Investing in employee wellness can help increase productivity, profit and employee retention; however, when it comes to deciding where to spend wellness dollars, many companies simply take a shot in the dark.

My AI data analytics firm once partnered with a large hospital network that had spent millions of dollars on a subscription to a meditation app for nurses, assuming it would help reduce stress and improve retention. Their plan turned out to be a complete waste of money.

After analyzing the hospital’s workforce data, it became clear that the meditation app had no impact on nurse stress levels or turnover rates. The real issue was long, back-to-back shifts. Nurses were working excessive hours with minimal rest, leading to exhaustion and job dissatisfaction. We suggested adjusting nurse schedules to optimize rest time and align with nurse preferences. These changes led to decreased turnover and improved quality of life for nurses — and their patients.

The biggest lesson learned? A one-size-fits-all approach — such as simply providing gym memberships — may seem beneficial, but it will have minimal impact if it doesn’t tackle the root causes of workplace stress.

Make no mistake, wellness programs can be effective. The World Economic Forum found that for every dollar invested in mental health, there is a four-dollar return from improved health and productivity. These programs often lead to reduced absenteeism, and millennials and Gen Z employees are more likely to commit to companies that prioritize employee wellbeing. Harvard Business Review found that companies are 22% more profitable if employees are highly engaged.

However, a successful employee wellness program is not about offering trendy perks. It’s about addressing the real issues that affect employee well-being and making informed decisions that lead to measurable improvements. By taking an employee-centric and data-driven approach, companies can allocate wellness budgets effectively to improve employee satisfaction and create workplaces that support long-term wellbeing.

Where should you start? Before implementing any initiatives, you should first try to understand why employees are stressed in the first place.

Step 1: Identify the root causes of employee dissatisfaction

Root causes often vary by industry, department, job level and individual circumstances. Some common workplace stressors include:

• Workload and scheduling: Employees working long hours, back-to-back shifts, or unpredictable schedules can experience burnout. Lack of flexibility can also create challenges for those with caregiving responsibilities.
• Job expectations and pressure: Unclear job roles, unrealistic expectations and high performance demands can lead to anxiety and decreased job satisfaction.
• Management and workplace culture: Poor leadership, lack of communication or toxic work environments can make employees feel undervalued or unsupported.
• Compensation and benefits: Financial stress from low wages or inadequate benefits can contribute to dissatisfaction and turnover.

Companies should gather direct employee feedback or analyze employee data to pinpoint the specific causes of workplace stress. A few ways to approach these topics are roundtable discussions, confidential one-on-ones with HR or anonymous surveys. For larger organizations that may not have the time to check in with employees individually, a data analytics company can analyze workforce data, including schedules, absentee rates, performance reviews, skill fit, etc., to pinpoint the main stressors by role.

Step 2: Implement tailored, employee-centered solutions

By understanding what employees actually need, companies can avoid implementing superficial wellness solutions that fail to make a difference.

Effective wellness strategies should be:

• Employee-driven – Base decisions on direct feedback rather than assumptions from management.
• Flexible – Adapt to the needs of different departments, job roles, and employee demographics.
• Practical – Provide real, actionable improvements to workplace conditions rather than surface-level perks.

As an example of this strategy in action, my company worked with a virtual tutoring nonprofit, whose volunteer tutors were often students in high school or college. Many tutors were repeatedly missing Friday afternoon sessions. Those who did show up were disengaged, leading to poor tutoring quality for underserved students.

Using data analysis, the tutoring nonprofit:

• Adjusted scheduling policies to optimize effective tutoring
• Improved tutor screening to ensure volunteers were committed
• Raised funds to pay tutors in the future
• Developed a data-driven approach to match students with tutors more effectively

Understanding workforce behavior and implementing data-backed changes can significantly improve outcomes for employees and the people they serve.

Step 3: Continuously track and measure effectiveness

Wellness programs should not be a “set it and forget it” initiative. Companies must continually assess whether their investments are making a real impact.

Key metrics to track include:

• Retention rates – Are employees staying at the company longer?
• Job performance – Has productivity improved since implementing wellness changes?
• Employee satisfaction – Are employees reporting higher morale and reduced stress?
• Absenteeism – Has the frequency of sick days or unplanned absences decreased?

Whether using AI-driven analytics or traditional feedback methods, tracking real-world results is essential to ensuring wellness initiatives are truly benefiting employees — and are worth the money spent.

By prioritizing employee input, targeted interventions and continuous measurement, companies can create workplace environments that genuinely support employee health, satisfaction and long-term success.