Corporate Wellness Programs: A Look at the Numbers and Statistics
Discover the latest statistics and numbers on corporate wellness programs in this informative post. Learn how these programs can benefit both employees and employers.
Corporate wellness programs have become essential to business models as employers recognize the importance of promoting employee health and well-being. In this post, we'll explore some of the latest statistics and numbers on corporate wellness programs and discuss the benefits they can offer to both employees and employers.
The benefits of corporate wellness programs for employers include reduced absenteeism and healthcare cost, turnover rates, and a return on investment.
According to Zippia’s workplace wellness statistics, 52% of the companies in the United States offer wellness programs. In addition, approximately 72% of employers noticed a considerable reduction in absenteeism and health care costs of their employees. According to a RAND study sponsored by the US Department of Labor, employee participation ranges from 20% – 40% depending on the size and scope of the wellness programs.
In this recent study, every dollar invested in employee wellness intervention yielded $6 in healthcare savings. Disease management was responsible for 86% of the hard healthcare cost- savings, generating $136 in monthly savings per member and a 30% reduction in hospital admissions. The study estimated an overall ROI of $1.50 or a return of $1.50 for every dollar the employer invested in the wellness program. The return for disease management was $3.80, while the return for the lifestyle management component was just $0.50 for every dollar invested.
In addition to the positive impact on employee health and productivity, corporate wellness programs can also benefit employers by reducing absenteeism and turnover rates. According to a study by the Society for Human Resource Management, companies with wellness programs had an average absenteeism rate of 9.8 days per employee per year, compared to 12.5 days for companies without wellness programs. Additionally, a study by the National Business Group on Health found that companies with wellness programs had a turnover rate of 9%, compared to 15% for companies without wellness programs.
According to a 2010 study by Baicker, Cutler, and Song, they found that, “medical costs fall by about $3.27 for every dollar spent on wellness programs and that absenteeism costs fall by about $2.73 for every dollar spent.”
The cost of voluntary turnover due to burnout is 15% – 20% of payroll budgets each year. That means employee well-being amounts to hundreds of millions of dollars annually. If those numbers weren’t eye-popping enough, there is a $20 million opportunity loss for every 10,000 workers due to low well-being and its drain on performance. That translates to a $322 billion cost globally in turnover and lost productivity when low well-being shows up as employee burnout.
In addition, 87% of employees factor in health and wellness offerings when deciding on an employer. More than half of Gen Zers and millennials consider wellness programs essential when looking for a job. These statistics demonstrate the significant impact that corporate wellness programs can have on the overall success of a business.
The benefits of corporate wellness programs for employees include reduced healthcare costs, improved productivity, and mental health.
As for the employee statistics, 80% of employees at companies with wellness programs say that they enjoy work, 85% say that they intend to stay, 60% say that they are more productive, and 30% say that they had some diseases detected by these programs.
Corporate wellness programs can offer a range of benefits to employees, including reduced healthcare costs and improved productivity. According to a study by the International Foundation of Employee Benefit Plans, 77% of employers reported that their wellness programs positively impacted employee health. In comparison, 64% reported a positive impact on healthcare costs. Additionally, a study by the Harvard Business Review found that employees who participated in wellness programs had, on average, 11% higher productivity than those who did not participate. These benefits not only improve employees' well-being but can also positively impact the bottom line for employers.
Employee wellness programs can positively impact employees' emotional and mental health. Such programs make employees feel appreciated and valued, increasing their morale and connection to the business. For example, with a recognition-led wellness program, employees are up to 90% less likely to report being burned out at work "always" or "very often" and as much as 2x as likely to positively evaluate their lives and futures. In addition, organizations that support employees and care for their mental and physical health are less likely to see those employees leave.
Modern Wellness programs include the Employee Value Proposition (EVP) and gratitude at the heart of any employee wellness program. In this article by Gartner, they discuss the importance of updating the EVP since the pandemic. “The EVP for the post-pandemic workforce must orient toward employees as people, not workers; provide an exceptional life, not work, experience; and focus on the feelings, not just the features that match employee needs." Organizations today spend an average of $2,500 per employee on employee experience yearly, and such investments are expected to continue.
It is clear that corporate wellness programs equally benefit the employee and the employer and should be an integral part of any business plan. Reach out to us today to create your wellness program.
Resources:
20 Impactful Workplace Wellness Statistics in 2023. https://www.workhuman.com/blog/workplace-wellness-statistics/
Dixon, D. (2017, December 18). More firms consider extended family leave policies—Florida Times-Union, A.1.
Arbogast, G., Rich, D., & Jadav, A. (2022). Does a Municipality's Wellness Affect it is Business Growth? Journal of Management & Engineering Integration, 15(1), 1.
Corporate Wellness Programs: Investing in Employee Health. https://spencerinstitute.com/the-value-of-investing-in-employee-health-and-corporate-wellness-programs/
Make Way for a More Human-Centric Employee Value Proposition - Gartner. https://www.gartner.com/smarterwithgartner/make-way-for-a-more-human-centric-employee-value-proposition
