Ever been asked what the financial benefit of your wellness program is? Measuring the return on investment accurately for a wellness program is, at best, an incomplete evaluation.
There are some readily measurable benefits that can be supported statistically. Wellness programs are credited with reduced absenteeism, which is a direct and measurable benefit to the company. The lifestyle changes they promote could lead to fewer disability claims and reduced drug plan costs. In some cases you can even measure productivity. These benefits alone might add up to a financial rationale for engaging the company in a wellness program.
But this doesn’t provide a complete picture of the benefits of a wellness program. VOI (value of investment) measures things like employee engagement, employee satisfaction, quality of customer service or the jobseekers’ perceptions of the company. Improvements in these areas often have indirect effects on revenues and productivity but cannot (and arguably should not) be measured in a fiscal period but over three, five and ten year periods.
The returns on wellness are compounding
Trying to apply a dollar value to these benefits must include the compounding nature of improved wellbeing. One employee who embraces the program can become a champion of it and perhaps gain the support of many other employees. Good physical health can have a positive impact on mental health. Improved mental health in one or two employees can lead to a better team dynamic. The interconnections are complex and diverse.
But without some sort of measure, there is no way to truly know if a wellness program is having the desired effect, if any at all. It is a good idea to establish some sort of qualitative baseline to measure the employees’ perceptions of their standard of wellness. A formal record will provide a benchmark against which they can guage their state of wellness in the future.
This benchmark could include ratings of personal stressors, work stressors, awareness of wellness initiatives, and even general happiness. While the answers will be notoriously subjective and subject to moods and daily events, used consistently over time they can still show trends and provide valuable feedback on initiatives, participation and general wellness. Starting there, a metric can be established to gauge the effectiveness of the program.
