How to Measure the ROI on Wellness Programs

Do you know how your employee wellness program is performing? Strategies to improve employee wellbeing are strategies worth investing in—but only if they can provide measurable results.

Wellness programs foster happier, healthier, and more productive teams who stick around. Still, many HR leaders miss out on understanding the full impact of their strategies and, as a result, their ability to get even more from them. 

Wellness programs can be complex. They often involve several dimensions, moving parts, and stakeholders. This complexity can make measuring the ROI on wellness programs slippery, but far from impossible. Understanding the return on your wellness program shouldn’t be as intimidating as it might seem, and the potential upside of doing so is enormous. 

What kind of ROI can workplace wellness programs actually provide?

Workplace wellness is serious business. Organizations of all shapes and sizes realize the benefits of employee wellness programs every day, improving several operational metrics from absenteeism rates to healthcare savings. 

Fortunately, the potential impact of wellness programs is well studied. In a recent survey of 2,000 HR professionals, as many as 90% reported they saw a positive ROI on their wellness initiatives. Among that same group, all HR leaders polled believed wellness programs were important for employee satisfaction, and 85% credited them with reducing absenteeism and recruitment costs.

The impact of employee wellness programs often translates into direct financial savings, too. A recent study by Harvard Business Review found that over a six-month period, one company’s test of implementing a wellness program yielded a 600% ROI in healthcare savings. What’s more? 57% of employees who were at high risk for a cardiac event were converted to low risk by the end of the test, and medical claims declined by $1,421 per participant.

Why is it important to measure the ROI on employee wellness programs? 

As the tool with perhaps the most potential for positive change in your organization, employee wellness programs are not guaranteed to be effective. Many organizations face challenges around utilization, providing accessible services, and tailoring services to the unique needs of their teams.

Measuring the ROI on your wellness program demystifies this impact. It offers clarity and insight into:

• Whether or not you’re reaching the goals of your program
• Where and how to make adjustments for greater impact
• Building a case for more budget from senior leadership

Understanding how your wellness program is performing is tantamount to understanding the health of your organization. 83% of employees believe their wellbeing is as important as their salary when evaluating their employment, meaning there’s more urgency to the issue than you may realize. 

How to Measure the ROI of your wellness program

The baseline for calculating the ROI on your wellness program is like any other ROI equation: How many dollars did you invest in the program, and how many dollars did it yield back?

When we think about the return on employee wellness programs, we generally think in terms of dollars saved rather than dollars generated. However, the real ROI of employee wellbeing extends past reduced corporate healthcare spending. Improved employee morale and engagement can lead to better customer service, more fruitful interactions with internal team members, and much more. So, when calculating an accurate ROI, it’s important to take all of the following metrics into consideration.

7 Metrics to Consider When Measuring Your ROI

Wellness Program Participation

An employee wellness program only works if employees actually use it. How you define “participation” will depend on how your program is structured, what services you offer, and how often you offer them. Regardless, understanding participation rates across the entirety of your wellness program is critical.

Productivity Rates

When employees feel better, they perform better at work. Employee wellness programs help unlock greater workplace productivity, which will look slightly different from organization to organization.

Absenteeism and Presenteeism

Both missed days at work and days when employees feel disengaged at work have significant ramifications for your organization’s bottom line. Employee wellness programs—including services offered through an EAP—can help prevent absenteeism, disengagement, and quiet quitting.

Healthcare Savings

One of the most attractive benefits of employee wellness initiatives are the potential healthcare savings for your organization. On average, every $1 organizations invest in employee wellness yields $6 in return.

Employee Satisfaction

Although a harder metric to quantify, employee morale has a direct link to performance, productivity, and workplace engagement. Wellness programs can demonstrably improve satisfaction as employees feel more supported to navigate work and life’s challenges. 

Talent Management Metrics

Employee wellness programs help attract and retain the best talent. Talent management is typically one of the most expensive responsibilities HR leaders hold, making wellbeing initiatives attractive to organizations’ bottom lines. 

Workplace Wellness Program Costs

Calculating the return on your investment on employee wellness initiatives requires an understanding of how much you’re spending to operate your program. When thinking about the total cost, consider the price of the services offered themselves as well as any other expenses spent to promote and operate them.

Track, analyze, and optimize your ROI with Carebridge

Employee wellbeing matters. To get the most return on your wellness programs, partner with a comprehensive EAP like Carebridge who can support you every step of the way: Get a Quote