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Every business invests with the primary aim of having a much better Return on Investment (ROI), and many survey reports have shown that corporate wellness programs are one of the best investments an organization can make for better organizational productivity and the overall wellness of the company.

A RAND Corporation study showed that for every dollar spent towards workplace wellness initiatives, there was an estimated overall ROI of almost $1.50 to the employer. While disease management programs had a higher ROI of $3.80 per dollar invested, the return for lifestyle improvement programs was $0.50.

Despite these positive outcomes about the ROI study, there are reports which contradict these results saying the employee engagement is pretty less in corporate wellness programs when compared to estimated figures. And the need to choose the right wellness initiatives along with the right measurement tactics has been highly emphasized.

ROI And VOI For Employee Wellness – What Are They?

When a business invests, puts efforts and time towards an initiative, it is important to keep a check on how it is performing. On the same lines, workplace wellness initiatives also need to be evaluated to know if the expense and resources are worth it. Although trickier, wellness programs are usually assessed by calculating the ROI or VOI.

Return On Investment (ROI) – Typically, it is the term that describes the economic return that is received from a financial investment. In the wellness industry, ROI is usually associated with the reduced costs of insurance claims and healthcare. In short, ROI in wellness programs is the savings made by the employers in lessened medical management costs in return for investing in the employee’s health.

Value On Investment (VOI) – Currently trending in the employee wellness industry, VOI is the term used to refer to the overall value that is received from making a financial investment. In addition to the financial returns, the comprehensive value that is received from making the financial deal is what measures the VOI.

ROI vs. VOI – Which Is Better For Employee Wellness?

Studies have shown that both ROI and VOI are effective tools to evaluate your workplace wellness initiatives. However, you need to consider many factors, including company goals, employee size, workplace culture, and more, before choosing the right evaluation method. The focus on your goals and productivity helps a great mile in deciding if ROI or VOI is the best evaluation method for your wellness program.

ROI VOI
Reduced Healthcare Costs
Reduced Health Risks
Improved Employee Health
Reduced Absenteeism
Reduced Disability Claims
Improved Culture Of Health
Increased Employee Satisfaction
Enhanced Employee Productivity
Better Organizational Productivity
High Skill Retainment/Acquisition

Over the past few years, wellness consultants, vendors, and brokers have advocated implementing the VOI measures since the ROI outcomes are limited only to the readily available financial results. However, calculating VOI can be bit knotty as it is calculated depending on the self-reported data and is impacted by several factors outside of the wellness program too.

On the other hand, experts suggest that instead of choosing ROI or VOI to evaluate the investment outcomes, organizations should start implementing both the methods to understand well if the wellness program is working out for them in their favor since the assessment aspects of both the methods gives outcomes based on a wide variety of factors that affect a company’s culture and progress. So, you will need to study the VOI to know how the wellness program is improving employee health, which in turn is reducing the healthcare cost measured by ROI.

As an investor and the employer, you have the right to know all the hardcore results of every dollar you are spending. And one of the best ways to ensure you are making the most of your wellness dollars is by choosing the right wellness provider and the best suitable wellness program. Either ROI or VOI, or both, focus on the wellness metrics that give you the results that are on par with your company’s goals.

At FreeWellnessPlatform.com, we understand well that your company’s culture and employee health play a major role in improving organizational productivity, and so, we have designed our wellness programs in a way that focus on various wellness facets to improve holistic wellness of the employees, resulting in better ROI and VOI for your business.

Request A Free Demo To More About Our Wellness Initiatives

Post Author: Admin