The $10 Trillion Workplace Crisis No One Is Measuring

Wrecking balls knocking into brain made out of stone
AdobeStock
Why ‘brain health’ matters—and how to address it.

Business plans and balance sheets rarely include one resource critical to employee performance. That resource is brain health, the daily supply of focus, judgment and adaptability that employees bring to work, and organizations spend constantly.

Workloads frequently do not allow for recovery, decision structures bury people in low-value choices, and the pace of change arrives faster than anyone can absorb. Each is a draw against the asset with which a company thinks.

Brain health is more than the absence of illness. It is the capacity to focus, learn, decide, regulate emotion and recover, and it moves with the conditions around it. It is depleted by chronic overload and rebuilt by sleep, genuine breaks and work matched to an employee’s skills and control. This is not a hypothesis. In one Fortune 100 company, employees whose sleep improved from one year to the next significantly reduced their lost productivity. Recovery is a driver of performance.

For a decade, the corporate answer has been to hand the problem back to workers through mindfulness apps, reminders about the employee assistance program and resilience webinars. Those gestures place responsibility on individuals whose struggles are largely driven by the conditions organizations create around them.

Brain health at work is set by job demands, control over one’s own work, support, clarity of role and how change is communicated. Those are design choices, and leaders own them. Brain performance requires a systems-level approach, with both individual behavior and organizational and leadership culture impacting outcomes.

The impact of ignoring workplace brain health is measurable. Gallup puts global employee engagement at 20 percent, its lowest since 2020, with lost productivity estimates at $10 trillion. A study of more than 50,000 employees found that health-related productivity losses cost employers 2.3 times more than their medical and pharmacy bills combined. The damage rarely shows up in a claims file. It shows up in the work.

Artificial intelligence raises the stakes. As machines absorb routine tasks, what remains is the human contributions of judgment, creativity, empathy and the capacity to adapt. In January, the McKinsey Health Institute, along with the World Economic Forum, gave this a name, “brain capital,” the combination of brain health and brain skills, and they estimated that scaling proven brain health interventions could generate up to $6.2 trillion in GDP gains by 2050. Organizations that build the brain capital of their people will convert AI into performance improvements. Organizations that do not will find that AI adoption raises stress without raising output.

Skeptics will point to the famous null results in which rigorous randomized trials of workplace wellness programs found no significant savings in medical claims. This is true. The studies’ own authors scoped the finding, writing that it should “temper expectations about the financial return on investment” programs deliver “in the short-term.”

We asked a capacity investment to behave like an insurance discount, then judged the capacity worthless when it did not. Assess organizational brain health by what it delivers: improvements in productivity, engagement, safety and retention.

Measuring this is not new science; the instruments already exist. Validated surveys such as the Copenhagen Psychosocial Questionnaire assess work conditions such as demands, control, support, role clarity and change. The World Health Organization’s Health and Work Performance Questionnaire, the same instrument behind that 2.3-to-1 finding, assesses function by measuring how much capacity people actually bring to the job. Composite tools such as the BrainHealth Index, developed by researchers at the University of Texas at Dallas’s Center for BrainHealth, track brain performance over time and how it responds to training.

If we link these assessments to the outcomes every company already tracks (e.g., engagement, safety, absenteeism, retention), brain health becomes what it should have been all along: a managed number on the operating dashboard. I spent more than a decade building exactly that linkage inside one of the world’s largest companies. It is hard, but it is not impossible.

Managing the asset starts with design. We must build workloads with recovery time in them and protect the conditions under which people think well. We must measure, show the results and fund what moves the numbers.

This fall, leaders will set 2027 budgets and be tempted to cut whatever cannot prove it lowers next year’s claims. Brain health is an asset, not a wellness perk. We measure assets by what they make possible.

Get the StrategicCHRO360 Briefing

Sign up today to get weekly access to the latest issues affecting CHROs in every industry

MORE INSIGHTS