The Value of Investing in Employee Health and Wellbeing

Return on Investment is the elephant in the room for anyone in HR trying to get backing from the board for a health and wellbeing initiative. The evidence hasn’t been there. But maybe it’s only been a case of looking in the wrong place.
The way the world sees healthcare, in general, has changed. Thinking in terms of financial returns has never been very helpful. Instead, there’s been a shift to considering the broader value of health systems (the influential report by the King’s Fund on ‘Better Value in the NHS’, for example). The same is true in the global manufacturing sector, which tries to avoid being judged on a plain contribution to the Gross Domestic Product. It doesn’t reflect the value being generated for economies.
However, most employers see health and wellbeing as significant to the board in plain ROI. More accurately, they can’t determine an ROI, so health and wellbeing spending continues to be just one of those ‘good-to-have’ costs.
So what is ‘value’ regarding employee health and wellbeing? Optum & National Business Group on Health in the USA undertook research among 275 employers to see whether employers were offering health and wellness programmes for reasons beyond simple ROI and why. The top reasons were reducing employee health risks and used as a basis for improving employee productivity. Other reasons were to manage or reduce disability claims, aid employees to manage workloads & anxiety, improve job satisfaction, reduce sick days, reduce presenteeism, improve morale, and attract and retain talented employees.
Some critical areas have a tangible impact across workforces and aren’t considered or accounted for:
To capture the whole picture in terms of real VOI, HR needs to look at the following:
And you can map this added value against costs:
The challenge remains in access to data and the will to make analyses over the long term. The data from employee health screenings will make the difference in seeing and recognising value over time.