Challenge 3: Measuring outcomes
Despite the best intentions, very few organizations measure how effective their mental health benefits are. On average, 40% of employers have a mental health strategy in place, and 40% of them never measure the effectiveness of their mental health and wellness initiatives.
(Figure 3)
As a result, they struggle to understand whether their investments in workplace mental health are paying off: 37% are unsure and 49% are unable to meet the emerging mental health needs of employees.
Figure 3
With extraordinary efforts being made to increase workplace mental health programming, it’s imperative that employers understand which programs are working, so they can decide which programs merit continued investment. There is the financial aspect to consider, and then more broadly, there are nonfinancial aspects that are also worth looking at. But how exactly can these be measured?
ROI and VOI
There’s no one-size-fits-all approach to evaluating the effectiveness of mental health and wellness initiatives. Organizations need to consider the best fit for their corporate culture. That said, there are two main methods that can be used: ROI and VOI.
What is ROI for benefits and wellness programs?
While Return on Investment (ROI) is a performance measure more commonly used to evaluate how financially profitable an investment is, it can also be used to assess wellness programs. In this case, the benefit of an investment is divided by how much it costs, and the results are expressed as a percentage or a ratio. For example, disability and absenteeism rates are generally used to measure ROI in the health and wellness realm.
What is VOI for benefits and wellness programs?
Value on Investment (VOI) is a financial analysis that refers to the overall value received on any given investment. It’s useful because it encompasses more than just financials. It also includes things like employee morale and engagement, talent retention, presenteeism and positivity in the workplace, which can be measured through employee engagement surveys. VOI includes all of these intangible benefits on top of the financial savings measured by ROI, providing a more comprehensive view.
Surprising fact: More than
don't measure ROI/VOI or are unsure if they do.
(Figures 4/5)
Figure 4 - ROI
Figure 5 - VOI
5 things to keep in mind when measuring outcomes
So, why do so few organizations measure the effectiveness of their mental health and wellness initiatives? According to those surveyed, two main barriers exist: Insufficient organizational capacity and resources, and uncertainty about how to effectively measure ROI and VOI.
To overcome these barriers and collect the right data, organizations could start by:
- Investigating external resources that could fill in gaps in required skills and knowledge of how to measure and evaluate workplace mental health.
- Identifying best practices in data collection, measurement and evaluation, particularly those used by similar organizations in terms of size, demographics, resources and values.
- Collecting and analyzing data to evaluate whether investments are having the desired impact and adoption rate, and adapting initiatives based on results.
- Taking the time to measure the baseline data of existing initiatives before adding new ones. The right tools might already be in place, so build on those strengths.
- Communicating the results of these evaluations, the recommendations and approved next steps with all stakeholders.
New isn’t always better
One of the pain points that emerged from the study is the communication between employers and employees when it comes to mental health initiatives and benefits. With a wide range of initiatives and tools already available within their organizations, employers may have all the ingredients in hand to cover their employees' needs.
"I think what we offer covers their needs fairly well. We just don't communicate it clearly or often enough for them to make the best use of them. Working to fix that."
– An employer (interviewee)
One thing is for sure: before adding something new, it’s important to focus on what really works and make sure employees are aware of what’s available so they can access the resources they need.
Building on successful practices in mental health and wellness
Here are a few tips for employers to help them identify and build on their best mental health and wellness initiatives:
- Strengthen the mental health and wellness initiatives that have the greatest impact on employees. Base decisions on evidence, not assumptions.
- Invest in programs and policies that promote and protect mental health, such as meeting-free days, mental health training for leaders and managers, flexible work arrangements and social activities aimed at keeping employees connected.
- Build a corporate culture that supports the mental health and wellness efforts in place so that employees can make better use of the resources available to them.
- Prioritize investments in the highest impact areas, such as leadership training and return-to-work programs.
- Assess whether leaders and managers have the core competencies they need, including knowledge of and interest in mental health, strong communications skills and ability to lead by example.