Until recently, employee well-being was one of those things that just seemed like a nice-to-have benefit, not something you’d track for return on investment (ROI). But as more organizations are realizing how important well-being is, they want to measure how well these programs are paying off.
Every time you roll out a new initiative, it’s natural to want to know how things are going. What’s the before and after impact? But here’s the tricky part: how do you measure ROI for something that’s as subjective and personal as well-being? Why bother with ROI when you can just look at adoption rates, renew your wellness programs, and evaluate vendors each year? Should you focus only on engagement metrics, or is there more to it?
This blog will answer all those questions and help you figure out which wellness programs you should keep and which ones to discard
How Do You Generally Measure any People-Related Initiatives?
Right now, leaders everywhere are trimming budgets, trying to stay profitable, afloat, and growing in a pretty unpredictable economy. For HR, that usually means slowing down hiring, keeping turnover as low as possible, and holding on tight to the talent you’ve already invested in. The big goal? Getting every employee to perform their best and stick around for the long haul.
The real challenge is knowing if those employee programs you’ve poured time and money into are actually paying off. Ideally, you’d have before-and-after data to prove their impact, but we don’t always live in an ideal world.
You can still figure out what’s working by using data you’re already collecting.
Start by checking your attrition rates. Have fewer people been leaving since the program started? What about absences? Are there any shifts there? Maybe fewer sick days or a drop in stress-related time off? Dive into the reasons behind those absences, too; they can tell a bigger story.
Then, take a look at the feedback. Exit interviews are great for spotting patterns. Have those reasons for leaving changed? And don’t skip stay interviews. They’re a goldmine for understanding what’s keeping people around and what’s still missing.
Even your Employee Assistance Program (EAP) can give you clues. Are people calling for different issues? Or maybe the number of calls has gone down because people are feeling better supported.
The trick is to watch for patterns and trends. Even small shifts can reveal a lot. With that kind of insight, you can tweak your programs, make smarter decisions, and show that those well-being initiatives are making a real difference.
| Clare Kenny, an experienced workplace well-being strategist, says, “Running a well-being strategy, or any people-related initiative, is like trying to implement a business transformation project. You’re trying to change the culture and drive a positive impact. Use existing people data, benchmark where you are compared to your peers in the industry, and where you need to go.”
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What Does An Organization With No Well-being Program Suffer From?
The trick is to watch for patterns and trends. Even small shifts can reveal a lot. With that kind of insight, you can tweak your programs, make smarter decisions, and show that those well-being initiatives are making a real difference.
1. Bottom Line Issues
Gallup’s research reveals that 41% of employees around the world report experiencing “a lot of stress.”, which directly impacts the organization’s productivity. Personal problems impact work, regardless of how much the employee compartmentalizes their emotions. Emotions are prone to spill over from one area to another. Too much pressure from a high-performance culture, including longer commutes and struggling work-life balance, can take a heavy toll on employees, their contributions, targets, and the bottom line as well.
2. Attrition Rate And Replacement Costs Skyrocket
Employees notice everything, especially how much support they get when life gets tough. If they feel abandoned during a mental health crisis or overwhelmed by the pressures of work and life, they won’t stick around. And when they leave, it’s not just about losing good talent; it’s expensive, too.
Bottom line? Showing up for your employees when they need it most isn’t just good for them, it’s good for your business, too.
3. Poor Customer Service
If employees feel overwhelmed or unsupported, things like quick responses, 24/7 support, and going the extra mile for customers start to slip. The pressure builds, and suddenly, even the best service reps seem inattentive or, worse, outright hostile.
And here’s the thing: customers care about how companies treat their people. A McKinsey study found that one in four consumers considers a brand’s treatment of employees when deciding where to spend their money.
When employee well-being takes a backseat, it’s not just job performance that takes a hit; customer service suffers, too. Even your most loyal customers might think twice if they notice unhappy employees and a lack of wellness initiatives. Happy employees really do make for happy customers.
4. Conflicts Aren’t Handled Responsibly
Handling conflict at work can get messy, especially when emotions are already running high. Over the past decade, more people are reporting feelings of sadness, stress, anxiety, and even anger. But in the rush of corporate life, many push these feelings aside just to keep up with non-stop work and tight deadlines.
That constant hustle can lead to emotional overload. Employees might find themselves on the edge, with stress piling up to the point of at-desk breakdowns or heated moments. It’s no surprise then that about 41% of employees say they’re experiencing a lot of stress, and studies show that this rising tension is fueling more workplace incivility.
