The Ultimate Guide to Measuring Employee Wellbeing: 6 Key Metrics to Track

Operations, skills, automation—the list of things that organizations should invest in is as long as it is expensive. So, why add employee wellbeing to the list? 

This guide discusses the benefits of committing to keeping your people healthy and tips for doing so. Most importantly, we also provide details of how to measure employee wellbeing, including six key metrics to track: 

• Wellbeing program participation 
• Employee turnover
• Absenteeism 
• Demographic data 
• Employee satisfaction 
• Productivity

Why is employee wellbeing so important?

Here’s why investing in employee wellbeing is a business imperative: 

Retention 

Employee turnover rates are expected to rise to 41.4% in 2023, with poor work-life balance and personal circumstances among the highest causes of people quitting their jobs. This rate has increased significantly from the average turnover rate of 30.3% in 2019. 

Unsurprisingly, office-based roles have higher churn than hybrid or remote roles, which offer more flexibility for employees. This is a huge indicator that companies willing to provide a greater work-life balance for their team members will be rewarded with loyalty. And this lower turnover directly reduces recruitment costs, which is a win for businesses trying to keep costs down. 

Motivation 

Holistic health refers to the physical, mental, and social aspects of wellbeing. It’s the ultimate goal for any employer that wants to keep their team happy and fulfilled in life and work. Employers can’t control employees’ lifestyles outside of work hours, but they can focus on creating a healthy working environment that keeps morale and motivation high. 

MetLife research finds that when employees feel holistically healthy, they’re 74% more likely to be satisfied at work, 59% more likely to be engaged, and 53% more likely to be productive—all benefits for companies to enjoy. 

Culture 

Company culture is your organization’s heartbeat—the rhythm that defines how people interact, feel, and thrive at work. In terms of wellbeing, company culture can be the secret sauce that reduces stress, boosts job satisfaction, and turns your workplace into a wellbeing haven. Black and White Zebra’s Senior Editor Trish Sammer discussed the role that company culture has played on her wellbeing in different roles, including how it has impacted her motivation at work: 

“I got laid off from what I thought was my dream job earlier this year. The job before that was so toxic and stressful I wondered if I’d been unwittingly cast in Game of Thrones. So when I started my current job, I told myself I was going to get real about boundaries. No more giving my ‘whole self’ to a job. I could do good work and have nice relationships with my coworkers, but work was going to stay neatly tucked inside the ‘work’ compartment of my brain. Then our whole company went to Mexico for a week and I accidentally fell in love with everyone. I think a lot of people WANT to be passionate about work. We don’t want to hold ourselves back. We want to dive in. Just treat us well and give us a reason. This doesn’t have to be hard.” 

5 types of employee wellbeing

The key to improving employee wellbeing is to examine the whole person, not just the aspects of wellness that relate directly to the workplace. Here are five areas to focus on: 

Career wellbeing 

Career wellbeing refers to employees’ feelings about their current job and future prospects. It considers factors such as job satisfaction, workplace relationships, growth opportunities, and work-life balance. Although we always urge you to look beyond professional wellness, it’s an important starting point for measuring overall wellbeing. If your employees can’t see a future with your company, they won’t hang around. 

Social wellbeing 

Social wellbeing is an employee’s sense of belonging, connection, and support system. It can be influenced by personal connections within the workplace, along with friendships, family relationships, romantic partnerships, and other connections outside of work. 

Humans thrive on social connections, so a lack of them can negatively affect our wellbeing. But, MetLife research reveals that employers are in the dark about how connected their employees are. 86% of employees state that their employees are socially healthy, but only 67% of workers confirm this is true. 

Financial wellbeing 

According to MetLife, 55% of employees work paycheck to paycheck, with a whopping 90% concerned about inflationary pressures and the wider economic crisis. Financial stress is prevalent, with employees experiencing concerns about their ability to:

• Pay down debt 
• Save for a large expense
• Pay out-of-pocket medical costs (not covered by health insurance) 

MetLife reveals a 28% gap between the percentage of employers who believe their staff are financially healthy (83%) compared to the employees (55%) who agree they are. But it’s vital that companies face up to the reality of their workers’ financial circumstances. Employees struggling to live within their budget may become distracted at work and will likely seek a higher-paying job elsewhere. 

