How to Evaluate the Effectiveness of Workplace Wellness Programs

Investing in your employees’ well-being is no longer a “nice to have”―it is a strategic imperative. According to IDC, a robust employee well-being program leads to a strong employee experience, creating more productive, loyal and engaged employees who contribute to an organization’s resilience and business results.

Many employers understand the value of supporting their employees’ well-being and do so through workplace wellness programs. This trend is especially true since the start of the COVID-19 pandemic. Many perks and benefits such as catered lunches and office amenities became obsolete overnight with remote work. HR leaders nationwide shifted their budgets from office perks to workplace wellness programs that support the overall well-being of their employees.

Companies that offer workplace wellness programs for their employees often task their HR teams with tracking the effectiveness and the Return On Investment (ROI) of these programs. How should HR leaders go about doing this? We highlight six steps to accomplish this objective: 

1. Set Goals

Each workplace wellness program has a purpose. It is intended to be a solution to a specific challenge your employees face. For example, a physical wellness program that promotes healthy eating habits aims to make your workforce healthier. Another example is mental health benefits that help employees manage their mental well-being―leading to higher engagement. Similarly, financial wellness benefits help employees manage financial stress, helping them be more productive and engaged. The goal of those programs is to increase the level of employee engagement and productivity by improving their physical and mental well-being. Your company might also have an added goal of lowering medical costs.  

What is the greater vision for your company’s workplace wellness programs? What are the goals assigned to each program or benefit? Being clear about these goals is the first step in appropriately evaluating the effectiveness of your workplace wellness programs. 

2. Define KPIs

Once your team has set the goals for each workplace wellness program, it’s time to define measurable Key Performance Indicators (KPIs) for each program. Pick KPIs that are easily measurable for the goal that you’re trying to achieve. 

For example, a financial wellness program whose goal is to increase your employees’ utilization of overall company benefits should have KPIs related to that goal. Those KPIs may include the number of employees contributing to your company’s 401(k) or the number of employees investing in their Health Savings Accounts (HSAs). It may also include the dollar value of such contributions over time. 

3. Measure Impact 

Once the KPIs for each program are defined, set up a system to measure them over time. Ask your workplace wellness program providers for regular reporting on the data you need. Once that is in place, start measuring the impact of the programs through the KPIs that you’ve defined.

For example, a financial wellness program with a KPI to increase employees’ financial literacy can be measured by the number of employees attending financial education webinars. Find a way to capture that number over time so you have trending data as well. 

4. Collect Feedback

In addition to monitoring the KPIs over time, measure the impact of your workplace wellness programs through collecting qualitative feedback. Ask your employees, through surveys, focus groups or 1:1 sessions, if the workplace wellness programs you offer are working for them. What works well and what needs improvement? Qualitative feedback will give you insights into the effectiveness of your programs and can often provide color and explain the numbers you see in your KPI tracking.

For example, if your Employee Assistance Program (EAP) has a low utilization rate, a conversation with a few employees can reveal the pain points they face that are preventing them from utilizing the benefit.

5. Reflection 

Reflection is an often overlooked step. Reflect on the qualitative and quantitative data you’ve collected so far on each workplace wellness program. Are the KPIs higher or lower than what you expected? Were there any surprises? What stood out most to you? 

For example, from the surveys and utilization rate, you may determine that more employees are participating in your company’s Health Savings Account (HSA). The majority of them are investing in cash, but you’re seeing a substantial increase in employees who are using it for investing. This is a likely sign that your employees are increasing their financial know-how!

6. Partnership

Last but not least, it’s important to partner with your workplace wellness benefit providers to measure the effectiveness of their programs. They have a vested interest in your success and satisfaction as a customer. Ask them for help evaluating their program aligned with the KPIs you’ve set―good solution providers will be happy to do so. 

Over 60% of employers across the country offer various forms of workplace wellness programs with mixed effectiveness. Ensure the programs you offer have a high degree of effectiveness by being intentional about the goals you’re trying to achieve and the KPIs to measure those goals. Collect both qualitative and quantitative feedback from employees and reflect on them over time. Last but not least, partner with your solution provider to ensure that the benefit you’ve rolled out is effective. By following these six steps, you can be well on your way to evaluating the effectiveness of your workplace wellness programs in supporting your employees.