take their breaks and their full holiday entitlement!)
- Providing mental health support tools: such as Employee Assistance Programmes (EAPs) and mental health apps
- Investing in Business Health Insurance or a Group Health Cash Plan: both usually come with an EAP and other forms of mental health support built in.
Ultimately, it all comes down to culture, which starts with a genuine desire to do the right thing.
The knock-on effect
Poor mental health can cause a knock-on effect on the other pillars of wellbeing. People experiencing considerable mental and emotional discomfort are likely to be make poorer decisions when it comes to other areas of their lives.
A sensible approach to diet and nutrition may go out the window, while exercise might also be neglected. Meanwhile, they might also make poor financial decisions.
Essentially, people suffering from poor mental health will have a tendency to neglect other areas of their lives compounding their problems in a vicious downward spiral.
But with a healthy workplace culture and the right mix of support tools in place; employers can go a long way to ensuring employees don’t get to this point.
And money troubles are so often part of that spiral, which brings us to the third pillar, and the one most often overlooked.
Financial wellbeing
Financial wellbeing is about feeling secure, confident and in control of your financial journey, both now and in the future. And it touches almost everything. Money decisions are woven into nearly every stage of life, from starting a new job or moving home, to providing for a family, managing the weekly shop, or planning for retirement. Life is full of money questions, big and small, and most of us are left to answer them with little prior knowledge of the options in front of us or whether we are making the right call.
The hidden cost of financial stress
That responsibility can quickly become overwhelming, and the effects run far deeper than a stretched bank balance. Financial stress is a leading driver of anxiety, poor sleep and physical ill health. In fact, the latest Zellis research found that 92% of employees experienced financial stress or worry over the past year.
Money worries follow people to work
Crucially for employers, those worries do not stay at home. They follow people into work, with 89% saying financial stress affects their working lives through absence, distraction and reduced productivity. It’s hard to focus fully on a task while quietly worrying about clearing a debt or reaching payday in the green. Yet unlike mental health, where we have made real progress in opening up the conversation, financial stress often still sits in silence, and those conversations can be tricky to start.
Three pillars, one picture
At work, we tend to separate mental health, physical health and financial wellbeing, but in reality they are deeply connected. This is precisely why financial wellbeing cannot be treated in isolation from the other two pillars, and the relationship works in both directions: ease financial stress and you support better sleep, healthier habits, sharper focus and greater confidence. Strengthen one pillar and you strengthen the others.
How employers can help
The encouraging news for HR and People leaders is that employers are in a strong position to help, and it rarely means simply adding more benefits. Often it’s about helping people understand and make the most of the support already available to them. Small, practical steps make a real difference:
- Creating space for open conversations
- Signposting support clearly
- Offering relevant financial education
- Recognising that financial pressures change across different life stages
The payoff for everyone
Financial education is the foundation. Once employees have built knowledge and confidence, the focus shifts to engagement and action, guiding them through their options and the steps that turn understanding into better decisions.
When people feel financially secure, the benefits reach well beyond their finances, supporting happier, healthier and more engaged teams. And that is what true wellbeing looks like.
Three pillars, one workforce
Physical, mental and financial wellbeing each play a vital role in overall health, and as we have seen throughout this article, they rise and fall together. A lingering health condition can drain both motivation and savings. Money worries can disturb sleep and cloud focus. Poor mental health can undo good habits across the board.
The organisations getting employee wellbeing right are those treating it as one connected picture, not three separate programmes. Support all three pillars and you build a workforce that is healthier, happier and performing at its best. And that is what true wellbeing looks like.

About Engage Health Group
Engage Health Group helps employers tackle the costs and complexities of arranging employee benefits in the UK and around the world. More than just a broker, we provide genuinely impartial advice, full admin support, and expert troubleshooting for all our clients.

About WellFi
WellFi helps UK employers improve their employees’ financial wellbeing through tailored financial education and targeted communication, creating happier, more productive workforces.