Building a Workplace Culture That Prioritizes Employee Wellbeing

How organizations characterize success has fundamentally shifted. While financial performance and operational efficiency remain important, forward-thinking leaders recognize that sustainable success is built on a foundation of employee wellbeing. Organizations that prioritize the holistic health of their workforce are making a strategic investment in their long-term viability.

Forward-thinking leaders recognize that sustainable success is built on a foundation of employee wellbeing.

Employee Experience: An Imperative

The ‘employee experience’ is a critical differentiator in today's competitive market. Organizations can’t afford to view their people as interchangeable resources; they must recognize that every interaction, policy, and cultural norm shapes how employees feel about their work and their commitment to achieving organizational goals. When employees feel valued, supported, and empowered, they bring discretionary effort, innovation, and loyalty to the workplace.

This shift reflects a broader understanding that organizational culture directly impacts bottom-line results. High-performing organizations understand that investing in employee wellbeing creates a reinforcing cycle: engaged employees deliver better customer experiences, drive innovation, and attract top talent, all of which contribute to sustained competitive advantage.

[...] organizational culture directly impacts bottom-line results.

Mental Health: A Business Priority

Mental health in the workplace has transitioned from a peripheral concern to a central business issue. According to Mental Health Research Canada, nearly one in three Canadians (31%) say their mental health is significantly affecting their work or studies [2025 report]. In 2024, the Canadian Psychological Association (CPA) estimated at least 500,000 Canadians miss work due to mental illness every week, with an estimated economic cost of $51 billion annually. The CPA goes on to state: “Poor employee mental health is associated with several behaviour changes that result in negative workplace outcomes:

• Increased absenteeism and long-term disability

• Increased presenteeism (working despite impaired functioning due to mental or physical illness)

• Increased intentions to quit the job, organization, or the occupation

• Reduced productivity and job performance

• Reduced job satisfaction and commitment to the employing organization

• Risk of unsafe work behaviours (e.g., medication errors among healthcare professionals)

• Greater interpersonal conflict with coworkers

• Greater risk of physical illness”

Progressive organizations are addressing these statistics by normalizing conversations about mental health, providing resources, and training leaders to recognize warning signs and respond with empathy. This requires more than the traditional offering of an employee assistance program; it demands a cultural shift, where seeking help is viewed as a sign of strength rather than weakness.

Psychological Safety: The Foundation

At the heart of a healthy workplace culture lies psychological safety, defined by Harvard professor Amy Edmonson as: the belief that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes, and that the team is safe for interpersonal risk taking. When psychological safety exists, employees feel comfortable sharing ideas, admitting mistakes, and challenging the status quo. This openness fuels learning, innovation, workplace safety, and business performance. [JG3] 

Psychological safety rarely “just happens;” it requires intentional leadership. Leaders must continuously model vulnerability, respond constructively to feedback, and ensure that diverse perspectives are not only tolerated, but actively sought. They must create structures and processes that encourage healthy debate while maintaining respect and dignity. In psychologically safe environments, employees bring their whole selves to work, unlocking creativity and potential that remains hidden in cultures of fear.

Engagement: The Outcome

When employees see that their voices lead to real change, trust deepens and engagement strengthens.

Employee engagement is the natural result of a well-designed, intentional employee experience that prioritizes wellbeing. When organizations invest in mental health support, foster psychological safety, and create cultures where employees feel valued, engagement naturally follows. Engaged employees understand how their work contributes to their organization’s purpose, they feel connected to their colleagues and leaders, and they believe they have opportunities for growth and development. They're emotionally committed to their organization's success.

It’s essential for organizations to measure and act on employee engagement data. Regular pulse checks and comprehensive surveys provide insights into what's working and where gaps exist. However, data collection alone is insufficient. In fact, gathering data from employees and then tucking the results away on a shelf to collect dust (which happens far too often) will actively disengage a workforce. Organizations can demonstrate their commitment by transparently sharing results and taking action based on employee feedback, or providing context for when a change can’t happen. When employees see that their voices lead to real change, trust deepens and engagement strengthens.

sharing ideas, admitting mistakes, and challenging the status quo. This openness fuels

Engagement: The Differentiator

It was demonstrated definitively by Gallup that companies with engaged employees outperform those without in the areas of quality, customer service, profitability, and retention. Gallup states with confidence: “Employee engagement is a performance strategy that distinguishes high-performing cultures from struggling ones. Gallup's workplace engagement data show that engaged employees drive stronger business outcomes across every industry, regardless of company size or economic conditions.”

The Numbers According to Gallup*

Highly engaged employees achieve more of:

• 10% higher customer loyalty/engagement

• 14% higher productivity

• 18% higher sales

• 23% higher profitability

• 70% higher wellbeing

• 22% higher organizational participation

Highly engaged employees achieve less of:

• 78 %less absenteeism

• 21% less turnover for high-turnover organizations

• 51% less turnover for low-turnover organizations

• 28% less theft

• 63% fewer safety incidents

• 32% fewer quality defects

*Source: What is Employee Engagement and How Do You Improve It?

Your Path Forward

Creating a culture of wellbeing requires expertise, commitment, and sometimes, external partnership. We support organizations in a multitude of ways: facilitating employee engagement surveys and helping with action planning to address results, providing comprehensive HR consulting services, bringing mental health training (The Working Mind) to your workplaces, and offering the unique value of working with a local organization that understands your community and context.

Reach out if you’re ready to talk about how we can work together: cenera.ca/contact-us.