ROI Versus VOI – And The Value of Corporate Wellness
Many times we have heard people saying ‘What’s your return on investment (ROI) on that?’ or ‘How much are we going to make and will it be profitable?’. The principle of ROI literally means a return on investment, or in other words – ensuring that an investment receives the same amount of money back – or even more.
However, value on investment (VOI) has been a trending topic over the past few years and one definitely worth exploring. The concept of VOI was first introduced by Gartner, one of the pioneer companies in information technology research. Value On Investment (VOI) is best defined as all the intangible assets that contribute to an organization’s performance.
From the prism of corporate wellness, VOI often collides with ROI. In fact, the value of investment represented by VOI includes all the knowledge and processes as well as organizational structure, which is very often more critical to an organization than simply put – the budget spent and the expectations on it.
Let’s face it – investing funds in a project certainly comes with a responsibility. Therefore, ROI is an important aspect of corporate wellness nowadays. However, ensuring that the funds invested have a certain value, intangible benefits as well as increase productivity to result with a higher ROI – is the missing link that many companies fail to understand when evaluating their investment.
So, what does Value On Investment actually mean?
It means more than just a budget which is set. It means understanding the real value of something and defining the benefits of that investment. In other words, it refers to:
- Value of information – Is the information used for the investment relevant?
- Value of initiative – Is there a business voice standing behind all the actions within a company?
- Value of impact – Does the investment guarantee impact that will benefit the marketplace?
- Value of influence – Is the company that invests influential in the community?
- Value of Instruction – Are the processes within industry-appropriate and meet the standards set by the government?
- Value of Interaction – Will the members be able to make connections, share information and learn the best practices?
- Value of Insights – Is the investment guaranteed to make every member gain valuable knowledge?
- Value of Integration – Is the value on investment meeting the goals of the company?
As you can probably see, VOI comes with a lot of principles, which every company needs to understand before partaking in an investment. It is definitely one of the rising trends in corporate wellness and the one that, along with ROI, acts as the backbone value of every investment.
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