Happy Teams, High Performance: Exploring the Link Between Wellbeing and Workplace Performance

Let’s be honest – thriving teams don’t just magically happen. Behind every high-performing team is a culture that values people first. And the truth is, if your employees are drained, burnt out or quietly struggling, performance will always take a hit.

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The conversation around mental health and wellbeing isn’t a seasonal headline – it’s the foundation of modern leadership. And for businesses who want to stay ahead, it’s time to ask: are we doing enough to truly support our people? But building a happy, healthy workforce isn’t just about ticking the right boxes – it’s about creating high-performing teams that thrive. The link between wellbeing and workplace performance is no longer a nice-to-have. It’s business-critical.

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Put simply, a happy employee is a productive employee. And there’s solid research to prove it. When your people feel good, your business performs better. It really is that straightforward.

A Happy Employee is a Productive Employee

Let’s start with the basics. Does employee happiness have an impact on productivity? 100% yes. A 2022 study published in Management Science found that happy workers are 13% more productive than their unhappy colleagues. And McKinsey & Company reports that organisations prioritising health and wellbeing see higher productivity and performance outcomes.

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In fact, McKinsey research highlights that companies focusing on organisational health and wellbeing see stronger long-term performance, including greater employee engagement and improved productivity outcomes.

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Happiness at work boosts creativity, sharpens focus, and helps teams collaborate better. When people feel safe, supported and motivated, they show up fully. They go the extra mile. And crucially, they stay.

The Cost of Poor Employee Mental Health

The cost of poor employee mental health is staggering. According to Deloitte UK’s 2024 report, poor mental health costs UK employers between £53–56 billion per year – mostly due to absenteeism, presenteeism and staff turnover. And with burnout on the rise, those numbers are likely to climb.

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A 2023 analysis from PwC UK supports this too, finding that long-term sickness, often linked to mental health, is a key driver of lost productivity across UK businesses.

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Mental health challenges don’t stay neatly out of sight. They show up in missed deadlines, tension in teams, quiet disengagement, and eventually, resignation letters. Ignoring this is costly – both financially and culturally.

Wellbeing is a Strategic Advantage

The good news? Investment in wellbeing pays off – and then some. Deloitte’s research shows that for every £1 spent on mental health support, employers get £5.30 back in productivity gains and staff retention. That’s a 430% return on investment.

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Companies that prioritise employee wellbeing initiatives don’t just reduce costs – they outperform their competitors. They attract better talent, retain key players, and build cultures where people actually want to work. And in today’s talent landscape, that matters more than ever.

What Does Workplace Wellbeing Look Like?

Whether it’s a full corporate wellbeing programme or smaller day-to-day actions, the goal is the same: create an environment where people feel valued and supported.

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Examples of effective employee health and wellbeing initiatives:

• Access to counselling or Employee Assistance Programmes (EAPs)
• Mental health days and flexible working
• Wellbeing workshops (think stress management, nutrition, financial wellbeing)
• Manager check-ins that prioritise people, not just performance
• Physical wellbeing support: gym memberships, walking groups, healthy snacks
• Peer support networks or trained mental health first aiders

These aren’t fluffy perks. They’re the backbone of a resilient, engaged, high-performing team.

Training Managers to Lead Well

Managers play a pivotal role in shaping culture. Yet, too many feel ill-equipped to handle mental health conversations. That’s where mental health training for managers comes in.

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When managers are trained to recognise signs of stress, hold supportive conversations, and signpost to help, the ripple effect is powerful. Teams feel safer, problems are caught earlier, burnout is prevented, and performance improves.

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The benefits of mental health training in the workplace go far beyond wellbeing. It enhances emotional intelligence, communication skills, and trust – all core components of effective leadership.

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Recent research published in PLOS ONE found that mental health training for managers led to better staff retention, improved customer satisfaction, and reduced long-term sickness.

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And it’s not just about responding to challenges – it’s about building preventative cultures. Equipping managers with the right tools creates a working environment that prioritises compassion and performance equally.

Ready to Build a High-Performing Team?

Whether you're planning ahead for Mental Health Awareness Week (12th-18th May) or simply recognising the importance of long-term wellbeing strategies, ask yourself: are we doing enough to support our people?

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Because investing in wellbeing isn’t just the right thing to do, it’s the smart thing to do. It builds trust, boosts performance, and future-proofs your business.

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At PUSH, we help organisations design mental health in the workplace training, deliver tailored management training, and empower leaders with the tools they need to build resilient, high-performing teams.

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Let’s talk. Whether you're launching a new wellbeing initiative or want to upskill your managers, we’d love to support you.

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Explore our leadership training and mental health programmes.

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Let’s create teams that are both happy and high-performing.