Five Key Factors to Measuring Wellness ROI

As we discussed in our last post, those tasked with the job of overseeing company wellness programs often find it difficult to quantify the success of those programs in a definable way. The problems facing HR departments when tasked with establishing the ROI on wellness are many, from program structures that don’t provide enough trackable data, to the difficulties of measuring intangible successes in terms of money, to the simple fact of limited time, resources, and manpower. These issues are often compounded by unrealistic expectations and a desire for quick results.

Why Is Wellness ROI So Difficult To Measure? 

When making policy decisions around wellness initiatives, companies often find it difficult to quantify the success of these programs in a definable way. There are many reasons wellness ROI is difficult to measure. Because of the sheer number of variables to be considered, there is no simple, standard formula into which HR departments can plug a set of numbers to get an answer to the ROI question. Any calculations in this area require considerable critical thought.

Pitfalls of Program Design and Company Culture

One of the problems facing HR departments is the inaccessibility of several baseline elements that must be tracked accurately in order to calculate their programs' ROI. Poor original structuring of wellness initiatives compounds the problem. If the wellness program is not structured in such a way that there is accountability for employees involving concrete, measurable tracking of progress, it will be virtually impossible to calculate ROI with any degree of success.

Effective Wellness Programs Focus on Screenings and Immunizatons Over Behavior Modification 

Many workplace wellness programs focus, rather unwisely, on altering unhealthy employee lifestyles. Examples of such programs include weight-loss contests and smoking cessation campaigns, just to name a few.

While these efforts are certainly admirable, anyone who has tried to lose weight or quit smoking will tell you that changing ingrained behaviors and habits is extremely difficult – even when there are significant incentives involved. To us, it seems that the focus on lifestyle and behavioral changes as a starting point misses the mark.

Rather, we recommend that employers almost always start with age appropriate screenings and immunizations. This approach is a simple and effective way to care for employees and prevent and/or treat developing conditions. And because most of the recommended screenings and immunizations are covered at 100% by most health plans, there’s less pushback from a participation standpoint.