How to Calculate the ROI of Your Wellbeing Programme

Most companies say wellbeing is important.

Few can prove it financially.

And that’s the problem.

When budgets tighten, the “nice to have” gets cut first. If you cannot quantify impact in financial terms, your programme is vulnerable.

ROI is not about proving that employees feel better.
It is about proving that the business performs better.

Here’s how to calculate it properly.

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Start with the right definition of ROI

Return on Investment is simple:

ROI = (Financial Gain – Cost of Programme) ÷ Cost of Programme

If your programme costs £40,000 per year and generates £120,000 in measurable business impact:

ROI = (£120,000 – £40,000) ÷ £40,000
ROI = 200%

The challenge is identifying the financial gain properly.

That’s where most organisations fail.

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Measure absence reduction properly

Sickness absence is one of the easiest areas to quantify.

Start with:

• Average salary per employee
• Average working days per year
• Current sickness rate

Example:

300 employees
Average salary £45,000
230 working days
Average daily cost per employee ≈ £195

If average absence reduces by just 1 day per employee:

300 × £195 = £58,500 saved annually

Even small reductions compound quickly.

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Calculate retention impact

Retention is often the biggest hidden lever.

The cost of replacing an employee typically ranges from 30% to 100% of salary depending on role and seniority.

Let’s model conservatively:

Average salary £45,000
Replacement cost at 50% = £22,500

If improved wellbeing reduces annual attrition by just 3 employees:

3 × £22,500 = £67,500 saved

Most CFOs pay attention when you frame it this way.

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Model productivity gains

This is where many organisations get vague.

Productivity should not be described emotionally. It should be framed in output or cost.

Options include:

• Reduced presenteeism
• Faster project completion
• Fewer errors
• Increased revenue per employee

Example:

If wellbeing support improves productivity by just 2% across a team generating £5m revenue:

2% of £5m = £100,000 in additional output value

You do not need dramatic improvements. Small percentage gains across large salary bases create meaningful impact.

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Factor utilisation, not just access

An EAP that 3% of employees use will struggle to demonstrate ROI.

A programme with 15–25% engagement produces measurable change.

Track:

• % of engaged employees
• Sessions per engaged employee
• Repeat usage
• Manager referrals

Utilisation is the leading indicator of future financial return.

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Calculate total financial impact

Now combine the numbers:

Absence reduction: £58,500
Retention improvement: £67,500
Productivity gain: £100,000

Total impact: £226,000

If your programme cost £60,000:

ROI = (£226,000 – £60,000) ÷ £60,000
ROI = 2.77
ROI = 277%

That changes the board conversation.

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What most companies get wrong

They:

• Measure satisfaction instead of outcomes
• Track downloads instead of usage
• Avoid financial modelling because it feels uncomfortable
• Fail to involve Finance early

If you cannot defend your numbers, you do not own the narrative.

Finance will define it for you.

Final thought

Wellbeing is not a moral argument.

It is a performance lever.

When you model it correctly, it moves from discretionary spend to strategic investment.

If you want help modelling this for your organisation, get in touch info@reechus.com,

or book a call HERE

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