Is Employee Well-Being in Corporate’s Crosshairs?

As we entered 2025, many hoped for a fresh start. But instead of a clean slate, the New Year brought Southern California’s most devastating wildfires, ongoing geopolitical uncertainty, and a renewed push for reskilling and productivity in the tech age.

During the COVID-19 pandemic, many leaders focused on employee well-being, acknowledging the undeniable impact global turmoil had on their talent. Somewhere along the way, the conversation around workplace well-being has taken a backseat, but the issue persists—some sources even suggest it may be more dire than ever.

Fortunately, we’re not starting from scratch. The work we did in 2020 to support employee well-being remains relevant today. And recent research reinforces what we learned to be true then: that well-being—including job satisfaction, purpose, happiness, and stress—impacts firm profitability and performance. In fact, firms with the highest well-being levels outperform standard benchmarks in the stock market.

Despite this knowledge, many indicators point to continued backslides in employee well-being. Below, we explore how today’s geopolitical uncertainty and corporate landscape impact well-being and what companies can do to prioritize their workforce’s health and resilience.

The Impact of Global Events on Employee Well-being

Geopolitical instability has wide-reaching implications for businesses and their employees. Each year, new conflicts and crises erupt across countries, displacing citizens and disrupting economies. Stories of unrest have echoed around the globe, while in the United States, polarized politics and economic uncertainty—culminating in the recent change in leadership—add to the pervasive volatility of the geopolitical climate.

This volatility places employees under significant mental strain. Research shows that workplace stress increases during periods of social and economic uncertainty. A 2024 survey of employees in North America, the UK, and Australia found that about 50% experience stress and exhaustion and roughly one-third feel overwhelmed, irritable, lonely, and depressed. While workers overwhelmingly report stagnation or decline in their well-being, executives appear unaware—the majority in the survey report that they believe their workforce’s well-being is improving.

The workplace doesn’t have to be a net negative. In times of unrest, organizations that adopt structural and holistic approaches to employee well-being can act as stabilizing forces. And while individual care is important, we cannot underestimate the importance of integrating well-being targets and initiatives into corporate strategy. As an organization, fostering purpose and social connection—alongside individual awareness and healthy habits—can create a fortifying effect for struggling employees. A 2023 survey found that 78% of respondents believe a healthy and sustainable culture would improve their mental health—above and beyond the provision of self-care resources.

AI’s Role in Workplace Stress

While the workplace can be a mitigating factor in employee well-being, we can’t discount the continued challenges it presents in the human experience.

As technology reshapes the corporate landscape, AI and automation have become integral to business operations. And while these innovations promise unprecedented productivity and efficiency, they often come at a cost. Employees face mounting pressures to meet accelerated performance standards, with expectations extending beyond traditional work hours thanks to around-the-clock connectivity. According to the 2024 survey, 81% of executives say their workers have been affected by the demand for rapidly evolving skills. Employees today are expected to increase output, broaden their skillsets, return to the office, improve working efficiency, and work more hours.

This pattern highlights the productivity paradox, where the benefits of technological advancements are unevenly distributed. While organizations embrace technology to optimize efficiency, the gains can fail to reach the individuals who drive these systems.

In the past, employees have greatly benefited from technological progress, which has enabled remote work, global connectivity, and productivity-boosting resources. However, many now feel that while companies achieve greater output, employees bear the brunt of intensified workloads and the pressure to keep pace with rapidly evolving tools. Increased productivity should either manifest in higher output and compensation or allow employees to regain time through greater efficiency. Currently, we see neither. What’s more, many still feel lost as to how to use AI to benefit their day-to-day work.

All this against the backdrop of an already challenging corporate landscape. In 2024, many workers found themselves doing more with less. Indeed, research shows that fewer than a third of leaders have implemented AI training programs—and even fewer have a clear, well-implemented AI strategy. Still, executives have increasingly requested that employees use AI tools to increase their output, with nearly 40% of organizations surveyed making this a requirement.

Despite this dichotomy, almost half of all executives surveyed remain unsatisfied, concerned that they are falling behind their competitors or that the lack of adoption and competence is stalling productivity. Employees seem to agree, citing increases in the perceived workload due to AI but without the expected gains in productivity.

The Human Side of AI in the Workplace

AI is transforming how organizations operate, but its impact on human experience at work requires careful consideration.

Studies show that, while they can streamline processes, AI and automation can homogenize communication and stifle personal expression, reduce employees’ sense of agency and purpose, and diminish perceptions of opportunities for unique contributions—a phenomenon known as “AI identity threat.”  Korn Ferry's research establishes purpose supports personal energy, and a decline in purpose and identity at work can have widespread consequences.

While AI-powered monitoring tools can boost collaboration and innovation, they also risk creating a culture of surveillance and mistrust. Since social connection is a key contributor to employee energy, this risk further threatens workplace well-being.

To balance technological advancement with trust, engagement, and dignity, organizations should adopt policies that ensure AI’s benefits are distributed equitably. AI should enhance—not replace—human capabilities, creating opportunities for meaningful work and professional growth. Ethical AI integration involves transparency, fair compensation for increased productivity, and the preservation of personal agency. Organizations must be careful with integrating AI to avoid exacerbating these issues.

In addition to preventative measures, companies need to consider how they support their employees who have already hit the wall.   

How to Support Employees Well-Being in 2025

To thrive in an increasingly complex geopolitical and corporate climate, organizations should take deliberate steps to prioritize employee well-being. This requires defining and tracking well-being metrics toward an established goal. In doing so, well-being will become part of the organizational culture and be treated as a strategic imperative rather than a discretionary initiative.

Organizations that address external pressures on employees while leveraging technology responsibly can create workplaces that balance productivity with well-being. Below are four ways companies can incorporate employee well-being into their corporate culture:

1. Offer Flexibility for Better Work-Life Balance

Offer remote work options, flexible schedules, and wellness programs to help employees manage their personal and professional responsibilities.

2. Provide Mental Health Resources

Provide access to counseling, stress management workshops, and mindfulness programs to address mental health challenges proactively.

3. Lead by Example

Empower leaders to model and advocate for well-being practices, creating a trickle-down effect that normalizes work-life balance across all levels.

4. Help Employees Manager Their Energy

Drawing on neuroscience-backed strategies to help employees sustain their energy throughout the day, fostering productivity without overexertion.

Now is the Time for Companies to Act.

Companies can’t afford to wait to address employee well-being. By prioritizing employee well-being, businesses can ensure resilience and long-term success in a complex world. The question is no longer whether companies can afford to focus on well-being—it’s whether they can afford not to.