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Measuring return on investment (ROI) is challenging for any business, and employee wellness programs make it even trickier. As more companies invest in workplace wellness, effectively tracking metrics allows employers to determine if these initiatives benefit employees and the company.
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Are you concerned about whether your employee benefits are making a positive difference? Are you unsure how best to know if your wellness programs are working out?
Wellness programs offer more than health insurance, like gym memberships and mental health support. While they boost well-being and productivity, employers need proof of their impact. This Pacific Prime article explores five key metrics to measure the success of your employee wellness program.
How to Measure Wellness Program Success
The purpose of an employee wellness program is to improve the health and wellbeing of your workforce. Five common metrics used to measure the effectiveness of wellness programs include work output, employee turnover, sick leave, employee participation, and behavior.
Common wellness program goals include:
- Preventing and managing health issues and chronic illnesses
- Lowering financial burden
- Improving employee morale
- Enhancing employees’ overall quality of life
While the benefits of perks such as free food at work have been found to make employees feel appreciated and valued, wellness programs also increase productivity and have the potential to help companies save money over time.
However, it isn’t always easy to tell if the money you’re spending on employee wellness programs is paying off. Thus, the following five metrics can be used to measure if your workplace wellness program is making an impact.
1. Work Output
Wellness programs help employees feel valued and enthusiastic about the company culture, resulting in higher engagement at work. Successful employee wellness programs also play an important role in helping employees live healthier and happier lives.
According to the Workplace Research Foundation, employees who are highly engaged are 38% more likely to have above-average productivity. Employees who eat a healthy diet, get enough exercise, and sleep well have more energy and enthusiasm and can be more productive.
To calculate whether you can see higher ROI yet, look at the revenue increase resulting from work outputs since the start of the wellness program. Then divide that number by the cost of the program to calculate whether the program brings value to your company or depletes your resources.
2. Employee Turnover
A huge benefit of workplace wellness programs is that they show employees they are appreciated and valued. Employees who feel appreciated have higher job satisfaction and are more likely to stay with the company.
If the wellness program you’ve implemented is one that your employees truly love, it can show in improved retention rates. This is even more likely when wellness programs become part of a company culture that is positive and caring.
Take into account that lack of appreciation is a key reason why almost 80% of employees leave their jobs, which means comprehensive employee wellness programs can make a big difference.
Keep in mind that high turnover rates can cost your company a lot of money. Spending time and money looking for, hiring, and training a new employee is very costly. Aside from costing you money, it reduces productivity as well.
To keep your best employees, offer workplace wellness programs that are specific to their needs.
3. Sick Leave
Since employee wellness programs are focused on wellness, it makes sense that your employees’ health should improve once these programs are implemented. That means you will probably see fewer sick days amongst the entire workforce.
Tracking sick leave can be tricky as employees with chronic conditions will likely still use all their sick days. Healthier employees, however, generally need fewer. While they’ll still take vacation or personal days, unplanned sick leave should decrease with effective wellness programs in place.
Small changes in health can lead to big improvements. Employees who exercise more often tend to have stronger immune systems and are less likely to fall ill. This can result in fewer sick days taken and improved overall well-being, benefiting both the employee and the company.
Preventative healthcare and health coaching are valuable wellness program perks that help reduce sick leave usage. These services empower employees to take a proactive approach to their health, preventing illness before it starts, and keeping them healthier, more productive, and at work.
4. Employee Participation
Employee wellness programs are often voluntary, even with incentives. Participation rates vary: voluntary programs see 30%–50% engagement, incentivized programs 60%–80%, and those embedded in company culture over 90%. High participation indicates employees value these initiatives.
It’s easy to track this metric since most programs allow you to track participation. You can track the number of people who register for the program or certain initiatives within the program. If you keep track of this, gradual signs of engagement will prove that the program is having an impact.
5. Behavior
Some employee wellness programs teach employees about how to live a healthy life and provide solutions for ways to make it a reality. One clear indicator that your employee wellness program is paying off is if you start to see healthier behaviors at work.