Physical wellbeing

Physical wellbeing focuses on the body, specifically general health, energy levels, ability to manage stress, and resistance to illness. Employers can support employees by: 

• Promoting healthy food options in cafeterias or vending machines
• Developing workplace fitness programs
• Offering flexible schedules for employees who want more time for exercise or other physical activities 

Psychological wellbeing 

Psychological wellbeing is the state of an employee’s mental and emotional health. It encompasses positive emotions (such as happiness, contentment, and fulfillment) and negative emotions (like stress, anxiety, and depression). Employers can support employees by creating a safe, positive workplace culture that includes open channels for communication and resources for mental health support. Offering employee wellness programs and stress management workshops can also promote psychological wellbeing. 

How to measure employee wellbeing

Track the success of your wellbeing initiatives using the following measuring methods: 

Employee surveys 

If you want a high-level overview of employee health or want to analyze the success of a particular wellbeing strategy, surveying your workforce with a mix of questions is a great starting point. 

• Qualitative questions are open-ended, often including free text fields that allow employees to share their thoughts in their own words. An example question could be: “Have you experienced employee burnout before? If so, please provide details of why you felt this happened and the impact it had on your overall wellbeing.”

• Quantitative questions are measured numerically, for example, using Yes/No answers or a Likert scale that measures agreement (e.g., “Strongly Agree” to “Strongly Disagree"). This allows you to collect feedback on specific aspects of employee wellbeing and track changes over time. An example question could be: “Have you experienced high-stress levels at work that have impacted your physical health?” 

Performance feedback 

1:1 interviews between managers and direct reports are an opportunity to measure wellbeing. Use them as a forum to address any concerns, provide support and guidance, and track progress over time. Encourage managers to listen actively to their employees’ responses and suggest ways to improve employee engagement and satisfaction levels, which are key wellbeing indicators. 

Existing data 

Tracking employee wellbeing doesn’t need to be expensive, especially if you already have existing data collection methods. For example, you might repurpose data from: 

• Employee satisfaction surveys
• Exit interviews 
• Onboarding surveys
• Pulse surveys 

To do so, take historical data from the past few months or even 1-2 years and use these valuable insights as a benchmark of employee wellbeing to improve on.

6 employee wellbeing metrics to track

Now you have some data collection methods up your sleeve; the next step is determining the specific metrics you need to track. As a best practice, avoid tracking all the metrics; instead, select a handful related to the wellness goals you want to achieve. Start by benchmarking your metrics in all cases so you have a useful comparison point to refer back to as you progress with your wellbeing initiatives.

1. Wellbeing program participation 

Tracking participation rates in your wellbeing programs and initiatives can reveal how invested your staff is in their own health and wellness. If participation is low, it may be a sign that better communication or incentives are needed to encourage engagement. 

2. Employee turnover

If turnover rates are high, this usually indicates that staff morale is low; if morale is low, it is likely that employee wellbeing isn’t where it should be. Employees who feel supported and valued are more likely to stay with a company long-term, so tracking turnover rates can give insight into how well your employees are thriving within the organization.

3. Absenteeism

Absenteeism is an appropriate metric if your employee wellbeing goal is to understand the link between sick days and productivity. Data from the Bureau of Labor Statistics reveals that 7.8 million workers were absent from work due to sickness in January 2022, up 110% from 3.7 million the year before. This astonishing leap suggests that employees have lower wellbeing than previously. Senior Brand & Marketing Manager George Bell describes how people may have different attitudes toward illness since the pandemic:  

“It does amaze me how we used to go into work with stonking colds, our bodies screaming out for rest, and us knowingly infecting everyone on our trains and in our office, and thinking that was the right thing to do to both ourselves and others.” 

4. Demographic data 

Collecting demographic data, such as age, gender, sexual orientation, parental status, and more, can help you understand if certain categories of people are struggling with wellbeing. If you discover that working moms are leaving your organization in droves, this could signal they’re not receiving the help they need. Use the data to improve the situation for current employees in at-risk categories. 

5. Employee satisfaction 

Employee satisfaction is an easy metric to track using regular surveys with Likert scale questions. Ask questions related to wellbeing, workloads, work-life balance, stress, career aspirations, and more to understand how satisfied your employees are in their current roles. 

6. Productivity rates 

Measuring productivity in your organization will depend on the type of work your employees do. For example, you might measure manual work in terms of tasks completed per day, or customer service work in terms of response times and customer satisfaction ratings. Use qualitative data to identify any trends or patterns that may indicate a connection between employee wellbeing and fluctuating productivity levels.

