Why Your Employee Wellness Program Needs Evaluation: Importance, Types & Steps to Conduct

The wellness market is one of the most promising sectors. Research by McKinsey and Company indicates that the wellness industry is rapidly expanding, with the U.S. market alone reaching $480 billion in 2024. Within the wellness sector, the corporate wellness sector is expected to reach a whopping USD 74.9 billion by 2030, as per data by the Grand View Research.

This growth has prompted many companies to invest in diverse wellness programs for their employees. To illustrate the potential and challenges of wellness programs, let's consider a scenario at Company X. After learning of the many benefits of wellness programs, it has decided to invest significant resources in a new wellness program. X has covered everything from gym and yoga sessions to employee stress and disease management.

They see some initial enthusiasm, but participation fades away after a few months, and initial improvements in employee health and productivity decline. What kicked off as a fantastic boost to employee wellness suddenly lost momentum. The company is left wondering what went wrong.

Is the program not meant for its employees, or was it flawed in its inception? Are any barriers preventing participation, or are the employees unaware of the available resources?

Here, corporate wellness evaluation strikes a chord with an impactful and sustainable implementation of a corporate wellness program. It answers all the questions that company X needed clarification on.

This blog presents research-backed insights on why you and your company should track your wellness program. It also makes it easy to understand the types of evaluations and the practical steps of conducting them.

In the following section, you will explore why evaluation is critical. By evaluating your program, you can identify what’s working and what’s not.

Why is It Important to Evaluate a Wellness Program?

Employee wellness programs were until very recently more commonly known as employee perks. Companies thought they could do without them. Today, both employee wellness and wellness-based programs are taken seriously and are no longer just words.

Wellness programs are vital to a company's long-term success. Today, they are a hallmark of good leadership and visionary organizations. A strong employee wellness program cultivates a more engaged and productive workforce, reducing turnover, absenteeism, and presenteeism.

However, launching a wellness program is only the first step to creating a company culture of wellness. As a student, you were evaluated at each grade for each subject to consistently monitor your academic progression. Similarly, wellness programs are best utilized when consistently assessed at various stages. This assessment uses key employee wellness metrics to give employers regular data for evaluating their return on investment.

What's best for the employee can often be what's best for the company, but what's best for the company is often not for the employee. As companies seek to establish workplace wellness programs, it's essential to ensure they are aligned and beneficial for the employees they seek to support.
– Natalie Mullin, Partnerships Manager at Practice Better.

In addition to Mullin's words, wellness program evaluation ensures employers know whether the program initiatives align with the company's vision. The results from evaluations clarify whether the programs meet organizational goals. They justify continued investment in employee wellness initiatives.

Besides, employee wellness program evaluations provide data-driven insights for senior management decision-making. This data influences stakeholders' decisions to either improve or discontinue wellness programs.

Further, I delve into some essential wellness program evaluation questions. These should guide employers in tracking their wellness programs.

Essential Wellness Program Evaluation Questions

By addressing the above essential questions, employers can comprehensively gauge the effectiveness of their wellness programs. Positive answers indicate progress, while negative ones highlight areas needing attention. Neutral responses may suggest stagnation and should also be examined for opportunities to refine the program.

Answering these questions ensures the wellness program remains effective, relevant, and sustainable. The insights gained help companies determine the best course of action and identify the structural changes necessary to tackle bigger questions, such as developing best practices or introducing new policies.

Can our findings contribute to the development of best practices?

Is there potential for new policies due to what we’ve learned?

Evaluating your wellness programs serves two key objectives. First, it provides a detailed understanding of your return on investment, helping you assess the program's impact. Second, it demonstrates your commitment to employee well-being, showcasing that you prioritize action over words by making data-driven improvements based on the results.

We have presented a picture of why evaluation is essential. Now let's explore the various types of evaluations that can help you measure your program's success.

What are the Common Types of Employee Wellness Program Evaluations?

By now, you have understood why evaluating wellness programs is so important. Now, let's move on to explore the different types of evaluations you can use.

1. Process Evaluation

This type of evaluation focuses on answering the 'how' aspect of the wellness program, assessing its implementation to ensure quality, consistency, and effectiveness. The goal is to understand employees' experiences with the program.

Did they participate? If so, what motivated them, and if not, what barriers prevented their involvement?

To dig deeper, consider exploring questions such as:

Was the chosen day of the week convenient?

Was the timing of the program suitable?

Did the participants find the topics engaging and relevant?

The time to conduct process evaluation is 18 months after launching the program.

2. Impact Evaluation

Here, the focus is on the immediate observable effects of a program. For instance, an employee smoking cessation program would seek to determine whether it has reduced smoking rates.

It also may include tracking incidents and injury trends. You may have guessed by now that impact evaluation looks at the cause-effect relationship. That is, are the changes that occurred attributed to the implemented program?

When should you do impact evaluations?

Impact evaluation should happen between 18-36 months post-program.

3. Outcome Evaluation

Finally, when you are done with the process and impact evaluations, you would like to know the program's cumulative outcome. Next, consider things like the company's risk factor-based medical costs and absenteeism-based lost productivity costs.

Employers should also assess injury-related workers' compensation and rehabilitation costs. Typically, this outcome evaluation occurs 36 months post-implementation. It will show whether annual healthcare spending has fallen, or employee turnover and absenteeism are down.

At this stage, you know the answers to the big questions about your investment in employee wellness.

With an understanding of the different types of evaluations, it's time to put them into practice. Now, let's walk through six practical steps to establish a robust evaluation system for your wellness program.

How do I Evaluate An Employee Workplace Wellness Program?

