R.O.I. Success Directly Related to Employee Health

Health & R.O.I. – Related?

You may instinctively know that a healthier work force directly correlates with better outcomes. But what about the hard science behind ROI (Return On Investment) and savings? 

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

Here’s a Brief Overview of the Latest in Research in ROI for Company Wellness Programs:

  • A 2012 review of 62 studies published in the American Journal of Health Promotion found that a 25 percent lower health plan, workers’ compensation, and disability insurance costs more among companies that had wellness programs. This means that a lower quality investment in health and wellness for employees could mean a lower quality ROI for employers.
  • 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. They generated $136 in savings per member, per month. Consequently, there was a 30 percent reduction in hospital admissions.
  • A study by Dr. Richard Milani and Carl Lavie in the Harvard Business Review determined that “every dollar invested in the intervention yielded $6 in health care savings.”

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

Put Your TIME Where Your Money Is

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

So, what’s the obvious outcome? Poor return on ROI.

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

However, if a company does execute this in a thoughtful manner, the rewards can not only be great for ROI, but for employee retention as well.

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

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