Wellness programs have grown in popularity over the last few years, shifting the balance from a perk offered by select corporations to something of an expectation from employees. But the time, effort, and money that often go into maintaining an impactful wellness program can leave employers wondering whether it’s really worth the trouble. The research here is fairly conclusive: yes, it is! Here are four core reasons your company should maintain a well-run wellness program:
Health Goes Up, Claims Come Down
Wellness programs make for healthy employees. Studies have found that programs targeting lifestyle issues such as weight loss, diet, or smoking have had measurable impacts on connected health outcomes, from diabetes prevention to lowered risk of heart disease. In fact, the success of a well-laid wellness program can directly lower claims on your employer-sponsored health plan.
A Harvard study determined that for every dollar a company invests in a quality wellness program, they can expect up to $6 in health care savings. This is largely due to a wellness program’s focus on prevention; they are particularly effective at early identification of problems and intervening before health concerns develop into medical problems that require a doctor’s care. One common and particularly effective screening method promoted by wellness programs is biometric screenings, which is estimated to reduce claims by 30%.
Since 1995, the percentage of Johnson & Johnson employees who smoke has dropped by more than two-thirds. The number who have high blood pressure or who are physically inactive also has declined—by more than half. That’s great, obviously, but should it matter to managers? Well, it turns out that a comprehensive, strategically designed investment in employees’ social, mental, and physical health pays off. J&J’s leaders estimate that wellness programs have cumulatively saved the company $250 million on health care costs over the past decade; from 2002 to 2008, the return was $2.71 for every dollar spent.
What’s the Hard Return on Employee Wellness Programs, Harvard Business Review
Healthy Employees Mean Fewer Sick Days
As one might expect when employee health increases, an effective wellness program also lowers sick days. In addition to addressing early health concerns, a wellness program serves some critical functions:
- Encourages healthy habits and lifestyle changes
- Empowers employees to take charge of their health
- Supports employees in mental health and other, less tangible, health struggles
- Provides tools for coping with stress
Your wellness program can have a real and positive impact on your employees, boosting their day-to-day health and reducing their need to call in sick.
The Centers for Disease Control and Prevention (CDC) reports that productivity losses linked to absenteeism cost employers $225.8 billion annually in the United States, or $1,685 per employee. Promoting safe and healthy work practices boosts profitability and productivity among employers of all sizes.
Worker Illness and Injury Costs U.S. Employers $225.8 Billion Annually, CDC Foundation
Wellness Boosts Productivity
Wellness programs can take a number of different forms, but one thing all well-constructed programs have in common is employee engagement. Done right, a wellness program sends a strong message to employees that their health and well-being is a priority for the company. This results in higher morale and an improved company culture.
When employees feel that their employer cares about them, and are supported in their mental and physical health, productivity in the workplace flourishes. The reasoning here is simple: if the company goes the extra mile for its employees, they have much more incentive to go the extra mile for the company. Studies are even suggesting that healthier employees have stronger problem-solving skills, which in turn means smoother operations at your organization.
Some 67% of employees said participation in wellness programs increased their engagement in their employer’s mission and goals. 91% of employees participating in wellness programs have improved their fitness while 89% said participation has improved their overall happiness and well-being.
Workplace culture of wellness leads to increased employee engagement, productivity and happiness, Becker’s Hospital Review
Wellness Brings Talent and Tenure
Recent years have seen a shift in employee attitudes when searching for employment. A wellness program, and the culture it contributes to, have gone from a notable perk to a core expectation. Polls and studies have found that employees now consider health and wellness benefits to be a critical factor in their decision to accept a new position or remain in their current one. Beyond the message it says about leadership’s investment in employee well-being, a wellness program can forge bonds between employees that discourage turnover.
Healthy employees stay with your company. A study by Towers Watson and the National Business Group on Health shows that organizations with highly effective wellness programs report significantly lower voluntary attrition than do those whose programs have low effectiveness (9% vs. 15%). At the software firm SAS Institute, voluntary turnover is just 4%, thanks in part to such a program; at the Biltmore tourism enterprise, the rate was 9% in 2009, down from 19% in 2005. According to Vicki Banks, Biltmore’s director of benefits and compensation, “Employees who participate in our wellness programs do not leave.” Nelnet, an education finance firm, asks departing employees in exit interviews what they will miss most. The number one answer: the wellness program.
What’s the Hard Return on Employee Wellness Programs, Harvard Business Review
Determining the exact return on investment for a wellness program can be difficult, but the bottom line is that your organization absolutely needs a wellness program. The good news? It doesn’t have to break the bank or take up all your time. If your organization is facing obstacles in implementing or maintaining a wellness program that effectively delivers the benefits outlined here, Moreton & Company can help. Our expert Population Health and Wellness team has helped hundreds of employers create and maintain wellness programs tailored to their specific resources and needs.
