How to Calculate Your Company’s Potential Wellness ROI

Wellness ROI

Calculating the Potential ROI of your Company’s Corporate Wellness Program

The question for most organizations isn’t if they should implement a well-being program, but which one and what the scope should be. This doesn’t mean goals, strategy or accountability go out the window, or that wellness programs fall into the ‘nice to have’ category. Research and case studies tell us that workplace well-being is vital. Everyone needs to build a solid business case for their corporate wellness program and different variables can help to calculate company wellness ROI potential.

Holistic solution – it’s not just quitting smoking anymore

88% of healthcare costs are caused by lifestyle, so there’s an opportunity for well-being programs to contribute to a significant return on investment. Modern programs go beyond the obvious, like having fruit in the office instead of doughnuts or encouraging walking meetings. Employers are actively supporting the mental health of their workforce and exploring better work-life balance. A recent government study found that 30% of all absences were due to anxiety and stress. Mental health issues alone cost the UK economy £70 billion per year [OECD], so initiatives to promote better sleep and stress management are becoming more important.


Company culture – an opportunity for business success

Company culture isn’t just about having fun and bonding. (Camaraderie is really crucial for high performance, though!) It’s about providing resources and support.  It’s also about creating the space for individuals and teams to succeed in their personal and professional development. Richard Branson goes so far as to say, “learn to look after your staff first and the rest will follow,” when it comes to happy staff driving business success. Employees can be up to 50% more productive in the workplace when they are happy and engaged. [Forbes]

Employee engagement – what are they expecting from you?

Actively promoting health and well-being in your organization means you are 2.5 times more likely to be seen as a top performer. According to the World Economic Forum, employees are also eight times more likely to be engaged by their work. Employees who are engaged, in turn, report higher levels of wellness – something we see as a positive wellness cycle.

This doesn’t just reflect a broader concept of employee satisfaction, it also means that a company is four times less likely to lose their valuable employees within the next year. Replacing the average employee can cost between 20% to twice their annual salary. This number can be even higher for senior executives. These figures can help to calculate company wellness ROI.


Making the business case – calculate company wellness ROI

Researchers working in collaboration with Mercer showed a clear correlation between investment in corporate wellness programs and company stock performance. The companies with health and wellness best practices outperformed the others; appreciating by 12.6% higher per year than the S&P average.


Calculate Company Wellness ROI


In a past blog, we talked about ‘conscious capitalism’ and how doing the right thing for people is also good for company bottom lines. Corporate wellness is one of those great moments where putting your business first doesn’t mean sacrificing employee happiness or work-life balance.

Whether your goal is to improve employee performance, reduce absenteeism and healthcare costs or combat high staff turnover rate, the starting point is always data. Using our simple ROI calculator and a few basic metrics, you’ll be able to create a baseline for your research.


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