Why value on investment (VOI) may be more important than ROI
The success of well-being programs has traditionally been determined by the Return on Investment (ROI), often measured by savings in health claim costs. However, the real value of employee well-being programs to the organization is usually much higher than what the ROI indicates, even though much of this value is hard to measure in the short-term. Well-being programs greatly influence the performance of organizations by having a profound impact on the organization’s most important asset – its people.
A Robust Work Culture: Cheerful employees with optimistic, can-do attitudes and collaborative teams that have little to no conflict and are at the core of a strong organizational culture. Integrative well-being programs make this possible. By bringing employees together in a fun, friendly atmosphere, whether as part of an onsite fitness program or a lunch ‘n learn, well-being programs shape your company’s culture and ethos positively.
Decreased presenteeism: It is easy to measure absenteeism, but not so easy to measure presenteeism – the state of being present at work despite illnesses, but not being actually productive. By emphasizing the importance of optimal health while at work, well-being programs convey to employees that the organization cares about their health and well-being and encourages them to take sick days off to fully recover. This decreases presenteeism, resulting in employees working at maximum productivity.
Increased innovation: For any organization to stay competitive, it is important that its employees love what they do each day and work collaboratively to develop new ideas and solutions. An integrated well-being program that enables employees to do their best work possible will create a strong organization that thrives on research and innovation.
To sum up, the profound value impact of a comprehensive well-being program cannot be overstated. Value On Investment (VOI) is an important factor to consider when making decisions on employee well-being programs.
As always, we would love to hear your thoughts, opinions, and experiences on this subject. What Key Performance Indicators does your company use to measure the success of well-being programs? How do you measure the intangible value? Talk to us!