Archives 2025

Your people are your greatest asset. When they feel supported and well, they’re empowered to do their best work—and that’s what gives your business its edge.

When your people feel supported and valued, they’re more likely to bring their best selves to work—boosting morale, productivity, and loyalty.

This article will take you through the different dimensions of employee wellbeing, how to provide the necessary support in each case, and how to measure the results.

Here’s what we’ll cover:

What is employee wellbeing?

Employee wellbeing means supporting your people to thrive—at work and in life.

It’s a balanced approach to personal growth that looks at all aspects of health, from mind and body to emotions and finances.

When you adapt the workplace to prioritise these areas, you’re building an environment where people feel happy, supported and motivated.

And it’s your HR team that bears most of the responsibility for nurturing that spirit—through strategies that improve quality of life and employee engagement.

Why wellbeing matters in the workplace

A focus on wellbeing leads to a workplace environment where employees feel valued and supported. When organisations prioritise employee health and wellness, they benefit in several key areas:

Improved retention

Employees who feel valued and supported are less likely to leave.

Wellbeing policies that address these multiple dimensions of health create a sense of care, which fosters loyalty.

Increased productivity

Well-rested, healthy, and mentally supported employees are more efficient, focused, and committed to their work. Addressing physical and mental health needs helps reduce absenteeism and burnout, driving productivity.

Enhanced engagement

Employees who feel their mental, emotional, and physical needs are met are more likely to engage with their work.

High engagement leads to greater enthusiasm for their roles and a stronger connection to the organisation’s success.

Better brand perception

Companies with robust wellbeing initiatives are perceived as caring employers, enhancing their reputation and attracting top talent.

A supportive workplace environment sends a strong message to potential hires and customers alike.

How to measure employee wellbeing?

A proper assessment of employee health and wellbeing helps HR teams decide whether there is room for improvement, and what measures could make the work environment even more supportive.

Ideally, they will use a mix of quantitative metrics from your HR platform and qualitative insights based on employee feedback.

The tools for obtaining this information are:

• Pulse surveys and anonymous feedback forms: tools that gauge stress levels, job satisfaction, and emotional health. Anonymity is crucial, as it encourages honesty and helps employees feel safe sharing sensitive feelings. Fear of judgement or repercussions would cause them to clam up.
• Absenteeism and attendance rates: a high rate of absences in your HR report logs can indicate underlying issues like disengagement, burnout, or work-related stress. Employees may need tailored support or adjustments to their workload.
• Turnover metrics: long-term statistics from your staff roster will surface wellbeing trends and guide your retention strategies. A higher-than-usual turnover rate or increased voluntary departures may point to dissatisfaction or lack of support.
• Engagement scores: surveys or data from performance monitoring software will offer insights into your employees’ sense of connection to their work and the organisation. High engagement typically correlates with better mental and emotional wellbeing.
• Uptake of wellbeing resources: if you offer wellbeing resources — such as Employee Assistance Programmes (EAPs), wellness apps, or mental health days — evaluate the adoption rate. There may be barriers to access or your employees may simply feel these tools don’t meet their needs.
• Feedback sessions: regular manager-employee check-ins provide opportunities to discuss workload, stress levels, and general wellbeing. Feedback loops ensure that any concerns or early warning signs are addressed before they develop into more serious issues.

What factors affect staff wellbeing?

Implementing policies that facilitate wellbeing is one thing, but those policies need to take into account the daily influences that shape the working environment.

You can loosely group these factors into interpersonal/behavioural influences and structural causes:

Interpersonal factors

Leadership

Supportive, empathetic leaders who actively listen to their teams and offer constructive feedback are sure to have a positive effect on employees’ mental and emotional health.

The opposite, such as high-pressure management and a lack of personal interest, can contribute to stress, burnout, and disengagement among employees.

Culture

A positive, inclusive workplace culture that encourages collaboration, respect, and openness can improve employees’ emotional wellbeing.

It makes them feel valued and included.

In contrast, a toxic or overly competitive culture can lead to feelings of isolation or anxiety.

Recognition

Regular displays of recognition and appreciation for employees’ contributions can significantly boost their self-esteem and sense of commitment.