It’s worth noting that some changes may be less obvious, especially when they focus on preventative measures. Similarly, some signs may be so small you barely notice them so keep an eye out!
For example, you might begin to notice that the people who are usually stressed and used to staying late are leaving work at reasonable times. Plus, they come back to the office looking recharged and ready for the new day instead of being overwhelmed and rushed.
These changes are often subtle and hard to spot, particularly since you won’t be able to see the changes consistently. Even so, it can still be used to evaluate the impact of your program since it’s the small behavioral changes that lead to a healthier way of life.
The Importance of Mental Health in Employee Wellness Programs
While physical health is a central focus in many wellness programs, mental health should not be overlooked. Mental well-being significantly impacts employee productivity, job satisfaction, and engagement. Prioritizing mental health benefits the individual and the company overall.
Mental health challenges, such as depression and anxiety, can drastically affect workplace performance. Employees experiencing these issues often show lower engagement, take more sick leave, and exhibit reduced productivity. Addressing mental health can help reduce absenteeism and prevent burnout.
Integrating mental health support into your wellness program is essential. Offering services like counseling, stress management workshops, and mental health days provides employees the tools to manage their well-being. This support leads to more engaged, loyal, and productive staff.
Incorporating mental health into your program also demonstrates that the company cares about its employees. It boosts morale, strengthens company culture, and enhances recruitment efforts. Potential candidates may choose a company that prioritizes mental health support.
Consider starting with Employee Assistance Programs (EAPs), which offer confidential support. You could also provide access to mental wellness resources like online therapy or stress-reduction tools. These initiatives show your commitment to your team’s well-being.
Ultimately, a successful wellness program fosters a healthier and happier workforce. By addressing both physical and mental health, companies can ensure they create an environment where employees feel supported and valued. This holistic approach benefits everyone in the organization.
Frequently Asked Questions
What are the key benefits of implementing an employee wellness program?
Employee wellness programs improve employee health, job satisfaction, and productivity. They reduce absenteeism, lower healthcare costs, and increase employee engagement. These programs also help improve retention rates and attract top talent, contributing to a healthier, more motivated workforce.
How can I measure the success of my employee wellness program?
Success can be measured through increased productivity, reduced sick leave, higher employee participation, and improved employee retention rates. Additionally, tracking changes in employee behavior, such as healthier habits or reduced stress, can indicate the program’s effectiveness.
Can wellness programs be customized to fit my company’s needs?
Wellness programs can be tailored to suit your company’s culture, goals, and budget. Whether you focus on mental health, physical well-being, or other employee benefits like work-life balance, customizing the program ensures it aligns with your team’s unique needs and challenges.
What are some cost-effective ways to implement a wellness program?
If you’re working with a limited budget, start with initiatives such as offering mental health resources, promoting healthy eating habits, or organizing group fitness challenges. Even providing small incentives or recognizing employees who participate can increase engagement.
Let Us Help You Set Up An Employee Wellness Program
Employee wellness programs are gaining popularity, and as an employer, implementing one sooner rather than later can bring you long-term benefits. The sooner you invest in your employees’ health and well-being, the better the outcomes for your team and company overall.
Not ready to commit to a comprehensive wellness program? Don’t fret! There are still many ways to make employees feel valued, like offering benefits that align with their needs. Small changes can go a long way in improving satisfaction and engagement within your workforce.
Whether you’re launching a new wellness program or revamping an existing one, Pacific Prime is here to help. As a leading employee benefits specialist and insurance broker, we offer expert guidance to help you find the best solutions for your team.
Contact us for impartial advice along with a free quote and plan comparison today!
Jantra curates and reports on the results of Pacific Prime’s monthly newsletters, as well as manages Pacific Prime’s Deputy Global CEO’s LinkedIn posts. Complemented by her background in business writing, Jantra’s passion for health, insurance, and employee benefits helps her create engaging content – no matter how complex the subject is.
Growing up as a third-culture kid has given her a multicultural perspective that helps her relate to expats and their families while 8 years of working remotely have given her unique insight into hybrid work arrangements and enthusiasm for employee benefits.
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