The ROI of Employee Wellness Programs
Let’s get right to it:
Here are some actual results of the impact a wellness program can have on a company.
BC Hydro – saved $3 for every $1 spent on a wellness program.
Canada Life Insurance – saved $3.43 for every $1 spent on a fitness program.
Pillsbury Company – saved $3.63 in health-related costs for every $1 spent on a wellness program.
Coors Brewing Company – saved $6.15 for every $1 spent on a fitness program.
These numbers demonstrate that companies can see actual return on their wellness program investments that can translate into even greater savings when you factor in reduced expenditure in human resources.
Employers who wish to be competitive in the marketplace must offer more than a job. Employees are looking for a company that provides both financial benefits and personal benefits.
Michael Boyce, of GoodLife Fitness states, “People want a health and wellness program. As the labour shortage comes upon us, the war for talent is going to get nasty. Companies that adopt a wellness program, encourage good work-life balance, and allow their employees to be the best they can, will win. That’s all there is to it.”
Human resource experts have long been promoting the idea of starting workplace wellness programs. Is there a ROI for employers to implement a workplace wellness program? The evidence is overwhelming. Not only does a workplace wellness program provide employees with lasting health benefits, it can generate positive returns that can translate into financial savings for employers.
According to a study done by the Workplace Safety and Prevention Services, “…healthy workplaces generate 20% more revenue per employee, 4% higher profit margin, and can enhance market value by as much as 16%.” These numbers should capture the attention of anyone interested in improving the bottom line of a company’s budget.
The Science of Wellness Programs
Why do wellness programs generate such astonishing results? The answer is both simple and complex. Inherently, we know that healthy employees are generally happier people. It turns out there is scientific evidence to support that idea.
Studies have shown that employees who are healthier are more content in their job and as a result are less likely to leave their position. In addition, they are less likely to call in sick and have a reduced level of stress.
Wellness programs can vary in their offerings, based on the specific needs of the employees. In one company, programs designed to help employees stop smoking may be essential, while in another an internal ping pong tournament may get rave reviews. Wellness programs may change over time, adding and removing programs on demand to accommodate the needs and interests of the employees.
The ROI of Wellness at Work
Generalized numbers sound good, but how do actual companies compare when it comes to seeing a return on their wellness investment? The Industrial Accident Prevention Association reports that most companies see a return of anywhere from $1 to $8 for every dollar spent on wellness, with $3 being the average.
Your wellness program can have positive results for employees and employers, making it a worthwhile investment of both time and money. How can you amp up your wellness program?