Mental health initiatives go beyond goodwill—they’re investments in a more resilient, high-performing workforce. Yet 63% of HR leaders can’t prove their programs’ value. Why? Because they track participation rates, not outcomes or mental health KPIs.
This gap often costs companies millions. For example, WHO reports that workplace mental health issues drain $1.7 trillion yearly from the global economy through lost productivity. From employee burnout to poor onboarding experiences, there are a number of ways this manifests.
Measuring the ROI of mental health turns well-being from a “nice-to-have” into a boardroom priority. It answers critical questions:
- Are therapy stipends reducing turnover?
- Does manager training lower absenteeism?
- How do flexible policies impact revenue?
Let’s cut through the noise. Here’s how top companies like Cloudflare and Thryv—both MLW-certified—quantify mental health’s impact using absenteeism, productivity, and engagement data. Their results? Hard savings and human wins.
Why ROI Tracking Fails—And How to Fix It
Most companies adopt the wrong approach toward measuring workplace well-being. The biggest mistake; they measure the wrong things. For example, Employee Assistance Program (EAP) usage or workshop attendance won’t convince your CFO about the actual ROI of mental health initiatives.
These are vanity metrics that often ignore actual, tangible business outcomes. The Society for Human Resource Management (SHRM) confirms this: 61% of wellness programs lack clear ROI goals.
The solution? Link mental health initiatives to three pillars:
- Absenteeism: Days missed due to stress or burnout.
- Productivity: Output quality and speed.
- Engagement: Retention and discretionary effort.
Cloudflare reduced engineer turnover from 28% to 6% by tying mental health days to manager training. Their secret? Tracking pre/post-intervention data rigorously.
Pillar 1: Measuring Absenteeism & Presenteeism
Absenteeism is visible: employees call in sick, their work capacity and quality decreases, if given the chance they’d prefer working from home, or even when they’re present, they won’t actually work as effectively as they used to.
Presenteeism, on the other hand, is invisible: staff work while unwell, delivering half their usual quality. They complete only the minimum required, without discretionary effort.
Together, absenteeism and presenteeism cost U.S. firms $575B yearly, according to CDC, 2023.
This is the first step toward measuring workplace well-being; start by calculating your baseline:
- Track sick days linked to stress (ICD-10 codes F43.1 for burnout help).
- Use pulse surveys asking: “How often did stress affect your work quality last month?”
- Monitor project delays during high-stress periods (e.g., Q4 crunch).
At Thryv, HR discovered that support staff worked 20% slower during peak anxiety weeks. After implementing “Flexible Fridays,” productivity stabilized year-round.
Pillar 2: Productivity Metrics That Matter
Productivity isn’t hours logged—it’s output delivered. Forget activity trackers. Focus on:
- Error rates: Mistakes rise under stress.
- Project completion speed: Are deadlines met consistently?
- Customer satisfaction: Happy teams boost NPS scores.
Cloudflare uses its own analytics tools to track feature launch timelines. After introducing therapy stipends, development cycles reportedly accelerated, providing a tangible ROI of mental health to HR executives. Engineering leads ended up reporting fewer “crunch mode” emergencies or sprints.
For non-tech roles, track resolved tickets, sales conversions, or client retention. The pattern is universal: Mental health supports output.
Pillar 3: Engagement & Retention Signals
Disengaged employees quit. But when teams are engaged properly, they can drive 21% higher profits (Gallup, 2024). Key mental health KPIs to measure include:
- eNPS scores: “How likely are you to recommend this workplace?”
- Turnover rates: Track voluntary exits pre/post mental health initiatives.
- Internal mobility: Are stressed employees avoiding promotions?
Automattic (WordPress’s parent) slashed turnover 30% after mental health sabbaticals. Their “People” team correlates eNPS bumps with therapy access usage. Retention savings? $2.3M annually.
Case Study: Cloudflare’s ROI Blueprint
Source: Cloudflare 2023 Impact Report
In 2021, Cloudflare faced 28% engineer attrition. Exit interviews flagged burnout as the top cause. As a result, their People team implemented:
- Unlimited mental health days
- $5K annual therapy stipends
- Manager training on stress detection
To measure ROI, they tracked:
- Absenteeism: Sick days fell from 8 to 4 yearly.
- Productivity: Feature launches accelerated 22%.
- Retention: Turnover dropped to 6%.
