Employee Wellbeing (AQA A Level Business): Revision Note

What is employee wellbeing?

• Employee wellbeing refers to the overall physical, mental and emotional health of employees

  • It includes factors such as workload, workplace relationships, job security, working conditions and access to support

• A business that takes wellbeing seriously creates an environment where employees can perform effectively without their health or quality of life being compromised

Benefits of improving employee wellbeing

Higher productivity

• Employees who are physically and mentally well are more focused, make fewer errors and perform better over time

Lower absenteeism and reduced presenteeism

• Good wellbeing reduces the number of sick days taken, maintaining high output and reducing pressure on colleagues

• 'Presenteeism' is where employees are physically at work but not performing effectively due to stress, illness or burnout

  • Wellbeing initiatives reduce its impact

Lower staff turnover

• Employees who feel genuinely supported are more likely to remain with the business, reducing the costs of recruitment and training

Stronger employer reputation

• Businesses known for looking after their people attract higher-quality job applicants and build a long-term competitive advantage in the labour market

Improved team morale

• A positive wellbeing culture creates a supportive, collaborative working environment that benefits all employees

Legal compliance

• Employers have a duty of care under UK health and safety legislation

• Proactive wellbeing management reduces the risk of legal claims and fines

Challenges of improving employee wellbeing

Ways to improve employee wellbeing

Physical and mental health support services

• Businesses can provide dedicated services to support employees' physical and mental health, either directly or through third-party providers

Examples

• Employee Assistance Programmes (EAPs) offer confidential counselling

• Private health insurance

• Subsidised gym membership

• Mental health first aiders

• Occupational health referrals

Advantages of physical and mental health support services

• Directly addresses the causes of employee absence by providing early support before issues become serious

• Visible mental health provision reduces stigma and encourages employees to seek help

• Demonstrates genuine commitment to employee welfare, improving trust and loyalty

• Can reduce long-term costs by preventing minor health issues from escalating

Disadvantages of physical and mental health support services

• Can be expensive to provide, particularly for smaller businesses

• Services are often underused

  • Employees may not know they exist or may feel reluctant to access them

• Difficult to measure the direct impact on business performance

• Can become a tick-box exercise if not supported by a genuinely healthy workplace culture

Example

Barclays Bank launched its "This is Me" campaign to encourage mental health at work

The initiative included training managers to hold wellbeing conversations, introducing mental health first aiders across the business and creating a culture where discussing mental health was openly encouraged

Barclays reported a significant reduction in mental health-related absence and an improvement in engagement scores following the programme

Inclusive work environment

• An inclusive work environment is one where all employees feel valued, respected and able to contribute fully, regardless of their background, identity or personal characteristics

Examples

• Diversity and inclusion policies

• Zero-tolerance approaches to discrimination and harassment

• Accessible facilities for employees with disabilities

• Inclusive leadership training

• Flexible policies accommodating different religious or cultural practices

Advantages of an inclusive work environment

• Improves the wellbeing of employees who might otherwise feel excluded, undervalued or unsafe

• Reduces the risk of discrimination claims and legal and reputational damage

• Broadens the range of perspectives within the workforce, improving creativity and better decision-making

• Strengthens an employer's reputation, making the business more attractive to a wider pool of candidates

Disadvantages of an inclusive work environment

• Requires genuine cultural change

  • Policies alone do not create inclusion — attitudes and behaviours must also change

• Difficult to implement consistently across large or geographically dispersed organisations

• Requires ongoing investment in training and leadership commitment

• Progress can be slow and hard to measure

Example

Microsoft runs one of the most widely recognised disability inclusion programmes in the global technology sector

The business has adapted its recruitment process to support neurodivergent candidates, trained hiring managers in inclusive interview techniques and introduced assistive technology tools across its offices

It has also set measurable targets for disability inclusion at all levels of the organisation

Employee voice

• Employee voice is where employees can express their views, ideas and concerns to management, giving them a meaningful say in decisions that affect their working lives

Examples

• Staff surveys

• Suggestion schemes

• Works councils

• Trade union representation

• Employee forums

• Open-door policies

Advantages of employee voice

• Makes employees feel valued and respected, improving their sense of belonging and commitment

• Shows up problems and ideas that management may not otherwise hear, improving the quality of decisions

• Identifies wellbeing issues early, before they escalate into more serious problems

• Reduces the risk of industrial disputes by giving employees a legitimate outlet for concerns

Disadvantages of employee voice

• Only effective if management genuinely listens and acts

  • Unaddressed feedback can increase frustration rather than reduce it

• Collecting, analysing and responding to employee input takes time

• Risk of becoming a box-ticking exercise if employees feel their views are sought but ignored

• Some employees may not feel confident expressing critical views, particularly in organisations without strong psychological safety

Example

Partners (employees) at the John Lewis Partnership elect representatives to its Partnership Council, which has influence over business decisions and is an opportunity to question senior management directly

Partners also elect representatives to the board of directors, giving employees a real stake in how the business is run

Flexible working

• Flexible working includes arrangements that give employees greater control over when, where and how they work, including remote working, hybrid working, flexitime, compressed hours and part-time contracts

  • The right to request flexible working from the first day of employment took effect in April 2024 (previously employees needed 26 weeks' service)

• From a wellbeing perspective, flexible working is particularly valuable

  • It allows employees to manage work around personal and family commitments, reducing stress and improving work-life balance

Advantages of flexible working

• Reduces stress and the risk of burnout by giving employees greater control over their working schedule

• Supports employees with caring responsibilities, health conditions or disabilities who may not be able to work standard hours

• Reduces commuting time and cost, which can significantly improve day-to-day quality of life

• Reduces presenteeism

  • Employees who feel in control of their time are more likely to be genuinely productive when they are working

Disadvantages of flexible working

• Not all roles can be performed flexibly

  • Manufacturing, healthcare and retail roles typically require physical presence at set times

• Can create resentment among employees in roles that do not allow flexibility

• Harder for managers to monitor performance and maintain team cohesion

• Can blur the boundary between work and personal life, increasing the risk of employees overworking

Example

Aviva, the UK insurance company, introduced a flexible working policy allowing all employees to request any working pattern from their first day

The chief executive described it as a way to attract the widest possible talent pool and support employee wellbeing

Early results showed a measurable improvement in employee satisfaction scores and a reduction in employee turnover among staff who adopted flexible arrangements