Psychologically safe workplaces mean engaged, loyal, & committed workforce

Team L&M

Great Place To Work has announced its latest list of India’s Best Workplaces in Health and Wellness 2025, and the report reveals that while employee wellbeing remains high at 83%, the trajectory is concerning. Companies are transitioning towards a more holistic approach, where employee involvement, transparent decision-making, and supportive leadership that nurture the whole person take center stage.

During the pandemic, businesses quickly adapted by expanding flexibility, prioritizing mental health, and emphasizing work-life balance. These changes led to a significant boost in wellbeing, deeper trust, and increased engagement. However, as the immediate crisis faded, so did these positive changes.

At Best Workplaces, employees feel valued, supported, and trusted. This psychological safety creates a culture where employees not only show up—they bring their best. These employees are more loyal, more committed, and more likely to advocate for their workplace. In contrast, companies that overlook employee wellbeing are facing disengagement, eroding commitment, and the costly exit of top talent.

“The conversation around wellbeing has changed and so have employee expectations. What was once seen as a supportive gesture is now a business essential. The most trusted organizations today are those that understand wellbeing is not an initiative – it’s a leadership responsibility. Our study, representing the voices of over 21 lakh employees, makes this clear. When employees feel supported across all four pillars of wellbeing – mental, physical, financial, and social; 96% report a thriving work experience. However, when even one of the pillars is absent, we see over 20% drop in experience. This difference in outcomes hugely determines how employees experience work itself. What drives this gap is not just about offering more wellness programmes,” says Balbir Singh, CEO, Great Place To Work®️, India.

“Best Workplaces differentiate themselves in how they integrate wellbeing into daily operations, leadership styles, and decision-making processes, fostering a high-trust culture. In fact, employees who experience this sense of psychological safety are 5X more likely to be engaged, loyal, and committed to their organization. In contrast, organisations that overlook these fundamentals are facing stagnation in employee trust and rising disengagement. The question is no longer what drives wellbeing – it’s whether leaders are willing to invest and sustain it in the long run. The best workplaces get this. Leaders at these organisations create safe spaces where employees don’t just survive—but thrive. They focus on taking care of their employees’ holistic wellbeing and build workplaces where employees can give their best without the feeling of burnout. When leaders care, tune in regularly, and create space for authentic connection, they turn wellbeing into a commitment. The choice isn’t between perks and purpose. It’s between surviving and thriving. So the question isn’t whether wellbeing drives results—we know it does. The real question is – what kind of workplace are you willing to build, now that you know what employees need to thrive?,: he adds

The evidence is clear: When employees thrive, businesses thrive. A psychologically safe environment isn’t just a “nice-to-have”; it’s essential for ensuring sustained engagement, retention, and success.

Today’s employees define wellbeing by their daily experiences, not just the benefits offered by HR. Wellbeing is no longer simply a checklist of policies—employees now measure their wellbeing by how well they can manage workloads without burnout, feel financially secure, experience a sense of belonging within their teams, and work in an environment that values both performance and personal health.

Employee wellbeing is built on four interconnected pillars—physical, mental, financial, and social. These pillars support one another, and without all four, the foundation weakens. The data underscores this: employees with all four pillars in place experience a staggering 96% higher sense of wellbeing. But even removing one pillar causes a sharp decline, with overall wellbeing dropping by 20%. When only two pillars remain, fewer than half of employees feel supported, and when only one pillar stands, wellbeing plunges to just 23%. Remove all four, and a mere 5% of employees report any sense of wellbeing in their workplace.

Workplaces that thrive put people first—when employees feel valued and supported, burnout fades, creativity flourishes, and engagement deepens. True leadership lies in fostering a culture of care, where wellbeing isn’t just about balance but about ensuring people feel seen, heard, and valued. When organizations take a holistic approach to wellbeing, the impact is striking—burnout drops to just 5%, while motivation, innovation, and productivity rise above 94%.

Contrary to popular belief, social and mental wellbeing aren’t modern trends; they’ve always been essential across generations. What’s remarkable is that, across age groups, employees consistently value the same aspects of wellbeing—social connection, mental health, financial security, and physical wellness. The real shift today is that organisations are finally listening, recognizing that wellbeing isn’t a perk but a promise—one that fuels both individual and business success.

Social wellbeing is paramount for all, with Gen Z valuing psychological safety and open communication in the workplace. Millennials prioritize mental wellbeing, seeking clear boundaries that are respected without career penalties. Financial wellbeing is a key focus for Gen X, who must balance retirement planning with ongoing family responsibilities. While each generation may define these priorities differently, the universal truth remains: a thriving workplace is one that supports all aspects of employee wellbeing

The message is clear: companies that ignore employee wellbeing are setting themselves up for failure. The best organizations don’t wait for disengagement to set in—they listen, they act, and they lead. To retain talent and foster an engaged, loyal workforce, organizations must focus on supporting the whole person. Only then can businesses truly flourish in today’s rapidly changing work environment.