Lack of recognition, however, can lead to frustration and make employees feel undervalued.

Structural factors

Workload

Overloading employees with excessive tasks or unrealistic expectations sets them up for counterproductive mental or physical strain.

Chronic stress from accumulated demands impacts both emotional and physical wellbeing, leading to burnout or absenteeism.

Benefits

Comprehensive benefits packages that include health insurance, mental health support, and retirement plans go a long way to improving financial and physical wellbeing.

It cuts stress and promotes greater job satisfaction.

Job security

Doubts over job security can cause anxiety and stress, affecting mental and emotional wellbeing.

Employees who feel uncertain about their future in the company may struggle with concentration, engagement, and motivation.

Early signs of poor wellbeing at work

Before employees actually start complaining about issues at work, there may be changes in their behaviour that indicate degradation of wellbeing.

Below are some key symptoms and how to spot them:

Absenteeism

Track attendance patterns and conduct regular check-ins with employees to identify trends in frequent or unexplained absences.

Look for patterns where specific individuals take time off around high-stress periods or after major project deadlines.

Anonymous surveys can also reveal if stress or mental health concerns are contributing to absenteeism.

Disengagement

Monitor employee engagement through regular pulse surveys and feedback tools.

Look for shifts in participation during meetings or collaborative tasks.

Employees who are disengaged may stop volunteering ideas, avoid communication, or withdraw from team activities.

Regular 1:1 meetings with managers to discuss work satisfaction and personal wellbeing can also reveal signs of disengagement.

Burnout

Pay attention to employees who show signs of chronic fatigue, such as a decrease in productivity or consistent tardiness.

Compare performance indicators with past outputs.

Make sure your regular surveys include questions on stress levels and workload.

Encourage managers to ask about energy levels and feelings of exhaustion during routine check-ins.

High turnover

Keep track of retention metrics over time to spot any correlations between turnover spikes and poor wellbeing trends.

Exit interviews can reveal whether wellbeing concerns—like stress or burnout—are driving employees to leave.

Look for recurring reasons such as stress, burnout, or dissatisfaction with workload.

Additionally, informal feedback from current employees during surveys or regular 1:1 meetings may give insight into whether employees are seeking a better work-life balance elsewhere.

What are examples of wellbeing initiatives?

To truly improve employee wellbeing, initiatives must be consistent and employee-informed.

If employees perceive these efforts as merely one-time perks, they will come across more as showcasing than genuine interest in staff welfare.

Below are examples of initiatives that you can integrate into your company’s culture and daily practices.

Mental health and emotional wellbeing

Mental health support.

Implement Employee Assistance Programmes (EAPs) that offer confidential counselling services, helping employees manage stress, anxiety, and personal challenges.

Paid access to mindfulness or therapy apps

Provide employees with access to apps like Headspace or BetterHelp to promote relaxation, mindfulness, and mental health support.

You could complement these with company-sponsored meditation sessions, breathing exercises during breaks, or providing spaces for quiet time.

The HR team could look into partnerships with local mental health professionals or on-site wellness fairs offering free consultations.

Mental health days and burnout prevention policies

Establish policies that allow employees to take paid time off when needed to manage stress, preventing burnout before it becomes a larger issue.

Manager-led wellbeing check-ins

Encourage regular 1:1 meetings between employees and managers, focused on mental health and workload balance.

This helps employees to feel they are heard and supported.

Manager training in emotional intelligence

Train managers to engage in active listening so they recognize signs of stress and emotional distress in their teams.

They will learn how to respond with empathy and when to provide the necessary support.

Physical wellbeing

Physical wellness programs

Offer wellness perks such as yoga sessions or ergonomic office equipment.

On-site or virtual fitness classes

Provide access to fitness programs, either in-person at the office or virtually, to help employees stay active and healthy.

One idea in this category is “walking meetings”, which with today’s mobile technology are even feasible for remote staff.

Gym subsidies or step count challenges.

Offer gym memberships or subsidies, or create friendly step count challenges that encourage employees to stay active and engage in regular exercise.

Healthy snacks or hydration stations in the workplace.

