What finance leaders need to know about employee health and well-being investments

Executive summary

When it comes to employee benefits, Dialogue's 2023 research revealed that HR leaders struggle to gain buy-in from executive and finance departments. It’s safe to assume that when there are budget constraints or economic uncertainty, investing in employee benefits and wellness initiatives is often not prioritized. However, such investments can have a very positive ROI. See what Dialogue's CFO, Navaid Mansuri, has seen firsthand.

Last updated on September 29, 2026

A lot of HR leaders feel like their finance team is a barrier to implementing the right benefits, typically due to tight budgets and lack of a clear investment thesis or ROI. So how do you actually start that conversation?

As CFO at Dialogue, below are the common questions I've encountered on both sides of the equation.

What employee benefits can help us attract and retain more talent?

Dialogue is constantly recruiting new talent. Costs of recruitment can be high, especially in tight labour markets and for top talent. As a management team, we look at how we can make Dialogue more attractive.

Offering competitive benefits that employees care about helps our talent and culture team recruit new members, and reduces our recruitment costs. Similarly, offering benefits can help retain our talent by addressing their well-being needs and fostering a positive well-being culture. This, in turn, reduces recruitment costs that would have otherwise arisen if employee retention were weaker.

Can a benefit program help reduce other costs in the organization? 

Absenteeism has significant repercussions on productivity and workforce management.  When employees need to constantly take sick days, are less productive due to mental or physical health issues, or take leaves of absence for health reasons, the costs (both direct and indirect) related to these are enormous. In fact, 45% of disability costs are related to mental health concerns, according to Canada Safety Council.

Providing the right benefits can help support employee health, reducing some of these costs and creating significant ROI. In other words, in addition to looking at the cost of the benefit itself, I also consider the cost of not providing the benefit, as investing in the right employee benefits can help reduce costs elsewhere in the business. 

What does finance look for when HR teams propose a new well-being investment?

To realize the full potential of a benefit program and reduce the costs mentioned above, the benefit needs to be something that employees will value and use. Unless employees use the benefit, it’s just an additional cost.

For a benefit to generate a good ROI, it has to be something that is easy for employees to use and well communicated. I look for evidence that employees will actually use the benefit when making investment decisions.

What is the ROI on employee well-being investments?

Increased productivity

When employees are healthy, they are more likely to be productive and engaged in their work. This can lead to increased efficiency and output. Dialogue prides itself on its ability to be agile. If employees are not productive due to mental or physical health concerns, it can slow the pace of execution, and significantly impact our ability to deliver on our objectives. Improving employee well-being helps us ensure maximum business performance. 

Reduced turnover 

Employee turnover is a significant expense, both in terms of lost productivity and recruitment costs. Companies that prioritize employee well-being are likely to have lower turnover rates. When employees feel valued and supported, they are more likely to stay with the company for the long term. This can save the company recruitment and training costs. 

Lower healthcare costs

The financial impact of sick employees extends to direct expenses like sick pay and productivity loss, as well as indirect costs such as increased healthcare premiums and administrative expenses. Measuring ROI for wellness programs involves tracking reduced absenteeism, analyzing healthcare claims data, and considering cost savings from avoiding long-term disability leaves.

These investments yield benefits beyond healthcare cost reduction, including improved productivity, employee retention, and organizational performance. For instance, even saving one employee from going on long-term disability leave or shortening their leave duration can lead to significant savings.

How can finance leaders support employee well-being?

Budget for employee benefits

They should allocate sufficient funds to cover benefits such as health insurance, retirement plans, and wellness programs. Often, these investments can be self-funding and budget-neutral over time as they reduce costs elsewhere in the business (reduced absenteeism, reduced presenteeism, better productivity, reduced recruitment costs, etc.)

Conduct cost-benefit analysis

This analysis can help determine ROI and justify the cost of the benefits, and show their impact on the company's bottom line. Ask your HR department and benefits providers for measures of outcomes from investments in these programs.

Collaborate with HR

This ensures that employee benefits are aligned with the company's strategic goals and budget. They should collaborate on the design and implementation of benefit programs, and regularly evaluate their effectiveness.

Frequently asked questions

How can employee well-being programs reduce operational costs?

Investing in the right employee benefits directly reduces the costs associated with absenteeism, presenteeism, and lost productivity. Because 45% of disability costs stem from mental health concerns, providing proactive support lowers healthcare premiums and helps prevent or shorten expensive long-term disability leaves. When managed correctly, these wellness investments can become budget-neutral by offsetting expenses elsewhere in the business.

What is the most important factor for maximizing the ROI of an employee benefit?

High employee utilization is the single most critical factor for generating a positive return on investment. If a benefit is not easy to use or well-communicated, employees will not engage with it—turning the program into an additional expense rather than an asset. When evaluating new investments, HR and finance leaders must look for strong evidence that employees will actually value and use the service.

How do competitive health benefits impact recruitment and retention?

In tight labor markets, offering benefits that employees actually care about makes an organization more attractive, significantly reducing the steep cost of recruiting top talent. Furthermore, actively addressing well-being needs fosters a positive workplace culture. This improves long-term retention, preventing the lost productivity and training expenses caused by high employee turnover.

Read one of Dialogue’s latest articles to learn how high-touch virtual care can help your organization save costs in the long term.