The World Health Organization estimates that nearly 12 billion workdays are lost each year worldwide due to anxiety and depression, yet most organizations only use productivity or attendance as their key performance indicators without exploring the broader issues impacting employee retention and performance.
As a result, organizations are realising that employee mental well-being is becoming a measurable business objective, instead of only being discussed by HR personnel. This blog covers the most important KPIs for organizations to measure so that they have insight into employees’ behaviours, their levels of stress, the level of engagement, and how employees perform over longer periods.
Key Takeaways
- Understand why Gen Z experiences higher workplace stress
- Learn the most common workplace stressors affecting younger employees
- Explore what organisations can do to better support Gen Z employees
- Discover practical ways to improve engagement, retention, and well-being
- Understand how workplace culture affects younger talent
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 wellbeing initiatives.
Tip: Gen Z does not need less ambition. They need better support systems. Clear communication, stronger feedback, healthy boundaries, and emotionally aware leadership can make a significant difference. The Workplace Insights & Solutions Team at EITHR helps organisations build healthier workplaces that support younger employees through leadership training, workplace wellbeing programmes, and psychological safety initiatives.
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 wellbeing, 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.
👉 Our Take: Employee wellbeing becomes effective when it’s measurable. Tracking the right KPIs helps organisations spot stress early, take action faster, and build healthier, high-performing teams.
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 wellbeing 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 wellbeing 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 wellbeing 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.
Frequently Asked Questions
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.
