ROI of Workplace Wellness Programs
(How can you afford not to offer one?)
Workplace wellness programs used to be thought of as a nice “extra” for employees. However, the evidence suggests that these programs should be part of any company’s strategic operation.
Twenty percent of employees voluntarily left their jobs due to work-life balance or well-being in 2018. Since Covid, these numbers have dramatically increased resulting in the “Great Resignation”. Three out of four employees could have been retained by employers if they would have taken the proper actions to engage and retain them. Office turnover often is a stressor that increases the workload for others, slows productivity, and puts pressure on morale. While turnover can occur due to several reasons, one of the biggest reasons is simply employee happiness, which goes alongside feeling valued and appreciated.
Appreciating your team encompasses many things but for the purpose of this article, it means investing in your employee’s overall wellness, mental health, happiness, and well-being. That investment will increase your staff retention, loyalty, and commitment to making your practice thrive. Since Covid, companies have learned the importance of supporting employees’ mental health, and are continuing to find creative ways to support their employee’s well-being.
How much will a wellness program really make a difference?
Turns out that investing in employees’ mental, social, and physical health pays off. The company leaders at Johnson & Johnson estimated an overall cost savings of $250 million cumulatively in a single decade. From 2002 to 2008 the return was $2.71 on every dollar spent on the wellness program. On average accompany will lose $1,685 per employee, per year in absenteeism; $1,301.28 per employee, per year in productivity; and about $15,000 per worker in turnover. U.S. companies can use wellness programs to not only improve employee health but also chip away at enormous healthcare costs that are only increasing with an aging workforce.
Since Covid, the World Health Organization (WHO) has estimated depression and anxiety in the workplace to cause a loss of productivity of up to $1 trillion every year. A combined medical and behavioral health care system could save the United States $37.6 billion to $67.8 billion annually. Based on a study published by the World Health Organization, for every $1 invested in expanding mental health treatment, there is a $4 return for enhanced productivity and health. Each year, untreated mental illness costs the economy $200 billion in the United States.
A comprehensive well-run wellness program can yield a company a 6:1 return on investment. Companies of different industries and sizes have reaped the rewards from implementing an employee wellness program not only from lower healthcare premiums but also from decreased turnover and increased productivity and greater team morale. Smaller companies can see the impact of a wellness program sooner due to the size and cost savings of keeping the current staff happy and engaged.
6 Essential Pillars for Implementing a Well-run Wellness Program:
Multilevel Leadership: Having your entire leadership team on board with the wellness program is essential for the success of the program. In addition, select the ideal team member to champion and lead the program—this should be someone who is passionate about wellness and a respected member of your team.
Alignment: A wellness program must be part of the office culture and align with the purpose and aspirations of the company. A commitment to wellness can’t be just a side project; it should be a core value of each company.
Scope, Relevance, and Quality: Assessing the staff's needs and providing services that are of quality and relevance is the best way to create engagement. Know your audience and what will excite them and make the biggest impact on their overall well-being.
Accessibility: Wellness programs and services must be convenient, affordable, and useful. In order for a corporate wellness program to thrive in the new workforce demands, you need a wellness strategy that is holistic, centralizes all wellness offerings, and overall must be accessible with mobile-first capabilities. 90% of adults own a smartphone and on average spend 3.5 hours a day on their device. To reach your employees where they are at, and drive significant business results, you need a mobile-first wellness program.
Partnerships: Don’t put pressure on yourself to start from scratch; this shouldn’t be a solo mission. Implementing and managing a corporate wellness program is a full-time position. Don’t burn out your HR department by asking them to take on this mission alone. Outside vendors or contractors in the industry can bring a lot of depth and value to a wellness program.
Communication: Wellness is not just a mission but a message, and how you deliver it makes a huge impact. Be positive, lead your team with enthusiasm, and welcome their ideas. Make wellness a part of your and your employee’s everyday life to have a longer, healthier, and happier workplace.
References
Manhan, T.F., Nelms, D., Bearden, C.R., Pearce,B. 2019 Retention Report by Work Institute. Retrieved on November 30, 2019: https://info. workinstitute.com/hubfs/2019%20Retention%20 Report/Work%20Institute%202019%20Retention% 20Report%20final-1.pdf.
Berry, Mirabito, and Baun. 2010 Harvard Business Review: What’s the Hard Return on Employee Wellness Programs?
Sokol. 2018. How to Gauge the Effectiveness of Employee Wellness Programs. Retrieved from: https://hbr.org/2018/10/how-to-gauge-the-effectiveness- of-employee-wellness-programs.
Kaiser Permanente. 2015. Retrieved from: https://business.kaiserpermanente.org/insights/ the-real-cost-of-absenteeism-and-what-you-can-do-about- it.
Kendrick, T. , Artley, J. and Mujtaba, B. (2023) Mental Health Intervention in the Workplace amidst the COVID-19 Pandemic. Health, 15, 289-311. doi: 10.4236/health.2023.154021.
