Calculating ROI: Why understanding the value of PMI matters
For most HR, reward and benefits teams, calculating a hard and fast return on investment (ROI) figure for health insurance – in real pounds and pence – is still very much the Holy Grail.
REBA’s Benefits Design Research 2025 found that fewer than one in five (18%) respondents use return-on-investment modelling to help gain approval for change. And more than one in 10 (13%) had health benefit proposals partially declined due to lack of data – with 2% admitting they had health proposals fully rejected.
Understanding ROI
There’s a great case to be made for health benefits in terms of value. Elements such as staff satisfaction, engagement, productivity and continuity, and even company culture can be included. But we wanted to provide evidence that there’s also a clear and urgent monetary reason to invest – and invest more widely than just traditional private medical insurance (PMI) for leadership.
We teamed up with workplace wellbeing and data experts Fruitful Insights to crunch the numbers for 2026-27, using sickness absence as a key metric.
The research looks at the causes and frequency of sickness absence, job levels and functions, the impact on businesses, and compares NHS and private waiting times in different areas.
“We’ve created a robust and conservative model that costs out the benefit of helping your general population get back to work faster. And we’ve proven that it pays off – that in fact you can get more than double your investment back,” said Matthew Reed, managing director of Equipsme.
“The fact is that skilled workers at every level of your organisation are struggling to get the attention they need from the NHS, and that is having an impact on your business. Here’s the evidence [within the research] you need to show that impact, its cost, and the potential savings from supporting employee health.”
Key findings from the research
The research found that employers recoup £2.87 for every £1 spent on health insurance. This figure is based on an employee with an average salary of £39,039 with Equipsme’s diagnosis plan, and the benefits of reduced sickness absence and swifter return to work after illness or injury.
- 2x salary cost: The real cost of a day’s absence.
- £446: The average cost of one day sick leave, for an average UK salary.
- 2x faster (on average) than the NHS: At getting people back to work.
- 3.4 days vs 6 days: Improved rate of reported absence per employee with PMI, vs without PMI.
- £2.87: Return on investment for every £1 spent on Equipsme Level 3 Diagnosis plan.
New evidence for HR teams
With budgets stretched thinner than ever, it’s little wonder employers are looking to understand benefits in terms of actual numbers – and more specifically the return they can expect on any investment they make.
“This research attempts to provide new evidence and new thinking that can boost the case for health benefits. We want to move health benefits from a ‘nice to have, if we can afford it’ to a ‘can’t afford not to have’. That’s when we see minds, strategies, and investment really change,” said Fruitful Insights co-founder Mike Tyler.
Mark Waters, head of Professional Excellence agreed, adding that employers are looking to support any new investment decisions with hard evidence.
“Equipsme’s ROI research, based on robust data and reasonable assumptions, clearly makes the case that health support for larger populations can actually pay for itself. It’s a valuable tool for opening doors and conversations with businesses about wider workforce cover,” he said.
Supplied by REBA Associate Member, Equipsme
Equipsme - the middle ground between traditional private medical insurance and cash plans.
