Although health and wellness may appear to be personal matters on the surface, they play a surprisingly important role in influencing employee performance and retention. As organizations increasingly seek more effective ways to boost their productivity and competitiveness, understanding the primary metrics for evaluating the impact that health and wellness programs have on their employees is essential.
The Significance of Health and Wellness in Modern Workplaces
Health and wellness initiatives are no longer just another entry on a business’s list of benefits offerings to check off; they have evolved to become strategic imperatives for helping organizations thrive. Therefore, businesses that make an effort to enhance the health and wellness of their workforce can reap significant benefits.
Top Metrics for Evaluating the Impact of Health and Wellness on Organizations
Here’s what to explore when assessing how health and wellness initiatives impact your organization.
Absenteeism Rates
Reduced absenteeism is one of the strongest indicators of a successful health and wellness program. Absenteeism, formally defined as the habitual non-presence of a worker at their job, can be very expensive for employers, with the Centers for Disease Control and Prevention (CDC) reporting that it costs American employers more than $226 billion per year in productivity losses.
High absenteeism is generally indicative of poor health and well-being among the workforce.
Retention Rates
Employee retention is considered a direct reflection of overall employee satisfaction and the organization’s ability to maintain its workforce over a specific period. Although a positive work environment that makes employees feel significantly valued contributes to employee retention, wellness programs that address the workforce’s holistic needs will also lead to higher retention rates.
Productivity Metrics
One of the most direct metrics when it comes to evaluating the impact of a wellness program is productivity. A straightforward comparison of productivity rates before and several months after implementing a wellness initiative can give organizations deep insight into their effectiveness.
Employee Health Improvement
One metric that can be more challenging to quantify is employee health improvement, but organizations that keep careful track of their workforce’s overall health can gain unparalleled insight into the true efficacy of their health and wellness efforts.
This often entails measuring changes in screening results such as cholesterol, body mass index, and blood pressure to get a clearer picture of the trajectory of health improvements.
Employee Feedback
Organizations should collect qualitative feedback from their employees about the wellness programs they offer via open-ended surveys and one-on-one interviews. This can yield helpful insights into the perceived value of their offerings and point to areas for improvement.
Healthcare Costs
Reductions in an organization’s overall healthcare costs and a downward trend in claims are often good indicators that the workforce is healthier, which also reduces the financial burden on the organization’s healthcare plan.
Turnover Rates
An organization’s turnover rate, the percentage of employees who choose to leave the organization during a given time, is another good way to evaluate the impact of health and wellness benefits on employees. Although all organizations, no matter how good their benefits are or how friendly their workplace is, will experience some degree of natural turnover.
This can occur due to employees moving to other towns or leaving the workforce to raise families—an excessive rate indicates shortcomings on the part of the business. Turnover is costly and disruptive and can significantly impact the bottom line.
Businesses that boast wellness programs to address their employees’ needs tend to have a happier, healthier workplace that inspires employees to stay, which results in a lower turnover rate.
Effective Strategies for Improving Workplace Health and Wellness
How can organizations improve workplace health and wellness to enhance performance and retention? Here are some useful approaches.
Offer Flexible Work Arrangements
Even organizations that lack the budget they need to offer additional wellness-focused benefits may be able to make changes to accommodate flexible scheduling and remote work options.
For example, even a seemingly small move, such as letting employees choose the hours they start and finish, can reduce employee stress by enabling them to schedule their commute outside peak traffic times or coordinate their hours with school drop-off and pick-up. This reduced stress can improve employees’ physical and mental health.
Mental Health Support
Organizations can consider offering more thorough wellness benefits that include mental health support so employees can seek counseling or learn useful skills for managing emotions, such as meditation.
Promoting a Culture of Health and Wellness
To encourage healthy lifestyles among the workforce, employers should consider offering resources such as fitness facilities or gym membership, nutritional counseling, and stress management training and programs.
Learn More About Improving Employee Performance and Retention through Health and Wellness Benefits
Is your organization promoting a happy, healthy, productive, and loyal workforce? At Business Benefits Group (BBG), our experienced benefits consultants can help you leverage important metrics to evaluate the impact of your benefits programs and implement solutions that enhance your employees’ well-being, performance, and retention. Contact us today to schedule a consultation.