Monday, Aug 06 2018

How to Measure ROI for Employee Wellness Programs

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Employee Wellness


Your employee wellness program is an investment. Providing access to the benefits comes with a financial burden, so being able to measure the return on investment (ROI) is essential if you want to make sure the business is deriving value from the offering.


From the employer perspective, it can be challenging to measure the ROI on your employee wellness program if you aren’t sure which metrics act as indicators of success. If you want to be able to measure the ROI, here are a few points that can help you see the program’s value.



By offering an employee wellness program, you can experience a decline in health-related absenteeism. Employees in good health traditionally use fewer sick days during the year and may not require as many “mental health days” to manage stress effectively.


The length of each absence may also shorten, as healthier workers tend to recover more quickly from illnesses and injuries, allowing them to return to work faster. When you need to measure the ROI, associated with your program, keep an eye on absenteeism to see if it declines.


Medical Costs

Healthcare benefits and similar medical expenses often have a substantial impact on a company’s bottom line. By providing access to an employee wellness program, you may be able to reduce these costs, allowing you to experience a savings beyond the financial investment required to operate the program.


When workers are healthier, they generally don’t require as many medical appointments or treatments. This can make it easier to secure a lower rate for your healthcare plan. Additionally, this can save your employees money in the long-run, both by reducing their need for medical care and by keeping their recurring costs low.




Another important point to monitor when you want to measure the ROI is your retention rate. Offering a robust employee wellness program can increase longevity, especially if it helps differentiate your business from your competitors.


A side benefit of the program is increased job satisfaction on the part of employees. This may reduce their desire to seek out opportunities elsewhere, particularly if it helps them view you as an employer of choice.



If word gets out that you offer a comprehensive employee wellness program, this may make recruiting top talent easier. Job seekers often look at various aspects of a company before they apply, and the range of benefits and perks plays a substantial role in their decision.


While it may be challenging to measure the impact of your wellness program on the surface, you can find out if it had an effect on a candidate’s decision to apply if you ask, potentially giving you another way to measure the ROI.



Offering an employee wellness program can have a positive effect on morale, partially because it demonstrates that the company cares about the well-being of its workforce and is willing to go the extra mile to help them improve their health, reduce stress, and more. Plus, a healthy employee tends to be happier, and attitude can have a significant impact on performance.


Ultimately, productivity usually increases after you implement an employee wellness program. You can monitor the speed and quality of outputs to monitor productivity improvements, giving you another valuable metric to watch.


Overall, an employee wellness program can save you money, boost retention, enhance your recruitment efforts, and increase productivity. Use the points above to help determine your ROI and see if your numbers don’t improve over time.


If you are interested in learning more, the team at The Armada Group can help. Contact us to discuss your business goals today and see how our services can benefit you.