March 8, 2024

ROI and VOI: A strong wellness program measures both

There is more to consider than return on investment (ROI) when measuring the success of your wellness program.

More employers are realizing that looking strictly at workplace wellness program ROI — money saved on health care costs for every dollar spent on the program — fails to encompass some of the very real, but tougher-to-calculate, business benefits of employee wellness.

In the 2022 Workplace Wellness Trends report from the International Foundation of Employee Benefit Plans (IFEBP), only 31 percent of employers say controlling or reducing health-related costs is their primary reason for offering wellness programs. The other 69 percent provide wellness programs with the goal of improving overall worker health and well-being.

That’s where value on investment (VOI) comes in.

When making the business case for your own corporate wellness program, measuring both ROI and VOI will illustrate a broader picture of the impact the program makes.

VOI is broader than ROI. It measures not just cost savings, but also other elements that contribute to work satisfaction, employee well-being and business performance, such as improved productivity and higher employee retention.

The value of employee well-being

According to IFEBP studies, common VOI measures among employers were:

Health risk assessment data
Healthcare costs
Absenteeism
Employee engagement
Productivity
Overall financials and growth
Recruitment
Disability/workers’ compensation claims
Retention

VOI also includes costs that are avoided — such as future diseases that don’t occur and stress that is eliminated. Avoided costs contribute to savings for employers and employees.

Measuring workplace wellness program ROI

The focus on VOI doesn’t mean ROI isn’t still important when it comes to wellness programs.

According to a 2022 research report from Zippia, a firm that pushes for improving career outcomes, the healthcare benefits of wellness programs for employers are numerous. The data, culled from several sources, included several interesting findings:

72 percent of companies saw reduced healthcare costs after implementing a wellness program
The average return on investment for employee wellness programs is 6:1
Wellness programs can reduce absenteeism by up to 16 percent
87 percent of workers consider health and wellness offerings when choosing an employer

Additionally, the research showed that employees who participate in wellness programs have fewer sick days; such employees report being more productive; and some workers even had diseases detected by these programs, allowing them to start treatment earlier.

For more information from past studies, see our previous post, 10 statistics that make the case for workplace wellness programs.

When making the business case for your own corporate wellness program, measuring both ROI and VOI will illustrate a broader picture of the impact the program makes.