Stock the office with nutritious snacks and provide hydration stations to promote healthier eating habits.

Financial wellbeing

Financial wellbeing tools

Provide employees with access to financial planning tools or apps that help them manage their finances, track spending, and set goals.

This could include retirement planning resources to help employees plan for their future.

Financial education sessions

Offer workshops or webinars to educate employees on managing personal finances, budgeting, and saving for the future.

Employers may match employee contributions or provide additional financial support to encourage participation in savings programs.

This enhances financial security by helping employees save for unexpected expenses and avoid financial strain in times of need.

Social and emotional wellbeing / community building

Peer support groups

Establish peer support networks or employee resource groups (ERGs) where employees can share experiences.

This helps them connect and support each other in both personal and professional matters.

Encourage employees to get involved in social causes through volunteering.

This helps to build strong emotional ties within the team while nurturing a sense of fulfilment beyond the office.

Social events

Organise team-building activities or social occasions that foster a sense of connection and trust among employees.

This promotes collaboration and improves morale.

You could include wellness challenges such as journaling or limiting screen time.

Work-life balance and flexibility

Flexible hours or compressed workweeks

Allow employees to set their own work hours or take advantage of compressed workweek schedules.

For example, working four days instead of five, or incorporating one day of remote work, would help them balance work with personal commitments.

Remote or hybrid work arrangements

Offer flexible work options, such as remote or hybrid work, to give employees more control over where and how they work.

Asynchronous communication

Avoid constant meetings by encouraging employees to collaborate asynchronously.

Greater reliance on email, or online chat solutions like Slack, give staff the freedom to manage interruptions and reduce fatigue.

Final thoughts: Creating a well-being culture in the workplace

Embedding employee wellbeing into the core values of your organisation is a way to create a supportive, productive, and sustainable workplace.

When wellbeing is a foundational aspect of your company culture, employees are more likely to feel valued, engaged, and motivated.

Talent management software is an ideal tool for coordinating and tracking wellbeing initiatives.

It can streamline tasks relating to employee engagement, performance management and wellbeing tracking, making it easier to offer tailored support and measure progress.

Solutions like Sage HR enable businesses to track absenteeism, gather feedback through surveys, and ensure employees have access to the support they need.

FAQs on employee health and wellbeing

1. What is the difference between wellness and wellbeing in the workplace?

Wellness generally refers to physical health, and in a workplace context refers to activities like fitness challenges, nutrition advice, or providing gym memberships.

Wellbeing is a more comprehensive concept, expanding to include mental, emotional, social, and financial health.

In the workplace, wellbeing is dealt with through a holistic approach that supports employees in multiple areas of their lives, both professionally and personally.

So, while wellness programs are an important part of wellbeing, wellbeing covers a broader scope, aiming to improve overall life satisfaction and work-life balance for employees.

2. How can small businesses support employee wellbeing on a budget?

Supporting employee wellbeing doesn’t always require a big budget.

Small businesses can implement simple, cost-effective initiatives that show employees they are valued and supported.

Small businesses are usually more agile than major enterprises, giving them the flexibility to offer greater freedom in scheduling working hours.

This makes them potentially more open to mental health days, which don’t have to be paid days off. 

It’s also easier for these companies to adopt a culture of openness and accessibility, where employees feel comfortable sharing concerns with leadership.

This can easily lead to informal team-building events, like virtual coffee chats or team lunches.

And there are plenty of free or affordable tools, like Google Forms for anonymous feedback surveys or free mindfulness apps like Calm and Headspace.

3. What role does leadership play in employee wellbeing?

The approach to leadership can guide employee wellbeing by setting the tone and modelling healthy behaviours.

When leaders prioritise balance, set realistic expectations, and regularly check in with empathy, it fosters psychological safety and trust within the team.

Leaders who demonstrate the importance of wellbeing through their actions create a supportive work environment where employees feel valued and heard.

This can encourage staff members to prioritise their own health.

Succession planning is about building a future-ready business by preparing your people for what’s next.

For HR managers and business owners alike, it’s one of the most important ways to build stability, retain talent, and prepare for inevitable change.

