hrdaily - Subscription Service (09.04.2026)
Organisations are spending more on workplace wellbeing, but they're not seeing it translate to higher employee engagement, nor do employees consider themselves well supported at work, according to new research.
The 2026 Intellect Workplace Wellbeing 360 Report, involving more than 27,000 employees, highlights that employees' mental wellbeing rose 10.2 percentage points in the past year – this was the "largest single-year improvement" in the report's history.
But according to Intellect CEO Theodoric Chew, the data provides "a more complex answer than we expected" to the question of whether employees are actually thriving, rather than "just coping" or "showing up".
"Beneath the improvements, a less noticeable shift is underway, one that does not show up in headcount numbers or output reports, and one that I believe represents the defining people challenge of this moment," he says.
Engagement levels aren't keeping pace with wellbeing improvements, the report states, and it attributes this to two main factors in decline globally: optimism (an employee's belief that their efforts lead to meaningful outcomes); and encouraging participation (the extent to which employees feel genuinely invited to contribute).
"When employees feel optimistic, they are more likely to persist through challenges, seek out opportunities, and invest in their own growth. Without it, work becomes something to endure rather than something to build on."
Australian workers were slightly more optimistic in 2025 than in 2024 (up 2.4 ppts), but remained below the global average of 66.8%.
Building optimism doesn't mean projecting confidence, the report stresses. "When company leaders downplay challenges or paint an overly rosy picture of the future, they come across as out of touch and undermine trust."
But employees "are not looking for reassurance that everything will be fine" – they're looking for "evidence that they have some agency over what happens next".
"That is the real lever: strengthening employees' internal sense of control. Consider a team navigating a period of restructuring. A leader who says, 'I cannot promise how this will end, but here is what each of you can influence' does more for optimism than one who says, 'Everything will work out'."
Meanwhile, another recent survey indicates that despite widespread investment in mental health policies and employee assistance programs, only 15% of employees feel that support is genuinely embedded into their workplace culture.
"Workplace distress in Australia is the norm, not the exception," according to Suicide Prevention Australia's latest Spotlight Report.
It found that 90% of Australian employees report experiencing some level of work-related distress, and more than one in five report "extreme" distress.
The findings make it clear that workplace distress is not an issue of personal resilience, but a systemic workplace challenge, according to Suicide Prevention Australia CEO, Nieves Murray.
"When nine in 10 workers are experiencing distress at some level and more than one in five are reporting extreme distress, this is not about individuals coping better. It's about the systems, pressures, and cultures we have built into our workplaces."
The report states the key causes of workplace-related distress are:
Only 20% of employees say mental health support is strongly encouraged and normalised in their workplace; just 15% say it is comprehensively embedded into their organisational culture.
Further, workers who reported no distress were significantly more likely to say support is strongly encouraged in their workplace, compared to those experiencing moderate distress.
"Every workplace has a role to play in shifting the narrative from individual responsibility to systemic safety. Embedding mental health support and suicide prevention into culture, leadership and systems is not optional, it is a safeguard that can save lives," Murray says.