Value of Wellness Way More than ROI

All Executive Health July 26, 2016

While wellness and health programs may have initially been implemented with a focus on decreasing healthcare costs, employers are now beginning to realize that the real benefits may be a little less straightforward.

Of course, getting healthcare costs down is important, especially in an era of such increasing premiums, but this may not be the only indicator of a successful and efficient health initiative at your company.

Intangible Benefits

Health programs positively affect lots of other areas of the company, which in turn correlate into a positive impact on your bottom line.

  • Higher employee retention
  • Increase in employee productivity
  • Decrease in absenteeism and presenteeism
  • Improved workforce morale and employee satisfaction

Each of the above areas have associated costs that, when not working optimally, will negatively impact the company. Implementing a health program improves these areas and makes the company work better than it would have otherwise.

Even though employers started out looking for an immediate and tangible return, wellness and health programs have turned out to offer lots of other, intangible benefits that ultimately boost company efficiency in rewarding ways.

VOI v. ROI

It’s all about moving from return on investment (ROI) to value on investment (VOI). Instead of worrying solely about getting your money back, think of the huge beneficial impact that such a program can have on overall company processes.

VOI translates into much more than money. And at the end of the day, your company depends on much more than money too. It depends on its people. Employers are realizing that treating those people well and giving them the ability to improve their overall wellbeing will increase company performance.

Improving productivity, engagement and overall happiness of a workforce will better company culture and efficiency, which will, in turn, benefit the bottom line.

Sources:
Executive Wellness Plans Correlate with High Stock Performance.” Benefit News. 
ROI vs VOI and the Business Value of a Healthier Working Population.” Willis. 

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