Numerous studies demonstrate a positive ROI (return on investment) for workplace wellbeing initiatives, proving that investing in workplace wellbeing does provide a positive return. Effective programs ensure productive and safe work practices, increase employee engagement, promote positive workplace culture and improve satisfaction and performance.
However, it can be difficult to determine ROI when many of these benefits cannot be easily converted into a dollar figure. VOI (value on investment) is an alternate measurement, recognising the financial and non-financial benefits of workplace wellbeing. This approach focuses more on recognising the cumulative benefits of workplace wellbeing over time.
Evaluating ROI for Workplace Wellbeing
Traditionally, ROI is calculated by dividing the benefit or savings of an investment by its cost. In the case of workplace wellbeing initiatives, the benefits of the program (reduced compensation claims, decreased sick leave days, increased productivity) can be converted to a dollar amount and divided by the cost of implementing the program, delivering the ROI.
However, there are limitations in this calculation, as many benefits of workplace wellbeing cannot be converted into a dollar figure. It’s impossible to quantify how much an organisation may have saved due to improved relationships, increased job satisfaction, higher morale or better energy levels. These are equally important benefits that should be taken into consideration when evaluating any workplace wellbeing program.
VOI as a measure of Workplace Wellbeing
There is a shift to measuring the VOI (value on investment), to better recognise the financial and non-financial benefits of workplace wellbeing. While certain benefits are clear from implementation, it takes time for the true value of workplace wellbeing to emerge. VOI allows you to take into account the non-financial benefits of workplace wellbeing, as employee health improves, organisational costs decrease and productivity and teamwork rise.
Non-financial benefits of workplace wellbeing include:
- Redefined workplace culture
- Improved employee job satisfaction
- Increased employee productivity
- Heightened employee morale
- Greater employee retention rates
- Better employee energy levels at work
- Improved on-the-job safety
- Increased comradery and team effectiveness
- Reduced presenteeism (overworked employees)
The cost of not implementing Workplace Wellbeing
Another way of approaching the ROI/VOI question is to analyse the costs of NOT taking action. What will the long-term costs be if you don’t focus on employee health and wellbeing? What are the risks to your organisation of ignoring the health and wellbeing of your employees?
Common organisational costs associated with poor workplace wellbeing include high medical, disability and worker’s compensation costs; absenteeism; poor employee retention/high employee turnover; decreased productivity and reduced satisfaction and morale. Can your organisation afford to carry these growing costs over the long term?
How can you maximise ROI/VOI for Workplace Wellbeing?
Hunterlink has the experience to help you develop and deliver a workplace wellbeing program, to maximise your ROI/VOI. We deliver effective initiatives, such as early intervention programs, psychological & behavioural counselling, along with individual and organisational coaching.
It makes sense to invest in workplace wellbeing – the many benefits your organisation will experience in the long term far outweigh the cost of investing in an effective program. Let our experienced team help you achieve the best possible ROI/VOI for your organisation when it comes to workplace wellbeing.
Let’s talk wellbeing