Value of Investment in Employee Health, Productivity and Well-being
The purpose of an integrated and comprehensive health and productivity (H&P) strategy is to drive changes in the health and productivity of the workforce by reducing health risks, improving healthy behavior and changing how employees (and their families) interact with the health care system. H&P programs are diverse and can have an impact on a wide variety of business outcomes, ranging from workers' compensation costs to attraction and retention rates. Therefore, it is important that employers evaluate the true value of their overall health and productivity strategy across all business outcomes.
The Institute on Health, Productivity and Human Capital is developing the Value of Investment in Employee Health, Productivity and Well-being Toolkit, which is designed to highlight how employers can evaluate the total value of their health and productivity strategy. The toolkit includes an introduction to value of investment, a step-by-step guide to building value into your evaluation process, a deeper look at various business outcomes that can be impacted by an H&P strategy and example H&P dashboards.
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Section One — Introduction to Value of Investment
- There are many different ways to assess the value of a strategy or a set of programs, and not everyone's valuation of a comprehensive H&P strategy's impact on certain business outcomes is the same. Some employers may choose to calculate an ROI, which looks primarily at the savings in health care costs. Others, however, may conduct a value-of-investment (VOI) evaluation, which considers other variables, including productivity and workers' compensation costs. This document provides a comparison of calculating an ROI vs. conducting a VOI. It then presents a framework that employers can use to begin measuring and evaluating their H&P programs based on their true value.
Section Two — Developing Your Own Value of Investment Evaluation: A Step-by-Step Guide
- Focusing on the bringing key stakeholders together early on in the evaluation process can help to ensure a more accurate valuation of potential business outcomes to consider. This document highlights the steps to take in developing your own evaluation of your H&P strategy.
Section Three — A Deeper Look at the Potential Outcomes in a Value of Investment Evaluation
- This document takes a deeper look at the H&P strategy's impact on individual business outcomes and explains how to measure them effectively. Understanding the important potential of an evaluation will help build the business case for employers to evaluate their own programs and initiatives based on their real value.
Section Four — Designing an H&P Dashboard for Presenting the Value of Investment to Your C-Suite
- This section of the toolkit looks at how to integrate your H&P strategy results into a C-Suite (i.e., CEO, CFO, COO, etc.) dashboard to help make the continuing business case for the investment. It also includes a few example dashboards as templates to give HR and benefits professionals an idea of how to best tie the metrics together into a dashboard or executive summary for senior leaders.
Section Five — H&P Benchmarking Tools and Scorecards to Evaluate the Value of Investment
- To assist employers seeking to report on H&P strategy performance for a C-Suite audience, this section includes an overview of currently available reporting tools, indices and scorecards. The document includes information on what outcomes are measured, as well as additional information that can help employers decide which tool is best for them.
The National Business Group on Health would like to recognize the Return on Investment/Value of Investment work group for its leadership and guidance: Richard Feifer, M.D., Work Group Chair, Aetna, Inc.; Kathy Harte, CVS Caremark; Ray Fabius, M.D., HealthNEXT, LLC; Erik Sossa, PepsiCo, Inc.; Shelly Wolf, Towers Watson; Bobbie Lauer, formerly of UnitedHealth Group; Ron Goetzel, Ph.D., HERO Liaison, Truven Health Analytics.
Institute on Health, Productivity and Human Capital
The Institute on Health, Productivity and Human Capital, a part of the National Business Group on Health, develops tools and resources for large employers on managing absence, improving engagement and measuring productivity. The work of the Institute focuses on the impact of health and productivity management on corporate performance. For more information about this toolkit or the work of the Institute, please submit our Contact Us form.