A Deloitte study surveyed nearly 4,000 Indian workers and found that poor mental health costs Indian companies about US $14 billion annually in absenteeism, presenteeism, and attrition.
Despite these telling numbers, which affect almost all industries from technology and finance to retail and manufacturing, many organizations tend to treat employee wellbeing as an afterthought rather than a measurable driver of performance.
The only way to move from guesswork to a data-driven strategy is to start measuring through KPIs (Key Performance Indicator) what matters to your people’s mental health.
KEY TAKEAWAYS
- Why is employee wellbeing a business metric? Poor mental health costs companies billions in lost productivity, making it a critical, measurable driver of performance and ROI.
- What are we doing wrong? We often treat well-being as an afterthought and rely on reactive metrics like resignation rates, missing early signs of burnout.
- What is the solution? Shift to a proactive approach by tracking KPIs that measure psychological safety, stress trends, and manager support to create a healthier, more engaged workforce.
Why Employee Wellbeing Needs Metrics
Traditional HR indicators like absenteeism or resignation rates show problems only after they’ve escalated. But workforce mental health directly shapes the way teams perform, collaborate, and stay engaged. Without clear measures, leaders can’t spot problems until it’s too late.
By focusing on forward-looking employee wellbeing metrics, startups can catch early signs of stress and disengagement before burnout takes hold.
6 Essential KPIs To Measure Employee Wellbeing
Here are six KPIs that move beyond surface-level data and measure employee wellbeing. These metrics reveal the overall mental health of your workforce and spot critical gaps early on:
1. Psychological Safety Feedback
Globally, 84% of employees say at least one aspect of their workplace negatively affects their mental health.
Psychological Safety Feedbacks are anonymous pulse surveys that help you to track whether your employees feel safe speaking up, admitting mistakes, or seeking help.
Taking these surveys every three months can help you track cultural shifts and measure the impact of your well-being initiatives.
Struggling to measure employee wellbeing?
Our pulse survey gives instant insights into your team’s wellbeing. Reach us at +91-9136130525 to book a free consultation. (9am to 6pm IST, Mon–Fri)
2. Workload Perception Ratings
This metric measures how employees view their daily demands, deadlines, and work pressure. Strong leadership plays a vital role in building this perception. When managers are equipped with the right mental health skills, they can spot early signs of stress and take action before it escalates.
» Check out Empowering Leaders: Mental Health Skills for Managers to learn how leadership can create safer, healthier, and thriving teams.
3. Self-Reported Stress Trends
Through surveys and questionnaires, employees report their stress levels related to their job. Common examples include the Perceived Stress Scale (PSS), the Work Stress Questionnaire (WSQ), and the Workplace Stress Scale.
The surveys used to measure self-reported stress trends often feature Likert scales, where employees rate their agreement with statements about job stress, for example, from “never” to “very often”.
Tracking these trends helps companies identify specific stressors and track trends in employee well-being, burnout, and overall job satisfaction.
4. Use of Current Mental Health Benefits
Company’s wellbeing initiatives are only effective if employees make use of the existing benefits. Low participation in counselling services, wellness programs, or mental health days may indicate stigma or a lack of awareness.
In addition, employees may also also hesitate to use company-provided resources if they are unsure about the confidentiality of their information. Concerns that their employer will be notified or have access to their personal health details can act as a major deterrent.
👉 IMPORTANT: Address the Root of Mental Health Stigma: Our proven strategies will help you build a culture where employees feel safe to use their mental health benefits.
5. Engagement and Communication Patterns
Only 21% of employees worldwide report being engaged, while stress levels are at record highs. Declining participation in meetings or delays in project responses may reflect disengagement, not just busyness. These behavioral shifts often precede burnout or quiet quitting.
6. Manager Support Ratings
Gather regular 360-degree feedback on how well managers support team wellbeing. Strong leadership presence in this area can dramatically reduce stress across the board.
» To better understand the financial impact of workplace mental health initiatives, read The ROI of Mental Health Workshops and how they turn employee well-being into measurable business outcomes.
How to Act on Employee Wellbeing Insights
“If you take care of your employees, they will take care of the clients.”
Richard Branson
Employee well-being metrics matter only when they drive action. Building them into leadership reviews, culture checks, and performance goals ensures accountability.
For real impact, employees must see their feedback lead to change through flexible policies, open dialogue, or regular manager training. When well-being data translates into visible improvements, trust strengthens, and engagement rises.
At Elephant In The Room Consulting, we help businesses do just that: first measure employee wellbeing and then use the insights to drive impactful change.
We design employee wellbeing programs that reflect your startup’s pace, pressures, and culture. By integrating wellbeing KPIs into your leadership toolkit, we make mental health measurable, actionable, and aligned with performance.
Let’s build a work culture your employees will vouch for. Contact us now.
How to measure employee wellbeing?
Employee wellbeing can be measured using a mix of quantitative and qualitative KPIs, such as psychological safety, workload perception, stress trends, benefit usage, engagement patterns, and manager support. These indicators provide a clear view of mental health and cultural shifts. Reach out today to learn how you can measure employee wellbeing and strengthen your team inside out.
How often should we track employee wellbeing KPIs?
Weekly check-ins and monthly or quarterly surveys work best. Consistency helps track patterns over time.
Can we track wellbeing KPIs with small teams?
Yes. Even in small teams, regular surveys and open discussions help spot early concerns related to employee mental health.
What are some indicators of mental health issues at a workplace?
Rising stress, conflicts or complaints, high turnover, lack of focus or engagement from employees, increased absenteeism, low participation in wellbeing programs can be some common indicators of mental health issues at workplace.
