The Evolution of Well-Being in Organisations: From Compliance to Culture
By Claire McCaffrey – ICF accredited coach with a passion for strengths, wellbeing and Inclusion, Diversity and Equity.
I recently had the opportunity to talk at the HCANZA conference to Health Care coaches on corporate wellbeing and, I shared my perspective on the evolution over the years. This blog is a summary of what I shared and my thoughts on what organisations can do to support the well-being of their employees.
Organisations are facing a well-being crisis
I have spent the bulk of my career working in HR and have seen such a significant shift in the role of organisations in the wellbeing of their employees. I believe that today we stand at a pivotal moment for organisations – one where well-being of people has moved from a nice to have to a critical strategic priority. Currently, we are experiencing a well-being crisis in organisations around the world.
Last year, there were 1.1 million calls to lifeline – and 40% of Australians said they were feeling stressed, 34% felt burned out. The World Health Organisation (WHO) estimated cost of productivity loss was more than $1trillion dollars due to mental health issues last year.
Gallup’s research has also shown a steady decline in the proportion of people who were thriving in Australia – with a decrease of 13% in Australia from 69% in 2011 to 56% in 2024. Recent research by Gallup also suggests a paradox where we are seeing decreased well-being with increased engagement in relation to hybrid work.
So overall mental health issues are increasing at a time when companies are investing heavily on wellbeing initiatives. Why is this happening? To understand what is going on, it is helpful to think about the shift that has happened in the world over the last 30 years from a wellness at work perspective.
The concept of well-being at work has shifted
In the not-so-distant past, the concept of well-being in the workplace was largely synonymous with compliance. When I began my career, the focus was more on the safety piece of health and safety – trip hazards and risk management. Well-being benefits were basic and focused on meeting minimum standards – ensuring safety regulations were followed– but little was offered proactively to support employees to thrive.
Things were very different back then from a way of working perspective. Work was a place. The concept of work-life balance was starting to evolve but, technology was quite limited at the time, and when you finished work for the day – you were done.
Beyond Compliance: The Emergence of Employee Assistance and Perks
As the workforce evolved and the nature of work itself underwent a significant transformation, so too did expectations around employee well-being. The shift from compliance to a broader recognition of the importance of well-being began in earnest in the late twentieth century. Organisations realised that meeting only the bare minimum was insufficient for attracting and retaining top talent and that wellbeing also impacted their brand.
This was the age of the Employee Assistance Program (EAP) and the proliferation of perks. Companies began offering counselling services, pool tables in the office, gym memberships, free snacks, and flexible working arrangements. The underlying philosophy, however, still treated well-being as an add-on or benefit—something to set an organisation apart, but not yet infused into the fabric of the workplace.
Well-being was beginning to be seen as an investment rather than a cost, but for many, it remained transactional: a quid pro quo exchange of perks for engagement or productivity.
Recognising the Whole Person: The Shift to Holistic Well-Being
In more recent times, companies continued to develop their wellbeing approach — recognising employees as whole people, with physical, emotional, social, and financial dimensions. Research began to underscore the interconnectedness of well-being and productivity, innovation, and organisational resilience and focusing on thriving.
Progressive organisations adopted programs that addressed mental health proactively and reactively, offered financial wellness workshops, offering coaching and psychological services. Leaders began to realise that well-being couldn’t be achieved by patchwork programs alone; it required an integrated approach that respected the individuality of each employee.
The COVID-19 pandemic accelerated this shift. The global crisis exposed the fragility of systems that treated well-being as peripheral. The lines between work and home blurred, and mental health challenges surged.
In parallel, technology and communication channels exploded – the number of communication methods became overwhelming. In parallel, more recently there have been many political, social, economic, technological and financial factors which have also been influencing the change. There is increasing fear for the future – with the escalating risks of global wars and the impact of climate change with increasing floods and fires. The economy has also been unstable and we have seen high inflationary issues which has led to a cost-of-living crisis and job security concerns as AI and automation begins to replace jobs. All these factors have contributed to the decrease in well-being we are seeing.
And so, we arrive now—a time when the most forward-thinking organisations understand that well-being is not simply a policy or a program, but a core cultural value. Now the blurring of the lines has meant work is what you do – whether that be at home, office or on a beach – wherever you are the opportunity to truly separate from work has become more challenging.
How much does work stress impact our wellbeing and what should organisations do?
A recently global survey by Wellhub of 5000 people showed that work stress was a major contributor to mental health issues and that 88% of employees said that having wellbeing support is as important to them as salary. Interesting, a report published in conjunction with the World Economic forum showed that senior managers view of what employees wanted was different to the employees themselves. Senior managers prioritised flexibility and rewards whilst employees were more focused on the social components such as belonging and this was further influenced by generational preferences. Clearly, a one size all approach won’t work.