5. Leaders Burn Out More Than Ever
About 1 in 4 leaders say they often feel burnt out, and it’s easy to see why. The pressure they face goes deeper than a surface-level solution.
When managers are engaged, their teams thrive. Gallup studies have shown this time and again. But when leaders are worn out and unsupported, it’s a different story. They can become so focused on the grind that they miss the signs of employees in distress, whether it’s subtle cues or outright pleas for help.
And the impact doesn’t stop there. Did you know that 42% of employees who quit last year said their manager or organization could’ve done something to keep them? Without a strong well-being program in place, you’re setting yourself up for a ripple effect of burnout, disengagement, and turnover. Taking care of your leaders isn’t just about them—it’s about the whole organization.
6. Innovative Ideas Are Hard To Come By
Around 75% of employees who used counseling said their work was already suffering in at least one way before they reached out for help. When basic job responsibilities feel overwhelming, expecting employees to go the extra mile, think creatively, or solve complex problems just isn’t realistic.
And that’s a big deal because we’ve all seen how game-changing employee ideas can be, sometimes sparking entirely new business opportunities. But without the right support, those golden ideas never make it to the table. It’s not just employees who lose out; companies miss out, too.
Soft Measures
- Sickness/ Absence Rates
With regular well-being support and accessible care, employees see a significant improvement in therapy outcomes and a reduction in absence rates. Accessible well-being resources help employees address concerns before they escalate into more serious issues requiring extended leave. Wellness programs that promote fitness, healthy eating, stress management, and mindfulness help employees maintain their physical and mental well-being, reducing the risk of illness.Regular support empowers employees to manage work-related stress and life challenges more effectively.
- Staff Retention Levels
One of the most telling signs of a supportive workplace is how long employees choose to stay. When employees believe their well-being truly matters, they’re more likely to commit to your company long-term. Employees have reported being more likely to stay at a company that offers high-quality mental health support. Why? Because when employees feel valued as human beings, not just for the work they produce, it builds a strong sense of belonging and security. - Employee Engagement Levels
Engaged employees are those who are emotionally invested in their roles. It’s reflected in their motivation to give their best effort, their willingness to go the extra mile, and their overall sense of satisfaction with their work. High engagement levels often correlate with higher productivity, creativity, and job satisfaction, making them one of the best indicators that well-being initiatives are working. This leads to deeper emotional connections, which can be a game-changer when it comes to retention. - Improvement In Productivity
When the mind is occupied with worry, anxiety, or fear, it’s common for employees to stare at the screen out of the window for hours, barely scratching the surface of what they’re working on. All this time is saved with the right support, spiking productivity.A well-designed well-being program can do wonders for how employees approach their work. When employees are feeling good, both physically and emotionally, they bring a higher level of energy and focus to their tasks. This means they’re more likely to complete tasks efficiently, think more creatively, and come up with innovative solutions to challenges. Essentially, well-being leads to a sharper, more engaged workforce.
- Increase In Leadership Behavior
When we talk about soft measures in the context of well-being programs, one of the most significant yet often overlooked indicators of success is the improvement in leadership behavior. This is one of those factors that doesn’t always show up on a spreadsheet but has a huge impact on the overall health of an organization.Employee morale rises tremendously when they feel supported and truly nurtured. When this happens, employees want to go above and beyond their limits, rise to the occasion, and tap into their potential.
For example, when a leader is emotionally healthy and equipped with coping strategies for stress, they’re more likely to approach challenges with a calm and level-headed mindset. Instead of reacting impulsively or negatively to a high-pressure situation, they’ll model resilience for their team. This helps to create a culture where employees feel supported, even in stressful times, knowing their leaders will handle the situation with care and respect.
On the flip side, leaders who don’t have these resources or who feel unsupported themselves may struggle to manage their emotions or cope with stress effectively. This can result in more short-tempered responses, a lack of patience with employees, or, worst of all, disengagement from the team. Employees pick up on these behaviors.
- Sickness/ Absence Rates
Hard Measures
Understanding The Well-being Journey To Set ROI Expectations
Most workplaces impose a one-size-fits-all well-being strategy that won’t get you ROI and have lackluster health programs that can sometimes have a negative ROI. Personalizing programs for people’s well-being needs is one thing. However, personalizing them to suit their evolving needs is the best way to reap a positive ROI.
