Resources | Great Place To Work® UK

Declining Employee Wellbeing Threatens UK Business Performance, New Study Finds

Written by Great Place To Work | Jun 27, 2025 11:20:36 AM

26th June 2025 – London, United Kingdom 

A new five-year study from Johns Hopkins University and Great Place To Work® reveals a troubling decline in employee wellbeing across the UK, with under-35s, frontline managers, and men bearing the brunt of the downturn.

The report, Fostering Wellbeing at Work in the UK, based on robust employee survey data from over 300,000 workers, reveals much of the UK workforce is still recovering from the aftershocks of the pandemic, ongoing economic uncertainty, and the rise of AI-driven restructuring.

“The pandemic proved that when leaders prioritise people, wellbeing improves. Since that time many organisations have since shifted focus – which has adversely affected the employee experience,” said Dr. Richard R. Smith, professor of practice and faculty director of the Human Capital Development Lab at Johns Hopkins.

Frontline managers are under the most pressure, with stress levels higher than both executives and individual contributors.

In nearly every year, frontline managers' experience of workplace wellbeing was distinctly closer to the experience of individual contributors, rather than close to other managerial groups. 

This points to the rising workplace phenomenon of a ‘squeezed middle’, where frontline management feels ‘sandwiched' between demands coming simultaneously from above and below – yet often with the least levels of empowerment and autonomy themselves.

The result: front line managers consistently report the highest levels of job-related stress every year (the only exception being in 2020, when executive leaders were the only group whose wellbeing scores declined but all other groups increased, arguably due to the working population looking to business leaders to navigate a period of unprecedented global uncertainty).

Sectors like tech and professional services – previously wellbeing leaders – are now in decline.

Unlike in some other sectors, tech is historically defined by a fierce war for talent and often generous employer value propositions for attracting and retaining talent – resulting in a rise in wellbeing during the pandemic. But since 2020, wellbeing for tech workers has been on a steady decline, with many firms affected by mass layoffs, restructures, and cuts to employee experience budgets – not to mention redirecting budgets to AI and digital transformation which have also taken a toll.

But redundancies also impact the wellbeing of those left behind. Remaining employees inevitably take on additional burdens of workload and responsibility amid a climate of uncertainty and low morale. As one survey comment put it:

"If you are going to make people sick for the sake of
your deadlines, at least stop bragging about caring about employee wellbeing. It’s disingenuous and insulting.”

~ Tech sector employee, 2024

 

Organisations with high wellbeing scores significantly outperform peers in retention, innovation, and financial returns.

Economist Alex Edmans’ analysis of data from 2001-2023 found that
UK’s Best Workplace organisations – where employees have consistently high levels of employee wellbeing and employee satisfaction – perform more than four times better than the FTSE All-Share Index.

In 2025, UK employers need to move beyond token gestures and embed wellbeing into the daily employee experience – from job design and leadership development to continuous listening and co-creation with employees.

“The data is clear: employee wellbeing goes hand in hand with business performance,” said Sara Silvonen, co-author and wellbeing lead at Great Place To Work UK. “When wellbeing suffers, so does productivity, trust, and retention. People leaders are uniquely positioned to drive positive change, using this report as a roadmap for building resilient, high-trust cultures where both people and business performance thrive.” 

To see the full report, please visit: https://www.greatplacetowork.co.uk/resources/workplace-wellbeing-report-2025 

 

About the Fostering Wellbeing at Work in the UK report  

The Fostering Wellbeing at Work in the UK report is a five-year study produced by the Johns Hopkins University Human Capital Development Lab, in partnership with Great Place To Work, as part of an ongoing pursuit to track trends related to wellbeing, organisational culture, and human capital factors around the world. The report, based on feedback from over 300,000 UK workers, aims atuncovering unique insights to advance leaders' understanding of organisational environment factors that influence employee wellbeing in the UK. 


About Great Place To Work® 

Great Place To Work® is the global authority on workplace culture. Our mission is to help every place become a great place to work for all. Since 1992, our Certification™, Best Workplaces™ Lists, and global benchmarks have become the industry standard, built on data from more than 100 million employees in 150 countries around the world. For more information, visit www.greatplacetowork.co.uk

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