There is no doubt that wellness programs are growing in popularity. And why not? The number of evidence that an employee wellness program can help companies cut workers’ compensation costs is also increasing.
For this reason, many companies have been offering corporate wellness programs to their employees as part of the health benefits. Implementing a wellness program is a way of attracting top talent, decreasing employee turnover, and keeping employees healthy and productive.
However, small and mid-sized companies may find these programs a major threat to the organization’s profits. We believe otherwise. And so, here are 3 key reasons why it’s good to invest in a corporate wellness program.
The 3 Best Reasons Why Companies Should Offer Wellness Programs As Part Of Employee Health Benefits
1. Lower Health Care Costs
Lower cost of healthcare can benefit both employees and employers alike. Only a small percentage of the bill is passed on to employees if healthcare costs are low.
In a 2009 case study, large companies with an employee wellness program experienced a decrease in healthcare costs than companies without one. Likewise, there were significant reductions in chronic disease risk factors on the employees.
The average annual savings per employee was approximately $565 (in 2009 dollars). And the ROI produced was equal to the average of $3.25 saved for every dollar spent on the wellness program.
2. Reduced Employee Compensation and Disability Costs
There is a lower chance of workplace injury, illness, or disability when workers make a healthy change and reduce their health risk factors. In turn, this can save companies money on insurance premiums and benefits paid out. And also save on replacing employees who are out of work for health reasons.
In a 2012 study, companies with employee wellness programs have:
- Saved on annual medical costs at an average of 6%
- Reduced down to 17 days on short-term disability lost time
- Reduced down to 9 days on workers’ compensation lost time
- Saved on workers’ compensation claim at an average of $2,554
- Saved on short-term disability claim at an average of $451
3. Positive ROI on Wellness Programs
A report by the RAND Corporation stated that ROI on employee wellness programs is almost always positive. There are corporate wellness programs that can have a significant impact on:
- improving hiring & retention
- increasing productivity
- lowering healthcare claims & costs
And, therefore, helping your bottom line.
With an investment in a corporate wellness program, your company’s long-term ROI will increase tenfold.
Success may not happen overnight. But if you invest in a results-driven and configurable wellness program that’s in line with your company’s workforce, goals, and needs — you’ll see:
An increase in workforce :
- Customer relations
- Engagement and
And a reduction in:
- The cost of sick pay
- The costs related to presenteeism and health
- Number of employee absences
Include an Employee Wellness Program as Part of Their Health Benefits Today
We believe that when employees are engaged, they generally produce better organizational outcomes. Likewise, employees that are mentally and physically fit generally need less healthcare.
Convinced that investing in an employee wellness program is good for your company’s bottom line? Start by booking a demo today and see how an app can work wonders for you and your employees.