The evolving role of HRs in shaping employee wellbeing

Why employee wellbeing is a ₹45,000 crore problem in India

Employee wellbeing is now a key business priority because it strongly impacts how engaged employees feel, how long they stay with the company, and how productive they are at work.

Indian organizations lose nearly ₹45,000 crore every year because employee benefits go unused. The main reason is that many employees don’t know what benefits are available, or they find the process of using them too complicated.

In our recent webinar, we uncovered a major trust gap in employee wellbeing

• 73% of employees see benefits as a sign of how much their company cares about them.
• But only 27% actually understand or use the benefits provided.

This gap leads to employee frustration, wasted benefits budgets, and more people leaving their jobs. Today, HR leaders must become drivers of employee wellbeing ensuring benefits are simple to use, meaningful, and suited to employees at different stages of life.

Why don’t employees see value in employee benefits? 

The perception gap happens when employees don’t understand or use the benefits a company provides. Benefits might exist on paper, but employees don’t use them in daily work life..

• Lack of Awareness: 60% of employees are unaware of what benefits their company offers.
• Low Trust in Employers: 45% believe their employer doesn’t genuinely care about their wellbeing.
• Higher Attrition Risk: A poor perception of benefits is linked to 23% higher attrition rates.
• Power of Personalization: Companies that provide personalized and accessible benefits see 2.5x higher employee engagement scores.

This shows that it’s not just about the benefits offered, but how they are communicated, delivered, and experienced by employees.

Main challenges behind the gap:

1. One-size-fits-all approach:
   Benefits are often designed the same way for all employees, but a 22-year-old employee may need very different support compared to a 45-year-old parent.
2. Complex claim processes:
   When the process to access benefits feels lengthy, confusing, or full of paperwork, employees lose trust not only in the benefits but also in the employer.
3. Communication failures:
   Employees don’t use what they don’t know. If HRs don’t communicate benefits regularly and clearly, employees assume they don’t exist.
4. Accessibility barriers:
   Some benefits look good in policy documents but are hard to access in real life. This creates frustration and lowers trust.

“Employees don’t want more benefits, they want benefits that actually work for their life stage and are easy to access. The best benefit unused is worse than no benefit at all.

How has HR’s role in employee wellbeing evolved?

HR transformation means moving from just managing policies to actively shaping employees’ experience and overall wellbeing.

Then vs Now

• 2020 (Then): HR teams mainly focused on negotiating insurance premiums or arranging surface-level wellness activities like yoga sessions or health checkup camps.
• 2025 (Now): HR leaders are far more strategic. They use AI tools to predict burnout, design personalized wellness journeys, and integrate wellbeing into career growth and employee engagement plans.

What new skills do HR leaders need to drive employee wellbeing?

1. Data analytics – Using data to measure the impact of wellbeing programs, spot patterns like frequent absenteeism or burnout, and predict health trends before they become serious problems.
2. Technology integration – Using apps, digital platforms, and AI tools to make benefits easy to access and track usage, so employees can actually use the programs available to them.
3. Strategic partnership – Connecting employee wellbeing initiatives to business goals like higher productivity, better retention, and stronger employer branding.
4. Empathy at scale – Ensuring employees feel cared for, even while using digital tools and automated systems. Balancing tech efficiency with a personal human touch.
5. Cross-cultural design – Designing wellbeing programs that work for diverse, distributed, and hybrid teams, taking into account different cultures, locations, and life stages.

What do employees want today in wellness? 

Emerging wellness benefits are modern, lifestyle-driven programs that go beyond traditional health insurance. They focus on holistic wellbeing, fitness, nutrition, and mental health support to match the changing needs of today’s workforce.

Current trends in employee wellness

• Fitness-first benefits: Employees increasingly request gym memberships, yoga classes, and fitness app subscriptions to maintain physical health.
• Nutrition-focused support: Programs offering protein supplements, diet coaching, and meal tracking are gaining popularity, especially among younger employees.
• Gamification & engagement: Tools like step challenges, hydration trackers, and wellness apps make participation fun and encourage consistent engagement.
• Mental health support: Employees are asking for therapy sessions, burnout prevention programs, and awareness campaigns to manage stress and improve overall wellbeing.

Employee engagement improves when wellness programs are personalized, gamified, and relevant to their life stage rather than generic one-size-fits-all offerings.

How do employee benefits needs differ across generations?

Different age groups value different types of benefits. A one-size-fits-all approach often leads to disengagement:

• Gen Z: Prefer gym memberships, fitness apps, and nutrition/protein support.
• Millennials: Value parental insurance, childcare support, and daycare facilities.
• Senior employees: Prioritize annual health checkups, elder care, and chronic illness support.

How can HRs prove ROI of wellbeing programs?

ROI (Return on Investment) in employee wellbeing means showing the measurable impact of health and wellness programs on key business outcomes. Proving ROI is critical for HR leaders who want wellbeing to be seen as an investment, not a cost.

When HRs present wellbeing programs to the leadership or board, they need hard numbers that show business value:

• Absenteeism Reduction – A 41% decrease in sick days translates into a ₹3.27 return for every ₹1 spent on wellbeing initiatives.
• Attrition Reduction – Companies with strong wellbeing programs see 23% lower turnover, saving nearly ₹15 lakhs for every retained employee.
• Productivity Increase – A 26% rise in productivity results in around 28% higher revenue per employee.
• Fewer Sick Days – 28% reduction in medical leave brings direct healthcare and insurance savings.
• Employee Net Promoter Score (eNPS) – An average +34 point increase improves employer branding and talent attraction.

HR leaders can bridge this gap and maximize ROI by:

• Offering flex benefits: Curated plans where employees choose the benefits most relevant to their life stage.
• Awareness campaigns: Regular reminders, onboarding sessions, and updates about what’s available.
• Quarterly reviews: Tracking benefit usage and deciding which ones to continue, tweak, or drop.
• Feedback loops: Listening to employees and communicating changes—“We heard you, so here’s what we improved.”

Employees don’t necessarily want more benefits. They want relevant, easy-to-use benefits that match their needs.

ROI is not only about cost savings. Modern HR leaders use predictive and qualitative indicators to prove the broader value of wellbeing programs:

• Predictive Analytics – Using AI to identify burnout up to 6 weeks early before it impacts performance.
• Project Efficiency – Companies offering mental health support experience 18% fewer project delays.
• Innovation Boost – Teams engaged in wellness programs submit 40% more innovative ideas.
• Customer Experience – Happier, healthier employees deliver better service, driving higher customer satisfaction scores.

To get support from finance team, HRs must position employee wellbeing as:

• Risk mitigation – Reducing burnout, absenteeism, and attrition.
• Talent retention – Keeping top performers and reducing hiring costs.
• Productivity investment – Driving innovation, efficiency, and customer satisfaction.

Conclusion

HR must balance technology, empathy, and personalization. Modern HR teams can’t rely only on digital tools or automated systems. While technology makes benefits easier to access and track, employees still need human guidance, support, and personalized options that fit their life stage and needs.

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