What Is The ROI On Employee Wellbeing Programs?

By Greg Stark, Founder & Director, at Better Being

Employee wellbeing programs are known to improve health and productivity, but justifying their ROI can be challenging.

How do you quantify intangible benefits like improved morale or reduced stress in financial terms?

The truth is, the impact of wellbeing programs is multifaceted. Direct metrics like reduced absenteeism are measurable, but subtler issues such as presenteeism—where employees work but perform below capacity—can account for up to 60% of the total cost of poor employee health.

When measuring wellbeing outcomes, tracking lead and lag indicators provides a clearer picture. Lead indicators—like employee engagement surveys and workload assessments—give early insights into potential problems, allowing for timely interventions. Lag indicators, such as absenteeism, turnover rates, and healthcare claims, offer a retrospective view of the program’s financial and operational impact.

However, the true driver of ROI is employee engagement. Programs with engagement levels above 60% deliver the most meaningful outcomes for organisations. Research shows that wellbeing programs with strong participation deliver:

• Up to a 35% reduction in absenteeism

• 22.5% improvement in employee retention

• 50% fewer workers’ compensation claims

High engagement in wellbeing programs not only cuts costs through reduced absenteeism and turnover but also strengthens a company’s Environmental, Social, and Governance profile. This is increasingly important for attracting sustainable investment, as investors look for companies that demonstrate social responsibility alongside financial prudence.

Greg Stark, Founder and Director of corporate wellbeing provider, Better Being, defines a successful wellbeing program as “more than just a good initiative; they make employees feel valued and help them perform at their best. While enhancing people’s lives should be a key priority, business decisions often hinge on more measurable outcomes. A successful wellbeing program should focus on reducing business costs and meeting compliance standards. Metrics like absenteeism, turnover, and workers’ compensation claims are straightforward to track, but the real question is: Are you measuring the factors that truly drive impact?”

Wellbeing programs enhance employee satisfaction and retention, contributing to long-term resilience and sustainable growth. The financial impact goes beyond immediate cost savings to create a healthier, more productive workforce that supports the organisation’s goals and sustainability efforts.

For companies looking to better quantify the benefits of their wellbeing initiatives, tools that model investment scenarios can offer valuable insights. These resources help organisations project the long-term impact of their programs, allowing for data-driven decisions that maximise both financial and cultural returns.

For more information on how Better Being’s ROI Calculator can help you quantify the ROI of your wellbeing programs, visit betterbeing.com.au or contact us at info@betterbeing.com.au.

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