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5CO01 • AC 2.5

Factors Affecting Employee Wellbeing

A practical study guide to assessing factors that can affect employee wellbeing and why organisations need to address them.

What does AC 2.5 ask you to do?

AC 2.5 asks learners to assess two factors that could impact employee wellbeing, including why it is important that these factors are addressed.

The key command word is assess. This means examining the significance and consequences of the selected factors rather than simply describing them. The discussion also needs to explain why addressing each factor matters.

Understanding employee wellbeing

Employee wellbeing is broader than the absence of illness. It can include physical, mental, social and financial aspects of an employee’s experience of work. Working conditions, demands, relationships, security, reward and organisational support can all influence wellbeing.

For this AC, keep the focus on two factors and explore them with sufficient depth. The case study identifies several employee concerns, giving learners a clear basis for selecting relevant factors.

Case-study wellbeing concerns

The employee survey in the case study identifies dissatisfaction with personal protective equipment (PPE) among production operatives, long working hours among support functions, and pay among all employees.

These concerns provide three directly supported areas from which two factors can be selected. Whichever two are chosen, the discussion should connect the factor to employee wellbeing and explain the organisational importance of responding to it.

Factor option 1: Personal protective equipment and physical wellbeing

PPE is closely connected with physical health and safety where employees are exposed to workplace hazards. If production operatives are dissatisfied with PPE, useful areas for investigation include suitability, comfort, availability, fit and whether equipment supports safe performance of work.

When assessing this factor, avoid assuming the precise cause of dissatisfaction because the case study does not specify it. Instead, consider why appropriate protective measures matter for physical wellbeing, perceptions of organisational care and confidence in workplace safety.

Factor option 2: Long working hours and work-related wellbeing

Long working hours can affect employees’ opportunities for rest and recovery and may contribute to fatigue, stress and difficulties balancing work with responsibilities outside work. The effects can vary depending on workload, working patterns and individual circumstances.

Addressing excessive or problematic working hours can therefore matter for employee health as well as sustainable performance. Assessment should consider both the employee experience and possible organisational consequences rather than assuming that longer hours necessarily produce greater output.

Factor option 3: Pay and financial wellbeing

Pay can affect financial wellbeing and employees’ perceptions of fairness and value. The case study reports dissatisfaction with pay across the workforce, making it a relevant wellbeing factor for consideration.

A careful assessment should distinguish dissatisfaction from assumptions about its cause. The case study does not state whether concerns relate to pay level, fairness, external competitiveness or another issue. Wider research can help explain how reward and financial security may influence wellbeing, but conclusions should remain consistent with the evidence provided.

Why addressing wellbeing factors matters

Wellbeing concerns can have implications for employees and the organisation. Depending on the factor, possible consequences can include health and safety risks, stress, absence, engagement, retention, performance and trust in the organisation.

The importance of addressing a factor should be explained through a clear relationship: wellbeing issue → effect on employees → potential organisational consequence → reason for action. Avoid presenting every possible outcome as inevitable.

How to assess two factors effectively

Select two factors and give each adequate attention. For each one, explain what the factor is in the case-study context, assess how it could affect wellbeing, consider the significance of the effect, and explain why the organisation should address it.

This creates greater depth than briefly discussing all three concerns. Use appropriate research to support the relationships you identify and distinguish evidence-based possibilities from facts stated in the case study.

Applying the concepts to the case study

The case study provides direct employee evidence through an employment-relations survey. It states that employees want the organisation to do more to support wellbeing and identifies PPE, long working hours and pay as areas of dissatisfaction.

Use this evidence to establish relevance, then use wider reading to understand the possible wellbeing implications of the two factors you select. Do not invent survey percentages, medical outcomes, pay comparisons or causes that are not supplied.

Common mistakes to avoid

  • Discussing all wellbeing issues superficially instead of assessing two factors in depth.
  • Describing a factor without explaining its impact on wellbeing.
  • Ignoring why it is important for the organisation to address the factor.
  • Assuming the cause of employee dissatisfaction when the case study does not state it.
  • Presenting possible outcomes such as absence or turnover as established facts.
  • Writing generally about wellbeing without applying the discussion to the case study.
  • Making unsupported claims without wider reading and appropriate references.

Useful research for this topic

Useful research areas include workplace wellbeing, occupational health and safety, PPE and worker protection, working time and fatigue, work-related stress, work-life balance, financial wellbeing, reward fairness and the relationship between wellbeing and organisational outcomes.

The CIPD’s wellbeing resources can provide useful professional context, alongside credible academic research relevant to the two factors selected.

Important: use this as study guidance

This resource explains concepts and an assessment approach relevant to AC 2.5. It is not a completed assessment response. Learners should complete their own independent work and follow the academic integrity and assessment requirements provided by CIPD and their Study Centre.

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