Only 32% of total rewards leaders believe their organisation does a good job assessing the effectiveness of their investments in well-being programmes, according to Gartner. The June 2023 survey of 165 total rewards leaders highlighted the lack of confidence these leaders have in assessing their programmes.
“HR and total rewards leaders know that well-being programmes overall work; what is unclear is how their own specific programs are performing and what is needed to improve their effectiveness,” says Brent Cassell, vice-president, advisory in the Gartner HR practice.
Gartner has identified three steps total rewards leaders can take to measure well-being programme effectiveness and communicate its value to senior stakeholders:
Measure dimensions of effectiveness
Organisations should look at four distinct dimensions of effectiveness – and the questions they raise – as a first step to measuring well-being effectiveness:
* Adoption. Are employees aware of and using the well-being programmes provided?
* Satisfaction. If employees are using a particular offering, are they having a good experience and would they recommend it to others? Are they satisfied with the programme of offerings overall?
* Wellness. If employees are using the offering – and having a great time doing so – is it working? Are they fitter, better, happier people as a result?
* Outcomes. If employees are feeling better, are total rewards leaders seeing that reflected in the outcomes their senior leaders care about most?
Create a Measurement Framework
Against the four distinct dimensions of wellness, organisations should develop a measurement framework that looks at the full adoption journey. This includes employee awareness of well-being programmes, whether employees feel the programmes offered are relevant to their needs, and if employees are utilising the programmes.
Total rewards and HR leaders should also consider how to show that participation in well-being programmes drives both talent outcomes – employee engagement, performance, and intent to stay – and business outcomes including reduced healthcare costs, absenteeism/presenteeism, and regretted attrition.
“One potential method for determining the overall value of an organisation’s well-being programme is to consider three facets: satisfaction, adoption, and cost,” says Cassell.
Craft a value story
Total rewards and HR leaders need to go beyond simply sharing data to show the value of well-being investments to key stakeholders. Rather than starting with metrics and what is most easily measured, total rewards leaders need to tailor their messages to their audience. To do this, they must understand the priorities of individual stakeholders and then share the metrics that best demonstrate the impact of well-being programmes in those terms.
“Data alone is not value, it is a means to an end,” says Cassell. “Total rewards leaders need to demonstrate to their key stakeholders how the organisation’s well-being programmes contribute to the things that they care most about.”