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Evaluating an employee wellness program.

Sankar Mukhopadhyay¹, Jeanne Wendel

¹Department of Economics (0030), University of Nevada, Reno, NV, 89557-0030, USA, sankarm@unr.edu.

International Journal of Health Care Finance and Economics

|June 11, 2013

Summary

Evaluating new employee wellness programs requires realistic metrics. Focusing on short-term measures like participation and behavior change, rather than immediate cost savings, offers a more practical assessment of a program's initial success.

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Area of Science:

Health Economics
Organizational Behavior
Program Evaluation

Background:

Published literature often emphasizes return-on-investment (ROI) for evaluating wellness programs, with meta-analyses suggesting potential net savings.
However, surveys reveal fewer than half of programs report savings, and actuarial analysts deem ROI unrealistic for new initiatives.
Analysts propose focusing on vendor capabilities in employee recruitment and behavior change induction for evaluating new programs.

Purpose of the Study:

To assess the impact of a new employee wellness program using realistic evaluation criteria beyond immediate financial returns.
To determine if a new wellness program effectively recruits participants and induces short-term behavioral changes.
To examine the short-term effects of the wellness program on healthcare expenditures.

Main Methods:

Employed difference-in-difference propensity score matching for impact estimation.
Utilized one year of pre-implementation and three years of post-implementation data.
Analyzed program success based on employee recruitment, behavior change, and healthcare cost trends.

Main Results:

The wellness program successfully recruited a diverse range of employees.
The program demonstrated success in inducing short-term behavioral changes, evidenced by increased preventive screenings.
No significant impact on healthcare expenditures was observed in the short term; costs showed an insignificant increase.

Conclusions:

Return-on-investment may be an unrealistic metric for new wellness programs, potentially leading to premature termination.
Evaluating new wellness programs based on short-term outcomes like participation and behavior change provides a more realistic strategy.
Focusing on achievable short-term goals can better inform the long-term viability and potential benefits of employee wellness initiatives.