Employers need to recognise that encouraging a person to bring their whole self to work also means they need to support that whole self. As the lines are so blurred between work and life – organisations need to be involved in employees’ lives. Inclusive policies and practices are a critical part – whether that be policies to support menopause, gender transitions or IVF. Also providing accessible environments not just in an office – designing ways of working with an inclusive mindset whether that be lighting, noise levels or ways to help employees manage the inevitable overwhelm. Providing benefits that help employees manage proactively their well-being – whether that is well-being coaching, well-being apps or workshops. However, also providing support in crisis – which may or may not be work related e.g. death of a family member, long term sickness, domestic violence situation.
Most importantly, organisations need to provide environments where people feel safe, supported and that they belong. All the initiatives and training in the world won’t help if you are feeling bullied, scared or exhausted.
There is now overwhelming evidence that a culture of well-being delivers business results. Organisations with high well-being scores consistently outperform peers in engagement, innovation, and customer satisfaction. Absenteeism falls, turnover drops, and teams collaborate more effectively.
Crucially, the focus on well-being is no longer just about “doing good”; it is about being competitive, agile, and future-ready. In a landscape where talent is mobile and values-driven, culture is the ultimate differentiator.
So, what can organisations do differently?
This is difficult to get right. It is a highly complex problem in a volatile and uncertain world. Organisations are looking for help to guide them on what to do and where to start. To build a culture of wellbeing, organisations need to focus on the following:
- Leadership engagement: educating leaders to help them understand the problem and get their buy-in. They need to understand the data and business case behind the actions and be aware of the broader aspects of wellbeing: physical, mental, financial and social. Most importantly, they need to set the tone for the organisation and the culture, which means walking the talk – role modelling healthy working patterns, and providing psychologically safe places to work
- Strategically aligned and measured: aligning well-being and health recommendations to business and talent strategy. Wellbeing initiatives cannot be stand-alone benefits if they are to work. They need to be part of strategic priorities which are measured, reviewed, assessed and continually adapted to the needs of the organisation. Well-being becomes the lens through which all company decisions are filtered—from how meetings are scheduled, to how workloads are managed, to how success is defined and celebrated and even on how it is measured.
- Human centred – there is so much talk about AI and tech platforms – and they are certainly important, but we must not lose sight of the people. Technology can be an accelerator but understanding what people need is critical – if employers listen to the voice of their people and act on what they hear, they are more likely to focus on the right priorities and build trust.
Leading the Evolution
Culture is what happens when no one is watching. It is the sum of shared beliefs, unspoken norms, daily behaviours, and leadership attitudes. To truly support well-being, culture must be intentionally designed and actively nurtured. This means leaders do not just sign off on wellness initiatives; they model healthy behaviours. Managers are not just accountable for results, but also for the psychological safety and flourishing of their teams.
If you look it like an iceberg, on the surface are the benefits and programs which can be easily seen, but they are supported by strong structure of policies, programs and practices and below the surface is the culture of wellbeing.
In a culture of well-being:
- Work-life boundaries are supported and respected, not just formally but in practice – people don’t feel compelled to answer the phone out of hours, and have the autonomy to manage their time
- Mental health is destigmatised through open dialogue and visible commitment from leadership – being vulnerable and sharing in employee forums mental health challenges, taking training as a manager to support and watch out for mental health issues
- Psychological safety is nurtured, and employees are empowered to voice concerns and suggest improvements
- Inclusion and belonging are core priorities, creating environments where every individual feels seen, heard, and valued
- Learning, growth, and autonomy are encouraged, fuelling intrinsic motivation and resilience
Call to Action
The evolution of well-being in organisations—from compliance to culture—is a story of progress, but it is also a call to action. Leaders at every level have a role to play in shaping environments where health, happiness, and fulfilment are possible.
Companies need to move beyond legal checklists and isolated initiatives and build cultures where well-being is not an App or something they “do,” but something they live and breathe daily. If companies do this, they will not only unlock the full potential of their people but also ensure the long-term success and sustainability of the organisation.
If you are interested to discuss how organisations can continue to evolve their wellbeing offerings – please reach out to me at Claire McCaffery coaching (Claire@clairemccafferycoaching.com)
To learn more about approved training programs, visit HCANZA’s directory
To find a coach https://hcanza.org/find-a-coach/
About the Author
Claire McCaffrey
Claire McCaffery is an experienced HR leader with over 30 years working in the technology and consulting industries. She is also an ICF accredited coach with a passion for strengths, wellbeing and Inclusion, Diversity and Equity. Connect with Claire on claire@clairemccafferycoaching.com.
https://www.linkedin.com/in/clairemccaffery/
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References
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Wellhub Newroom (2025, Jan 28), ‘Rising work stress surpasses inflation and AI anxiety as the leading threat to Employee mental wellness, highlighting a growing crisis’ https://wellhub.com/en-us/blog/press-releases/work-life-wellness-2025/
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