Here are five simple, proven ways to measure employee wellness ROI and ensure they align with your company’s goals.
1. Track Changes in Employee Absenteeism
Absenteeism is one of the clearest indicators of employee health and workplace well-being. According to the CDC Workplace Health Model, comprehensive workplace health programs can improve employee health behaviors and reduce health risks, contributing to decreased absenteeism and improved productivity. By monitoring absenteeism rates, organizations can measure the impact of wellness initiatives and calculate associated cost savings.
Actionable Tips:
- Compare absenteeism rates before and after your wellness program launch to quantify improvements.
- Leverage HR tools or dashboards to automate tracking and calculate cost savings tied to reduced absenteeism.
Why it Matters:
Fewer sick days mean healthier, more engaged employees—and significant cost savings for your organization.
2. Assess Healthcare Cost Savings
Wellness programs can lead to significant reductions in healthcare costs. A Harvard study entitled “Workplace Wellness Programs Can Generate Savings” found that every $1 spent on wellness programs saves employers approximately $3 in healthcare expenses. It’s one of the most tangible ways to measure ROI.
Actionable Tips:
- Review healthcare claims data before and after implementing your program.
- Look for trends like increased preventive care visits and better management of chronic illnesses.
Why it Matters:
When your team gets healthier, your company saves on healthcare expenses. It’s a win-win.
3. Measure Employee Productivity Gains
When employees are engaged and healthy, their productivity naturally increases. Research published in Management Science by Lamar Pierce and colleagues (2018 study) found that wellness programs can boost productivity by up to 10%. By measuring changes in output before and after implementing your program, you can gain valuable insights into its impact on employee performance.
Actionable Tips:
- Track key productivity metrics, like task completion rates or project timelines, with performance management tools.
- Conduct surveys to understand how employees feel about their productivity before and after the program.
Why it Matters:
Boosted productivity not only benefits your business—it shows employees you care about their success, too.
4. Monitor Employee Retention Rates
Wellness programs can significantly impact employee retention by enhancing engagement. Research from Gallup shows that highly engaged workplaces experience up to 59% lower turnover in low-turnover organizations and 24% lower turnover in high-turnover organizations. Lower turnover translates to reduced time and costs associated with recruitment and training.
Actionable Tips:
- Calculate the cost of turnover, including lost productivity and hiring expenses, before and after your wellness program.
- Ask employees about their experience with wellness initiatives during exit interviews.
Why it Matters:
When employees feel valued and supported, they stick around. It’s as simple as that.
5. Analyze Employee Engagement Metrics
Engaged employees are healthier, happier, and more productive. Metrics like engagement surveys, Net Promoter Scores (NPS), and program participation rates can help you measure the emotional and social impact of your wellness initiatives.
Actionable Tips:
- Track employee engagement participation and surveys to measure engagement levels.
- Track participation rates in wellness programs and link them to employee feedback.
Why it Matters:
Engagement is the heartbeat of a successful workplace. Higher engagement levels show your program is making a difference where it matters most.
Why Measuring Wellness ROI Matters
Wellness programs aren’t just an expense—they’re an investment in your people and your company’s future. Tracking ROI helps you prove the value of these initiatives, refine your strategies, and build a healthier, more engaged workforce.
By focusing on metrics like absenteeism, healthcare costs, productivity, retention, and engagement, you gain a 360-degree view of your program’s success.
Start Measuring Today
At Wellbayt, we specialize in creating wellness strategies that deliver measurable results. Our Wellness Hub makes it easy to track progress with tools like the Wellbeing and Productivity Index (WPI), team challenges, and employee engagement analytics.
Curious about how wellness can drive results for your team? Let’s chat. Schedule your free consultation today, and together, we’ll craft a wellness strategy that works—for your people and your bottom line.
Ready to make 2025 your healthiest year yet? Let’s get started!
