There is a great deal of theory behind workplace well-being that can be applied to support stronger and more sustainable well-being. In this article, we explore how well-being is shaped and developed, and the impact it has not only on the individual employee but also on workplace culture and overall performance.
In this article, we focus particularly on the social aspects of workplace well-being, including collaboration, role clarity, expectation alignment, the psychosocial work environment, organizational culture, and leadership.
If you're looking to turn poor well-being into a healthier and more positive work environment, you're in the right place. We'll also explore the link between feedback and well-being—so stick with us. First, let’s take a brief historical look.
The history of well-being: The short version
In a 1968 speech, U.S. Senator Robert F. Kennedy, brother of John F. Kennedy, commented on the nation's focus on financial outcomes:
"Too much and for too long, we seemed to have surrendered personal excellence and community values in the mere accumulation of material things. [...] Yet the Gross National Product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country. It measures everything, in short, except that which makes life worthwhile."
Since then, much has been written in critique of our overwhelming focus on financial results at the expense of softer - yet central - aspects of life, such as well-being.
Today, more than 40 countries worldwide conduct regular official measurements of citizens’ well-being (Diener & Seligman, 2018). At the same time, very few companies or governments still question the connection between strong financial performance and overall human well-being.
Denmark has been among the frontrunners in the well-being agenda. One example is the Well-being Agreement of 2008, which made it mandatory for all municipalities to carry out employee satisfaction and well-being surveys every three years. In practice, many organizations have chosen to conduct these assessments more frequently.
What is well-being?
Well-being is difficult to define—particularly because it lacks a strong theoretical foundation. Is it simply the absence of stress? How does the psychosocial work environment affect individual well-being? What role do employees’ mental and physical health play in the experience of well-being?
Most agree that well-being is a multifaceted concept. And perhaps that’s as it should be. After all, well-being is a deeply personal experience. It’s a state that each person must define for themselves: “How would I assess my own well-being - and what might improve it?”
If you consult the Psychological Pedagogical Dictionary(Hans Reitzel, 2006), the term “well-being” refers to a person’s sense of satisfaction as a general emotional attitude or state. The concept is often used to describe children’s general well-being in school, particularly in relation to the importance of a healthy physical and psychological environment.
If we replace the words “children” and “school” with “employees” and “workplace,” we arrive at a definition that could serve as a foundation—keeping in mind, of course, that the elements influencing well-being in children and adults may differ.
Still, let’s try to frame well-being within a few theoretical perspectives, just to give you a starting point for working with well-being in your own organization.
Theories of Well-being
Let’s explore well-being from a theoretical perspective. We consider three angles:
The feeling of happiness and life satisfaction
Natural and intrinsic motivation at work
Less stress leads to more well-being
1. The feeling of happiness and life satisfaction
A useful framework for understanding and working with well-being in the workplace is the PERMA model, developed by Martin Seligman, one of the pioneers of positive psychology. While the PERMA model is typically used to assess overall life satisfaction and well-being, it can also serve as a valuable conversation tool and practical framework for enhancing well-being in an organizational context.
The Five Elements of Well-being
Positive Emotions
Positive emotions refer to experiencing positive feelings more often than negative ones. The term covers affective states. These emotions might include satisfaction, calmness, relief, optimism, faith, trust, confidence, and hope. There are proven techniques that can be learned to increase positive emotions.
Engagement
Being engaged refers to a psychological state of being absorbed and focused in work. At its fullest, this state is also known as "flow." The following conditions must be met to feel engagement: The employee has clear goals and is genuinely interested in the tasks at hand. The task presents challenges that match the employee's skills. Working on the tasks provides direct and immediate feedback. Finally, the employee experiences a sense of control over the work-related activities. (Csikszentmihalyi, 1975, 1996)
Relationships
Positive relationships are a central element in well-being research. It is still unclear what drives humans to seek and engage in positive relationships: Do we do it to achieve a specific outcome? Or simply because it produces positive emotions? No one knows for certain, but it is a core part of our species' — Homo Sapiens — evolution.