By now, you understand the importance of evaluating employee wellness programs. You are familiar with the different types of evaluations, their purpose, and the appropriate timing for conducting them. Let’s now jump onto executing one for your wellness program.

1. Identify What to Evaluate

Begin by determining which aspects of the wellness program need evaluation. The specific areas to assess will depend on whether the program is new or has been running for some time.

Additionally, the size of your workforce will influence what to focus on. By considering these factors, you can pinpoint the most critical elements to evaluate.

2. Select Appropriate Evaluation Methods

There are three main areas through which you'll assess the effectiveness of your wellness program:

Employee Feedback

What do employees think and feel about the program?

Health Metrics

What does the data from health assessments tell you?

Participation Rate

How many employees are actively engaging in the program?

Choosing the right evaluation method allows you to gain comprehensive insights into the program’s success. You may consider using one or a combination of these approaches.

3. Gather Data

The goal of evaluation is to collect meaningful data. Focus on key wellness metrics, such as employee feedback and health data. For example, if you choose to gather employee feedback through surveys, here are a few sample questions:

How do you feel about your overall health and wellness?

What are your top three suggestions for improving the wellness program?

On a scale of 1 to 10, how much do you feel the company prioritizes your wellness?

These questions will help guide the direction of your wellness program and highlight areas that need attention or improvement.

4. Analyse and Interpret Findings

Program effectiveness is often measured by comparing participants' pre- and post-program data. Many wellness program organizers compare initial data with follow-up results.

We do not have a dearth of technical data interpretation and analysis tools. However, using the correct tools to measure your wellness program evaluation could be trickier than imagined. Analytical tools, such as Google and Microsoft Power BI, provide detailed employee wellness dashboards and visualizations for analyzing wellness metrics.

Remember that your findings' credibility depends on how carefully you evaluate them. If your assessment uses poor data, your results won't be reliable. In short, use the right tools to analyze and interpret your evaluation results.

5. Use Evaluation Results to Improve the Program

The second last step in evaluating your wellness program is using the results from the data interpretation and findings to improve the program. This is the most critical step that can make or break your evaluation a success.

The reason is that the idea of the evaluation is to inculcate the best practices and improvements into the program. This happens in tandem with the last step, which we will address next.

The wellness program can only improve if employee feedback is gathered and incorporated into the company's vision. Once that is done, responsibility now shifts to the employer.

6. Communicate Findings to Stakeholders

How well the evaluation findings are communicated to the stakeholders is just as crucial to a well-maintained wellness program as it is to any other business initiative. It would help if you communicated the findings with various stakeholders based on their areas of interest and decision-making powers.

Communicating evaluation results effectively to stakeholders is as vital to a successful wellness program as any other business strategy. A good communicator will translate findings into clear next steps.

Finally, remember to avoid jargon and complex explanations. Your communication should reflect your clarity on the findings. Only then will you make a compelling case for changes in your wellness program.

Now let’s move on to the question of whether evaluation is needed for a program even while it is working fine.

Is it Necessary to Evaluate an Employee Wellness Program That is Already Performing Well?

Evaluating a wellness program remains crucial, even when it’s performing well, because people and markets are constantly evolving. Regular evaluations ensure that your program stays aligned with these changes and continues to deliver meaningful results.

Further, let's explore three reasons for doing so.

To Sustain a Wellness Program

Sustainability in a wellness program is challenging. For example, motivating employees to engage in positive health behaviors and show up for themselves is highly demanding.

Evaluations are necessary because the program may only stay effective for a while. They will keep you alert when it falls short.

Helps to Adapt to Changing Trends and Technologies

Continuous evaluations engage you with the latest technologies in your employees' wellness journey, giving your company a competitive edge.

Identify Areas for Improvement

An old saying states, 'There's always room for improvement.' When you stop evaluating, you see no improvement areas. Even when your company's wellness program is doing just fine, continuous evaluations allow you to see that 'room.'

Now that we’ve explored the essentials of a corporate wellness program evaluation, let’s conclude by summarizing the key takeaways.

Conclusion

Evaluating an employee wellness program is not a one-time task. It requires a meticulous eye for detail and a long-term vision. Evaluation is an ongoing process that ensures your program remains effective and aligned with employee needs.

Start by identifying what to evaluate and choosing the right methods. Then, gather relevant data and analyze the results. This will allow you to make informed decisions to continuously improve your wellness initiatives.

This blog has attempted to equip you as an employer to measure your program’s success and drive meaningful improvements that benefit employees and your organization.

Lastly, be open to feedback, be flexible in adjusting the program, and be focused on creating a workplace where wellness is a priority.

Frequently Asked Questions

1. What Key Metrics Should Small Companies Prioritize When Evaluating a Wellness Program?

Small companies often have limited resources, so it makes sense for them to prioritize metrics that show clear, short-term impacts. Key wellness program metrics for them include employee satisfaction feedback, participation rates, absenteeism, and behavioral changes like physical activity.

2. What Key Metrics Should Large Companies Prioritize When Evaluating a Wellness Program?

Big companies are better placed to consider their wellness programs' long-term impact and scalability. Key metrics they should focus on include the following

a. Employee health outcomes like obesity based on biometric screenings.

b. Healthcare cost savings year-over-year.

c. Employee retention and productivity metrics.

3. What Specific Areas Can a Wellness Survey Evaluate in a Wellness Program?

An employee wellness survey comes in extremely handy to evaluate specific areas in a wellness program such as physical health, mental health, stress, and work-life balance.

4. What are Some Common Challenges Faced During the Evaluation of Wellness Programs?

a. Issues in Measurement and Data Collection.

b. Unclear Goals and Metrics.

c. Attribution and ROI Calculation.

References

1. McKinsey and Company

2. Grand View Research