You play a crucial role as a broker in guiding your clients towards maximizing the ROI (Return On Investment) on their wellness initiatives. Since these programs not only contribute to the health and well-being of their workforce, but also offer significant ROI when successful, it’s important that you recognize the variables that affect them. By understanding the factors that influence ROI on wellness programs and implementing strategic approaches, you can help your clients achieve tangible benefits while promoting a healthy culture within their organizations.
52% of US employers offer employee wellness programs. However, for most of these programs, less than 50% of employees participate. If employees aren’t engaging, then the program’s potential is lost. If your client is seeing low engagement on their corporate wellness program, you should first consider that the following issues may be causing them to struggle to encourage participation:
Most wellness programs fail when they are not tailored to the specific needs of the workforce. Employee well-being is not a monolith. Every company has employees with diverse physical, mental, emotional, social, and financial needs.
In turn, a generic program that doesn’t consider factors like employee demographics, job types, and personal preferences will struggle to gain participation. For example, a program focusing solely on physical fitness might miss the mark for a workforce struggling with mental health challenges.
A cumbersome employee wellness program—requiring too much time, too many steps, or inconvenient scheduling—is off-putting. An accessible and user-friendly program will boost employee engagement.
A lack of clear, consistent communication about the wellness program hinders its success. The same goes for complicated communication. If the program’s instructions are confusing, employees cannot engage with it. When it comes to corporate wellness, effective communication should highlight the benefits, how to participate, and why the program matters. It should also allow for employee feedback.
Employers offering wellness incentives of $100+ report high (51%) participation rates. However, incentives alone will not solve low participation.
While they may stoke enthusiasm in the initial stages, incentives are simply extrinsic motivators with limited power in the long run. If employees moderate their behavior because of a reward or fear of punishment, they are likely to revert back to their old lifestyle when the reward is exhausted.
The real power lies in encouraging both intrinsic and extrinsic motivation. Simply put, incentives are more effective when employers shift their focus from merely encouraging participation to tapping into the employee’s holistic well-being.
Company culture plays a crucial role in the uptake of any wellness initiative. If a wellness program feels like an add-on to placate them, employees will view it skeptically and be less inclined to participate. But if the company already has a culture of wellness, the program will feel like an integral part of the company’s ethos and more employees will embrace it.
Goodfellow Bros. Inc., in collaboration with IncentFit, developed a comprehensive wellness initiative aimed at promoting employee activity and well-being. This family-owned construction company has introduced a range of programs, including incentives for walking and biking, partial reimbursement for gym memberships, hydration challenges, and more.
Their corporate wellness program has shown impressive results: a 68% participation rate, 18% financial utilization rate, and a cumulative 130,000 miles walked. These efforts have contributed significantly to reducing sick days and workplace injuries related to fatigue or strain.
Learn more about Goodfellow Bros. Inc ROI from using IncentFit technology here.
Any wellness program ROI calculation is a multi-pronged activity that requires a blend of data analysis and human insight. For a successful calculation, you will need to go beyond numbers and look at the stories behind them. Here are some way of capturing qualitative and quantitative data that you’ll want to periodically review with your clients:
Companies looking to maximize their workplace wellness program return on investment should:
The success of any employee wellness program hinges on one factor: understanding each employee’s unique health goals and challenges. You can help your clients to kickstart their customization journey with purpose-driven surveys.
Clear and measurable goals are your coordinates toward maximizing your clients’ wellness program’s ROI. Adopt the SMART criteria — Specific, Measurable, Achievable, Relevant, and Time-bound — to frame your clients’ wellness objectives.
For example, don’t simply suggest that your client should aim to improve employees’ mental health. Instead, propose that they strive to reduce employee stress levels by 20% within a year. SMART goals give you a framework for action and evaluation.
The success or failure of a wellness program has a lot to do with the leaders’ buy-in and participation. When executives roll up their sleeves and join the wellness bandwagon, they don’t just send a message — they become the message.
This then cultivates a life-long culture where employee well-being isn’t an afterthought but a pillar. Even if the leaders eventually leave, the culture will be self-sustaining, guaranteeing a positive ROI as the wellness program evolves.
Introduce employees to apps that not only track their steps and dietary habits, but also provide personalized feedback and encouragement.
Employers can introduce gamification into their wellness program. They should consider integrating leaderboards, unlockable levels, and reward points into their wellness platform to ignite friendly competition.
Tech can also be used to forge communities on wellness apps and platforms. Encourage employees to share their milestones, cheer each other on, and even engage in group challenges. This sense of community will sustain engagement over the long haul, transforming solitary activities into shared experiences.
Even though wellness programs are about an employee’s behavior change, incentives are powerful catalysts for participation and engagement.
You should begin by identifying what motivates your clients’ employees. Is it an extra day off, a gym subscription, or maybe a health insurance premium discount? Whatever it is, help tailor their rewards to suit these preferences, ensuring they’re both meaningful and desirable.
Lastly, keep the incentives fresh and exciting. Regularly review the program with your clients and refresh it to align with changing interests and seasons. A dynamic rewards program keeps the novelty alive and prevents engagement from stagnating.
Success stories from a wellness program are not mere footnotes—they are headline-worthy testimonials that can inspire an entire organization. Google knows that: the tech giant is deemed one of the best employers thanks to their comprehensive employee wellness program.
Their program doesn’t inspire just because of the numbers; the employees’ journeys, milestones, and transformations matter. Any employer can do that regardless of the company size.
Complement the anecdotes with data. Provide statistics on participation rates, health improvements, or reductions in sick leave. Use visuals where possible to depict the collective health improvements or a “before and after.” This data serves as concrete evidence of the program’s ROI, reinforcing the value to both participants and decision-makers.
Continuous evaluation and adjustment are the lifeblood of an evolving wellness program. You’ll want to be proactive in your strategy to keep your clients’ wellness programs adaptable and attractive to their employees. This requires several steps:
Ensuring the success of a wellness program is not easy. There are many pitfalls that can reduce wellness program ROI and effectiveness, including misalignment, poor communication, cumbersome administration, and lack of additional incentives. However, you can empower your clients to realize the full potential of their wellness investments.
ROI isn’t measured simply by financial metrics; it encompasses improved employee morale and productivity, reduced absenteeism, and a stronger organizational culture. In the domain of corporate wellness, you possess unique skills to help clients navigate the complexities of wellness program investments and showcase tangible returns that positively impact the bottom line. By recognizing the multifaceted benefits of investing in employee well-being and strategically guiding your clients, you can unlock significant value and drive long-term success.
Want to learn more about how you can support your clients in designing wellness programs that work for their employees? Feel free to check out our resources library or schedule a call to talk to one of our Benefits Specialists.
Employee recognition is more than a feel-good initiative, it’s a proven strategy to boost engagement,…
Workplace financial wellness is more than a trending perk, it’s a core pillar of employee…
When it comes to encouraging physical activity in the workplace, it’s important to design employee…
As we approach Social Wellness Month in July, now is the perfect time to explore…
Employee wellness isn't just about offering gym stipends or access to meditation apps. It's a…
Employer branding has quickly become a critical focus for companies competing for top talent and…
This website uses cookies.
Read More