Morgane Oléron
Mental health and wellbeing are challenging to quantify, while ROI is a purely mathematical concept. How do we make them speak the same language? Measuring the ROI of Employee Wellbeing Programs requires a structured approach that links program costs to tangible business outcomes. It means understanding which areas these programs impact and how much these areas cost the company.
Yes, our wellbeing can be quantified, and so can the impact of that well-being. Numerous studies have been conducted over the years in the work environment, demonstrating a strong connection between well-designed wellbeing initiatives and healthier, more engaged, and satisfied teams who show up to work more frequently, stay longer in their roles, and are measurably more productive.
So, which work areas does wellbeing impact?
Employee wellbeing and absenteeism are closely linked: high levels of wellbeing tend to result in lower absenteeism, while poor wellbeing, particularly mental health struggles, directly lead to higher rates of absence. Indeed, some of the leading reasons for absenteeism in 2025 were reported to be poor mental health and burnout. In terms of cost, the WHO estimates that untreated mental health problems cost the global economy over $1 trillion a year in lost productivity, much of which is due to absenteeism.
How does one estimate the cost of absenteeism?
A simple methodology is to calculate:
Total Absentee Days × Average Work Hours per Day × Estimated Productivity per Hour (if you do not have data on revenue per employee per hour, you can use an average hourly wage plus benefits as a proxy for productivity value).
Example: If an employee misses 5 days in a month, works about 8 hours a day, and has an hourly wage of £20/hour, then the lost productivity due to absenteeism would be: 5 × 8 × 20 = £800 for that period.
High wellbeing is directly correlated with lower staff turnover. Indeed, employees are significantly more likely to stay in roles where they feel good in their work environment. A 2022 study by Hospitality Industry Training showed that 85.8% of employees would be more likely to leave their job if there was no obvious support for employee wellbeing.
How does one estimate the cost of turnover?
A common rule of thumb is that employee turnover can cost anywhere from one-half to two times the employee's annual salary, depending on their level (junior/senior). For a precise number, you need to sum all direct and indirect expenses associated with an employee’s departure and replacement, such as recruitment, advertising, onboarding, training, and lost productivity during the vacancy period.
Turnover Cost = Number of Departures × Average Cost Per Departure
Example: For a company with 100 staff, 10% annual turnover, and an average departure cost of £5,000:
100 × 0.10 × £5,000 = £50,000
A study of more than 1,800 call center employees found that a one-point increase in self-reported happiness was associated with a 12% increase in productivity. Engaged, healthy employees are more focused, make fewer errors, and collaborate better. Multiple analyses show that both physical and mental wellbeing drive productivity gains; cultures with robust wellness programs are up to 21% more profitable.
Output/Input = Productivity
To calculate increased productivity between two periods:
Current productivity / Base productivity × 100 = Productivity Index
That is why it is essential to start monitoring data, feedback, and results as soon as you launch your wellbeing program, so that you can compare and calculate progress.
Your employees can be either engaged, passive, or actively disengaged. Gallup’s research has shown that wellbeing and engagement are usually linked and strongly influence each other.
Source: Engage for Success – The Evidence: Wellbeing and Engagement
How does one estimate the cost of low engagement?
Start by researching the most up-to-date average employee disengagement rate for your industry. Alternatively, determine your own disengagement rate via eNPS (employee Net Promoter Score). Then multiply this by your total number of employees to estimate the number of disengaged workers.
Example:
16% disengagement rate
3000 employees
0.16 × 3000 = 480 disengaged workers
While all the above are linked to wellbeing, healthcare refers explicitly to insurance costs. Companies can calculate these easily by summing premium payments, deductibles, co-pays, and administrative expenses.
It is now time to calculate your Return on Investment:
Once you have all the data, you can apply the ROI formula:
ROI = (Net Financial Benefit / Program Cost) × 100
Start by gathering your total wellbeing program costs, including both direct and indirect expenses (time, tools, and resources). Then calculate your benefit in clear financial terms based on the metrics above.
We at Siffi understand that calculating ROI is time-consuming and tedious. That is why we have added an automatic ROI calculator to our HR Dashboard. In this digital era, every company is entitled to ask how much return a particular benefit or investment generates, and every benefit, in turn, should provide transparency back. If you do not have this yet in place or want to advocate for measurable benefits at your workplace, Siffi is the right partner for you.
About the author
Psychology Content Writer at Siffi
Morgane crafts compassionate, engaging content that makes mental health conversations more human and accessible. At Siffi, she combines storytelling with strategy to foster a culture of care and connection in the workplace.
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