Whether someone retires, gets promoted, or unexpectedly departs, having a clear plan makes sure your business keeps moving forward.

Succession planning means fewer disruptions, smoother transitions, and a more confident approach to developing leadership from within.

This article will walk you through what succession planning means, why it matters, what a good framework looks like, and how HR professionals like you can lead the charge.

You’ll also find practical examples and tips for overcoming common roadblocks to build a resilient and realistic plan.

Here’s what we’ll cover:

What is succession planning?

Succession planning is the process of identifying and developing internal talent to fill key roles when they become vacant, whether due to a planned transition like retirement or an unexpected departure.

Put simply, it’s about keeping your business running smoothly, no matter who leaves.

And it’s not just about senior executives; it applies to any mission-critical role that drives day-to-day operations.

From an HR and strategic standpoint, succession planning is a proactive approach.

It means recognising potential gaps early, nurturing future leaders, and making leadership development a core part of your company’s growth.

Why is succession planning important?

Succession planning is essential to reducing risk, retaining top talent, and supporting long-term growth.

It’s about creating a stronger, more resilient organisation.

Here’s why it matters to your business:

• Minimises disruption: you can’t always predict when a key employee will leave, but a clear plan helps you stay prepared and maintain continuity.
• Boosts retention: employees who see a future with your business are more likely to stay motivated and committed.
• Drives business growth: succession planning ensures the right people are in place as your organisation expands, shifts, or evolves.
• Supports development: high-potential team members benefit from structured learning and defined pathways to leadership.
• Strengthens company culture: promoting from within helps preserve your values and creates a sense of stability across the team.

When succession planning is done right, you build a future-ready business with engaged, confident leaders at every level.

What is the role of HR in succession planning

As an HR leader, you are the architect, facilitator, and steward of the entire succession planning process.

Your job is to turn strategy into action, ensuring leadership continuity and preparing your team for what’s next.

Here’s how you bring succession planning to life:

• Identify critical roles that are essential to both day-to-day operations and long-term strategy.
• Assess talent gaps by evaluating current capabilities against future leadership needs.
• Define leadership competencies that align with your organisation’s goals and values.
• Evaluate employee readiness through performance reviews, 360-degree feedback, and leadership assessments.
• Design employee development plans to help high-potential individuals build the skills needed for future roles.
• Integrate succession planning with broader talent initiatives like L&D, performance management, and DEI.
• Facilitate communication by managing expectations, ensuring confidentiality, and maintaining clear documentation.
• Maintain continuity with consistent, scalable frameworks that can grow with your organisation.

Implementing these strategies manually can be time-consuming and prone to inconsistencies.

Talent management software enables you to identify critical roles, monitor employee growth, and access real-time insights to support strategic decision-making.

Key steps to build a sustainable succession planning process

A strong succession planning framework should be repeatable, adaptable, and scalable as your organisation evolves.

Here’s a straightforward four-step approach to help you get started:

• Identify key positions: pinpoint the essential roles for business continuity and long-term success. Look beyond senior leadership and include any role where an unplanned vacancy would disrupt operations.
• Evaluate internal talent: use performance reviews, leadership assessments, and feedback to identify employees who can step into critical roles within your succession planning framework.
• Create tailored development plans: align training, mentoring, and stretch assignments with individual goals to equip your employees with the skills needed for future responsibilities.
• Review and refine regularly: your business and your succession planning framework will evolve. Regular reviews ensure the plan remains aligned with shifting priorities and stays relevant.

By following these steps, you’ll establish a succession planning process that fosters stability, supports growth, and ensures long-term success.

Succession planning examples

To bring the concept to life, here are two practical scenarios, one for a larger organisation and one for a smaller business:

Large business example

Imagine you’re working in a multinational company, and you know your CFO is set to retire in 18 months.

As the HR manager, you partner with the finance director to identify two strong internal candidates.

One enrols in an executive leadership programme, while both take on stretch assignments to gain experience in board-level reporting.

With regular evaluations along the way, one candidate is eventually selected and transitions smoothly into the role when the CFO steps down.

Small business example

Now picture yourself in a regional retail company, where the area manager is preparing to move on to a new opportunity.