Meaning
Meaningfulness, in this context, is linked to employees utilizing their unique strengths and talents — the things they are particularly good at. Additionally, these strengths must be used to contribute to a cause the individual perceives as “greater than themselves.”
Accomplishment
The pursuit of results — or winning — is often driven by the pure joy of achievement. This drive motivates people in the pursuit of wealth, status, and other socially positioning activities. For the individual employee, this feeling arises when achieving a desirable state or reaching a declared goal.
The PERMA model views the individual as a whole – both in their personal and professional life. Naturally, this means there are limitations to how much of a person’s overall happiness and well-being can be addressed within an employment relationship. Still, we believe the model is an incredibly useful tool for initiating conversations about the different components of overall well-being. It can also help individual employees gain clarity on how various areas of their life contribute to their overall sense of well-being.
Questions about well-being you can use in the workplace
In which situations do I experience positive emotions in my work?
Where do I feel I use my strengths in a productive and contributing way?
In what way does our work contribute to making the world a better place?
Which relationships do I find myself missing when I’ve been away from the workplace for an extended period (e.g. during vacation)?
When was the last time I experienced being in flow? And what can I do to experience it more often?
What is one thing I can do to move closer to my personal goals of [insert personal goal]?
2. Motivation at work as a cornerstone of employee well-being
Feeling naturally motivated in your job is a key part of overall well-being. When work feels meaningful and engaging, the drive to perform becomes more self-sustaining. Within motivation research, Edward L. Deci and Richard M. Ryan’s Self-Determination Theory (SDT) provides a strong theoretical foundation. The theory distinguishes between extrinsic and intrinsic motivation, with intrinsic motivation playing a particularly important role in supporting well-being.
According to SDT, intrinsic motivation arises when three psychological needs are met – known as CAR. These three elements form the foundation for sustained motivation and, in turn, more resilient well-being.
Competence
Relates to the experience of mastery — that is, the employee gets the opportunity to use their skills and experience in a way that contributes to the organization’s tasks. When competencies are utilized and recognized, it strengthens both engagement and well-being.
Autonomy
Concerns having influence over how the work is organized and carried out. Employees thrive better when they have a genuine space for action and can choose methods themselves, as long as the framework makes sense. Too much control without flexibility can hinder motivation.
Relatedness
Is about feeling connected to colleagues and the workplace. When one experiences that their work matters to the community and the relationships are meaningful, it supports both motivation and well-being.
The degree to which these needs are fulfilled varies from person to person. That’s why creating conditions where all three needs are met requires awareness and adaptability in everyday work life.
How can this knowledge be used to enhance workplace well-being?
The first step is to examine to what extent employees experience the CAR principles in their everyday work. This can be done simply through conversations or surveys. Next, there should be a shared discussion about frameworks, resources, and direction, so employee influence becomes clear and meaningful. This can lead to changes in workflows and organization.
A frequently overlooked but crucial task lies in daily communication and leadership. It's about creating clarity around the workplace's purpose and each individual's contribution to the whole. These are essential questions for both leaders and employees to know the answers to.
3. More stress, less well-being
Reducing stress contributes to improved well-being, both for individual employees and the organisation as a whole. The absence of stress is therefore a key factor in any effort to support well-being.
Richard Lazarus and Susan Folkman provide a theoretical framework in which stress occurs at the intersection between the demands of the environment and an individual's ability to cope with them. Their transactional model of stress explains why some people experience stress while others do not, even under similar conditions. The explanation lies in three core factors: the overall pressure, the specific stressors, and the individual’s coping strategies. Together, these elements determine how a person experiences and responds to pressure in the workplace.
Stress has both human and economic consequences. That’s why the absence of stress should be considered an active contributor to well-being. Theoretically, stress can be understood through two lenses: the transactional perspective and the role-based perspective.
