The Impact of Employee Well-Being and Mental Health on Organizational Performance: A Comparative Study
Shreya Agnihotri & Solanki Dhawal
MBA Students (Human Resource Management) Author Email:
shreyaagnihotri7890@gmail.com
dhavalsolanki2040@gmail.com
Under the Guidance of Prof. Sushmita Singh
Faculty of Management Studies February 2026
ABSTRACT
Employee well-being and mental health have become essential factors influencing organizational effectiveness in the modern business environment. With increasing competition, performance pressure, and rapid technological changes, employees often experience high levels of stress, anxiety, and burnout. These psychological pressures directly affect productivity, job satisfaction, engagement levels, and retention rates within organizations. Therefore, organizations are increasingly recognizing that maintaining employee well-being is not only a social responsibility but also a strategic necessity for sustainable growth.
The present study aims to examine the relationship between employee well-being, mental health, and organizational performance, with special reference to the Adani Group operating in Gujarat. The research focuses on identifying key factors that influence employee mental health, such as job stress, work-life balance, leadership support, and organizational wellness initiatives. A descriptive and analytical research design was adopted, using both primary and secondary sources of data. Primary data was collected from 150 employees through structured questionnaires, while secondary data was obtained from reports published by recognized institutions such as WHO, Deloitte, Gallup, SHRM, OECD, and NASSCOM.
Statistical techniques including reliability analysis, correlation analysis, and regression analysis were used to evaluate the relationship between variables. The findings indicate that employees experiencing better mental health demonstrate higher levels of productivity, commitment, and engagement. The results also show that excessive job stress negatively impacts mental health, leading to absenteeism, reduced efficiency, and lower organizational performance.
The study concludes that organizations investing in structured mental health programs, flexible work policies, and supportive leadership practices are more likely to achieve improved employee satisfaction and long-term business success.
Keywords: Employee Well-being, Mental Health, Organizational Performance, Job Stress, Employee Engagement, Work-Life Balance, Productivity
