In today’s dynamic work environment, employee wellbeing is no longer a “nice to have” – it’s a strategic priority. But as organisations continue to invest in wellbeing programmes, leadership rightly asks: What’s the return on investment? And, crucially, how do we measure it in a robust and meaningful way?
Why Workplace Wellbeing Matters
Workplace wellbeing initiatives encompass a range of activities designed to support employees’ mental, physical, and emotional health. These might include mental health support, flexible working, physical activity programmes, financial wellbeing resources, and team connection strategies. Research consistently shows that wellbeing is closely linked to employee engagement, productivity, retention, and overall organisational performance.
However, without robust measurement, it’s easy for wellbeing efforts to be seen as fluffy or unaccountable. That’s where data comes in – both objective and subjective.
Measuring Return on Investment (ROI)
ROI is typically calculated as the benefit received from a programme, relative to its cost. When applied to wellbeing, this can include both direct financial outcomes and indirect, but equally impactful, indicators.
Objective measures of ROI might include:
- Reduced absenteeism: Fewer sick days taken.
- Lower presenteeism: Improved productivity while at work.
- Improved retention rates: Lower staff turnover and reduced recruitment costs.
- Healthcare cost savings: Fewer claims or reduced insurance premiums.
- Performance metrics: Increased output or improved quality of work.
Subjective measures, meanwhile, provide vital context and insight. These are often gathered through employee surveys and reflect lived experiences, engagement, and morale – all strong predictors of long-term performance.
Using Surveys to Build a Robust Wellbeing Programme
To ensure rigour, any workplace wellbeing programme should begin and end with structured employee surveys. This enables the organisation to compare like-for-like data over time and assess impact clearly.
At the start (baseline):
- Measure wellbeing across physical, emotional, and psychological domains.
- Assess job satisfaction, perceived stress, and work-life balance.
- Gather data on engagement and organisational commitment.
At the end of the programme:
- Reassess the same areas to identify improvements or emerging needs.
- Include open-ended feedback to capture nuanced insights.
- Combine with attendance, performance, and retention data to correlate changes.
By triangulating subjective survey data with objective business metrics, organisations can draw a comprehensive picture of both wellbeing and ROI.
The Value of a Strategic Approach
Organisations that treat wellbeing as a business strategy – not just an HR initiative – are the ones that see the strongest returns. According to a Deloitte UK study, for every £1 spent on mental health interventions, employers can see an average return of £5 in reduced absenteeism, presenteeism, and staff turnover. When measured robustly, these gains are clear and compelling.
Further reading on this topic and how it can be structured for success.
Final Thoughts: More Than Just a Feel-Good Initiative
Workplace wellbeing isn’t just about being a good employer – it’s about being a smart one. When done well, and measured well, wellbeing programmes don’t just improve lives; they deliver tangible results. By combining rigorous objective data with employee-reported outcomes, organisations can build a solid business case for wellbeing, backed by evidence and driven by impact.
Wellbeing is not a cost – it’s an investment. And it’s one that pays off.
I would love to meet up for a coffee and a chat if you think your organisation is in need of such a programme.