A new report highlights that leaders do not have "a firm grasp" of their employees' well-being.
Many employees are still struggling with low levels of well-being — with most of them saying that their health worsened or stayed the same last year, according to a survey of 3,150 people conducted in March by Deloitte and Workplace Intelligence.
However, the C-suite indicated a much different perspective: More than three out of four executives inaccurately believe that their workforce's well-being improved.
"This shows that executives are disconnected from the reality of the workforce," Dan Schawbel, managing partner at Workplace Intelligence told CNBC.
"The C-suite is so focused on the macro picture of their organizations, that it's difficult for them to see the macro picture of their employees' well-being,"
While 77% of executives believe that workers' mental well-being improved, only 33% of employees surveyed feel so, said the report. An even lower percentage felt their social and financial well-being (27% and 30% respectively) are in a better place.
Deloitte and Workplace Intelligence found that most respondents are motivated to achieve well-being, with 84% saying that improving their mental, physical and financial health is a "top priority" this year.
In fact, 74% say it's more important than advancing their career, the report said.
However, obstacles such as a heavy workload, long work hours and stress topped the list of obstacles that respondents say are getting in the way of improving their well-being.
For example, nearly three-quarters of employees say they struggle to take time off or disconnect from work, with about half reporting that they "always" or "often" use all of their vacation time each year.
It is hence not surprising that many workers also say they frequently feel negative emotions and fatigue, said the report. Around half say they "always" or "often" feel exhausted (52%) or stressed (49%).
"Year-over-year, work is the leading cause of burnout. Employees are overworked, and with the recent layoffs over the past six months, there's been more work for fewer people," Schawbel said.
He added that the new mandate to return to offices part-time could potentially reduce working hours and burnout, but companies still need "good management" and prioritize well-being regardless of work arrangements.
The report stressed that the poor state of employees' mental and physical well-being should be especially concerning for leaders.
It added that there's been a "notable increase" in the percentage of respondents who are considering leaving their jobs for another that would better support their well-being.
Managers play a pivotal role in improving well-being, as they "interface directly" with employees on a daily basis, said Schawbel.
However, the survey found that managers are also struggling with providing support to their team members due to "organizational obstacles" such as rigid scheduling requirements and not being equipped with the right skills.
As a result, only 42% of managers say they feel "completely" empowered and capable of helping their company achieve its well-being commitments, said the report.
It added that not only should managers be better equipped, companies should also work towards building "human sustainability."
"Organizations that are embracing this concept are helping their employees become healthier, more skilled, and more connected to a sense of purpose and belonging," the report explained.
That includes giving workers opportunities to develop their skills and progress their careers and adopt new practices that support workforce health such as ensuring equitable pay and piloting four-day work weeks.
"If organizations resist improving their workforce well-being or advancing human sustainability, they will increasingly find it difficult to compete for talent that values these critical missions," Schawbel added.