Mental Wellbeing and Stress Management improve across APAC workplaces, but lagging Employee Engagement signals a need for companies to look beyond productivity for long-term growth.
SINGAPORE, 31 MARCH 2026 – Intellect, a leading global mental health company, released the third edition of its Workplace Wellbeing 360 Report. The findings point towards how employees globally and across Asia-Pacific are increasingly staying in their roles for stability, yet many remain emotionally disconnected from their work.
Across 27,048 employees in 160 countries, including 29 in APAC, Mental Wellbeing saw its biggest year-on-year improvement, rising by 10.2% points, alongside a 8.07% point increase in Productivity. Stress Management also showed the most significant gain across all measured factors.
However, Employee Engagement, which measures whether individuals are psychologically invested in their work, is lagging across most industries. This trend aligns with the job-hugging phenomenon, where many employees stay in their roles primarily for security amid economic and job uncertainty. Over time, this dynamic exposes organisations to a critical challenge: Functional Disengagement – where employees continue to meet their basic obligations and expectations, but withhold the discretionary effort needed to drive company innovation and sustain competitive growth.
“This year’s data revealed a more nuanced picture than we anticipated. In many ways, organisations are doing better, having invested in employee wellbeing over the past year, and the data suggests those efforts have been effective, at least in part. However, beneath the improvements, a subtler shift is underway, one that does not appear in headcount numbers or output reports, but could pose challenges in the long run,” said Theodoric Chew, Chief Executive Officer & Co-founder of Intellect.
Growth of Functional Disengagement Undermining Organisational Gains
The report shows that organisational investments in workplace wellbeing initiatives are paying off. Globally, 2025 saw a rise in Mental Wellbeing (10.2% points) and Productivity (8.07% points), largely driven by improvements in Stress Management (10.09% points). However, Employee Engagement has not kept pace, increasing only 2.61% points. In APAC, while Productivity rose 2.55% points, Employee Engagement declined slightly (0.01% points). Further reinforcing signs of Functional Disengagement, employees’ Growth Mindset showed only marginal improvement (0.30% points), suggesting employees may not be as active in seeking opportunities for learning and personal growth.
As employees become detached from their work, this pattern of Functional Disengagement can pose substantial organisational risks, potentially costing the global economy US$8.8 trillion annually in lost productivity. It also creates the Retention Illusion, where headcount appears stable but masks underlying gaps in employee satisfaction and fulfilment.
The Real Drivers of Employee Engagement: Why Structural Changes Aren’t Enough
Employee engagement is frequently overlooked in traditional performance metrics, indicating that its key drivers may not lie where companies typically focus. While organisations may turn to structural or systemic changes such as policies and workplace processes, the report shows that personal factors (61.72%) play a greater role in driving employee engagement.
Of the 13 personal factors examined, the two strongest predictors are Optimism and Encouraging Participation. Optimistic employees believe their efforts will lead to meaningful progress and positive outcomes, and are more likely to persist through challenges and invest in their own growth, while employees who feel able and are encouraged to contribute develop a stronger sense of ownership over their work and are more likely to take initiative.
Setting realistic goals, providing clear career pathways, and connecting employees’ work to organisational goals are some examples of how organisations can strengthen optimism. At the same time, creating a psychologically safe environment, building supportive manager-team relationships, and involving employees in decisions can foster genuine participation.
Successfully embedding these practices requires strong leadership at all levels to shape an environment that encourages optimism and active participation. “When senior leaders visibly demonstrate this level of support, it provides managers with the psychological capacity to lead teams with empathy and purpose,” said Dr Oliver Suendermann, Vice President, Clinical, Intellect. For example, training managers in Mental Health First Aid (MHFA) can develop this capability, equipping them to initiate supportive conversations, identify signs of distress and respond appropriately, and strengthen trust between managers and their teams.
Intellect’s study shows that productivity alone is not a sufficient measure of whether employees and, by extension, organisations, are thriving. Organisations need to create the psychological conditions that inspire employees to give their best. Only by fostering this environment can employees be truly engaged, workforces achieve both productivity and high performance, and organisations position themselves for long-term growth.
For more details on the report and to access the full findings, please visit here.
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Research Methodology
The report draws on insights from over 27,048 global users across 160 countries and 13 major industry sectors. Data was collected using Intellect Dimensions, a clinically validated 26-item self-assessment tool that evaluates factors both within and outside an employee’s control.
The report uses the Org Dims 2.0 framework and 13 Personal Factors to examine the gap between Volume and Value:
- Volume is measured through productivity, including absenteeism and presenteeism.
- Value is measured through Employee Engagement, capturing employees’ willingness to contribute beyond baseline responsibilities.
User responses are aggregated across demographics such as industry, country, gender, and age group, and summarised across 13 personal factors, including optimism, stress management, growth mindset, and encouraging participation. Data is further grouped into five distinct organisational wellbeing categories:
- Productivity, which is measured in terms of productivity loss (presenteeism) and absenteeism due to physical and mental health.
- Mental Wellbeing, which assesses the overall mental and emotional wellbeing of employees, focusing on anxiety and depression symptoms.
- Employee Engagement, which measures the level of enthusiasm, commitment, and connection employees feel towards their work and organisation.
- Psychological Safety, which measures the extent to which employees feel comfortable expressing their ideas and concerns without fear of negative consequences.
- Work Burnout, which assesses the extent to which employees experience chronic workplace stress.
About Intellect
Intellect is a trusted global leader in mental health care, providing accessible, culturally-localised support through comprehensive solutions that address diverse needs at every stage of the mental health journey.
Available in 120+ languages, Intellect’s comprehensive local network of providers are accessible in 100+ countries. Online and offline, it has made a difference in the lives of over 4 million users around the world.
Intellect is backed by influential investors including Tiger Global, Insignia Ventures Partners, Y Combinator, HOF Capital, MS&AD Ventures, and East Ventures, alongside prominent venture funds, family offices, big tech executives, and angel investors. In 2025, Intellect was named as one of Fast Company’s Most Innovative Companies and Human Resources Online’s Best Digital Wellness Platform (Gold) in 2023.
Media Contacts:
Jiamin Wong
Intellect
Aishah Holterhoff
Intellect
