In 2009, a Johnson & Johnson study found that wellness programs saved them a cool $565 per employee annually. That’s like finding a twenty-dollar bill in your old jeans—except way more profitable! For every dollar they invested, they saw almost four dollars in return. Imagine the impact those kinds of savings could have on your company today.
You need to be strategic with your wellness initiatives, track your results, and prove the return on investment (ROI) to your stakeholders. Think of it like this: you wouldn’t invest in new IT equipment without tracking its performance, right? (Speaking of IT, we’ll get to the crucial role of IT asset management in all of this later. Stay tuned!)
And, if you’re remote onboarding all around the world, the whole thing gets a little more complicated. With the rise of remote and hybrid work, it’s easy for employees to feel disconnected and burnt out. A well-designed wellness program can combat these challenges, leading to:
- Increased productivity
- Reduced absenteeism
- Lower healthcare costs
- Improved employee retention: Happy employees are less likely to jump ship
So, how do you actually measure the success of your wellness initiatives and calculate that all-important ROI?
Calculating the ROI of Wellness: Show Me the Money!
To convince your CFO that investing in employee wellness is a smart financial move, you need cold, hard data. Here’s the formula to calculate the net benefit of your wellness program:
Net benefit = (Savings from reduced absenteeism + savings from reduced healthcare costs + value of increased productivity + savings from higher retention) – cost of wellbeing initiatives
It sounds straightforward enough, but how do you actually assign numbers to those variables? Let’s break it down step-by-step:
1. Track Your Baseline Data
Before you launch your wellness program, you need to know where you’re starting from. As per the U.S. Chamber of Commerce, you can start by gathering data on:
- Absenteeism rates: How many sick days are employees taking on average?
- Healthcare costs: What are your average per-employee healthcare expenses?
- Productivity levels: How much output are employees generating?
- Employee turnover: What percentage of employees are leaving the company each year?
2. Implement Your Wellness Program
This is where the fun begins! Offer a variety of wellness initiatives that cater to the diverse needs of your workforce (more on that later).
3. Gather Post-Program Data
After a set period (e.g., six months or a year), collect data on the same metrics you tracked in step one.
4. Calculate the Savings
- Reduced absenteeism = (Average cost per absence day) * (Number of absence days reduced)
- Reduced healthcare costs = (Average healthcare cost per employee before the program) – (Average healthcare cost per employee after the program) * (Number of employees)
- Increased productivity = (Average employee output after the program – Average employee output before the program) * (Value of employee output per unit) * (Number of employees)
- Higher Retention = (Number of employees retained due to program) * (Average cost of replacing an employee)
5. Calculate the Net Benefit
Plug all your calculated savings and the total cost of your wellness initiatives into the net benefit formula. Voilà! You now have a concrete number to demonstrate the financial value of your wellness program.
Building a Wellness Initiative That Actually Works (And That Employees Actually Use)
We know why investing in employee wellness is important and how to measure its success. But what makes a truly effective wellness program in 2025? Here’s the secret sauce:
Go Beyond the Buzzwords
Forget generic “wellness” initiatives. It’s time to get real. We’re talking about programs that address the whole employee:
- Physical wellness: This includes the usual stuff like yoga, meditation, and fitness programs.
- Mental wellness: Prioritize mental health support with access to counselors, stress management workshops, and mindfulness resources.
- Financial wellness: Help employees achieve financial stability through workshops on budgeting, debt management, and retirement planning.
Listen to Your People
The most valuable insights often come directly from your employees. Gather feedback regularly through:
- Surveys
- Focus groups
- Suggestion boxes (virtual or physical)
- One-on-one conversations
Build an Actual Initiative for Wellness
While offering a variety of wellness activities is important, it’s not enough. Here’s how to build a winning program, according to the U.S. Chamber of Commerce:
- Identify your objectives and track them.
- Check any trends or patterns that suggest underlying health issues or workplace stressors.
- Most businesses target 12% to 20% turnaround rates, but your company should aim for around 10%.
- Provide employees with opportunities to get a snapshot of their overall health.
- Regularly solicit feedback to ensure your program remains relevant and effective (Yes, it’s worth mentioning twice!).
Accessibility Is Key
A wellness program is only effective if all employees can access it. Consider remote accessibility, time constraints, physical limitations, and financial barriers.
Start by building internal and external partnerships to expand your offerings and make your program even more accessible. Collaborate with e-learning wellness course providers, virtual support groups, local gyms, telehealth and healthcare providers, and financial advisors to provide a wider range of resources.
The Tech Connection: Equipment, Training, and Onboarding
Wellness is also one of the best practices for managing remote teams, just like for on-site employees. That’s where IT plays a key role! With the inclination towards hybrid and remote work, IT asset management (ITAM) plays a big role in employee wellness. With it, you’re making sure every piece of IT equipment and software is accounted for, maintained, deployed, upgraded, and processed for IT asset disposition when the time comes.
With ITAM, you can provide comfortable and supportive workstations—whether in the office or at home—that prevent physical discomfort and promote well-being.
Implementing the latest tech also guarantees smooth and efficient in-person and remote onboarding processes. Doing this will easily make new hires feel welcome, supported, and connected to the company culture from day one. Add the power of automated and AI-assisted training, and you can prevent employees from feeling confused or disconnected from your organization’s mission.
One thing is clear: employee wellness is no longer a luxury; it’s a necessity for a modern business. So, get started by tracking your ROI and building a program that truly supports your employees—beginning with a strong approach to IT asset management.
Discover what else ITAM can do for you by booking a demo with Dots today.