You’ve identified a high-performing team leader who’s consistently demonstrated strong leadership potential.

She’s paired with a mentor, joins a management training course, and starts shadowing the area manager.

Within six months, she’s ready—and successfully steps into the role, eliminating the need for external recruitment.

Common barriers to effective succession planning

Even with the best intentions, many organisations struggle to implement succession planning.

Here are some of the most common challenges you might face—and how to tackle them:

• Lack of transparency: succession planning doesn’t mean keeping everything under wraps. Clear, thoughtful communication is key. If your team feels left in the dark, it can lead to confusion or mistrust.
• Talent shortages: you may not always have a clear pipeline of ready successors. That’s where proactive development, mentoring, and even external benchmarking come into play.
• Inconsistent processes: without a structured approach or proper documentation, succession planning can quickly become reactive instead of strategic.
• Bias and subjectivity: relying on gut instinct alone can unintentionally limit opportunities and undermine your diversity and inclusion efforts.

Building resilience through leadership planning

Succession planning is about creating a culture of continuous leadership development.

When you make it part of your HR strategy, you prepare for the future and strengthen your organisation today. 

As an HR leader, your planning capabilities strengthen your ability to navigate change, retain talent, and drive growth.

It’s about being proactive, people-focused, and committed to building a resilient workforce.

Ready to take the next step?

Explore how succession planning software can help you streamline the process, support your strategy, and confidently build the leaders of tomorrow.

FAQs about succession planning

1. What should a succession plan include?

A strong succession plan should include a list of critical roles, potential successors, development plans, timelines, performance metrics, and a review schedule.

It should also cover how progress will be evaluated and transitions communicated.

2. Can small businesses use succession planning?

Absolutely. Succession planning is just as crucial for small businesses.

It helps minimise disruption, avoids costly hiring delays, and gives employees clear growth paths.

You can prepare your future leaders in advance, even with a lean team.

Making Tax Digital (MTD) for Income Tax is being called one of the biggest shake-ups in personal tax for a generation.

It presents opportunities for businesses to become more efficient at their core accounting tasks, as well as doing their tax better. This frees up more time to put into the business.

It does this by legally requiring the digitalisation of income tax accounting.

In other words, you must use software for your accounting records relating to income tax, and you have to make regular submissions via software to HMRC to let them (and you) know how much tax you owe.

In this article, we take a look at some key points that should help you understand more about MTD for Income Tax.

Here’s what we cover:

1. Making Tax Digital for Income Tax will affect eligible sole traders and landlords

Here’s a short summary of what Making Tax Digital for Income Tax means:

• It will affect sole traders and landlords that currently use the Self Assessment income tax system. In the first phase, it will apply to those earning over £50,000 (as of April 2026), in the second phase to those earning over £30,000 (as of April 2027), and in the third phase to those earning over £20,000 (as of April 2028).
• MTD-compatible software must be used to record income and expenditure relating to your sole trade and/or landlord income.
• For each sole trader business, and for the total rental income, it requires at least four updates across the year (typically quarterly) to be submitted to HMRC via MTD-compatible software.
• A digital tax return must be submitted by 31 January following the end of the tax year (that is, 5 April the previous year), again using MTD-compatible software.

2. MTD for Income Tax will make life easier

You might look at the requirements for MTD for Income Tax and become concerned that more admin work is involved.

But in fact, accounting software will be able to automate much of this, such as the compilation of quarterly updates.

Bearing in mind it can’t be avoided, MTD for Income Tax is best looked upon as an opportunity to do things better and to reduce business admin overall.

If your business isn’t already using accounting software then its introduction is likely to be revolutionary.

Suddenly you can do things like issue invoices with a single mouse click (or tap of a screen). You can get reminded of overdue invoices, and chase them up in the same easy way.

For businesses already using accounting software, MTD for Income Tax is likely to make you much more aware of your ongoing cash flow and tax situations.

If you provide accurate information when submitting quarterly updates, you’ll always know how much tax and National Insurance you owe.

This can lead to better budgeting and forecasting.

You’ll have no need to set aside a large amount in the intention of over providing for your tax payment. And that means more cash freed up for you and your business.

