The Business Case for a Psychologically Healthy Workplace

At Akumen, we understand that a truly successful workplace prioritises both business performance and employee wellbeing. This is why we were overjoyed to read the recent findings from Great Place to Work’s European Workforce Study 2025 and their Leadership in Focus Series reinforce what we have long advocated: investing in psychological health is not just an ethical imperative but a strategic business advantage. We say that the first step is to adopt a specialist product which enables leaders to be able to identify barriers to, and indicators of psychological safety.

Psychological Health vs Psychological Safety

Before diving into the data, it’s important to clarify a crucial distinction: psychological health is not the same as psychological safety, though the two are closely related.

• Psychological health refers to the overall work environment—the intangible elements that shape employees’ ability to thrive. This includes factors like transparency, empowerment, leadership values, support, and workplace relationships.

• Psychological safety, on the other hand, is one component of psychological health—it’s about how safe employees feel expressing opinions and ideas without fear of retribution.

  
  

As Sara Silvonen, Senior Consultant & Wellbeing Lead at Great Place to Work, explains: "The psychological health of an organisation refers to whether the intangible work environment—all the bits you cannot see—provides a conducive foundation for high-performing, thriving employees."

Measuring Psychological Safety with Akumen

At Akumen, we recognise that psychological safety is a crucial component of workplace wellbeing—and measuring it effectively is key to driving meaningful change. That’s why we have developed a dedicated psychological safety module under ‘wellbeing’ within our People Analytics product, allowing organisational development leaders to track and assess psychological safety in their workplaces.

We enable organisations to do this in two ways:

1. Analysing existing qualitative data – For organisations already participating in the Great Place to Work annual survey, our tool can analyse responses to the three open-ended questions, offering insights into barriers preventing psychological safety and indicators which allow psychological safety to flourish.

2. Analysing 'fresh' tailored qualitative data – For organisations looking to directly measure psychological safety, we provide advice around bespoke survey design that elicits meaningful responses, we then analyse those qualitative responses uncovering areas for improvement and highlighting where psychological safety is already thriving. The optimum way to measure impact is to have an 'always on' method of collecting data rather than waiting for an annual survey.

   
   

By leveraging real employee feedback, our People Analytics platform provides actionable insights that help leaders create a culture where psychological safety is measurable. This is worth its weight in gold if you are going through periods of organisational change such as merger, acquisition, or restructure.

The Reality Gap in Workplace Psychological Health

One of the most striking insights from the European Workforce Study 2025 is the disparity in perceptions of psychological health between employees and leaders. This is not merely a perception gap—it is a reality gap.

The data reveals that perceptions of workplace psychological health improve significantly with seniority, meaning leaders often see the workplace as more psychologically healthy than employees do.

Additionally, countries with less hierarchical organisational structures tend to offer a healthier work environment for junior employees and individual contributors. In these workplaces, psychological health is more evenly distributed across all levels of the organisation, rather than being concentrated among senior leadership.

This disconnect underscores the importance of active listening and employee engagement. Leaders must recognise that their experience of the organisation differs from that of their workforce—and both perspectives are valid and rooted in lived experiences.

Psychological Health: A Key Driver of Retention and Advocacy

Psychologically healthy workplaces are not only more productive—they also retain their employees and inspire strong advocacy among their workforce.

Findings from the European Workforce Study 2025 reveal:

• UK-based employees working in psychologically healthy organisations are 6 times more likely to want to stay with their employer.

• They are also 5 times more likely to be strong advocates for their workplace, actively recommending their organisation to friends and family.

  
  

This underscores the business case for investing in workplace psychological health. By prioritising psychological wellbeing, organisations build a positive and productive environment while cultivating a loyal workforce that champions the company both internally and externally.

Psychological Health Drives Workplace Innovation

A psychologically healthy workplace is more than just an environment where employees feel supported—it is a foundation for innovation. This part of the report had us all very excited at Akumen as this is what we are all about – innovation and improvement!

Findings from the European Workforce Study 2025 reveal a strong correlation between psychological health and employees’ ability to innovate.

• 75% of employees who had opportunities to innovate reported working in a psychologically and emotionally healthy workplace.

• Employees in non-psychologically healthy workplaces were far less likely to engage in innovation, highlighting the crucial link between wellbeing and creativity.

  
  

Psychological health enables employees to share ideas freely, take risks, and challenge norms, all essential ingredients for driving innovation. When employees feel supported and safe, they are more willing to contribute bold ideas, strengthening the organisation’s ability to adapt and grow.

The Business Case: Psychological Health Fuels Financial Success

Investing in psychological health doesn’t just improve employee wellbeing—it drives superior financial performance.

• The UK’s Best Workplaces surpass the national average psychological health score by 30 percentage points (UK average: 52%).

• Financially, these organisations perform more than 4 times better than the market, delivering returns over 4X higher than a similar investment in the FTSE All-Share index.

  
  

This data proves that investing in psychologically healthy workplaces isn’t just good for employees—it’s good for business. Organisations that prioritise workplace wellbeing see measurable financial gains, making psychological health a core driver of success in today’s market.

How Leaders Can Make a Start

The study highlights key strategies that successful organisations use to support employees’ psychological health. At Akumen, we recommend that leaders focus on:

• Investing in a tool to measure psychological safety. We have said for years that if you can't measure it then you can't manage it. We don't view this as a one- off exercise, our People Analytics can be incorporated into a business-as-usual practice.

• Embrace asking open questions – We so often see employee experience surveys which are only quantitative - employers are missing a trick as the insights are found in human stories and narrative. View employee stories as a treasure trove!

• Sharing findings and committing to actions – It is frustrating if you have taken time to share an experience and you don't know where that information goes or if it makes any difference. Sharing findings and committing to change for improvement will lead to better future employee engagement. Close that feedback loop!

• Move away from relying solely on annual experience surveys – Continuous listening methods in addition to periodic benchmarking surveys are the ideal.

  
  

Prioritising Psychological Health for Business Success

The Great Place to Work research confirms what we at Akumen have long believed: prioritising psychological health isn’t just about supporting employees—it’s a strategic decision that leads to sustainable success. A thriving workforce drives a thriving business.

To read the full report from Great Places to Work visit: Report: The Business Benefits of a Psychologically Healthy Workplace.

To talk to us about how to take the next step in realising the many benefits of a psychological healthy workplace email Eross@akumen.co.uk