Alternate ways to measure the impact of wellness programs:
- Improved health status
- Reduced occupational and non-occupational absences
- Increased productivity
- Wiser use of health care options
- Increase in preventive screenings
- Increases in program participation
Producer spotlight
Wellness ROI: Not just a ratio anymore
This article continues Aware's series on ideas for sustaining worksite wellness programs – with insight into the evolving direction of ROI for these programs.
In the past, employers have been hesitant to implement wellness programs without concrete evidence of return on investment in the form of decreased medical costs. This gold standard for evaluating and justifying wellness programs hasn't always worked in the real world. Today, employers are recognizing and embracing wellness program outcomes that are unique to their own organizations - and shifting their vision from investment in programs to investment in people.
Although worksite wellness programs have produced cost relief for many organizations, employers are discovering that the value of a healthy workforce and environment far outweighs the standard ROI concept. Knowing their business success depends on people, they see results far beyond cost savings and increased productivity.
"The single ROI has always had its shortcomings," says Kevin Decot, senior staff administrator – wellness lead, with Honda of America Manufacturing, Inc., in Marysville, Ohio. Focused on lifestyle change, Honda's multi-faceted approach to wellness highlights workforce stability initiatives, behavioral change and better healthcare utilization. "Our return on investment is in the sustainability of the organization, the improvement of our people and continuation of the level of benefits provided," explains Decot.
"Workforce stability translates directly as ROI for Honda," continues Decot. "If associates are healthier, they are happier at work, and this has a positive impact at work, at home and in the community." The definition of workforce stability will be unique for each employer, but Honda is seeing positive changes in occupational and non-occupational leaves, workers' compensation claims and overall attendance – and trends are moving in the right direction.
A willingness to change provides returns
For employers struggling to maintain their competitive edge by offering robust healthcare plans, drastic benefits cuts are not an option. While healthcare reform debate continues and the cost of healthcare continues to rise, an investment in wellness and prevention is more important than ever.
"To maintain our level of benefits we needed to be innovative," explains Decot. Innovation came in the form of asking associates and their families for help in trying to live healthier lives. The results are in, and Honda's Destination Wellness program is providing positive returns. Data show associates have improved their diets, increased their level of cardiovascular exercise and better managed their weight. Furthermore, results show healthcare benefits are being used more wisely. According to Decot, "participation in preventive health screenings is trending upward, and individuals with chronic disease are following treatment protocol more closely." Bottom line: medical costs are down.
Caring about the health and wellness of associates is not just a sentimental platitude. Wellness as part of an organization's business plan – and culture – is an investment in long-term organizational sustainability, one that generates positive results.
Sources
¹ Lowerre, Gil, 2008 Voluntary sales showed steady rise, National Underwriter, August 17, 2009.
² Eastbridge Consulting Group, Voluntary sales record another year of growth, Summer 2009.
