Well-being Pays: The ROI of Company Wellness Programs

With today’s rising costs and rollercoaster economy, investing in workplace mental health programs may be the last thing on your company’s financial agenda. You may be surprised to learn that these programs not only improve mental wellness in the workplace, but can also generate a substantial return on investment (ROI) for your business.

 In this article, we’ll get into the real ROI behind company wellness programs, showing how healthier employees contribute to a better bottom line in the long run. 

 Here’s a preview of what you’ll uncover: 

• The financial upside of workplace mental health programs

• Real-life examples of the ROI of company wellness programs 

• Practical tips for improving mental health in the workplace 

First, let’s dive into the dollars. 

The financial upside of workplace mental health programs

Canadian workers lose roughly 48 work days per year to health-related absences or at-work unproductivity, costing employers a hefty $645 million annually. So, how can workplace wellness programs lighten the burden on businesses? 

Savings on healthcare costs 

The purpose of company wellness programs is to improve employees’ overall health. And a healthier team equates to lower healthcare expenses. One literature review found that medical costs fall by roughly $3.27 for every dollar invested in wellness programs. Johnson & Johnson predicts their program has helped save $250 million in healthcare costs over a decade, yielding a return of $2.71 for every dollar spent.

Savings on absenteeism 

Absenteeism occurs when an employee habitually doesn’t show up to work. Burnout, mental health struggles, and illness are some of the leading causes. Workplace mental health programs that focus on teaching strategies to reduce stress and practice mindfulness help to alleviate these common causes. As a result, company wellness programs can reduce absenteeism costs by $2.73 for every dollar invested. 

Savings on presenteeism 

A cousin of absenteeism, presenteeism occurs when employees are physically present but underperform due to illness or stress and the distraction/lack of focus it can create. Presenteeism often leads to lost productivity, subpar work, and mistakes – and according to a 2023 Gallup report, this low engagement costs the global economy $8.8 trillion per year. Workplace mental health programs are more likely to prevent presenteeism when they support employees along the entire spectrum of mental health, from promoting well-being to providing intervention and care, says one study. 

Company wellness programs with ROI success stories 

From financial incentives to employee wellbeing, here are three companies that are seeing positive results from implementing workplace wellness programs: 

• SAP improved its Business Health Culture Index, rising from 69% in 2013 to 78% in 2018. This led to a significant impact on profits, with each 1% change in the Index correlating to a $90-$100 million increase in profit.  A clear example of a company experiencing the bottom line benefits of focusing on employee wellbeing! 

• The Children’s Hospital of Orange County introduced mindfulness programs, leading to an internal cultural shift. The programming increased employee engagement and acceptance of mindfulness in employees’ work and personal lives.

• The County of Sonoma implemented a mindfulness program to build resilience among employees, especially during the 2017 wildfires. The initiative has since fostered a more empathetic and communicative work culture, becoming a key component of the county's human resources planning. 

Mindfulness tips for mental wellness in the workplace

Now that you know wellness programs can lead to a healthy ROI, you may be feeling energized to jump right in. Let’s put that momentum to good use! To get started, begin blending mindfulness practices into your everyday interactions with these practical and transformative tips. 

1) Lead by example 

This old adage is not just a cliché. Your team, and company culture only changes when leaders like you set the example and live it daily. Rather than throwing  mindfulness around as a buzzword, you may decide to practice it yourself (so many leaders who bring me in to work with their teams are excited about reaping the benefits themselves!) You might start by incorporating a short meditation to start your day – try some of mine on Insight Timer, or some of these ideas! 

2) Reframe your perspective 

Mindfulness not only increases our self-awareness but can also increase our awareness of others, their unique perspectives and how they differ from our own. Taking a pause to consider a colleague’s point of view can help you to be more thoughtful with your communication. Consider a scenario where you’re delivering constructive feedback, and your team member is reacting defensively. Rather than getting defensive in return, try putting yourself in their shoes to consider what they may be feeling. This can help you meet them with empathy and understanding. 

3) Shift from close-minded to curious 

Mindfulness is characterized by open-minded, non-judgemental, present-moment attention. Truly opening your mind requires you to notice your own assumptions, get curious, and ask questions instead of jumping into reactionary decisions and communication. Let’s put this to practice. Next time a colleague comes to you with a problem, challenge yourself to ask 3 - 5 questions so you can better understand the scenario and more thoughtfully respond without making incorrect assumptions.

4) Take breaks 

Taking micro-breaks throughout the day gives your mind time to rest and recharge. These small moments may seem insignificant, but they can work wonders when it comes to preventing burnout and improving your own mental wellness, which will have a positive ripple effect on your team. Challenge yourself to dedicate five minutes every hour to taking a break – whether that’s making a coffee or tea, watching an inspiring TED talk, getting a breath of fresh air, a few desk stretches, or completing a brief breathing exercise

5) Slow down

In a world driven by productivity,  slowing down may seem contradictory – but in reality, it can help you to avoid making mistakes, improve your performance, and thoughtfully respond to tough situations. For example, when you’re writing an important email, slowing down might look like taking a moment to pause and re-read it from the recipient’s perspective before you hit send. Is it clear? Is it kind? These small moments of thoughtful consideration are what lead to more effective communication, positively impacting your performance (and ultimately the performance of the business)! 

6) Engage an expert 

If you’ve implemented these tactics personally and you’re ready to reap the full ROI of wellness programming, consider working with an expert (like me!) On average, my virtual wellness programming is an investment of less than $10K per year — and according to the statistics shared above, that spend can lead to potential savings of nearly $33K. Now that’s ROI! 

Ready to reap the ROI of workplace wellness?  

My Mindful Workplace Training series is designed to help teams reduce stress, burnout, and overwhelm so they can improve mental wellbeing while gaining positive ROI results.

Explore the training topics that have helped teams like yours to not only survive, but thrive.