How to Make the ROI Case for Benefits Investment

Give finance the numbers it needs. Show HR’s strategic value. Lead with impact.

Employee benefits are often one of the largest line items on a company’s balance sheet, second only to payroll. According to the U.S. Bureau of Labor Statistics, employers spend an average of 29.5% of total compensation on employee benefits. For a company with $100 million in payroll, that’s nearly $42 million in annual benefits spending.

That kind of investment demands a clear ROI story, especially when HR leaders are seeking support for new tools, programs, or platform upgrades. Unfortunately, conversations about benefits too often get framed as compliance necessities or “soft” culture drivers. So they fail to make the right impact on CFOs and other leaders with control over HR’s purse strings.

If you want to earn buy-in from finance and leadership, you need to speak their language: cost savings, risk mitigation, and business performance.

Here’s a strategy for building a strong internal business case for benefits investment that’s backed by data, real-world examples, and the right framing.

Understand What Finance Cares About

Finance leaders are trained to think in terms of measurable impact. When presenting a case for benefits investment, avoid HR-speak and instead align your narrative to key business priorities:

• Cost containment: How will this reduce unnecessary spending?
• Efficiency gains: What time, labor, or process costs are being reduced?
• Risk mitigation: How does this reduce exposure to errors or compliance issues?
• Talent retention: How does this reduce turnover and associated costs?
• Workforce productivity: To what extent will this lead to more focused, engaged employees?

Pro Tip: Translate people problems into business risks. For example, “high turnover” becomes “$2.1M in annual replacement costs” if your average turnover rate is 20% and your cost per lost employee is $30,000.

Focus on Three Core Ways Benefits Drive ROI

When you’re building a business case for benefits investment, it helps to highlight the specific ways these programs will deliver measurable value. Here are three of the most compelling ROI drivers that resonate with both HR and finance leaders, along with examples that show these outcomes in action.

 1. Reducing Turnover and Talent Replacement Costs

Losing employees is expensive. Studies estimate that the cost of replacing an employee ranges from 50% to 200% of their annual salary, depending on their role.

Strategic benefits programs that are personalized and clearly communicated help you retain talent, especially across a multigenerational workforce with evolving expectations.

Illustrative Example: Multi-Site Employer + Benefits Administration Partner
A national employer with over 3,500 employees across warehouse and manufacturing sites struggled with high turnover and low benefits engagement, particularly among shift workers who lacked regular email access.

Their HR team partnered with a benefits administration vendor to centralize enrollment through a mobile-optimized platform and deliver personalized benefits reminders via SMS text messages. The result: a 45% increase in on-time enrollment, fewer enrollment errors, and a measurable reduction in first-year turnover. The streamlined process also gave HR teams more time to focus on onboarding and workforce development.

2. Driving Administrative Cost Savings

Benefits administration doesn’t need to drain HR time and budget. Technology investments can reduce call center volume, prevent errors, and automate tedious processes, such as handling life events and determining dependent eligibility.

Illustrative Example: AI-Powered Decision Support
When a tri-state benefits advisory firm noticed that high call volumes were tied to Medicaid disenrollment and plan-switching confusion, they worked with a tech vendor to launch a personalized benefits guidance tool. Employees received personalized recommendations and reminders tied to life events. The outcome? A 33% reduction in call center volume during open enrollment.

3. Improving Plan Efficiency and Reducing Waste

Employees often choose plans that aren’t optimal for their actual needs, leading to underutilization or over-coverage, both of which cost employers and employees money.

Illustrative Example: CHIP/OBBB Decision Tree
A Midwest financial brokerage firm saw confusion spike after OBBB changes affected CHIP eligibility for employees. The company’s solution in partnership with its benefits administration vendor? A simple “Yes/No” decision tree co-developed with HR. It helped clarify who was negatively affected and resulted in a 40% drop in dependent enrollment errors.

Build Your Internal Business Case Step by Step

Ready to make your case? Here’s a systematic approach to building a business case that connects benefits strategy to bottom-line impact.

Step 1: Start with Your Own Data

Your internal data is your most credible starting point. It grounds your case in real, measurable challenges that leadership already cares about. Think about tapping into data on:

• Turnover rates
• Open Enrollment or life event call volumes
• Error rates in dependent eligibility
• Plan enrollment vs. utilization
• Survey data on benefits satisfaction or comprehension

If you’re working with a benefits technology partner, ask them to help you benchmark and analyze this data.

Step 2: Frame the Ask in Business Terms

Once you have the data, translate it into outcomes that resonate with finance because the outcomes align with their goals. Think cost savings, risk reduction, and efficiency gains.

• Tie the investment to business risks or goals.
• Focus on what will be gained (time, retention, savings) rather than just what will be spent.
• Be specific: “This platform will save 1,000 HR hours annually and reduce eligibility errors by 25%” carries more weight than “we need a better system.”

Step 3: Use Before-and-After Narratives

Paint a picture: What does the organization look like now, and what could it look like with the new investment?

Don't Go It Alone: Bring in Your Benefits Partner

Empyrean clients consistently achieve measurable results, whether it’s a 28% drop in turnover, increased mobile adoption, or reduced error rates and administrative costs. But more importantly, they don’t have to tell the ROI story alone.

Whether you’re rolling out a new platform or pitching a next-gen personalization tool, Empyrean can help you:

• Analyze and benchmark your internal data
• Build ROI models aligned to finance’s priorities
• Package success stories into a compelling case

Conclusion: HR Leaders Are Business Leaders

Benefits are not just a line item. They’re a powerful lever for business performance. When you align your pitch with financial outcomes and show how benefits investments support retention, efficiency, and risk mitigation, you shift the conversation from cost to value.

And in today’s workplace, where competition for talent is high and budgets are scrutinized, that shift makes all the difference.

Want help quantifying the ROI of your benefits strategy? Talk to your Empyrean representative about building a finance-ready business case with our support.