In recent years, employee well-being or workplace well-being has emerged as a strategic priority within the domain of Human Resource Management (HRM). More than just a desirable workplace perk, well-being is now recognised as central to sustaining organisational performance, reducing absenteeism, and enhancing employee engagement and retention. The COVID-19 pandemic underscored this importance, exposing vulnerabilities in workforce resilience and amplifying the need for robust well-being strategies (Aziz, Kapilashrami & Majdzadeh, 2025).
Defining Employee Well-being
Employee well-being encompasses physical, psychological, and social dimensions that contribute to a person’s holistic experience at work. It extends beyond the absence of illness or stress to include job satisfaction, purpose, autonomy, positive relationships, and work-life balance (Guest, 2017). The Chartered Institute of Personnel and Development (CIPD) (2023) defines it as “creating an environment to promote a state of contentment, which allows an employee to flourish and achieve their full potential.”
In HRM, the conceptualisation of well-being is rooted in Human Capital Theory, which posits that healthier, happier employees are more productive and create greater value (Becker, 1993). This perspective places well-being at the core of strategic HRM, directly linked to organisational competitiveness.
Key HRM Practices Supporting Employee Well-being
- Work-Life Balance Initiatives:
Flexible working arrangements, such as remote work, compressed hours, and job sharing, are now common tools to reduce stress and support employee autonomy. For example, public sector organisations increasingly use these models to support working mothers (Gaboyan, 2025). Such flexibility is crucial in addressing role conflict and promoting better mental health. - Employee Assistance Programmes (EAPs):
These provide confidential counselling and mental health support services. According to the BMJ Global Health (Aziz et al., 2025), EAPs have played a vital role in alleviating stress among healthcare professionals, particularly during crises. - Well-being-Centred Leadership:
Managers who exhibit emotional intelligence, empathy, and supportive leadership styles are critical to employee well-being. Leaders can foster psychological safety and trust, especially in emotionally intensive sectors like hospitality (Avdimiotis et al., 2025). - Training and Development:
Providing career growth opportunities is closely tied to psychological empowerment. Employees who feel valued and supported in their development report higher levels of well-being (Latumahina & Syamsudin, 2025). - Organisational Culture and Inclusivity:
A positive organisational culture, free from discrimination and inequality, significantly enhances employee morale. An intersectionality-informed review by Aziz et al. (2025) highlighted that structural inequalities often exacerbate well-being gaps, especially for marginalised staff.
Measuring Employee Well-being
Assessing well-being requires a blend of quantitative and qualitative measures. Common tools include:
- Employee surveys (covering engagement, satisfaction, stress)
- Turnover and absenteeism metrics
- Psychosocial risk assessments
For instance, multisensory office designs have been shown to influence well-being positively, with HR professionals citing increased energy levels and reduced burnout (Watt, 2025).
Impact of Poor Well-being
Neglecting employee well-being can have severe organisational consequences:
- Higher turnover and associated recruitment costs
- Increased absenteeism and presenteeism
- Decreased productivity and engagement
- Deteriorating employer brand reputation
Satrya (2025) found that high levels of job insecurity and diminished professional identity led to increased turnover intention in Indonesian state-owned enterprises. The study recommended proactive interventions to improve emotional engagement.
Sector-Specific Challenges and Examples
- Healthcare:
Staff burnout is particularly pronounced. Iwuh (2025) examined nurse burnout and found that self-care education significantly reduced emotional exhaustion, underlining HR’s role in designing supportive interventions. - Education:
Teachers face stress due to workload and lack of support. Aremu et al. (2025) suggested that transforming school environments can positively affect staff well-being, advocating for policy changes in teacher support. - Hospitality and Tourism:
Here, high emotional labour and irregular shifts affect well-being. Studies have shown that managers’ awareness and support of emotional expression can mitigate the risk of emotional exhaustion (Avdimiotis et al., 2025).
Technology, AI, and Future Well-being Strategies
Emerging technologies, particularly AI and automation, present a paradox. While they can reduce workload and support well-being by automating mundane tasks, they also contribute to job displacement anxieties. Aziz et al. (2025) argued for proactive HR planning to mitigate stress and prepare employees for new roles through upskilling and reskilling.
Furthermore, wearable technologies and EEG devices are now being explored as tools to monitor emotional states, allowing HR to gain real-time insight into staff morale and adjust policies accordingly (Konstantinidis et al., 2025).
Best Practice Models in HRM
PERMA Model (Seligman, 2011) is frequently adopted in workplace well-being strategies:
- Positive Emotion
- Engagement
- Relationships
- Meaning
- Accomplishment
HR managers can use this framework to design interventions that go beyond health insurance and gym memberships, integrating purpose-driven work and recognition systems that reinforce well-being.
Incorporating employee well-being into the strategic HRM agenda is no longer optional—it is fundamental for organisational sustainability and ethical responsibility. HR professionals must shift from reactive, compliance-based approaches to proactive, inclusive, and individualised well-being strategies. The evidence is clear: happy employees create healthy organisations.
References
Aziz, R., Kapilashrami, A., & Majdzadeh, R. (2025). Mind the ‘inequality’ gap: intersectionality-informed scoping review of inequalities and adverse experiences of health and care workers globally. BMJ Global Health.
Avdimiotis, S., Stamovlasis, D., & Konstantinidis, I. (2025). Do hotel managers deal with employees’ emotions?. Worldwide Hospitality and Tourism Themes.
Gaboyan, M. (2025). Work-Life Balance Challenges for Women in Public Sector. CalState ScholarWorks.
Guest, D. (2017). Human resource management and employee well-being: Towards a new analytic framework. Human Resource Management Journal, 27(1), 22–38.
Satrya, A. (2025). Job Insecurity and Well-being in State-Owned Enterprises. Eduvest Journal.
Watt, T. (2025). Multisensory Workspace Design and Well-being. ProQuest Dissertations.
Latumahina, J., & Syamsudin, S. (2025). Psychological Empowerment and Leadership in Higher Education. Jurnal Multidisiplin Ilmu.
Iwuh, D. (2025). Preventing Nurse Burnout through Self-Care Strategies. Walden University.
CIPD (2023). Health and Well-being at Work 2023 Report.
