Every year calls for setting new goals, and with the recent pandemic affecting employees and employers, companies are planning to set new and bigger goals for 2021. However, just setting goals is not good enough for the company to grow and flourish. While working on it is essential, it is equally important to assess the progress of the company goals to see if it is all on the right track.
In our previous blog, we spoke about how to measure the effectiveness of the corporate wellness program with the right evaluation metrics. One of the key measurement metrics is the KPIs, short for Key performance indicators.
Now, we talk a little more in detail about the KPIs, their strengths, and its disadvantages.
What Exactly Are Key Performance Indicators?
As mentioned in our previous blog, KPIs or key performance indicators are the evaluation metrics that give an insight into the progress towards reaching business goals. Be it the individual progress or the overall progress of the corporate wellness programs, assessing the right KPIs can help in evaluating the growth. It is emphasized that the employee wellness programs be evaluated using the best suited metrics to understand the right outcomes.
Ideally, the KPIs must be SMART –
We also said that the most common KPIs tracked by most companies to assess the effectiveness of their corporate wellness programs are –
Evaluating the right KPIs is like the road sign you need to know if your corporate wellness programs on the right track. While there are plenty of advantages when it comes to measuring performance with the KPIs, it is accompanied by a couple of concerns too.
Strengths Of KPIs
Helps Identify and Address The Gaps
One of the key objectives of evaluating KPIs is to identify any loopholes or gaps in the corporate wellness programs and their features, giving enough opportunities to address them.
For example, you would expect at least 80% of employees to engage well in your workplace wellness programs. However, after 3 months you see the numbers nowhere close to the desired goals, and your employee engagement ROI is less than expected. This may indicate a lack of employee engagement or motivation, which you can fix by improving the employee engagement strategies, offering better rewards, and more. With the right measurable KPI, employee engagement, performance, and other tangible outcomes can be assessed.
Driving Employees To Take Action
Only when your employees take action, you can start seeing the desired results for workplace wellness. This is another vital pro of the KPIs. Having clear KPIs that are specific and measurable can drive employees to take action in the right direction.
For example, knowing how many people have enrolled for the program and how many are actively participating in the wellness challenges and events are easily measurable KPIs. Offering the right incentives, webinars, and resources can help in directing the employees to start taking action and participate in the workplace wellness programs to adopt healthy habits. If the numbers grow, that shows you are doing good, else revisit the goals and look for better strategies.
Measuring and Assessing Outcomes
A good KPI should be measurable and trackable. Without measuring the outcomes and progress of your employee wellness programs, you cannot know if you are reaching your goals or if you need to make any improvements in the strategies.
If your employee wellness programs were a success, how did you come to that conclusion?
- Did your employees engage well?
- Are your employees becoming healthier?
- Is there a reduction in healthcare costs?
- Has the productivity improved?
Unfortunately, if your employee wellness programs were as successful as anticipated, how do you know that?
- Did you set the right goals?
- Which modules and features were least used?
- Why did the employees not engage?
- Did the employees find it difficult to participate and keep up with it?
One of the key benefits of KPIs is that they help measure and assess if the decisions taken and strategies implemented have paid off the efforts or fell short.
Disadvantages of KPIs
They cannot be measured in real-time
Most KPIs cannot be measured immediately, and this is one of its major disadvantages. They need ample time to measure and assess the outcomes. Like the saying goes, ‘a watched pot never boils’, you need to give your KPIs enough time to heat up before you measure them.
For instance, you have implemented the employee wellbeing programs, and you want to know if they are being effective enough. But the KPIs to measure the effectiveness of these employee wellbeing programs cannot be measured overnight. It may take many months of consistent action, engagement, and tracking of the right KPIs to evaluate the success of the wellness programs.
It Needs A Lot Of Trial and Error
No doubt KPIs are very useful to evaluate performance and progress, but assessing too many of them can be overwhelming at times. It is like New Year’s resolutions – you wake up early on the first day, work out well at the gym, have your salad on time, and are totally excited about it. But you wake up the next day with muscle sores, and give up the whole plan. Similarly, with the KPIs, you are excited about it at the start and assess many KPIs at the same time. The extensive data can be overwhelming and can leave you frustrated or discouraged.
Start by implementing just one or two essential KPIs which help in closely understanding the business goals. It takes a couple of trials and errors to understand which KPIs give the best readings and assessments. With time, you can implement more relevant KPIs on your way up.
Corporate wellness programs are effective ways to boost employee engagement, health and wellness, productivity, and overall workplace culture. Likewise, KPIs are also powerful tools that businesses should invest in to set the big business goals and break them down into measurable parts to identify any gaps and address them. Although there are pros and cons to the KPIs, the strengths outweigh the disadvantages. With the right KPIs, you can drive your corporate wellness programs and business goals triumphantly towards success.