Corporate Wellness Programs are Growing!
A “2015 Employee Benefits” research report by the Society of Human Resource Managers (SHRM), found that 70% of U.S. employers offered a general wellness program, up from 58% in 2008, when SHRM first surveyed companies on preventive health and wellness benefits. Why are we seeing this trend?
The Centers for Disease Control and Prevention (CDC) reports that productivity losses linked to absenteeism cost employers $225.8 billion annually in the United States, or $1,685 per employee.
Why Invest in a Corporate Wellness Program?
Study after study shows that organizations that invest in Corporate Wellness Programs can reap substantial benefits from both a cost and productivity prospective.
According to a RAND Corporation study, every $1 invested in overall wellness efforts yields a return on investment of $1.50. When the investment is in programs targeting chronic diseases, such as diabetes and obesity, the ROI increases to $3.80.
In a 2014 Harvard Business Review study, they found that organizations with strong corporate wellness programs incurred future health care cost of 1 to 2 percent compared to the 7 percent national average.
They determined organizations with the greatest success were managing to shift people’s relationship with health from one where health is something thought about and “practiced” annually at the doctor’s office, to one where health is practiced daily through small lifestyle habits. The more proactive stance toward health they have established feeds off of itself and enhances employee lives, even while reducing future costs.
According to the Harvard Business Review, more employees are working when they are sick, costing employers about $150 billion to $250 billion or 60 percent of the total cost of worker illness.
8 Reasons Why Corporate Wellness Programs Can Give Your Organization a Competitive Advantage
Furthermore, organizations that invest in corporate wellness programs enjoy even greater benefits when your look above and beyond ROI and can actually use their program to create a competitive advantage in the market place. These include:
- A strong wellness program will result in a reduction of insurance claims.
- Employees want to work for a company that is concerned with their health.
- Inclusive corporate wellness programs build stronger interpersonal employee relationships, fostering a more harmonious and fun working environment.
- Organizations experience less unscheduled paid time off reducing disruptions.
- Workplace wellness activities, like exercise and eating well increases employee productivity and performance, focusing the brain and energizing and motiving employees to accomplish work.
- Studies show employees that take part in a workplace wellness program are more satisfied at their jobs than those who don’t partake.
- A good wellness program incorporates stress management principles that help reduce workplace tension and anxiety.
- Companies that implement wellness programs normally experience a much lower rate of employee turnover.
- People will be attracted to work at organizations that promote a strong work/life balance.