Well-being programs aren’t just a morale booster for employees; they can also help reduce the cost of hiring and training new workers. Plus, they help lower sickness absence and presenteeism, which saves healthcare costs and boosts productivity.
Creating a supportive workplace culture that prioritizes well-being is vital for business success. However, measuring the ROI of wellness is tricky because companies typically don’t collect data on productivity and energy levels, which are key VOI metrics.
When you invest in employee well-being, your employees will be more productive. Well-rested, happy, and healthy employees have more energy, are more focused on their work, and are easier to collaborate with than employees who feel drained or stressed. This productivity boost can be attributed to improved mental health, increased physical activity, and even a decrease in absenteeism.
Employees who are engaged in their jobs and feel supported by their employers have higher job satisfaction levels, which means that they’re more likely to stay with the company longer. This is good news for companies, as it costs more to replace an employee than it does to keep them on board. Taking care of your employees will help you avoid turnover costs and will save you money in the long run.
One of the best ways to measure your wellness program’s ROI is by tracking hard metrics like healthcare cost savings or absenteeism reduction. However, paying attention to softer measurements like employee morale or job satisfaction, typically self-reported is also important. Using a value-of-investment (VOI) calculator can unlock insights into these non-financial benefits and provide a more holistic picture of your program’s impact.
Ultimately, the most valuable outcome of a successful corporate wellness program is a happier and healthier workforce that can thrive in today’s fast-paced business landscape. When you prioritize the well-being of your employees, you’re creating an environment where everyone wins – including your bottom line.
Do you want to implement a wellness program at your company? Contact us, and we’ll help you develop a plan that will deliver significant ROI. We’re here to guide you through the process from start to finish. And don’t forget to include your senior leaders in the planning phase. They’ll be more likely to approve an initiative that aligns with company goals and is backed by strong data. Then, once your program is up and running, you can track measurable improvements in areas like customer service or technical support to prove your ROI.
Reduced Healthcare Expenses
Wellness programs provide a direct return on investment. They help you reduce sick days and presenteeism, increase productivity, stimulate innovation and job contentment, and ultimately boost your bottom line.
The ROI of employee well-being programs also extends to lowering healthcare costs and preventing high-cost, chronic health issues. This is because a well-designed program can address the underlying causes of many health problems rather than simply masking symptoms. In some cases, you may be able to prevent costly chronic illnesses such as heart disease and diabetes by encouraging employees to quit smoking, take up physical activity, or make better food choices.
When you implement a wellness program, you can also reduce expensive medical claims for things like heart attacks and strokes, musculoskeletal injuries, and chronic pain. To determine which types of wellness programs to include, consider your company’s most common medical claims and identify the underlying health factors behind them. For example, if you see a lot of claims for musculoskeletal injuries, look into a pain management solution such as Hinge Health.
Another way to lower healthcare expenses is to encourage healthy lifestyle behaviors with a reward system. This can be as simple as offering gift cards to employees who complete a health assessment, lose weight, or quit smoking. Incentives can also be provided for avoiding certain behaviors that have been linked to high-cost medical conditions, such as drinking too much alcohol or eating too many calories.
Investing in employee well-being also helps reduce your staff turnover rate, which can be expensive. High turnover can increase your recruitment and training costs as you seek out new workers. A positive culture focusing on employee well-being will make your business more attractive to new hires.
In addition, a healthy workplace is a safe and happy place where employees can feel comfortable communicating their fears and concerns. This is crucial for addressing mental health concerns that can impede productivity and create a negative work environment. Providing an open, confidential space for employees to express themselves will help them feel supported and valued in the workplace, improving employee engagement.
Increased Employee Engagement
The value of a wellness program goes beyond the traditional definition of ROI: money generated vs. money saved. Wellness programs are based on a series of holistic improvement metrics, including healthcare spending, productivity, and employee retention. Moreover, a well-designed wellness program may also generate a measurable return on investment in the form of increased employee engagement.
Often, the success of an employee wellness program depends on creating a safe space for employees to open up and communicate their feelings about the program. When an employee can express their fears and concerns about the program without fear of repercussions, it can help them feel more at ease and invested in its success. Additionally, employee wellness programs can help employees find better ways to manage their stress and improve their work-life balance. This helps them to focus on their job and avoid burnout, which can lead to decreased productivity.
Companies that invest in their employees’ wellness programs often report lower levels of absenteeism and presenteeism. This directly translates to higher productivity rates. Those who are more engaged at the workplace will be able to manage their workload and meet deadlines, which means that they’ll be less likely to miss work due to illness or other personal matters.
A recent study by doctors Richard Milani and Carl Lavie demonstrates that healthy employees cost less to employ than sick ones. In their experiment, 185 individuals with high-risk cardiovascular disease received exercise training and cardiac rehabilitation, significantly improving their health. Ultimately, the participants’ medical costs were significantly lower than those of a control group that did not take part in the intervention.
Another way to measure productivity in a company that implements an employee wellness program is to compare pre-program and post-program results. This can be done using survey data and feedback interviews. Additionally, many wellness programs also offer a variety of tangible rewards and incentives to motivate employees and encourage them to participate in the program.
Finally, you should also keep an eye on any changes in the number of new hires and referrals your company receives. This is an excellent sign that the wellness program is making the company a more attractive workplace and attracting talented candidates. This will increase your company’s retention rate and reduce the overall cost of hiring and training new staff members.
Investing in employee well-being can lead to increased retention. A healthy work environment that prioritizes wellness helps to ensure a team is ready and able to perform at all times. The result is a more cohesive, productive workplace that is more resilient in the face of changing business conditions. Moreover, employees who feel like their employer cares about their health and well-being are 32% less likely to entertain or actively seek out a new job.
The ROI of corporate wellness programs may vary depending on the specific program and company goals, but there are certain key metrics that can be tracked. These include employee engagement, safety incidents, absenteeism, and turnover – all of which can be linked to wellness program participation.
Many companies track ROI through an online HRA (Health Risk Assessment) that combines an employee lifestyle survey with biometric testing like blood pressure, cholesterol, and glucose levels. Often, the results are shared confidentially with employees through an online dashboard, and they can take their own actionable steps to improve their health.
Employees that are more engaged with their well-being are also more present at work. This reduces overall productivity losses and costs associated with worker absences. In addition, employees who are more mentally well-informed and capable are more flexible in the face of change and are better able to solve complex problems.
When it comes to attracting top talent, it is vital that a company’s corporate wellness offerings are front and center in the recruiting process. A well-known wellness program that is proven to deliver tangible financial benefits can be a major selling point for prospective candidates.
To maximize the value of a wellness program, it is essential to promote it through multiple channels and implement strategies to boost employee engagement. For example, a company can use internal communication tools and flyers to generate awareness about the program and encourage participation. In addition, they can use a variety of external partnerships and innovative solutions to make the program more accessible. For instance, Lowe’s has contracted with a partner that drives custom-built buses to stores, distribution centers, and corporate offices so that employees can conveniently receive their biometric health screenings and complete their HRAs in private kiosks.