ROI vs. VOI vs. SROI
| Framework | What It Measures | Best For | Limitation |
|---|---|---|---|
| ROI | Financial return: (savings - cost) / cost | CFO conversations; budget justification | Misses non-financial benefits |
| VOI | Total value including non-financial benefits (engagement, retention, productivity) | HR conversations; holistic assessment | Harder to quantify |
| SROI | Social and community benefits beyond the organization | ESG reporting; community health initiatives | Complex to calculate |
Calculating Wellbeing ROI
A basic wellbeing ROI calculation: (Total savings from program) / (Total program cost). Savings include reduced medical claims, reduced absenteeism, reduced disability, and reduced turnover. A program that costs $200,000 and saves $600,000 has an ROI of 200% (3:1 return).
The VOI Argument
IQ Insight
For many wellbeing programs, the VOI argument is more compelling than the ROI argument. A mental health program that reduces voluntary turnover by 5% may not show a positive ROI in year one — but the VOI (reduced recruiting costs, improved engagement, better retention of key talent) is substantial. Present both ROI and VOI to give leadership the complete picture.