Ways to Measure the Impact of an Employee Wellness Program

Amid soaring medical inflation and healthcare expenses, companies have taken a keen interest in offering employee wellness programs. These programs are like an additional feature to the group health insurance policy that helps to improve health and lower employee health insurance claim costs. However, merely offering these plans doesn’t help. Measuring the impact of these programs is essential yet challenging. Since companies have now realized the importance of offering such programs, we have listed down some metrics that can help in measuring the impact of these wellness programs.

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Corporate Employee Wellness Programs

An employee wellness program is a part of the benefits package that a company offers to its employees to improve their overall well-being and health. These programs are usually designed by the employer to achieve two main purposes. Firstly, it encourages employees to lead a healthy lifestyle by having a proactive health-driven approach. Secondly, it helps to lower the impact of group health insurance policy premiums and absenteeism. Some of the goals that such program may focus on achieving include:

Preventing health issues and chronic illnesses

Lowering the financial burden of the employees

Improving employee morale

Enhancing employees’ overall quality of life for the employees

Ways to Measure the Impact of an Employee Wellness Program

Measuring Return on Investment (ROI) in any business can be challenging. Likewise, measuring ROI for employee wellness programs not only be challenging but also confusing. It is difficult to interpret if the money spent on such programs is actually paying off.

Employee Productivity

Enhanced productivity can be a major factor in measuring the success of these programs. These programs help employees feel valued which further results in a higher engagement at work. Additionally, if the program is a successful one, it also helps employees in leading healthier and happier lives. An employee with a healthier lifestyle will have more energy and enthusiasm and ultimately give higher productivity at work.

Employee Turnover

Higher turnover rates can be very expensive for a company. The company may spend a lot of time, money and resources on hiring and training a new employee. If the program that a company implements is loved by the workforce, it will improve retention. The employees consider the company culture as positive and caring, creating a long-term bond with the organization.

Employee Absenteeism

The main aim of these programs is to focus on wellness, which means there should be a reduction in the number of sick leaves. However, these metrics can be confusing. If an employee is suffering from any chronic disease the number of sick leaves might not reduce, but for other employees, this can be an important factor.

Employer Employee Insurance Claims

If the employee wellness programs are successful, they will show in reduced group health insurance policy claims. The costs a company would spend in terms of insurance would be significantly reduced. This ultimately will save money and in turn impact the company’s ROI positively.

Employee Participation

Generally, wellness programs are optional. That means that not all employees may opt for these programs. However, if the program sees increased participation, this indicated that employees consider your program valuable. Increased employee participation in such programs is a sign that the wellness program is loved and received well by the employees.