There was an era when employee wellness programs were a perk or a drain on resources.
Now, no more.
The secret to higher productivity, lower costs and happier employees is no longer stretched hours or stricter rules but better health and well-being.
For years, employee wellness programs were seen as “nice-to-have” perks, but today, they’ve become a strategic necessity. Organizations that invest in employee wellness don’t just create a healthier workforce; they build teams that are more engaged, resilient, and loyal.
Research shows that for every dollar spent in wellness programs, companies can expect a return of $1.50 - $6.00, making it a smart investment for your firm.
Johnson & Johnson saved $250 million on healthcare over six years, translating to roughly $2.71 returned per $1 spent on employee wellness programs.
Can’t you see the impact an employee wellness program can have on your employees!
So, the next question is -
What is employee wellness program?
An employee wellness program is a mode to support your employees' wellbeing physically, mentally and emotionally. Your HRs can launch surveys to understand where your employees need assistance and roll out a wellness program accordingly.
These wellness programs can range from:
- Free gym memberships: Either start a yoga or gym premises on site or negotiate with a nearby gym.
- Walk groups: Have your employees walk after lunch hours and also engage in community walks to raise funds for charity.
- Pilates classes: Interested employees can join pilates classes after work hours or before their shift.
- Extended leave to get well: In case your employees have a chronic ailment, you can offer extended leave to build their morale both emotionally and financially.
- Counselling sessions: Hire a seasoned mental health trainer to provide modes that help employees beat pressure and prevent burnout.
A JAMA study found that every $100 invested in an employer-sponsored behavioral health program (with access to psychotherapy and care) led to $190 in medical claims savings, nearly 1.9× ROI in the first year.
While you may want to join the cohort of launching wellness programs, here are the elements you must know.
Essential elements of an employee wellness program
Employees who feel valued both in and out of workplace are more loyal and stick around for a longer time. Employee wellness programs are a way to impact your employees positively. However, even though you may launch an employee wellness program, it may fail to meet its highest objective.
These are some components of an employee wellness program you can’t afford to miss to make a positive shift in their well-being.
- Consent from higher management:
You must research modes of launching wellness programs that get approval from higher-ups. Launch an employee benefits survey and garner responses from employees on what is the most crucial aid they need.
Is it physical or mental well-being, is it lack of motivation, or is it overall health benefits? With senior leadership, you can outline a list of goals before launching a wellness program.
- Easy to implement
A wellness training program should be integrated within your organization’s platform. The employees must be able to easily download and go through the program at self-pace. If the policy is embedded within the online wellness platform, it can be easily sourced at point of sale evading need for complex reimbursements.
- Flexibility
Employees can use lifestyle spending account (LSA), the non-salaried allowances to use as per their preferences. They can be used for health & fitness, mental well-being, family & personal care, professional growth, financial wellness, lifestyle and recreation, technology & remote work support.
- Employee feedback
The sole way to assess the performance of an employee wellness program is via feedback. This way, you can measure the ROI to ensure wellness program is meeting goals. Some factors you can measure are reduced stress and burnout, increased participation & engagement, reduction in absenteeism, improved team productivity and lower turnover.
A wellness program can help you steer your business in a positive direction.
What are the benefits of employee wellness program?
Imagine a workplace where employees show up energized, focused, and motivated. It’s not because they have to, but because they feel supported in every aspect of their well-being. That’s the true power of an employee wellness program.
Here are the benefits of an employee wellness program:
- Increased fitness
The best wellness perk is money towards fitness. It may be for mental health, like seeing a counsellor or psychiatrist. Or, it may be for physical fitness, like purchasing kayaks, gym memberships, fitness equipment, or enrolling in marathons.
- Reduced healthcare costs
Taking care of employees’ health proactively makes them less likely to fall sick. The average return on investment for the 22 studies that examined healthcare expenses and employee wellness initiatives was 3.27.
- Increased productivity
Often, employees are so engaged in their work that health takes a backseat. Employee wellness programs are a non-intrusive way to boost employee performance and learning at their own pace. For instance, yoga and meditation regularly can help attain clarity of thoughts and bring improved focus.
Organizations with well-designed mental health programs outperform peers by 10% in productivity.
- Improved health behaviors
With right awareness programs, employees strive towards quitting smoking or alcohol consumption. They are also motivated to exercise regularly. This, in the long run, improves mental well-being and fosters healthy behaviors.
