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Market Focus: Thailand - What is the Cost of Poor Well-being in Thai Companies?
The impact of well-being goes well beyond how employees feel; it influences the number of sick days they take, their job performance, levels of burnout, and the likelihood of them leaving your organisation.
In Thailand, according to the Office of Small and Medium Enterprise Promotion, the high resignation rate is due to SMEs neglecting workplace health, leading to stress and unhappiness among employees. (Source – The Nation: Thailand opens Happy Workplace Centres to combat resignation crisis)
Due to a limited number of skilled and immediately employable individuals, there is heightened competition for labour. Employers may need to accept higher compensation rates or increase remuneration for existing employees to retain them. On the other hand, there may also be an increase in illegal labor hiring practices to fulfill immediate workforce needs. (Source: Situation Report of MSMEs in 2023 by the Office of Small and Medium Enterprises Promotion, Thailand)
Why Prioritising Employee Well-being is Smart Business
Workplace productivity is increasingly being linked to employee wellness as companies realise that the physical, mental, and emotional health of their workforce directly impacts efficiency, creativity, engagement, and overall output. For instance, a 2024 study by Oxford University found that organisations with higher levels of employee well-being reported better financial performance, including higher return on assets, greater valuations and greater profits.
Here’s why focusing on employee wellbeing is smart business:
- Higher Productivity, lower absenteeism and greater profitability: Studies from Gallup show that companies with strong wellbeing initiatives report an 81% decrease in absenteeism, 18% higher productivity, and 23% greater profitability.
- Return on Investment (ROI): A meta-analysis of the literature on costs and savings associated with workplace wellness programs found that medical costs fall by about $3.27 for every $1 spent on wellness programs, and that absenteeism costs fall by about $2.73 for every $1 spent (Wellness Programs on the Rise; Baicker 2010)
- Improved Job Satisfaction: Companies like Facebook, Google, and HubSpot invest in team-building activities and social events to foster a collaborative and positive work culture. These events may include retreats, happy hours, volunteer opportunities, and social clubs.
- Higher Employee Retention: Employee wellness programs play a key role in improving job satisfaction and, as a result, can significantly boost employee retention. When employees feel cared for and supported in their well-being, they are more likely to stay with a company long-term. Studies by McKinsey & Company show that focus on health can improve employee attraction and retention.
- Morale Boost to Workplace Culture: Employee wellness programs can have a profound impact on workplace morale, contributing to a positive, productive work environment. When employees feel supported in terms of their health and well-being, it boosts their overall engagement, satisfaction, and loyalty. Companies like Virgin Pulse runs wellness challenges, where employees participate in activities like step challenges, healthy eating contests, or fitness competitions, often with the chance to win rewards or recognition.
- Improved Company Image: A commitment to employee wellness enhances the company’s reputation, and this can translate into better talent acquisition, improved community engagement and enhanced employer branding in the ultra-competitive labour market.
Successful Employee Wellness Case Studies
“Live for Life” is Johnson & Johnson’s comprehensive employee wellness program, focusing on both physical and mental health
Google has long been known for its employee-centric culture, and its investment in wellness programs
Thailand
Trends of Wellness in Thailand:
Thailand has emerged as a global hub for wellness tourism and corporate wellness programs, driven by its cultural heritage in traditional medicine (e.g., Thai massage and herbal remedies) and a growing emphasis on mental health post-pandemic. The rise in workplace stress and burnout has prompted companies to invest in employee wellness as a strategy to boost productivity and retention. In Chiang Mai and Lamphun, industrial and tourism sectors are expanding, increasing the demand for innovative wellness solutions tailored to employee needs.
- Rising Awareness of Mental Health: Thai businesses are increasingly prioritisingemployee well-being due to workplace stress and burnout
- Government & Corporate Support: Policies are encouraging companies to adopt mental health programs to enhance productivity
- Holistic Healing Growth: Alternative therapies, including mindfulness, meditation, and integrative health solutions, are gaining traction
- Demand from SMEs & Corporations: Companies are recognising the long-term benefits of mental health programs for employee retention and performance
- Post-pandemic: Thai corporations increasingly prioritise employee mental health
- Chiang Mai and Lamphun are emerging hubs for wellness tourism, with a 12% annual growth in corporate wellness demand (2023–2028)
- Trend: Hybrid wellness models (digital + in-person) and culturally tailored programs
Taking the First Step: Measure Employee Wellness
It’s fantastic when companies make an effort to improve employee engagement, and even better when they measure it. Measuring engagement is the crucial first step before taking meaningful actions to enhance it.
However, if the right metrics aren’t measured in the right way, those actions won’t be effective, and they won’t lead to measurable improvements in business outcomes or the bottom line.
