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5 Ways to Increase Productivity Through Employee Well-Being

 5 Ways to Increase Productivity Through Employee Well-Being

Employee well-being

Key Takeaways:

  • Psychological safety increases motivation and ambition: In psychologically safe environments, employees are more motivated and contribute at a higher level.
  • Workplace politics drains productivity: At top workplaces, 88% of employees say people avoid politicking and backstabbing, compared to only 53% in typical Canadian organizations.
  • Welcome culture supports productivity during transitions: 90% of employees at top workplaces feel welcomed when changing roles or units—nearly 40 points higher than at typical Canadian workplaces.
  • Structured flexibility enhances focus: Practices like no-meeting hours and regular workload reviews help reduce burnout and improve performance.

 

Supporting employee well-being is no longer an optional benefit. It's a business priority that has a measurable impact on productivity, performance, and retention. When people feel well—physically, mentally, and emotionally—they’re more likely to stay focused, contribute meaningfully, and work effectively with others.

This article explores five actionable strategies organizations can use to improve employee well-being and, in doing so, create the conditions for higher productivity across teams and functions.

Prioritize Psychological Safety in Daily Operations

A productive team doesn’t just have the right tools—they also have the trust to use them. Psychological safety is the belief that it’s safe to speak up, ask questions, or make mistakes without fear of embarrassment or retaliation. It’s foundational to collaboration and innovation.

According to Boston Consulting Group, employees in psychologically safe environments are more motivated and more ambitious. This kind of setting not only encourages contribution but also increases the pace and quality of work across teams.

Trust-based environments also reduce harmful internal dynamics that drain time and focus. In Canada’s top certified workplaces, 88% of employees agree that “people avoid politicking and backstabbing as ways to get things done,” compared to just 53% in typical Canadian organizations. That gap underscores how a culture of trust supports smoother collaboration and better outcomes.

Leaders can support psychological safety by:

  • Encouraging open conversations in meetings
  • Acknowledging mistakes as learning opportunities
  • Listening without interrupting
  • Following up on employee feedback

When people feel safe to speak and act without hesitation, work moves faster and with fewer roadblocks.

Offer Flexibility with Clear Boundaries

Flexibility is often seen as a perk, but it plays a critical role in helping people manage their energy and focus. Whether it’s hybrid schedules, compressed workweeks, or flexible start times, giving employees more control over how and when they work can lead to better results.

However, flexibility without structure can create confusion. That’s why clear expectations are essential. Defining work hours, shared calendars, and response time standards ensures flexibility doesn’t come at the cost of coordination.

Organizations that balance autonomy with alignment see improved time management, reduced burnout, and stronger output across the board. Practices such as setting no-meeting or no-email hours can give employees protected time to focus deeply, reducing cognitive load and improving overall performance (Great Place to Work Canada, 2023).

Address Workload and Job Design

One of the most overlooked drivers of well-being—and by extension, productivity—is workload. Employees who are constantly over capacity are more likely to disengage or make avoidable errors. Conversely, those with underwhelming or unclear roles may struggle to stay motivated.

Regular workload check-ins help managers identify signs of overload early. Consider also reviewing how roles are designed:

  • Are tasks aligned with the employee’s strengths and goals?
  • Is there a clear sense of purpose in the work?
  • Can redundant processes be eliminated or automated?

Aligning job design with capabilities and capacity doesn’t just reduce stress—it ensures people are working on the right things at the right time.

Normalize and Support Mental Health Conversations

Mental health remains a productivity issue—whether companies acknowledge it or not. Employees dealing with stress, anxiety, or personal challenges may find it harder to focus or sustain motivation, even if their performance looks fine on the surface.

Rather than waiting for issues to escalate, companies can:

  • Include mental health resources in onboarding and team communications
  • Provide access to confidential support programs
  • Train managers to notice signs of distress and respond with empathy
  • Normalize conversations by modeling them from leadership

At the Best Workplaces™ for Mental Wellness, 88% of employees agree their workplace is psychologically and emotionally healthy, and 87% say they can ask management any reasonable question—clear indicators that a culture of openness drives better outcomes (Great Place to Work Canada, 2025).

A sense of inclusion and welcome also contributes to emotional safety. In top Certified workplaces across Canada, 90% of employees agree that when people change jobs or work units, they are made to feel welcome—versus only 51% at typical Canadian organizations. That difference matters, especially during transitions, when people are most vulnerable to disengagement.

Use Data to Understand and Improve Employee Experience

Guessing doesn’t scale—data does. Collecting regular feedback from employees is one of the most effective ways to understand how people are feeling and what’s getting in the way of their performance.

An employee survey that measures key dimensions like trust, fairness, and well-being can offer insight into what’s working and where support is needed. Over time, this data allows leaders to spot patterns and respond proactively.

More importantly, acting on the feedback builds credibility. When people see their input leads to change, participation improves—and so does productivity.

As noted in McKinsey & Company’s report, well-being interventions have been linked to productivity improvements ranging from 10 to 21 percent. This reinforces the idea that supporting well-being isn’t a trade-off—it’s a business decision grounded in measurable outcomes.

Learn more about our employee survey.

 

Tools & Resources

  • Trust Index™ Employee Feedback Survey:  A research-backed employee survey that captures real-time insights into engagement, well-being, and psychological safety—key elements discussed in the article.
  • Employee Well-being: Explore how well-being is linked to retention and referrals, and how regular feedback loops can help improve workplace experience in all five key areas of well-being.
  • Culture Consulting: Offers tailored strategies to identify and act on cultural strengths and challenges, especially those affecting collaboration, psychological safety, and leadership effectiveness.
  • Leadership Development: Builds leadership behaviours that directly support trust, inclusion, and productivity—reinforcing many of the people-first strategies outlined in the article.

 

Feedback

We value your feedback! Your insights are crucial to helping us create meaningful content. Did the strategies in this article inspire new ways to increase productivity through employee well-being in your organization? Are there specific challenges you'd like us to address? Share your suggestions or ideas with us. Together, we can develop resources that truly make a difference. Have feedback? Fill out this form by clicking here.

Get Certified

Want to know how your people feel about your employee well-being initiatives? Get Certified today and learn the answer to this question and gain many more insights along the way.

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Frequently Asked Questions:

How can I measure employee well-being effectively?

Use a validated tool like the Trust Index™ Employee Survey to assess well-being, trust, and workplace experience directly from your people.

What’s the best way to start improving psychological safety?

Begin with leadership training focused on active listening, fair treatment, and feedback follow-through to build trust and open communication across teams.

Does employee well-being really affect productivity?

Yes. Studies show well-being investments can lead to productivity increases between 10% and 21%, as noted in research by McKinsey & Company.


Nancy Fonseca
 
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