Dollars and Sense of Corporate Wellness Programs
Many articles talk generally about the overall benefits of corporate wellness programs for businesses - as companies save money, it lead sto higher employee productivity, job satisfaction and morale. This post however, will focus only on specific analytics of these programs (i.e. performances in dollars, cents, and percentages) and the great value they bring to companies that use them.
In a comprehensive review of over 100 peer-reviewed studies of company health and wellness programs in the past three decades, the average annual savings of health care costs was $ 358 per employee. In addition, companies averaged $ 294 in annual savings due to decreased employee absenteeism. This is an annual total savings of over $ 650 per employee!
In calculating the savings rate less the cost of corporate wellness consulting and program implementation, the return on investment on reducing health costs was $ 3.27 for every dollar spent by the company and $ 2.73 for every dollar spent to reduce absenteeism. Another source studying more than 50 major programs found that EVERY program showed positive results for health, and some yielded a return on investment of $ 5.00 or more for every dollar spent.
Here are some specific examples that show how dramatic savings are tied to corporate wellness programs:
- One small company managed to save between $ 3,000 to $ 15,000 in reduced health claims of employees.
- Another company lowered sick leave by almost 20 percent
- One small self-insured municipality that instituted a wellness program is saving $600,000 per quarter!
Corporate wellness programs also yielded higher sales, higher employee productivity and greater morale, leading to greater rates of worker retention. A study of large firms with basic wellness programs showed a decrease in staff turnover by almost three to ten times.
Most of the cases sited above were basic wellness initiatives over the last 30 years. A lot has changed in 30 years. For a comprehensive wellness solution that promotes, tracks, and rewards healthy behaviors, try ChipRewards. Over 70% of health care costs are preventable. And in the economic climate today, saving money everywhere you can is an imperative. Let us help you unlock the potential of your team. Contact us for more information.
Posted on Fri, September 10, 2010
by Kurt McDowell filed under