How forward-thinking leaders drive success through motivation

Keywords: leadership, motivation, highperformance, sustainablesuccess

Date: 20 March 2025, WorkLife Digital

Business leaders often grapple with the question of whether investing in employee wellbeing is worth the effort and cost, particularly during tough economic times. While some remain sceptical, mounting evidence from research and real-world examples demonstrates that prioritising employee wellbeing is not only a moral imperative but also a strategic advantage. In 2025, the connection between employee wellbeing, motivation, and business success has never been clearer.

The case for employee wellbeing

Employee wellbeing encompasses physical, mental, emotional, and financial health. Studies consistently show that organisations that prioritise these factors experience improved productivity, reduced absenteeism, higher retention rates, and enhanced employee engagement. For example, research by McKinsey highlights that investing in workplace wellness could generate $11.7 trillion in global economic value. Similarly, organisations with motivated and engaged teams report a 21% increase in productivity.

Neglecting wellbeing comes at a steep cost. Stress and burnout directly impact performance, leading to disengagement, absenteeism, and higher turnover rates. Disengaged employees are less productive and more likely to leave, creating ripple effects that disrupt teams and drive up hiring costs.

What motivates employees most?

Deciphering what motivates employees has evolved beyond traditional theories like Maslow’s hierarchy of needs or Herzberg’s Two-Factor Theory. Modern research highlights several key drivers of motivation:

The Four Drives Model: Paul R. Lawrence and Nitin Nohria’s framework identifies four fundamental drives: acquire (material rewards), bond (relationships), comprehend (learning and growth), and defend (security) - as essential to human motivation. Addressing all four drives holistically yields significant improvements in employee engagement, satisfaction, commitment, and retention.

Self-Determination Theory: This theory emphasises autonomy, competence, and relatedness as critical psychological needs that enhance intrinsic motivation. Employees who feel empowered to make decisions, master their roles, and form meaningful connections are more engaged and productive.

Work-Life Integration: The shift from work-life balance to integration recognises employees’ desire for flexibility in how they work. Offering flexible schedules or remote work options can reduce stress while increasing motivation.

Mental Health Support: Addressing workplace stress through mental health resources - such as mentoring, counseling services or stress management tools - has become a priority for businesses seeking to foster resilience among employees.

How wellbeing drives business success

Investing in wellbeing is not just about altruism. It directly impacts organisational performance:

Higher productivity: Motivated employees perform 20% better on average. Companies that meet employees’ emotional needs see engagement levels rise significantly.

Retention: Organisations that prioritise wellbeing reduce turnover by fostering loyalty among employees who feel cared for. Younger generations, particularly Gen Z, are increasingly prioritising wellbeing over salary when evaluating career opportunities. Recent studies underline a significant shift in workplace values, with many young professionals emphasising purpose, work-life balance, and mental health as key drivers of job satisfaction.

Financial gains: Research from Oxford University found that a one-point increase in employee happiness correlates with $1.39 billion to $2.29 billion in annual profits.

Practical strategies for leaders

To maximise the benefits of employee wellbeing investments, leaders must take targeted actions:

1. Reward systems

Align rewards with performance to fulfil the drive to acquire. Transparent pay structures, equity audits, bonuses tied to achievements, and career advancement opportunities are effective ways to motivate employees.

2. Foster connection

Build a culture of collaboration to address the drive to bond. Encourage teamwork through open communication channels, team-building activities, and recognition programs that celebrate collective successes.

3. Design meaningful work

Create roles that challenge employees intellectually while offering opportunities for growth. Providing access to training programs or allowing employees to innovate within their roles satisfies their drive to comprehend. Reinforce how employees' responsibilities contribute to business success.

4. Promote fairness

Ensure transparent decision-making processes to fulfil the drive to defend. Employees who perceive fairness in resource allocation or performance evaluations are more likely to trust leadership and remain motivated.

5. Support mental health

Offer resources such as coaching, mentoring and counselling services. Ensure a culture of psychological safety that encourages employees to openly admit when they’re struggling without fear of retribution. Establish policies to prevent burnout - allowing employees to reduce working hours during less busy periods to offset extended hours worked during high-demand projects.

6. Financial wellbeing

Help employees manage financial stress by offering tools like financial planning services or student loan repayment assistance alongside competitive salaries adjusted for inflation.

The role of managers

While organisational policies play a significant role in driving motivation, direct managers have an equally critical influence on employee engagement. Managers who foster local environments of trust and empowerment - even amid organisational constraints - are often rated highly by their teams.

For example:

Recognising individual contributions through praise or choice assignments can boost morale.
Encouraging teamwork within departments can mitigate toxic organisational cultures.
Providing clarity on, and the rationale for, decisions helps employees feel secure and more engaged even during challenging transitions.

Investing in employee wellbeing is no longer optional - it’s a business imperative backed by empirical evidence. Forward-thinking leaders who prioritise holistic strategies addressing emotional drives while supporting mental health and work-life integration create motivated teams that drive innovation and growth.

In 2025’s competitive landscape, companies that embed wellbeing into their culture will not only outperform their peers but also attract top talent eager to contribute to organisations where they feel valued and empowered. For sceptical leaders still questioning the ROI of such investments: the data speaks for itself - wellbeing isn’t just good for people - it’s great for business.

WorkLife Digital is a global mental-wellbeing consultancy driven by the mission to improve the sustainability of businesses. Our psychological wellbeing tool, Worklife Quotient (WL-Q), is modelled on cutting-edge scientific research and provides organisation-wide measurement and intelligence on the mental wellbeing levels and psychological resilience of staff. WL-Q also assesses the impact of organisational practices (i.e. people and culture, leadership styles, organisational purpose and values, social impact) that have a direct influence on staff wellbeing and provides strategic recommendations on addressing risks and promoting strengths.

For more information, get in touch at lisa@worklife.digital

REFERENCES

World Economic Forum: Thriving Workplaces: How Employers can Improve Productivity and Change Lives. January 2025
https://www.weforum.org/publications/thriving-workplaces-how-employers-can-improve-productivity-and-change-lives/

Employee motivation: A powerful new model
https://hbr.org/2008/07/employee-motivation-a-powerful-new-model

4 reasons good employeed lose their motivation
https://hbr.org/2019/03/4-reasons-good-employees-lose-their-motivation