Why reward programmes fail without wellbeing at the core

Understand the growing trend of integrating wellness programs into employee benefits and how they contribute to higher engagement and productivity.

Employee wellness is no longer just a nice-to-have; it’s key to any effective rewards strategy.

UK businesses are increasingly integrating wellness into reward strategies, and for good reason: positive employee wellbeing drives engagement, motivation, and performance. It can take a workplace from good to great, transforming work culture for the better.

Read on to find out why wellness is becoming a priority, how it can be implemented within your reward strategy, and why thoughtful wellness programmes make a tangible difference, for employees and businesses alike.

What’s driving the wellness wave?

The world has changed since Covid-19, and the workplace is no exception. The pandemic forced people to re-evaluate their physical and mental health, with hybrid work becoming the norm and employees placing greater emphasis on overall wellbeing. Today’s employees expect support that goes beyond pay or standard perks.

In the UK, long NHS waiting times and the rise of private wellness solutions highlight the growing demand for wellbeing support. Many employers now offer wellness benefits, such as counselling, fitness allowances, or mental health programmes to meet this growing need. Younger generations, in particular, see holistic support as essential, making wellness a standard expectation.

The wellness wave isn’t going away anytime soon; organisations that fail to prioritise wellbeing risk disengagement and talent loss. By understanding these trends, businesses can build reward strategies that meet employees’ evolving needs, supporting not just their work performance, but their overall health and satisfaction.

Wellness as a reward: More than a perk

There are workplace perks, and there are wellness initiatives truly integrated into the culture; employees can usually spot the difference. It’s the difference between free fruit and a gym discount, as opposed to subsidised therapy and flexible fitness stipends.

Perks can feel like a quick fix to tick a box, which is why participation is often low. True wellness programmes take systemic effort, such as promoting psychological safety, offering protected paid time off, or integrating holistic practices into the culture.

When wellness is part of a company’s core values rather than an optional perk, it signals to employees that their wellbeing matters. This builds trust, engagement, and loyalty. Surface-level perks may go unused, but meaningful wellness initiatives create a culture where employees feel supported, motivated, and cared for on a deeper level.

The engagement connection

Wellness initiatives naturally boost engagement, benefiting both employees and the business. When staff feel their wellbeing is genuinely valued, they are more motivated, productive, and committed, and less likely to need to take time off.

In fact, a CIPD and Simplyhealth survey found UK employees took an average of 7.8 sick days last year, with work-related stress a major contributor.

Wellness can fuel engagement in the following ways:

Improving work-life balance: Employees can rest and recharge, returning focused and energised.
Reducing burnout: Staff gain tools to manage stress and stay resilient.
Strengthening loyalty: Employees who feel cared for are more committed and contribute to a positive workplace culture.

By embedding wellness into reward strategies, businesses create a positive cycle where engagement and wellbeing reinforce each other, helping staff perform at their best while feeling genuinely supported and recognised.

Wellness and productivity: The business case

Healthy employees are more focused, resilient, and productive. Investing in wellness pays off, reducing absenteeism, mitigating burnout, and improving overall performance. On the contrary, employees who are unwell can struggle to perform, slowing workflow and creating additional pressure for colleagues.

According to the Health and Safety Executive (HSE), UK businesses lost an estimated 33.7 million working days to sickness absence in 2023/24. Beyond the financial impact, absenteeism can affect team morale and productivity, while prolonged stress can lead to burnout and illness.

Wellness as a business strategy sends a clear message: the company values its staff. In return, employees demonstrate greater engagement, loyalty, and commitment. Wellness is not just a “nice-to-have”; it is a smart investment that improves morale, reduces sick days, and builds a more resilient, high-performing workforce.

Tailoring wellness to what people really need

When creating a wellness programme, it’s essential to tailor it to employees’ needs and offer choices. After all, what works for one employee may not work for another.

Below are some common wellness rewards in UK workplaces:

EAPs (employee assistance programmes): Provide support for employees to manage financial or personal challenges, reducing stress and promoting overall wellbeing.
Digital mental health platforms: Offer subscriptions or discounts to apps or online services that give access to therapists or counsellors.
On-site fitness classes or online subscriptions: On-site classes or online sessions with trainers help employees maintain physical health and stay active.
Paid volunteering or “reset” days: Give employees dedicated time off for rest or to volunteer, supporting wellbeing while encouraging giving back.

Taking the time to survey employees helps identify the needs of a workplace and how to best accommodate staff. Personalised wellness options demonstrate that the organisation truly listens and cares about its people, making wellbeing a meaningful and engaging part of the employee experience.

Making wellness part of a recognition culture

Wellness can add a meaningful layer to recognition. Rather than generic vouchers, consider swapping them with meditation app subscriptions, personalised retreat days, or fitness sessions tailored to individual interests.

Integrating wellness into recognition shows genuine care, humanising reward programmes and fostering engagement and loyalty. Thoughtful wellness rewards make employees feel valued and seen, reinforcing a positive work culture.

Whether it’s personal training, cooking classes, or spa days, wellness recognition supports long-term wellbeing and strengthens the connection between employees and the organisation. Rewarding wellness makes recognition thoughtful, personal, and impactful.

Wellbeing is no longer optional

Wellness is no longer a bonus - it’s a strategic advantage. Employees perform best when they feel supported physically and mentally, and businesses benefit from higher engagement, loyalty, and productivity.

Embedding wellness into rewards demonstrates that staff wellbeing is a priority, not an afterthought. Beyond pay and basic perks, meaningful wellness initiatives show employees they are valued, helping attract and retain talent.

Organisations that make wellness part of their reward strategy create workplaces where people feel motivated, supported, and empowered. In return, the business enjoys a more resilient, engaged, and high-performing workforce, making wellbeing the reward that truly keeps on giving.