The transactional perspective
Introduced by Lazarus and Folkman, this perspective describes stress as a dynamic interaction between the individual and their environment. Stress arises when demands exceed the individual’s perceived abilities or resources. In this view, stress is not solely the result of external pressure, but also of how we evaluate and manage the situation.
Coping
The strategies we use to handle stress. Some are constructive, like going for a run or talking with a colleague. Others may be unhelpful in the long term, such as overindulgence or isolation. Effective coping requires awareness and balance.
Stressors
Concrete triggers that cause stress levels to rise. These can range from a technical issue to a demanding customer.
Demands
The total amount of demands from both work and private life. Some days we are better equipped to handle pressure, and this often depends on how we’ve been feeling recently.
The role-based perspective
This perspective builds on Katz and Kahn’s understanding of how unclear or conflicting expectations regarding an employee’s role can trigger stress. In this view, stress is seen as a result of a lack of structure and communication within the organisation.
Role Overload
When more demands are placed on the role than there is time and resources to handle. Especially helpful employees are at risk here.
Role Conflict
When different demands in the job pull in opposite directions and create unsolvable tensions.
Role Ambiguity
When expectations for a role are unclear, or priorities don’t align. Unclear roles increase the risk of both mistakes and stress.
Dialogue becomes a crucial tool. Regular alignment of expectations and ongoing feedback between leaders and employees can help prevent misunderstandings and strengthen role clarity. Job descriptions and conversations about responsibilities and tasks can provide a good starting point. Clarity creates security, and a sense of security enhances well-being.
To support well-being, it is effective to open up a dialogue about how roles are evolving, which demands may feel unclear or overlapping, and where the employee sees room for improvement or clarification. These conversations help prevent misunderstandings and strengthen collaboration.
Why is workplace well-being important?
Well-being is essential – for people, for the work environment, and for the business. When well-being is high, it boosts everything from engagement and learning to financial sustainability and job satisfaction. There are many good reasons to prioritise well-being. Here are the four most important:
1. Well-being as a Responsibility
Companies are now also evaluated based on their responsibility for employee well-being, not just financial performance. Poor well-being risks becoming a public disgrace, especially as researchers suggest making well-being metrics public. Corporate Social Responsibility is about taking care of the people you work with.
2. Well-being as a Recommendation
Employees who thrive become a kind of ambassador. They recommend the workplace to both future colleagues and customers. Well-being is the foundation for employees to proudly endorse where they work. This is genuine employee advocacy.
3. Well-being as Business
The absence of well-being is expensive. Increased sick leave, lower productivity, loss of knowledge, and higher costs for recruitment and onboarding. Stress-related absence is estimated to account for up to 25% of total sick leave and costs society billions every year. Each organization pays its own price in lost progress.
4. Well-being as a Condition for Learning
Well-being is a prerequisite for learning. Poor well-being occupies mental capacity and makes us defensive. Well-being creates safety, and safety makes it possible to think creatively and learn quickly. In a time of accelerating change, this becomes a competitive advantage. Jeff Bezos puts it simply: "If you double the number of experiments you do per year you’re going to double your inventiveness.”
In short, well-being is not just a soft value – it is a strategic necessity.For modern leaders, the question is no longer whether well-being matters, but how they will ensure that well-being is embedded in daily operations.
Well-being and feedback
When we work with feedback in organisations, the goal is rarely feedback in itself. The focus is on what feedback should lead to. Increased well-being is often one of the key objectives, but it can also include organisational learning, improved collaboration, stronger performance or a greater sense of meaning in work.
Well-being and feedback are closely linked because effective feedback is built on key elements such as expectation alignment, recognition, active listening and dialogue. When these elements are connected to well-being frameworks like CAR and PERMA, it becomes clear how feedback can support the development of both individuals and the organisation as a whole.
