The ROI of Employee Wellbeing

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The ROI of Employee Wellbeing

In a climate of rising costs and squeezed budgets, organisations are under pressure to deliver more with less. Every pound invested needs to show value. That’s why the conversation around workplace health has shifted: wellbeing is no longer seen as a nice-to-have perk, it’s a business-critical investment with measurable returns.

The truth is, poor employee wellbeing costs far more than many leaders realise. And when organisations get wellbeing right, the ROI of employee wellbeing is substantial, from lower sickness absence to improved retention, productivity, and culture. As we plan for 2026, making the business case for wellbeing has never been more important.

The Cost of Doing Nothing

Before exploring ROI of employee wellbeing, it’s worth asking, what’s the cost of inaction?

  • Absence is rising:  The Office for National Statistics estimated that 148.9 million working days were lost because of sickness or injury in 2024.
  • Mental health is expensive: Mental ill health is now the most common cause of work-limiting conditions among those aged 44 years and younger.
  • Turnover is costly: Replacing an employee can cost six to nine months of their salary in recruitment and training. With wellbeing cited as a key factor in retention, failing to act can lead to significant financial losses.

In short, not investing in wellbeing is already costing businesses money, quietly but consistently.

A woman appears stressed while working on laptop. ROI of employee wellbeing extends far beyond reduced absence, it underpins resilience, performance, and competitive advantage.

The ROI of Wellbeing Investment

The good news is that proactive investment pays back, often multiple times over.

  • Positive financial returns: Deloitte’s 2022 Mental Health and Employers report found that for every £1 invested in employee wellbeing, employers see an average return of £5. In some high-performing initiatives, ROI was as high as £11.
  • Reduced absence: Organisations that prioritise wellbeing report lower absence rates and higher morale, according to CIPD. Cutting even a fraction of sick days across your workforce can generate major savings.
  • Productivity gains: Employees in good health are more focused, energetic, and engaged. Studies suggest that healthier employees are up to 20% more productive, boosting both output and quality of work.
  • Retention and recruitment benefits: With 88% of UK employees saying wellbeing is as important as salary, companies that invest in health support strengthen their employer brand, attract top talent, and reduce costly turnover.

In other words, the ROI of employee wellbeing extends far beyond reduced absence, it underpins resilience, performance, and competitive advantage.

Making the Business Case to Leadership

When presenting wellbeing programmes to senior leaders, numbers matter. Framing your proposal in terms of ROI and risk reduction will resonate with budget holders. Here are three tips:

  1. 1
    Translate data into pounds: Show how sickness absence or turnover impacts your bottom line. For example, reducing average absence by just one day per employee could save tens of thousands of pounds in lost productivity.
  2. 2
    Highlight risk mitigation: Position wellbeing as insurance against burnout, accidents, and attrition. Preventing just a few resignations or long-term absences can recoup the cost of a programme.
  3. 3
    Demonstrate scalability: Start small, show results, then scale up. Pilots like the 1-Week Interactive Health Kiosk Pilot Programme are cost-effective, easy to run, and produce tangible insights that strengthen your long-term case.

While ROI figures are compelling, not all benefits of wellbeing show up immediately on a spreadsheet. Improved morale, stronger culture, and increased innovation are harder to measure but equally valuable.

Engaged employees who feel cared for are more likely to stay, contribute new ideas, and deliver better customer service. These soft outcomes compound into long-term financial value, even if they aren’t as easy to quantify in year one.

In today’s economic environment, wellbeing isn’t a luxury. The cost of inaction is high, but the returns on investment are even higher. By focusing on data, measurable outcomes, and strategic alignment, HR leaders can confidently present wellbeing as a driver of both employee health and business success.

The ROI of employee wellbeing is clear. Healthier people, stronger performance, and a more resilient organisation ready for 2026 and beyond.

1-Week Interactive Health Kiosk Programme

For organisations under pressure to prove value quickly, the 1-Week Interactive Health Kiosk Programme is a low-risk, high-impact solution. It's affordable, provides insights and is ideal for organisations of all sizes. 

Frequently Asked Questions

What is the ROI of employee wellbeing programmes?

Research by Deloitte shows that for every £1 invested in wellbeing, UK employers see an average return of £5. Benefits include lower absence, higher productivity, and stronger retention.

Why is employee wellbeing a good business investment?

Wellbeing reduces sickness absence, prevents costly turnover, boosts productivity, and strengthens employer brand. The returns often far outweigh the initial costs.

What is the cost of poor employee wellbeing?

Poor mental health alone costs UK employers around £56 billion annually through absenteeism, presenteeism, and staff turnover. Rising sickness absence further adds to financial losses.

How can HR leaders build the business case for wellbeing?

Link wellbeing to financial outcomes, fewer absences, reduced turnover costs, and improved productivity. Use pilot programmes like a 1-Week Health Kiosk to gather evidence and prove ROI before scaling.

Workplace Wellbeing

Workplace Wellbeing

Workplace Wellbeing


References: 

https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/articles/sicknessabsenceinthelabourmarket/2023and2024

:https://www.health.org.uk/publications/long-reads/what-we-know-about-the-uk-s-working-age-health-challenge

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