December 4

How Much Money Can Wellness Programs Save for the Company

corporate wellness programs


Wise employers know that their company’s best asset is their employees. For the company to be profitable and save money, it is significant to look after the employees’ overall wellness.

That is why corporate wellness programs were developed because it’s both beneficial to the employees by promoting a healthy lifestyle and the company to boost profits and save money due to lesser health care costs in the long run.

Without evidence-based studies, some employers cannot determine how much money wellness programs can save for the company. Here are some of the few research with actual information to back these claims. The numbers may not be the same because these studies were conducted in different companies, different time frames, and participants.

corporate wellness programs save money for the company

RAND Corporation

The research organization RAND Corporation conducted a study called “Do Workplace Wellness Programs Save Employers Money,” concluded that a company saves money in the long run from disease management of employees. The study concluded that employers save around $30 per employee per month in health care costs.

The savings were linked to the disease management of the employees. In general, thanks to the healthier lifestyle promoted by these programs, the risk of employees developing diabetes and heart attack reduce.


Health Enhancement Research Organization (HERO)

The Health Enhancement Research Organization (HERO) concluded that a company would see significant savings two years after acquiring the wellness program. HERO calculates $0.99 of gross savings per member per month due to lesser premium insurance payments caused by hospitalizations.

The lifestyle management by wellness programs promotes a healthy diet, regular exercise, and lifestyle change reduced health care claims, leading to significant savings for the company.



The research conducted by HealthAffairs.Org found out that medical costs fall by $3.27, with every dollar spent on corporate wellness programs. The absenteeism cost is down by $2.37 for each dollar spent. The return on investment (ROI) suggests that investing in wellness programs will have a long term beneficial effect on employees’ health and productivity, and employers save on their budget.

Health insurance became mandatory for companies to provide to their employees in the United States. Companies are now realizing the substantial savings to health insurance if they avail of corporate wellness programs.


International Foundation of Employee Benefit

International Foundation of Employee Benefit reported their finding that North American employers save around $1-$3 for every dollar spent on health care costs thanks to employee wellness programs.

The savings come from different budget costs, like employee retention, increased productivity, direct costs, and compensation claims.


Start Your Company Savings Now

Now that you’ve seen evidenced-based studies, it’s time to test it on your own company. Observe how the corporate wellness software from wellness.work can make your employees more productive and healthier.

The software can monitor daily workouts, nutrition, and daily improvements. This is to make sure employee engagement and participation of all. There are company-wide fitness challenges that enable employees to upload videos or images as proof of completion and enter results, and in the long-run, have significant savings.

About the author 

Devin Martin

Devin is one of the original founders of ChallengeMe, LLC the parent company of Wellness.Work. When Devin isn't serving his day to day duties as Wellness.Work's chief marketing officer you can find him at his local gym or at his homestead spending time with his wife and 4 beautiful kids.

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