Well-Being Isn’t Fluff. It’s a Financial Strategy.
TL;DR: Companies love to say “people are our greatest asset.” But most treat well-being like a perk—not a performance metric.
This article explores the financial case for employee well-being and challenges HR leaders to lead with data, connect well-being to ROI, and earn their seat at the strategy table.
Introduction: Let’s Prove It
In my work as an executive coach and founder of Career Club, I’ve talked with dozens of business leaders who genuinely care about their teams. But when I ask what metrics they use to track well-being? I often get blank stares.
We’d never run a business without tracking customer acquisition cost or software licenses. So why are we still guessing when it comes to our most valuable investment—our people?
We’re not in a culture crisis. We’re in a data crisis. And it’s costing companies millions.
What’s Really Going On? Burnout Is a Business Risk
According to SHRM’s 2025 State of the Workplace report:
- 36% of workers are taking on heavier workloads due to unfilled roles.
- 61% of them report experiencing burnout—compared to just 18% of their peers.
The reality? We’re in a long-term labor shortage. Birth rates are down, retirements are up, and fewer workers are entering the market. Meanwhile, expectations have shifted. Employees want to feel valued, not just paid.
When companies ignore well-being, here’s what happens:
- Burnout increases → absenteeism rises → productivity drops.
- Engagement declines → turnover spikes → replacement costs soar.
- Stress worsens → health claims surge → insurance premiums balloon.
This isn’t just an HR issue. It’s a performance issue—and a financial one.
The Hidden Costs of “Feel-Good” Thinking
Let’s get specific:
- A 3% absenteeism rate in a 250-person org = 1,800+ lost days/year = $500,000+ in productivity loss.
- Replacing one employee = 1.5–2x their salary. Fifty regrettable exits? That’s $2.5 million.
- 75% of healthcare costs are tied to stress-related conditions, per the CDC and WHO.
Still think well-being is soft?
So What Now? HR Must Translate Value
To lead at the strategy table, HR must:
- Reframe the Language
- “Burnout” becomes lost productivity
- “Engagement” becomes attrition risk.
- “Mental health” becomes preventable health claims.
- Track Metrics That Matter
Metrics we’ll explore in future articles:- Absenteeism Rate
- Turnover Cost per Exit
- eNPS (Employee Net Promoter Score)
- EAP Utilization
- Disability Claims linked to stress
- Real-time sentiment analysis
- Partner Cross-Functionally
HR needs tight alignment with:- Finance (to validate cost),
- Ops (to measure impact), and Communications (to tell the story).
This Is Just the Beginning
This article kicks off a four-part series to help HR leaders move from inspiration to implementation:
Part 2: “Where Did Everyone Go?”
Quantifying absenteeism, turnover, and the financial cost of disengagement.
Part 3: “Engagement Isn’t a Vibe—It’s a Value Driver”
Translating eNPS and sentiment into business performance metrics.
Part 4: “Stress, Sentiment, and the ROI of Care”
Tying mental health data to operational risk and cost savings.
Final Word
The data exists. The stakes are high. And the time is now.
It’s not enough to say people are our greatest asset. We have to prove it—with numbers, not just values.
At Career Club, we help organizations connect purpose to performance. If you’re ready to measure what really matters, let’s talk.
Sources
Gallup: State of the Global Workplace 2023
SHRM: 2025 State of the Workplace Research Report
Harvard Business Review: How Financial Accounting Screws Up HR by Peter Cappelli (2023)
McKinsey & Company: The Great Attrition/Attraction Series
CDC: Workplace Stress Fact Sheet
World Health Organization (WHO): Mental Health and Employer ROI