Healthier people get a better ROI for their employers

You may instinctively know that a healthier work force = better outcomes. But what about the hard science behind ROI and savings? 

If  fewer sick days, and increased company investment doesn’t speak volumes, perhaps money will.

Corporate Wellness Programs Research Summary

So here’s a brief overview of the latest in research and ROI for company wellness programs:

  • A 2012 review of 62 studies, published in the American Journal of Health Promotion, found a 25 percent lower health plan, workers’ compensation, and disability insurance costs among companies that had wellness programs.
  • A 2014 Harvard Business Review study of 20 companies found an average annual health care cost increase of 1-2% for companies with wellness programs, compared to the 7% national average.
  • A 2014 study found that obesity in the workplaces contributes to incremental health care costs by over $5000 a year per employee.
  • In the Rand Wellness Programs Study disease management was responsible for 86 percent of the hard health care cost- savings, generating $136 in savings per member, per month, and a 30 percent reduction in hospital admissions.
  • A study done by Dr. Richard Milani and Carl Lavie and noted in the Harvard Business Review determined that “every dollar invested in the intervention yielded $6 in health care savings”.

This all being said, it is important to note that some recent studies have found ROI losses in employee wellness programs. Why?

Many of the programs studied were short-term, poorly implemented, and didn’t utilize the empirically-backed wellness solutions that successful ones did. 

The obvious outcome?  Poor return on ROI.

Like many corporate initiatives, it is important that wellness programs are thoughtfully applied and empirically-based long term solutions. 

However, if a company does execute this in a thoughtful manner, the rewards are great for their pockets and more importantly, the priceless advantages of increasing employee health. 

Questions? I’d be happy to answer them via email here or give me a call at (316) 201-6047.

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