Above all, MTD for Income Tax presents a golden opportunity to overhaul your business and tax admin.

Using the latest technology, you can reduce your overall admin work, reduce the stress of it all, and free up more time to do the things you love.

3. You will not have to submit Self Assessment tax returns any more

When Making Tax Digital was first announced in 2015, the chancellor said it was “the death of the annual tax return”.

When it comes to MTD for Income Tax, most people will no longer need to submit a Self Assessment tax return.

Instead, you’ll complete quarterly updates, and a digital tax return by 31 January each year. It’s possible you may have to submit an SA100 form by 31 January if you have accounting data that cannot be submitted digitally – but this is only going to be true for a small number of people.

However, those whose turnover is below the thresholds will need to continue submitting a Self Assessment return for their sole trader and/or landlord income.

Also, do remember that those earning over £50,000 who start using MTD for Income Tax will probably find themselves submitting a final Self Assessment tax return by 31 January 2027—after the 6 April 2026 start date of the scheme.

This will be for the 2025/26 tax year, which is the final tax year before MTD for Income Tax begins.

4. It starts in April 2026 but you might not have to follow MTD for Income Tax until 2027 or 2028

If you fall within the scope of MTD for Income Tax, you’ll need to work out your start date.

This is when you need to begin following the MTD for Income Tax rules, following the launch of the scheme in April 2026.

Assuming you earn over £50,000, you’ll have to start from April 2026.

If you earn below this but above £30,000, you’ll have to follow the new rules a year later, in April 2027.

And in April 2028, if you earn over £20,000, you’ll have to comply.

When we talk about what you earn, we mean your gross income, not the net income. The latter is what matters for finding out if you qualify for MTD for Income Tax.

5. You need to check whether MTD for Income Tax applies to you

If you fall within one of the three scopes of over £50,000/£30,000/£20,000 turnover, MTD for Income Tax is about ensuring you get your income tax correct.

This income tax is based on sole trader businesses you might run, and any rental income.

But ultimately, the goal is to work out and then pay your personal tax bill, plus any National Insurance contributions.

MTD for Income Tax means you also need to provide individual quarterly updates for each of the businesses you run, and for rental income.

For example, somebody who runs two sole trader businesses and receives rental income will have the following requirements:

• 12 quarterly updates.
• One digital tax return by 31 January, at the latest.

6. Here’s who doesn’t need to use MTD for Income Tax

This is a non-comprehensive list of those who aren’t covered by MTD for Income Tax (at least not in the first wave of inclusion following the launch in April 2026—they may be included later):

• Those currently using Self Assessment whose turnover from sole trader and/or property rental income is below £50,000 (from April 2027, below £30,000; from April 2028, below £20,000)
• Those whose income doesn’t come from sole trader or property rental income
• Limited Liability Partnerships (LLPs)
• Partnerships that include an incorporated company as a member
• Trusts and estates
• Trustees of non-registered pension schemes
• Non-resident companies
• Those who HMRC agrees are digitally excluded, typically for reasons of location or belief. For example, it may not be possible to get an internet connection where you live because of your remote location, or your religious beliefs may prohibit you from using technology in the way that MTD for Income Tax requires. But be aware that HMRC will be quite strict about allowing exclusions. If you lack an internet connection but your accountant has one, or you can perhaps visit a library with online computers, then you might be expected to make use of those facilities.

Final thoughts on MTD for Income Tax

Getting your head around MTD for Income Tax is something that should begin sooner, rather than later.

Between now and April 2026, April 2027 and April 2028 (depending on when the scheme will apply to you), you’ve got the opportunity to get ahead of the game so you can hit the ground running, with all your admin processes up to speed.

Keeping in mind that MTD for Income Tax is intended as a simplification will help you keep a level head throughout it all.

Once you’ve mastered the basics and partnered your business to the best accounting software, MTD for Income Tax really will deliver results in terms of a better understanding of your finances, and reduced admin requirements.

Starting now, rather than putting it off, will mean your business will thank you now as well as later.

Editor’s note: This article was first published in September 2021 and has been updated for relevance.