Overall employee wellbeing ranked highest in Asia Pacific compared to other regions, with 49% of companies in APAC describing it as ‘excellent’ or ‘very good’, slightly higher than the global average of 46%, according to a survey from Aon on employee wellbeing.

Aon says the 49% figure could be attributed to the growing importance of employee wellbeing for APAC organisations.

Employee wellbeing ranked among the top three priorities for APAC businesses' human capital strategy, with 67% of employers in APAC saying wellbeing is more important to their company and 48% say it has increased in priority, compared to 2020.

Furthermore, 49% of companies in APAC reported that they have increased their investment in wellbeing initiatives compared to 43% globally. With 50% of organisations allocating 4% or more of their overall benefits budget to wellbeing initiatives, funding allocation was the largest compared to other regions globally.

Meanwhile, mental health and burnout/languishing were found to be the top two employee wellbeing issues in APAC. Burnout is defined as job-related stress that has not been managed, while languishing refers to a sense of being stuck and not making progress.

Although burnout is the second-most cited employee wellbeing issue, only 18% of companies incorporate this topic in their emotional wellbeing initiatives and 24% train their managers on managing burnout.

The survey also found that companies are increasingly taking a more strategic approach to employee wellbeing, with 85% of organisations in APAC having a wellbeing strategy in 2022, compared to 55% in 2020. Furthermore, 77% of employers reported that wellbeing is integrated into their overall business and talent strategy.

The majority of employers also said that they have connected or integrated their wellbeing strategy with other parts of the company including health and safety (90%); diversity, equity and inclusion (90%); environmental, social and governance (87%); and total rewards (83%).

However, when compared to other regions, the APAC region rated second lowest in terms of the percentage of employers incorporating emotional wellbeing into their company's strategy (52%).

Overall, the global data showed that improving employee wellbeing factors can enhance company performance by at least 11% and up to 55%.

Tim Dwyer, chief executive officer for Health Solutions, APAC at Aon, said, "Our study demonstrates the importance employers in the region place on employee wellbeing. Not only have they increased their financial investment, but more businesses are reporting integrating wellbeing with their business strategies and company culture. Understanding and addressing the diverse needs of employees through a well-designed wellbeing strategy will ensure businesses make better decisions that create a more flexible, engaged and resilient workforce.”

Aon also found that there is mismatch between the wellbeing initiatives that are offered and the issues that need to be addressed.

Alan Oates, head of advisory and specialty for Health Solutions, APAC at Aon, said, "As businesses in the region allocate ever-greater investments to improve the wellbeing of their employees, our data reveals gaps in what businesses think is important versus what employees need and are offered. Organisations must therefore avoid implementing one-off individual wellbeing initiatives with no connection to a larger business plan.”