How do you measure the impact of benefits and compensation on employee wellness and health outcomes?

Benefits and compensation are key factors that influence employee wellness and health, especially in the context of onboarding. However, measuring their impact can be challenging, as there are many variables and indicators to consider. In this article, we will explore some of the best practices and tools to assess how your benefits and compensation strategy affects your employees' well-being and performance.

1 Define your goals and metrics

Before you start measuring the impact of benefits and compensation, you need to define what you want to achieve and how you will track it. For example, do you want to improve employee retention, engagement, productivity, satisfaction, or health outcomes? What are the specific indicators and benchmarks that you will use to measure these goals? How will you collect and analyze the data? You can use a variety of sources, such as surveys, interviews, focus groups, performance reviews, turnover rates, absenteeism, health claims, or biometric screenings.

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David Clark, MSc, CPMI

HR Project Manager & Employee Retention SME
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You should focus on 2 sets of objectives: from employer and employee perspectives. While it's important to understand the company-focused impact (e.g., benefits utilization, retention), you also need to consider the employee perspective (e.g., awareness of company benefits, wellbeing concerns). This will help you develop effective feedback loops that can help you determine which benefits offerings are most appropriate for your stakeholders.

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2 Align your benefits and compensation with your culture and values

One of the ways to enhance the impact of benefits and compensation on employee wellness and health is to align them with your organizational culture and values. This means that you should design and communicate your benefits and compensation package in a way that reflects your mission, vision, and core values. For example, if you value diversity and inclusion, you can offer flexible and inclusive benefits that cater to different needs and preferences. If you value innovation and learning, you can offer opportunities for professional development and recognition.

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3 Customize your benefits and compensation to your employees' needs and preferences

Another way to maximize the impact of benefits and compensation on employee wellness and health is to customize them to your employees' needs and preferences. This means that you should offer a variety of options and choices that allow your employees to select the benefits and compensation that best suit their personal and professional goals. For example, you can offer different levels of coverage, deductibles, and co-pays for health insurance, or different types of retirement plans, stock options, or bonuses. You can also offer voluntary benefits, such as wellness programs, gym memberships, childcare, or tuition reimbursement.

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4 Communicate your benefits and compensation clearly and effectively

One of the most important steps to measure the impact of benefits and compensation on employee wellness and health is to communicate them clearly and effectively. This means that you should inform your employees about the value and details of your benefits and compensation package, as well as how to access and use them. You can use various channels and methods, such as orientation sessions, handbooks, newsletters, intranet, webinars, or one-on-one meetings. You should also solicit feedback and suggestions from your employees on how to improve your benefits and compensation strategy.

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David Clark, MSc, CPMI

HR Project Manager & Employee Retention SME
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Strategic communications campaigns need to be designed and deployed - especially for wide-reaching benefits updates (e.g., open enrollment). When benefits changes are on the horizon, you need to communicate to your employees beforehand (at least 1-2 months), during, and after (at least 1 month). This will ensure that the information is 'front and center' to equip them with the requisite details they need to make their decision.

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5 Evaluate and adjust your benefits and compensation regularly

Finally, to measure the impact of benefits and compensation on employee wellness and health, you need to evaluate and adjust them regularly. This means that you should monitor and analyze the data and metrics that you have defined and collected, and compare them with your goals and benchmarks. You should also identify the strengths and weaknesses of your benefits and compensation package, and the opportunities and threats that may affect them. Based on your findings, you should make the necessary changes and improvements to your benefits and compensation strategy, and communicate them to your employees.

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David Clark, MSc, CPMI

HR Project Manager & Employee Retention SME
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Solicit feedback about your benefits offerings via regular employee feedback loops (e.g., annual engagement survey, pulse surveys). This will help you gauge employees' perceptions about these offerings - as well as collect any positive/negative feedback. This data is helpful for making benefits-related decisions for the following year.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you measure the impact of benefits and compensation on employee wellness and health outcomes?

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1 Define your goals and metrics

2 Align your benefits and compensation with your culture and values

3 Customize your benefits and compensation to your employees' needs and preferences

4 Communicate your benefits and compensation clearly and effectively

5 Evaluate and adjust your benefits and compensation regularly

6 Here’s what else to consider

Onboarding

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