Measuring return from corporate wellness programs can be tricky. While return on investment, or ROI, can be difficult to quantify, it doesn’t mean the programs aren’t important. Value on Investment, or VOI, can be just as significant…if not more. Let’s examine what VOI is, how it’s different from ROI, and why it’s important to consider the VOI for corporate wellness programs when measuring their importance.
What is VOI?
The concept of VOI was first introduced by Gartner Research back in 2001. It loosely defines VOI as, “the intangible assets that contribute heavily to an organization’s performance. The intangible assets include knowledge, processes, the organization structure, and ability to collaborate.” VOI is usually determined through “soft benefits” or competitive differentiators that aren’t easily quantified.
How are VOI and ROI Different?
ROI describes the monetary return received on a financial investment. Essentially, it’s the amount of money made when compared to the amount of money invested. When looking at corporate wellness programs, there are some things that fall under VOI and some that fall under ROI.
|Absenteeism||Health Care Costs|
|Reduced Health Risk|
Why Is It Important to Consider VOI for Corporate Wellness Programs?
More employers are learning that you can’t judge the effectiveness of corporate wellness programs on cost-savings alone. For example, in the Workplace Wellness Trends 2019 Survey Report, when asked why they offer wellness benefits, 71% of employers said it was to improve overall worker health and well-being. Only 29% said they offer them to control or reduce health-related costs.
Additionally, in times when employees need support the most, such as during this public health emergency where they can feel disconnected and access to care is limited, corporate wellness programs are extremely valuable in helping them maintain treatment plans and positive well-being.
When you look at the VOI of your corporate wellness program, you’re taking a more complete, holistic view than by simply looking at ROI. You go beyond what is quantifiable and take into consideration other factors that are equally (if not more, some would argue) important.
Just because corporate wellness programs may not always show direct financial returns, it doesn’t mean that they aren’t valuable. It’s important to consider the VOI when evaluating success.