How effective data utilisation can improve health and wellbeing plans

How do employer justify the costs of health and wellbeing plans in the current challenging economic climate for their employees?

Employers face increasing pressure to demonstrate the value of their health and wellbeing benefits, especially in light of significant increases in costs over the past 18 months.

But equal to the challenge over increasing costs is the challenge of the inability to prove the value and business impact of one’s benefits.

According to GRiD, the industry body for the group risk sector, benefits will come under increased scrutiny in 2025 as the cumulative effects of pressures from the 2024 Autumn Budget begin to impact organisations.

Often organisations struggle to measure the effectiveness of their benefits.

Measuring the impact

Howden’s Benefits Design Research 2024 revealed many businesses fail to demonstrate the impact of their benefits on key objectives such as reducing absenteeism, enhancing diversity, equity, and inclusion (DEI) and improving wellbeing.

This gap highlights the need for a data-driven approach to designing and implementing health and wellbeing strategies.

By collating and using data more effectively, businesses can identify problems with more certainty, define clear objectives, directly track outcomes and ensure that interventions are targeted and impactful.

So why do so many employers struggle to get the data they need to inform their decisions and actions?

That can be an issue with availability of the data, data protection barriers, poor systems and processes and a lack of understanding or skill.

What kind of data can you collate?

If you understand what you are trying to achieve and know how to identify the problems, you can start to build a clear picture of the data you need to test your hypotheses.

Absence data: Tracking absence patterns and reasons helps to identify underlying health trends, whether that’s acute or chronic illness or work-related stress or something else entirely. This data can highlight areas where targeted interventions may either reduce absence or stop it before it even starts.
Benefit usage data: Examining the take-up of health and wellbeing initiatives, gym memberships, and mental health support, helps gauge employee engagement and identifies which benefits are most effective. If there are pockets of employees you’d expect to use the benefit, who aren’t, you can build engagement plans targeted towards those groups.
Claims data: Data from private medical insurance (PMI) and other insurance providers (such as income protection) is especially valuable. It can reveal prevalent health conditions, healthcare usage patterns, and cost drivers, providing insights into the health risks within the workforce. It can help identify opportunities for preventative interventions before issues become acute or there is an over-reliance on PMI.
Employee feedback: Gathering insights through surveys, interviews, and feedback from health-focused events (e.g., webinars, workshops) gives businesses a direct view of employee concerns, preferences, and how satisfied they are with the wellbeing offerings. And it is vital to be able to connect feedback to other data sets, such as take-up and claims/benefits utilisation, to see whether interventions work.
Engagement metrics: Tracking participation rates in wellbeing programmes, educational webinars, or mental health initiatives provides key insights into how well employees are engaging with available benefits. This data helps to refine programmes to better meet employees’ needs.

By aggregating these data sources, businesses can build a comprehensive picture of their workforce’s health needs, enabling more informed decision-making and targeted interventions.

Role of data in improving health outcomes

With data in hand, organisations can design and implement targeted interventions.

For instance, claims data can pinpoint specific health risks, allowing businesses to proactively address issues such as mental health, musculoskeletal disorders, or stress.

Tailored wellbeing programmes - such as personalised fitness plans, mental health resources, or ergonomic solutions can then be developed to address these specific concerns.

Incorporating real-time feedback and tracking participation rates further refines these interventions.

This allows companies to monitor the effectiveness of health programmes and adjust them to ensure that they remain impactful and aligned with overall health goals.

Defining clear outcomes and metrics

To measure the success of health and wellbeing initiatives, businesses need clear, measurable goals.

Defining baseline metrics at the beginning of any programme provides a reference point for assessing progress.

For example, if a company implements a smoking cessation programme, it could track metrics like participation rates and reductions in smoking-related illnesses or absenteeism over 12 to 18 months.

In addition to measuring the direct health outcomes of initiatives, data can also help businesses align these programmes with broader organisational goals.

For example, tracking healthcare cost savings or improvements in employee productivity can highlight the return on investment (ROI) for health initiatives.

Continuous analysis of these metrics ensures that programmes remain relevant and effective.

Leveraging data for business success

Adopting a data-driven approach to employee health and wellbeing offers significant business benefits.

A healthier workforce leads to improved productivity, reduced absenteeism, and lower healthcare costs, all of which contribute to a more engaged and motivated workplace culture.

By tracking and measuring outcomes, companies can justify their investments, ensuring that health and wellbeing initiatives deliver a strong ROI.

Data analytics also ensures that health programmes align with broader organisational objectives, such as improving employee engagement and enhancing long-term business performance.

By embracing a data-centric approach, organisations can tackle immediate health concerns while building a sustainable, healthier workforce that drives overall growth and success.