The Value on Investment of an Employee Wellbeing Program
In the past, the overall success of a health & wellbeing program was defined by a desperate attempt to demonstrate hard dollar savings in the form of a return on investment (ROI).
While most employers embark on the journey of wellness with the ultimate goal of reducing healthcare costs (i.e., claims reduction/medical cost savings), employers are beginning to recognize the benefits of offering a health and wellbeing program far exceed health plan cost savings. A measure of Value on Investment (VOI) can be used to capture both the quantitative and qualitative impact of today’s programs targeting the following:
- Employee engagement
- Employee Satisfaction
- Retention and Recruitment
- Workplace Safety
- Mitigating health risk
And of course, ultimately saving money.
If employers are not seeing immediate savings from their health & wellbeing programs, they tend to assume the wellness program is not worth the continued investment. Employers should look at their investment under a different lens and shift their focus from just ROI to VOI because the benefits equate to more than lower costs if appropriately structured. Healthcare cost savings will come in time as seen with many of our long-standing health & wellbeing clients. As an organization’s wellbeing program matures, so does the ability to demonstrate measurable results.
What Can VOI Mean to Your Organization?
What makes a business successful? A considerable part of a well-functioning business is its valuable employees. Let’s face it, so much of our waking hours are spent at work, and for many of us, it seems the work day never ends. Effective programs are taking aim not just at workplace productivity, but helping employees manage personal stress in the form of financial health, caring for elderly parents, and even meal planning services.
“Employees who are less stressed in their personal lives are not only more productive, but they are more loyal to their employer, and likely to perceive their overall benefits more favorably. By implementing a comprehensive wellbeing program, it shows the employer cares. In fact, evidence from the Journal of Occupational and Environmental Medicine suggests that employees want their employers to take an active role in their health.”
Getting Everyone on the Same Page
To get buy-in and support from the executive team on a new approach to measuring health & wellbeing, create a written operations plan. Establish short-term and long-term goals that are aligned with the organization. Indicate the tactics you have in place to work towards goals and objectives and determine metrics. They don’t all have to be quantitative, but every tactic you have in place should have a defined measure. Creating a “scorecard” is a great way to illustrate the intended impact on the organization as a whole.
Implementing a diverse health & wellbeing program is essential for employers to compete in the cutting-edge business world today. If a VOI mindset is incorporated into the overall discussion, then the opportunity for return is immeasurable. The focus may start and end with the dollar but the only way to get the full benefit of a health and wellbeing program is to prioritize the value of having a healthier and happier workforce. Health and wellbeing programs are rarely one size fits all. Talk to MountainOne Insurance to find out more on how to create a successful strategy to maximize your workforce!
Article provided by OneDigital