Employee wellbeing programs are often seen as afterthoughts – prioritised as non-essential or deemed luxury perks only offered by giant corporations. But in reality, employee wellbeing initiatives deliver measurable business benefits.
From reducing staff sick leave and turnover to boosting productivity and morale, investing in employee wellbeing isn’t just an ethical choice – it’s a strategic one. And with more job seekers looking for these types of benefits, companies that invest in wellbeing are more likely to attract and retain top talent.
But do the numbers add up? In this post, we’ll explore the real return on investment (ROI) of employee wellbeing initiatives, and why they might be one of the smartest decisions a business can make.
Defining Employee Wellbeing
“Employee wellbeing” has become a frequently used term – but what does it really mean? While its exact definition may vary from person to person, employee wellbeing broadly refers to a staff member’s overall health and quality of life, encompassing physical, mental, emotional, and financial states.
Employee wellbeing programs aim to support or enhance at least one of these areas. Common initiatives include:
Mental health support – therapy access, Mental Health First Aiders, mindfulness programs.
Financial wellbeing initiatives – financial education, salary sacrifice schemes, Money First Aiders.
Physical health perks – gym memberships, private healthcare, nutrition programs.
Work-life balance policies – flexible working, enhanced PTO, four-day workweeks.
Unlike traditional perks like salary bonuses or one-off incentives, wellbeing programs are designed to provide ongoing, meaningful support that employees can access throughout the year to improve their daily lives.
And these benefits aren’t just for employees – research has repeatedly proven that improved employee wellbeing leads to greater workplace performance, where staff are more engaged, productive, and satisfied with their roles.
Why Offer Employee Wellbeing Benefits?
Great business leaders and managers want to prioritise employee wellbeing for their staff’s own health and happiness – we all want our colleagues and those we care for to be well looked after.
But there are compelling business benefits to investing in employee wellbeing as well. A healthy, happy workforce is essential for a thriving company; employees who feel supported – physically, mentally, and financially – are more motivated and productive, take fewer sick days, and are less likely to be job hunting.
The financial impact of wellbeing programs is significant too. A study by the McKinsey Health Institute found that improving employee wellbeing could add £4,000-£12,000 in economic value per UK employee¹ – a return no logical business can afford to ignore.
So where does this cost saving come from? Some of the key business benefits of employee wellbeing programs include:
Reduced absences
Workplace stress – whether from job pressures, financial concerns, or personal struggles – takes a serious toll on both physical and mental health. Chronic stress is linked to:
Mental health challenges – Stress can result in anxiety, depression, and burnout, which can cause difficulty concentrating, irritability, disrupted sleep, and even substance abuse.
Physical health issues – High levels of cortisol can trigger neck aches, eye problems, headaches, and digestive issues, leading to longer-term conditions such as high blood pressure, heart disease, diabetes, and strokes.
Increased absences – Employees struggling with stress-related health problems (physical or mental) are more likely to take extended time off on sick leave.
Statistics from the Health and Safety Executive (HSE) show that stress, depression, anxiety, and musculoskeletal disorders were the leading causes of work-related ill health in 2024, accounting for 7.8 million lost workdays – an average of 15.5 days off work per affected employee².
By proactively addressing stress through wellbeing programs, companies can improve employee health, reducing absences while increasing productivity and engagement.
Increased Productivity
Even when at work, stressed employees struggle to focus. A survey of 10,000 employees by LCP³ found:
Almost three-quarters (74%) of employees felt stressed, over 75% of which attributed to financial or work-related pressures.
More worryingly, almost half (43%) admitted to spending work hours addressing personal, financial, or stress-related issues within the past twelve months.
When employees are distracted, performance suffers. Wellbeing programs help manage stress more effectively, improving focus, decision-making, and motivation, resulting in more present and efficient employees – and improving a company’s overall productivity.
Improved Talent Retention and Attraction
Employee wellbeing programs foster a workplace culture where employees feel valued and supported; as a result, employees are actively looking for roles in companies that genuinely care about their wellbeing:
73% of financially stressed employees say they would be attracted to an employer that prioritises their financial wellbeing⁴.
Employees who feel their employer cares about their overall wellbeing are 69% less likely to look for another job and five times more likely to advocate for their company as a place to work.
Companies with strong wellbeing programs and benefits see lower turnover rates than those that don’t. Considering it can cost up to 200% of an employee’s salary to replace them, retaining staff can save significant money in hiring, onboarding, and training expenses.
Additional Business Cost Savings
Wellbeing initiatives deliver hidden financial benefits beyond productivity and retention:
Lower salary demands – Employees who feel financially secure and valued at work experience greater job satisfaction, becoming less likely to seek higher salaries or additional bonuses.
Reduced reliance on temporary staff – Fewer absences mean less need for expensive interim staff requiring additional briefing and training.
Greater utilisation of existing benefits – Employees who understand how to manage their mental health or finances are better equipped to utilise existing workplace perks (such as therapy access or pension schemes), increasing these benefits’ overall value.
Are Wellbeing Programs Too Expensive?
Many companies may worry about the upfront costs of wellbeing programs, perceiving them as optional perks and often pushing them to the bottom of the priority list.
But supporting employee wellbeing doesn’t require an extravagant budget to see a return on interest: small, strategic investments can lead to significant, long-term gains.
Some wellbeing initiatives can be low, one-off costs, tailored to the size and need of a business, such as Money First Aid training.
Meanwhile, a 2023 report by the World Health Organisation (WHO) found companies implementing effective health and wellbeing programmes can see a productivity boost of up to 20% – far outweighing the initial price of an employee wellbeing program.
And considering the cost savings from lower turnover, reduced absences, and increased productivity, can a business afford not to invest in employee wellbeing?
Measuring the ROI of Employee Wellbeing Benefits
Every company is unique, and the effectiveness of an employee wellbeing strategy will vary depending on each workforce’s needs. So how can companies track which schemes are successful – especially if they’ve introduced more than one?
A few easy ways to measure the impact of employee wellbeing programs are:
Employee Productivity Metrics – Compare performance data before and after implementing wellbeing initiatives.
Absenteeism and Sick Leave Trends – Monitor whether absences decrease following program rollouts.
Turnover Rates – Assess whether employees are staying longer since introducing wellbeing benefits.
Employee Surveys and Feedback – Gather insights on engagement and perceived value directly from staff.
Implementing any employee wellbeing initiative will likely come with business benefits, but continuously assessing and adapting them is key to maximising their effectiveness.
Are Wellbeing Schemes Worth It?
The UK has one of the highest employee turnover rates in Europe. With 52% of employees who quit saying their employer could have done something to make them stay, investing in ways to improve workplace culture and job satisfaction is no longer a perk – it’s a business imperative.
Which means prioritising employee wellbeing isn’t just about doing the right thing – it’s a strategic investment that can lead to higher retention, improved productivity, and significant cost savings.
Money First Aid provides an effective, low-cost financial wellbeing benefit for your whole workforce, simply by training a few key staff members. Get in touch to learn how the training can be tailored specifically to your company’s needs and uncover the impact Money First Aiders can have across your entire business.
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