Chris Brown, CEO of leading employee recognition, benefits, and reward platform, Rippl, discusses the dangers of failing to deliver on wellbeing commitments for employee trust and engagement, and looks at how to ensure your organisation fosters a culture of authenticity.
In an era where corporate social responsibility and employee satisfaction are essential for attracting top talent, the term ‘wellbeing washing’ has emerged. Similar to greenwashing, wellbeing washing is the practice of organisations publicly promoting their commitment to their employees without delivering on this in practice with genuine policies or initiatives.
It isn’t a small problem either. A recent survey by Claro Wellbeing found that more than a third of employers are engaging in wellbeing washing. The survey further revealed that while 70% of workplaces celebrated mental health awareness days, only 30% had mental health support deemed good or outstanding by their employees.
This superficial approach to enhancing a company’s external reputation can destroy employee trust and engagement.
The illusion of care
Wellbeing washing can manifest in several ways. On a superficial level, it could be hosting occasional wellness workshops or offering gym memberships while neglecting to address the underlying issues such as excessive workloads or toxic work cultures. Companies might also emphasise work-life balance whilst expecting employees to be available 24/7 and remaining inflexible around working schedules and policies. This creates a stark contrast between an organisation’s claimed values and its real actions, which leaves employees feeling undervalued.
The erosion of trust
Trust is the cornerstone of an engaged and empowered workforce. When employees perceive that their employer prioritises image over substance, confidence will inevitably erode. This breakdown in trust can have significant consequences, leading teams to become disengaged, feel unsupported and less likely to achieve their full potential at work. They may also be hesitant to share their honest opinions or concerns, fearing that their feedback will be ignored or used against them.
Not only this, but wellbeing washing can create a culture of uncertainty which can lead to a climate of mistrust across the organisation which will ultimately hinder collaboration, productivity, and retention.
The impact on engagement
Employee engagement is directly linked to trust and wellbeing. When employees feel valued, supported, and respected, they are more likely to be motivated, committed, and enthusiastic about their work, which benefits productivity and talent retention. Conversely, when employees feel that their wellbeing isn’t a business priority, their engagement and morale levels plummet.
The consequences of low employee engagement are significant. Disengaged employees are less productive, more likely to make errors, and have higher turnover rates. They are also more likely to experience burnout, leading to increased absenteeism and presenteeism (being physically present but mentally checked out). With Google searches for burnout increasing by 80% over the past five years, this is an issue becoming ever more prevalent.
The psychological impact
Beyond the tangible effects on productivity and turnover, wellbeing washing can have a profound impact on employees’ mental health. A culture where wellbeing is merely a superficial concern will heighten feelings of isolation, anxiety, and burnout. When employees feel that their employer is not genuinely committed to empowering their health and wellbeing, their loyalty and sense of belonging are eroded. Research by Mental Health UK shows that 20% of employees needed to take time off work due to poor mental health or stress in the past year, highlighting growing disparity businesses need to urgently address.
The cost of wellbeing washing
This isn’t just a people issue – the financial implications of wellbeing washing can also be significant. A study by the World Health Organization estimated the global economic cost of poor mental health to be $1 trillion. This includes lost productivity, absenteeism, and presenteeism. Investing in authentic employee wellbeing strategies can further offer a strong return on investment by reducing these costs and improving overall business performance.
The role of social media
Social media has amplified the potential damage of wellbeing washing. Companies often use platforms like LinkedIn and Instagram to showcase their commitment to employee wellbeing, sharing carefully curated images of happy and healthy employees, particularly at social events.
However, when employees’ reality is different, the contrast between a company’s online image and its real-life workplace culture can be damaging. Especially in a climate where talent seek authenticity and transparency from organisations, this poses significant risk to employer brands doing the opposite.
Building genuine wellbeing
Organisations must adopt a holistic and authentic approach to avoid the pitfalls of wellbeing washing. This involves:
- Listening to employees by conducting regular surveys and feedback sessions to understand their needs and concerns and base their strategy from real insights.
- Prioritising mental health by offering accessible and confidential support services. This could be a stand-alone benefit or be part of a wider employee assistance programme (EAP)
- Creating a supportive workplace environment by fostering a culture of open communication, empathy, respect, and recognition
- Measuring progress by tracking key wellbeing indicators and engagement with benefits across each pillar of wellbeing
- Leading by example by demonstrating a genuine commitment to wellbeing at all levels of the organisation
By investing in employee wellbeing, organisations can reap the rewards of increased trust, engagement, productivity, and retention. Pivotal to this is understanding that wellbeing is not a one-time event or treating it like a tick-box exercise. It’s an ongoing journey that requires continuous effort and commitment.
Final thoughts
Wellbeing washing is a deceptive practice that can have severe consequences for organisations and its employees. By prioritising superficial initiatives like pizza Fridays and free fruit in the office over genuine support, organisations risk damaging their reputation, losing talent, and creating an inauthentic work environment. To build a thriving workplace, organisations must move beyond empty promises and invest in the holistic wellbeing of their employees.
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