This article is brought to you by Virgin Pulse.
As an HR leader, you’re on a mission to invest in your employees to optimise engagement, health and performance. While we all agree investing in your people is important, business leaders demand quantifiable results on their investment.
As a result, you’re tasked with leading a conversation about a very complex equation so that your manager, executives or even a board can see how your programmes are affecting your organisation’s bottom line. You must ensure that a programme or initiative connects to overall business objectives and addresses major pain points.
A narrow ROI view of measuring the success of these interventions is commonly applied in these conversations. With projections in Singapore alone of an increase in productivity loss due to sickness equating to S$3.3billion on a national level, and the gross cost of healthcare benefits in APAC set to continue to rise, wellbeing initiatives can indeed stand as an intervention to mitigate these costs.
But the traditional ROI model of measuring success may not capture all the pain points identified in your organisation. Beyond the financial costs of insurance claims, workers compensation and absenteeism, a value on investment (VOI) model of measuring success in health and wellbeing allows a broader range of metrics to be captured.
VOI as a model is a comprehensive and flexible means of measuring impact on business performance, adaptable to an organisation’s specific needs. It allows space to connect health and wellbeing to those aforementioned pain points and strengthens the business case for programmes.
Employee engagement has been a top priority of HR leaders in recent years, and while there are multiple models of measurement it can be difficult to accurately gauge this emotional and deeply personal experience.With a global engagement figure of 13% worldwide and a significant impact on productivity, retention and customer satisfaction, a traditional ROI model fails to adequately measure return on your wellbeing programme.
Ultimately, to position wellbeing as an investment, rather than a 'nice to have' expense, you must show quantifiable improvements across all factors outlined in your VOI model. Harnessing the power of platforms and technology will enable you to measure VOI, ROI and to inform future investment in the wellbeing of employees.
John Garrido, regional director of Asia at Virgin Pulse, said: "The most important measure is the measure that’s important to you. The benefit of technology is that you can measure all sorts of things such as the benefits listed above under behavioural, cultural and financial.
In addition, you can measure uptake, platform engagement, what employees are engaging in, which parts of the business has low/high engagement in the programme, which programmes work/don’t work, what incentives employees like and don’t - the list goes on."
Virgin Pulse, part of Sir Richard Branson’s Virgin Group, designs technology that cultivates good lifestyle habits for your employees. Configured to complement your culture, our technology, and the overall wellbeing experience we deliver, drives superior outcomes for your people and your business.