2012 Workplace Trends Report: Quantifiable Employee Health and Wellness Initiatives
ABSTRACT: Corporate wellness programs are becoming more and more prevalent as time moves on. They are no longer considered just “nice to have” - they are definitely a “must have.” The breadth of their programming continues to grow in scope and complexity. For instance, corporations miss opportunities if their only focus is on fitness centers as a means to get their employees healthier. In fact, there will be a new emphasis this year on: short programs encouraging small fitness breaks or relaxation breaks; programs/exercises employees can do at their desks; and renewed focus on meditation, mindfulness, and non-traditional “well-being” interventions.
Further, the ability to match outcomes in terms of reduced health care costs, increased productivity, and higher rates of presenteeism will be the new standard in measuring the effectiveness of such programs. Focus will shift away from traditional “ROI” calculations to “VOI”, or “Value on Investment” as different organizations emphasize the importance of different outcomes. VOI is focused on intangible benefits, rather than the “hard/tangible” benefits that ROI measures. Some frequently used metrics within a VOI calculation are:
. business process reinvention and innovation
. cultivation, management and leveraging of knowledge assets
. collaboration and increased capabilities to learn and develop communities
. individual and organizational competencies
. new kinds and levels of leadership
BRIEF: Quantifiable Employee Health & Wellness Initiatives
By Rachel Permuth-Levine, Ph.D, MSPH Sr. Director, Outcomes-Based
Research & Solutions
A return-on-investment metric, or ROI, is the typical gold standard of measurement in business. Corporate wellness programs are no exception considering there is substantial pressure among C-suite executives to show an ROI when contributing money upfront to employee wellness initiatives. However, the tide is turning away from a typical ROI to something that shows more value to the business overall like value-on-investment (VOI).
Employee wellness programs are slowly becoming the norm rather than the exception in corporate America. It is becoming imperative to quantify the outcomes for this form of preventive care so that companies can ascertain which types of interventions make a difference on their “bottom-line.” “The ROI for wellness programs is often elusive,” said Dr. Ron Leopold, a New York-based national medical director and VP for Metropolitan Life Insurance Co.'s institutional business division. “Most employers today have to make the decision to invest in some wellness initiative and they shouldn't expect hard numbers to demonstrate the ROI.”
The expectations for employee health and wellness programs are often set unrealistically high. For instance, although certain wellness benefits such as corporate fitness centers, on-site coaches/nutritionists and disease management clinics have been shown to positively affect healthcare costs and claims, the actual dollar amounts saved are hard to show. Unfortunately, there is no consistent way to compute dollars saved from wellness activities.
Because financial indicators of success are so difficult to ascertain, many experts in the field are arguing that VOI is the more comprehensive and inclusive metric because it can be self-defined by the company to include attributes that are important to their own business success. For instance, in addition to improvements in health care costs and reduction of healthcare claims, a VOI for a company might include recruitment and retention rates, measures of morale, quality-of-life indicators and absenteeism metrics.
The bottom line for any employee wellness program is to establish some form of outcome-based measurement in order to show results. Wellness programs that do not have leadership support are doomed to fail - thus, starting a data dashboard early on in the creation of all of your programming will be critical to success.
Here are some tips to ensure you are starting on the right foot for evaluating your wellness programs:
1. Programs should be customized. One size does not fit all. Once you ascertain the needs of your organization and the health-risk status of your population, you can begin to build the programming.
2. Phase in the programs according to your budget. Particularly if your budget is small, you can start with short-term programs led by on-site employees, or you can outsource to vendors. As you begin to assess satisfaction, participation, and other behavioral outcomes from the programs, you can start to adopt bigger programs and invest more money into those facets of your wellness program that are “working” - in your definition.
3. Something (done well) is better than nothing. You cannot underestimate the impact of an employee wellness program on the morale of an organization - particularly if the wellness goals are communicated in an effective and broad manner. Employees should be aware of the programs as a part of their regular culture.
4. Do not be afraid of measurement. Collect data - lots of data to ensure that your program is achieving what you set out to achieve. Different wellness programs will have different end-goals in mind. For instance, when starting a weight-loss program, first start with participation rates, attrition rates, weight loss attained, biometric markers, self-reported and proxy health ratings, health care claims, etc. The list is endless - particularly if you offer the weight-loss program in ways that attract different types of employees (e.g., face-to-face, virtual, group).
Remember, although financial ramifications are difficult to demonstrate with corporate wellness initiatives, gains in employee morale can be significant. New metrics will be the trend for 2012 - more customized, more meaningful and more robust - while retaining the same amount of accountability for the organization.
