BENEFITS OF WELLNESS
You’ve heard about worksite wellness programs and wondered if it’s really worth the investment...
We could rattle on about ROI but you’ve probably already heard the statistics about it. You may have even heard that it can be difficult to determine the ROI of a wellness program. And because ROI is typically measured narrowly, with health risk assessments and health screenings, not holistically, we’re going to talk about VOI instead, the value of investing in a wellness program.
Here are 4 ways that wellness can add value to your workplace and reduce employee-related costs.
1. Recruit and Keep Top Talent
Millennial Branding released a study which found that 87% of companies reported costs of $15,000-$25,000 to replace each millennial employee they lost. The workforce is changing and so is the workplace. Utah has a very low unemployment rate and every company wants to recruit the top talent. Set your company apart by offering more than just the typical benefits to your employees.
Once you’ve attracted desirable employees, keep them longer by creating a culture of wellness in the office. People are loyal to culture, not companies. By offering wellness solutions including on-site wellness coaching, health challenges, fun incentives, and innovative programs, you can create a company culture of wellness that reduces employee turnover, absenteeism, and more importantly, presenteeism.
Need convincing? Look at the numbers:
According to Independence Blue Cross, a company is 4x more likely lose talented workers in the next year if employees are not satisfied with the company’s wellness program.
64% of workers who are satisfied with their worksite wellness program say that they plan to stay with their company for a minimum of 5 years. (3)
2. Decrease Presenteeism
What is presenteeism? Have you ever walked past someone’s desk and seen them staring out the window, scrolling through Facebook, or texting friends? This is presenteeism. Your employee is at work physically, but not mentally. Maybe they are sick and should be at home in bed, but they don’t want to use their sick hours. They’re at work but unable to focus on their tasks This is also presenteeism.
A disengaged employee can cost your company 85% more in lost productivity than their engaged coworkers. Additionally, companies in the US lose about $227 billion because of lost productivity from absenteeism and presenteeism. (1)
By contrast, here are some interesting statistics:
When wellness is promoted in the workplace, a company is 2.5 times more likely to be viewed as a top performing organization. (4)
Employee satisfaction, behavior, and turnover can be used to predict the following year’s profitability, and also have a strong correlation to customer satisfaction.
In a study that compared exemplary health and wellness companies’ stock performance to the S&P 500, the companies that promoted employee health outperformed the S&P 500 by substantial margins. (5)
3. Reduce Healthcare Costs
When a company talks about the ROI of a wellness program, this is typically what is measured. As mentioned earlier, it is often difficult to measure ROI and when measured purely through healthcare costs, results are often not seen for a few years. However, 86% of healthcare costs are due to chronic diseases, most of which are preventable. A worksite wellness program can target unhealthy behaviors and focus on prevention and maintenance of these diseases. We provide yearly aggregate data on cholesterol levels, body fat percent, and blood pressure (all of which can be used to predict chronic disease) to determine the effectiveness of the wellness program. Use these metrics and others including prescription usage and health plan utilization to measure the impact on your healthcare costs.
According to the Harvard Business Review:
Wellness programs including disease management saved companies $136 per person per month.
Companies saw 30% reductions in hospitalizations. (6)
4. Promote a Culture of Wellbeing
As mentioned earlier, employees are loyal to culture, not companies. 78% of employers offer wellness programs that encompass more than just physical wellness. Employees are perceptive enough to recognize when the motivation behind offering a wellness program is simply to cut healthcare costs, and not help them become their best, healthiest selves. Offering a program that goes beyond the yearly health screening shows your employees that you are dedicated to their success, both professionally and personally. That kind of culture fosters loyalty which equates to success for the employee, and the company as a whole.
Here are a few more interesting stats:
Among employees who have access to a worksite wellness program, 60% are inspired by their company culture to make healthy choices. Without wellness programs, only 15% of employees report being inspired to make healthy choices. (2)
We know it can be overwhelming to build a wellness program...
Let us take that burden off your shoulders.
Our wellness professionals are experts in needs assessments, culture evaluation, and program design. From building the program from scratch to maintaining employee engagement, we’ll design and implement a program specifically tailored to your company.
“U.S. Workforce Illness Costs $576B Annually From Sick Days to Workers Compensation” - Forbes, 2012.
“Employees speak out: how workplace programs affect attitudes and behaviors around health benefits” - Benz Communications and Quantum Workplace, 2015.
“Chronic Diseases: The Leading Causes of Death and Disability in the United States” - U.S. Centers for Disease Control and Prevention, 2014.
“Retaining Talent: A Guide to Analyzing and Managing Employee Turnover” - Society for Human Resources Management, 2008.
“Linking Employee Satisfaction with Productivity, Performance, and Customer Satisfaction” - Corporate Executive Board, 2003.
"Meet the Wellness Programs that Save Companies Money" - Harvard Business Review, 2016.