CFO Thomas Seifert confirmed: “For every $1 invested, we saved $4 in recruitment and training.”
Case Study: Thryv’s Engagement Turnaround
Source: Thryv 2023 Workplace Report
Thryv’s customer support team had 18% turnover and sinking morale. Leadership launched:
- Flexible Fridays (no meetings/deadlines)
- Free Headspace subscriptions
- Monthly “stress pulse” surveys
Results tracked quarterly:
- Engagement: eNPS jumped from 15 to 48.
- Productivity: Customer resolution times dropped 40%.
- Retention: Turnover fell 30% in 12 months.
“Data killed skepticism,” says CEO Joe Walsh about CFO Paul Rouse. “Our CFO supports mental health as a profit driver.”
The BPI Framework: Track, Analyze, Optimize
Most companies fail at step one: tracking uniformly. BPI’s research shows high-growth firms use this sequence for measuring workplace well-being:
Step 1: Set Baselines
Before launching initiatives, you need to set up mental health KPIs. For that, measure:
- Current absenteeism costs
- Productivity benchmarks
- Engagement survey baselines
For example, you can start by setting up a tracker that tracks sick days for 90 days pre-launch.
Step 2: Assign Dollar Values
Translate well-being gains into finances:
- Turnover savings = (Hiring costs) x (Percentage reduction in attrition)
- Productivity gains = (Output increase) x (Employee salary)
As a result, you will be able to assign a monetary, tangible ROI of mental health to your activities.
Step 3: Report Quarterly
Share dashboards showing:
- Mental health ROI = (Program costs) / (Turnover + productivity savings)
- Well-being index trends
BPI-certified companies report significantly faster budget approvals with this approach.
Your 90-Day Measurement Action Plan
Here’s a 90-day implementation plan to help you get things in order.
Month 1: Audit & Baseline
Review existing HRIS and wellness platform data. Identify gaps: Can you track stress-related absences? If not, add a field. Launch an engagement survey. Cloudflare’s baseline took 30 days.
Month 2: Pilot & Track
Roll out one initiative (e.g., therapy access) to one team. Measure absenteeism, productivity, and engagement weekly. Thryv’s pilot group showed measurable gains in 45 days.
Month 3: Analyze & Scale
Calculate ROI using BPI’s formula:
- (Cost savings + productivity gains) / program cost
Present findings to leadership. Scale successful initiatives.
Why This Isn’t Optional
CEOs demand data-driven decisions. A 2023 Gartner survey found 78% won’t fund programs without ROI projections. Mental health initiatives are no exception. Measuring ROI secures budgets while destigmatizing support. When employees see leaders tracking the impact, they feel valued. Engagement rises. Profits follow.
Of course, collecting mental health data requires sensitivity. Employees may fear stigma when sharing their struggles. Start by ensuring complete anonymity in surveys. Use third-party platforms that encrypt responses. Explain clearly how data protects privacy while improving support systems.
Build trust gradually. Share how previous feedback shaped better policies. For example, highlight how survey insights led to meeting-free Fridays. Transparency encourages participation. Employees need proof that their voices matter.
Standardize measurement timing. Track metrics consistently each quarter. Avoid sporadic checks that create unreliable trends. Align data collection with business cycles for contextual insights.
Validate findings with multiple sources. Combine survey data with productivity analytics. Cross-reference absenteeism records with manager feedback. Triangulation reveals the full picture.
Sustaining Long-Term Impact
ROI measurement isn’t one-time work. Embed it into your operational rhythm. Assign dedicated team members to review well-being metrics monthly. Make it as routine as financial reporting.
Evolve your approach continuously. Mental health needs change during crises or growth phases. Revisit your KPIs annually. Ask: Do these still capture what matters most?
Share successes organization-wide. Celebrate when mental health initiatives boost retention or innovation. Stories humanize data. They turn abstract numbers into cultural momentum.
Integrate findings into leadership development. Train managers to discuss well-being metrics in team meetings. Normalize data-driven care as a core leadership competence.
Final Word: Humanity Has an ROI
As Cloudflare’s report proves: “Mental health investments deliver tangible returns—and intangible ones no spreadsheet captures.” Teams innovate faster. Trust deepens. Loyalty solidifies.
Ready to prove your impact? Start with BPI’s Thought Leader Awards. Learn to build dashboards that turn compassion into boardroom currency.