But this requires a deliberate agreement. Do we, as an organisation, want to work systematically with well-being through feedback? If so, that commitment must be translated into action.
A simple but effective process can be structured into four steps:
Set shared goals and create buy-in to actively prioritise well-being
Define the desired behaviours that support well-being in everyday work
Use feedback to reinforce and support those behaviours
Track and follow up to ensure visible and meaningful progress
This is where real change happens: when feedback becomes an active part of the culture and new habits are embedded in everyday practice. The path to better well-being is not a one-off initiative – it’s a shared effort where behaviours and relationships are continuously developed and strengthened.
What does workplace well-being consist of?
Well-being is a broad concept. It encompasses both mental and physical factors. Mentally, we’re talking about things like relationships, motivation, collaboration and stress. Physically, it includes aspects such as lighting, ergonomics, physical strain and illness. All of these elements appear in traditional well-being surveys and workplace assessments – and they vary from person to person.
So how do we figure out what to take action on? We can start by asking: What contributes most to your well-being right now? And what gets in the way?
When it comes to responsibility, we’ll go with the diplomatic answer: it’s shared. Some aspects are clearly the organisation’s responsibility – the working environment, role clarity, leadership and well-being initiatives. Others rest more with the individual – physical health, relationships and how we handle pressure. But it's rarely black and white.
That’s exactly why we need dialogue. Not to assign blame, but to create clarity about who does what and how we support each other in making well-being work in practice. In short, responsibility for well-being is shared, and dialogue is the tool that clarifies expectations and reinforces well-being-promoting behaviour.
How do you measure well-being?
Well-being surveys are typically questionnaire-based and measure employees’ subjective experience of well-being. That makes sense, as well-being is, by nature, a personal feeling. The downside is that surveys often capture only a snapshot in time, which can be influenced by temporary factors such as conflicts, restructures or layoffs.
That’s why it’s important to measure well-being regularly and consistently if you want to track progress over time – not just react to isolated fluctuations. At the same time, leadership should be mindful of how results are interpreted and, even more importantly, how they are followed up.
Well-being surveys can put leadership words into action
A well-being survey is, in itself, a strong leadership signal. It shows that well-being is taken seriously. But a survey without subsequent action can erode trust. Employees expect leadership to act on what they’ve shared.
There are many providers and methods out there, so each organisation must find an approach that suits its needs and rhythm. A great place to start is the Danish National Research Centre for the Working Environment’s questionnaire on psychosocial work conditions. For more ongoing measurement, platforms like Livingroom Analytics can be useful.
How can I improve well-being in the workplace?
One of the most effective – and often overlooked – ways to boost well-being at work is simple: give your colleagues more recognition. We all have a basic need to feel seen and appreciated, and recognition strengthens the sense of connection and belonging.
The most impactful recognition focuses on specific behaviours and efforts. When we highlight what others are doing well, we give them the opportunity to repeat and reinforce that behaviour. More of what works creates stronger relationships, greater well-being and better results.
If you don’t feel entirely comfortable with direct praise, there are many small and natural ways to show appreciation. For example:
Bring a cup of coffee to your colleague
Ask for their opinion or feedback
Give a specific compliment on their effort
Say thank you for the collaboration at the end of the day
Offer your help or input
Listen and show genuine interest
You can also turn your attention to shared behaviours and expectations:
What do we want to see more of? Which actions create energy and a sense of connection? And which habits might be time to let go of? Small actions can leave a big impact – and recognition is a great place to start.
What should I do next with our workplace well-being?
Whether you already had a strong understanding of well-being or gained some new insights today, we hope this article has offered you fresh perspectives and useful tools for working with well-being. If you’d like a sounding board, we’re here to help.
You might also want to explore our knowledge section, where you’ll find a wide range of tools and insights designed to help your organisation raise the level of well-being at work. For example, you can learn more about trust-based leadership.
Best of luck – and thank you for reading.
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