4 tips to improve employee wellbeing

If your metrics don’t tell a pretty story, consider how to improve your employee wellbeing initiatives with four tips to get things back on track:

1. Encourage work-life balance 

Work-life balance is exactly what it says on the tin. It’s about finding the sweet spot between work and personal life, which is a balance that can quickly get out of whack. If your employees work more than their contracted hours, check their emails on the weekend, or struggle to switch off from work, this will undoubtedly impact their personal lives. Support your employees in building better boundaries by:

• Requiring your employees to take their paid time off: Offering travel stipends ensures they use their vacation days to enjoy restorative time away from work. 
• Offering wellness stipends that encourage your team to invest in themselves: With a platform like Benepass, employers can fund a Wellness Benefit account, and employees may use their perk for fitness classes, online meditation courses, wellbeing subscriptions, or any other eligible category that suits their wellbeing goals. 
• Leading by example: As a manager or leader, it’s important to show your employees you prioritize work-life balance by setting boundaries yourself and taking breaks when needed.
• Tracking workloads and capacity management: Ensure your employees have a realistic workload and aren’t overwhelmed with tasks that lead to burnout. Encourage open communication between managers and team members if workload issues arise.

2. Promote mental healthcare 

Mental health conditions are common, with 1 in 5 Americans living with a mental illness. Your organization must support both employees with active conditions and all other employees with maintaining their mental health. To do so: 

• Ensure your medical policy includes mental health coverage. Treat mental healthcare with the same importance as physical health.
• Create privacy for employees who need to take time off to support their mental health. This may include a flexible time-off policy or working with employees to create a plan that allows for their recovery.
• Increase the availability of mental health resources. Provide support and promote open communication channels in your organization so employees feel comfortable seeking help or discussing their challenges.
• Offer Employee Assistance Programs. EAPs provide confidential counseling services for employees who need it. Consider partnering with mental health professionals to offer discounted or free services for your employees.
• Train managers and team members on supporting those with mental illness. Create an inclusive environment by educating everyone on the importance of mental health, common struggles faced, and how they can be supportive.
• Provide wellness stipends for your employees. Investing in employee wellbeing can also include funding for mental health resources, such as therapy sessions or meditation apps.

3. Foster transparency 

Employees who feel heard and valued are more likely to have better wellbeing. Being transparent about company decisions, goals, and expectations creates a sense of trust and belonging among employees. To foster transparency and communication:

• Hold regular check-ins with your team members to discuss their workload, mental health, career aspirations, or any other concerns they may have.
• Encourage open communication and actively listen to your employees' feedback or concerns.
• Share company updates in a timely manner, so employees are aware of any changes that may impact their work or wellbeing.
• Create a culture of trust and transparency. Set an example by being transparent about decisions, challenges, and successes with your team. Encourage team members to do the same.

4. Commit to flexibility 

Offering flexible work arrangements can greatly improve employee wellbeing by allowing them to balance their personal and professional lives more effectively. Consider implementing:

• Flexible work hours. Allowing employees to choose their working hours or offering a compressed workweek can give them more control over their schedules. 
• Remote work options. Providing the option to work remotely, even just a few days per week, can reduce stress and improve work-life balance for employees. Alternatively, a hybrid combination of in-person and remote work can offer the best of both worlds for employees who may prefer different working styles.
• Job sharing or part-time arrangements. This can benefit employees with caregiving responsibilities, allowing them to maintain their careers while fulfilling personal obligations.
• PTO and sick leave policies that are flexible and understanding of employees’ needs.
• Flexible benefits plans allow employees to choose the benefits that best suit their individual needs, maximizing every dollar their employers invest in them. 

Prioritize employee wellbeing with Benepass

By prioritizing employee wellbeing, organizations can create a positive work culture that supports their employees’ physical and mental health.

Our Benepass platform is designed to help companies optimize their employee benefits. We offer the following programs to support your wellbeing initiatives:

• Wellness benefits
• Flexible spending accounts 
• Lifestyle spending accounts 
• Benepass HRA
• Health savings accounts
• Family care and formation accounts
• Professional development benefits

With our platform, companies can track their employees’ benefits utilization and gain in-depth insights into their employees' engagement levels and wellbeing. Our platform also enables administrators to drill down into employee spending and identify trends, allowing them to tailor benefits programs to better meet their employees’ unique needs over time. By leveraging the insights provided by our platform, companies can create top-notch benefits programs that promote employee satisfaction, engagement, and wellbeing.

Are you ready to support your employees with a holistic benefits package? Book a Benepass demo today, and feel free to contact sales@getbenepass.com with any questions. For more ideas on how to offer benefits that support employee wellbeing, check out our resource on the most important benefits to employees in 2024.