Let’s take a look at stages in the journey, right from kickoff to plateau, to revival, to understand the journey as a whole.
Stage 1: The Immediate Spike
When you first launch a well-being program, it’s exciting. You’ll notice an immediate spike in engagement as people are eager to take part in the new initiatives. Group events are full, and one-on-one well-being assessments and consultation sessions see a healthy turnout. This is when both HR and the well-being partner get a good sense of the program’s relevance and timeliness. The excitement of the newness drives the uptake, and you’ll see a nice upward trend over the first 4-6 months. Of course, there will be a few ups and downs; people might fall off here and there, but overall, it’s encouraging to see that engagement is on the rise.
This stage shows that the program is resonating and the need for it is real. But remember, the immediate spike isn’t something you can rely on forever. It’s just the start of the journey, and while it’s a positive sign, you can’t expect this momentum to continue indefinitely. Still, it’s an important phase because it sets the foundation for what’s to come.
Stage 2: The Plateau
After the initial excitement, you’ll likely hit a plateau. This can feel discouraging like everything you’ve worked so hard for is suddenly slipping away. The numbers you were seeing in those first few months start to level off, and people aren’t engaging with the program as frequently. It can feel like you’re back at square one, especially when you were riding the high of those early wins.
But don’t panic; this plateau is actually a good thing. It’s completely normal for engagement to dip after the initial rush. Gartner studies show that about 82% of HR leaders face pressure to scale back or reverse progress made in well-being and engagement programs, and this stage is when that pressure starts to hit. Employees begin to open up about negative emotions and struggles they weren’t able to express earlier, and the number of participants starts to level out. At this point, only those who truly need support or have a strong interest in well-being are still actively involved.
While it might feel like a drop, the plateau is actually a sign that your program is stabilizing. The people who are sticking with it are the ones who genuinely value it or need it the most. It’s a moment for HR to take stock of the progress made and consider how to keep things steady and impactful moving forward. This stage is crucial because it represents a more solidified engagement that will help sustain the program in the long run.
Stage 3: Recovery After The Plateau
So, you’ve hit the plateau. Now what? If you notice a further drop in engagement after 8-9 months, it’s time to pay attention. This is when you may need to take a step back and reassess. A drop at this stage indicates that the goals of your well-being program may need to be revised or refreshed. Not everyone has fully evolved in their journey, but some have, and now their needs are changing.
This is the perfect time for HR teams and employees to take a breath and reset. Think of it as a recharge moment. You’ve made it through the initial stages, but the well-being journey doesn’t stop there. Employees may now be facing different challenges, and the needs they had when the program started might not be the same anymore.
This is also when you’ll want to go back to your hard and soft measures to evaluate where you’re at. Has the program led to a measurable impact on productivity, morale, and retention? Are there new issues emerging that require different support? Use this data to decide whether it’s time to prioritize new well-being initiatives or refine what you already have.
It’s natural for the engagement levels to ebb and flow, but the key is to stay focused and adapt. With the right tweaks and adjustments, you can continue to build on the momentum you’ve gained so far, ensuring that the well-being program remains valuable and effective for everyone in your organization.
Creating and managing effective well-being programs can be overwhelming. Finding the right vendors, coordinating schedules, managing logistics, and keeping track of outcomes? That’s a lot to juggle.
But when you team up with AdvantageClub.ai, you don’t have to do it alone. Our platform connects you to a curated marketplace of wellness services, from mindfulness workshops and fitness programs to mental health support and personalized care plans. We help you identify the best-fit vendors based on your workforce’s unique needs, ensuring every dollar spent contributes to measurable outcomes.
We take care of the end-to-end process. Whether it’s running health challenges, organizing employee assistance programs, or setting up wellness retreats, we handle it all with expertise and efficiency. Plus, our advanced analytics dashboard gives you a clear view of what’s working. You’ll have actionable insights at your fingertips, from participation rates to trends in employee health, helping you continuously refine your strategy for maximum ROI.
Why does this matter? Because investing in employee well-being isn’t just the right thing to do. It’s also one of the smartest business decisions you can make. Healthier, happier employees are more engaged, productive, and loyal, driving down absenteeism and turnover while boosting morale and innovation.
With AdvantageClub.ai, you’re building a culture of care that resonates deeply with your workforce and translates directly into positive business outcomes.
Want to learn more? Reach out today and chat with one of our team members. We’re here to help!
