By 2026, global corporate spending on employee wellness programs is projected to surpass $94.6 billion, driven by the promise of reducing healthcare costs and boosting organizational outcomes like employee morale, engagement, productivity, and retention. However, the return on investment for these programs often falls short. Participation rates are low—studies show less than 20% of employees engage with wellness initiatives—meaning significant spending benefits only a minority. Even among active participants, research, such as a 2020 study in the Industrial Relations Journal, finds minimal impact on employee health and well-being from most interventions, including mindfulness apps and relaxation classes. The exception? Volunteering.
Why Volunteering Stands Out
Volunteering uniquely fosters a sense of mattering—the feeling of being significant and impactful. Unlike yoga classes or gym memberships, volunteering allows employees to directly witness the difference they make, cultivating purpose and connection. This sense of mattering is critical to employee well-being, yet many wellness programs fail to deliver it.
The Root Issue: Lack of Meaningful Connection
Rather than investing in underutilized perks, companies could address a deeper issue: employees’ feelings of not mattering, often stemming from leaders’ limited time to engage meaningfully. Much like physicians, who have seen patient interaction time shrink to an average of 19 minutes due to administrative pressures, many business leaders are stretched thin by their responsibilities. This time crunch prevents them from connecting with employees in ways that foster trust and value.
The Power of Listening
Research highlights that effective listening by leaders has a profound impact on employee well-being and organizational outcomes:
- Reduced Burnout: Studies show a strong negative correlation between managerial listening and employee burnout or emotional exhaustion.
- Increased Retention: Employees who feel heard by their supervisors are less likely to seek new job opportunities.
- Lower Stress During Instability: In firms undergoing layoffs, managerial listening is linked to reduced worker stress and insecurity.
Rather than relying on costly wellness programs, companies should prioritize training leaders to listen effectively and restructure workflows to allow time for meaningful employee interactions. Listening isn’t just a perk—it’s a fundamental driver of employee health and happiness.
Benefits for Leaders
Listening not only benefits employees; it enhances leadership effectiveness. Research across countries shows that supervisors who listen well are perceived as stronger leaders. In team settings, effective listeners often emerge as influential leaders, gaining trust and authority. Good listening, therefore, is a win-win, fostering both employee well-being and leadership credibility.
A New Approach to Wellness
As burnout continues to rise, companies must shift their focus from extravagant perks to the most valuable resource: time and attention. By fostering a culture of listening, organizations can create environments where employees feel valued and leaders are empowered to drive meaningful change. This approach—rooted in connection rather than costly programs—offers a sustainable path to healthier, more engaged workplaces.