As healthcare expenses continue to climb, with projections indicating near-double-digit increases in 2027, franchise organizations and business owners face mounting pressure to optimize their employee benefits investments. Traditional metrics like enrollment rates provide an incomplete picture of a benefit’s effectiveness. Instead, the focus is shifting toward understanding whether employees actively use and engage with the benefits over time.

Why Enrollment Alone Is Not Enough

Enrollment figures have long been the standard for assessing employee interest in benefits programs. While signing up is an important first step, it does not guarantee that employees are deriving meaningful value from the offerings. For example, fitness benefits often see initial enthusiasm, but the challenge lies in encouraging consistent participation that leads to healthier habits.

Tom Wiffler, CEO of One Pass and a former UnitedHealthcare executive, emphasizes that the return on investment (ROI) conversation must evolve beyond eligibility and sign-up numbers. He explains, “It should be about whether the benefit is driving sustained engagement and whether that engagement connects to better outcomes.” This perspective is especially relevant for franchisees and HR leaders who must justify benefits spend amid rising costs.

Measuring Engagement: The True Indicator of Value

Engagement metrics provide a more nuanced understanding of a benefit’s impact. Instead of simply counting how many employees enrolled, benefits decision-makers should examine:

• Who is using the benefit regularly?
• How frequently are employees engaging with the program?
• Is engagement increasing, stable, or declining over time?

This approach helps identify whether a benefit supports employees in building lasting healthy behaviors rather than a one-time interaction. Collecting employee feedback is also critical to uncover barriers such as lack of awareness, unclear instructions, or insufficient motivation that may hinder participation.

Personalization and Flexibility Drive Sustained Use

Movement and wellness are highly individual. What motivates one employee may not resonate with another, especially as personal circumstances evolve. Offering a variety of options—such as gym memberships, virtual classes, or wellness challenges—allows employees to find activities that fit their preferences and schedules. This adaptability increases the likelihood of ongoing engagement and better health outcomes.

Distinguishing Between Underuse and Lack of Value

Before discontinuing a benefit due to low participation, franchisors and employers should investigate the root causes. Is the benefit well-communicated? Do employees understand how to access and use it? Are there logistical or motivational barriers preventing uptake? Sometimes a valuable program fails to reach its potential simply because employees are unaware or unsure how to engage.

Addressing Healthcare Costs Through Proactive Wellness

With healthcare costs on the rise, organizations have an opportunity to focus on prevention rather than solely managing illness. Encouraging consistent physical activity is a proven strategy to improve health outcomes and reduce medical utilization. This proactive approach not only benefits employees but can also help control long-term healthcare spending.

Importantly, fitness benefits should be integrated into the broader health strategy rather than treated as optional perks. Recognizing movement as a fundamental health benefit can help reframe communications and increase employee buy-in.

Practical Steps for Benefits Leaders in 2027

As open enrollment approaches, benefits leaders should:

• Promote fitness and wellness programs as essential components of employee health, not just extras.
• Ensure clear communication about available benefits, including how to access and use them effectively.
• Provide diverse options to accommodate different employee needs and preferences.
• Solicit ongoing employee feedback to identify and remove barriers to engagement.
• Track engagement metrics over time to evaluate program effectiveness and guide future investments.

By shifting the focus from enrollment to engagement, franchisors, franchisees, and employers can better support their workforce’s health, improve retention, and make more informed decisions about benefits spending. This approach aligns employee wellbeing with organizational goals, creating a sustainable benefits strategy in an era of rising healthcare costs.

Industry source: Employee Benefit News. This FBS article is an original editorial interpretation of the topic.

This article is provided for general informational purposes and is not intended as legal, tax, financial, or insurance advice.