Whether or not we want to admit it, a return on any Investment (ROI) would be nice. Whether it’s my stock portfolio or my wellness program, putting a number next to something somehow seems to validate the expenditure of resources (time, talent, money, etc.). However, ROI is just one part of a much bigger umbrella of overall VALUE.
Rather than how much money we will save or grow over time, let’s talk about something much bigger than money. Let's talk about the whole Value Proposition. A basic value proposition simply reviews the benefits, costs and value to be delivered to a consumer or in this case an organization. Value = Benefits - Cost. There are many tangible and intangible benefits to consider which means that value will also have tangible and intangible values. A monetary return is just one part of the value proposition. Whether we are selling a product, a service or requesting the help of a friend in moving, we all have a value proposition to make to others. If it’s a value proposition for a program or initiative in a workplace, we should be connecting the benefits to their corporate values. Believe it or not, in some circumstances an ROI may be the lowest point of value or expectation for an investment.
It’s important for businesses to consider the total Value of Investment (VOI) when allocating resources towards developing a great workplace environment and working to enhance health of their employees. What’s under your value of investment umbrella for workplace strategies? It will look different for each organization and that’s part of the fun. Defining the value proposition should be more than a financial exercise, it should be a way to ensure that the policies, projects and programs are aligning with the value you expect from them.
If I looked at my 3 daughters each day expecting an ROI, it wouldn’t take long before I’d be sorely disappointed and would start seeing them as a liability and a negative asset, not just pulling down my financial assets, but physical and definitely emotion bank accounts as well. I don’t expect an ROI from my children (good thing too!) but the overall value (VOI) I get from being a dad far outweighs the monetary (and physical and emotional) expenses.
So, what’s under your umbrella for employee initiatives? ROI isn’t a bad goal, its only one small part of value; it’s just the monetary part of a much larger umbrella of value to the organization. What is under your Value of Investment umbrella? What are the top 6 items you would put under your umbrella? Consider printing out the blank umbrella and writing in your own and posting it as a reminder of your value proposition.