- Reduced absenteeism
Wellness program helps your employees stay fit and healthy. When employees are stress-free and mentally and physically well, they are less likely to take sick leave. Research suggests employers save on average $5.82 in lower absenteeism costs for every dollar spent on employee wellness.
- Greater employee retention
With employee wellness programs, employees feel valued and cherished making them loyal to your company. For instance, if they are facing mental health issues, they can talk to a counsellor. If they are physically unfit, they can join yoga or Zumba classes at workplace. This reinforces that you care about your employees and makes them work steadily.
Use cases to measure ROI of employee wellness program
Now that we know how essential employee wellness programs are, let’s delve into the elements you must measure ROI of to launch them successfully.
Healthcare cost reduction
Collect data on medical claims, insurance usage and hospital visits.
Compare per employee per year (PEPY) costs.
E.g., before program = $5,000 PEPY
After program = $4,200 PEPY
Savings = $800 PEPY
Low absenteeism rates
Measure average sick days:
Before wellness program = 7 days/year/employee
After wellness program = 4 days/year/employee
Savings = 3 days x average daily wage
Employee retention and turnover
Assess retention via:
Company size: 1,000 employees
Annual turnover before wellness: 20% (200 employees leave)
Annual turnover after wellness: 15% (150 employees leave)
Average cost to replace one employee: $10,000
Savings = (50 fewer employees leaving × $10,000) = $500,000 saved annually
Employee engagement and participation
Measure how engaged your employees are and how that spikes ROI.
Wellness program cost: $200,000 annually
Participation rate increases from 40% → 70%
With higher engagement, absenteeism drops by 2 days/employee → $300,000 saved in productivity.
Net ROI = ($300,000 – $200,000) ÷ $200,000 × 100 = 50% ROI.
Productivity and performance
Calculate productivity via:
Pre-wellness: Average productivity = $150,000 revenue per employee annually
Post-wellness: Productivity improves by 5% → $157,500 per employee
Workforce size = 500 employees
Additional value generated = $7,500 × 500 = $3.75M in gains
If wellness program costs $500,000 → ROI = ($3.75M – $500K) ÷ $500K × 100 = 650% ROI
Employee morale and satisfaction
Calculate employee net promoter score (eNPS) that measures employee satisfaction.
Before program: eNPS score = +5 (low satisfaction)
After program: eNPS improves to +35
Retention increases by 10%, saving $1.2M in recruitment & training costs annually.
Program cost = $300K → ROI = ($1.2M – $300K) ÷ $300K × 100 = 300% ROI.
You can use these factors to calculate the ROI that employee wellness programs build.
We360.ai: Calculate analytics before and after wellness program
Now that we know how to calculate employee wellness programs, let’s see how workforce analytics tool we360.ai can help you garner insights.
ROI Element
Before Wellness Program
After Wellness Program
How We360.ai Helps
Healthcare costs
Rising claims & high insurance premiums
Lower medical claims, fewer chronic illness cases
Integrates with HR/insurance data to analyze cost savings
Absenteeism
High sick leaves, missed shifts
Reduced absenteeism, fewer unplanned leaves
Attendance & leave analytics track sick-day trends
Employee retention
High turnover, costly hiring cycles
Higher loyalty, reduced attrition
Attrition reports & exit trend analysis
Engagement & participation
Low engagement survey scores, low adoption of initiatives
Higher participation in programs, better engagement scores
Monitors activity levels, surveys, & program logins
Productivity & performance
Frequent errors, missed deadlines, presenteeism
Higher output per employee, better accuracy
Tracks task completion rates, efficiency scores & app usage patterns
Morale & satisfaction
Low eNPS, poor work-life balance
Higher eNPS, employees feel valued
Collects employee feedback & correlates with performance trends
With we360.ai, get insight into employee performance via a single dashboard. Forecast burnout, disengagement and attrition risk early. You can present this data to higher management to secure more budgets.
By capturing workforce analytics before and after wellness initiatives it gives you a clear picture of ROI, whether it’s lower absenteeism, reduced turnover, or higher employee satisfaction. We360.ai empowers you and your leadership teams to make informed decisions, optimize resources, and ensure wellness programs deliver measurable business outcomes.
Don’t believe us?
Book a Free Demo and see how we360.ai integrates seamlessly with your employee wellness programs.
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