They say you can’t put a price on health. But in today’s business world, that’s not entirely true. The financial benefits of employee wellness programs are well-documented, showing a positive ROI that’s hard to ignore. However, it’s not just about the numbers. Wellness programs also offer intangible perks that are just as important to your company’s success. Discover the ROI of employee wellness programs, and how it can boost your bottom line while creating a healthier, happier, and more productive workforce.
The Top Drivers of Healthcare Costs
A recent employer survey found that cancer, musculoskeletal issues, heart disease, and diabetes are the leading contributors to healthcare costs. Fortunately, wellness programs can make a difference. Programs focusing on regular exercise, healthy eating, and stress management can reduce the risk of these health issues, leading to lower healthcare costs and improved employee health.
ROI: Getting a Return on Wellness
With employee healthcare costs expected to rise by 7%, workplace wellness plans are more popular than ever. Decades of research demonstrate that well-designed workplace wellness programs can improve health and save money, providing a solid return on investment.
While ROI typically measures generated revenue, in the context of wellness programs, the primary benefit often lies in cost savings. Consider these findings:
- A Workplace Wellness Program survey found that 60% of companies surveyed saw reduced healthcare costs, including fewer doctor visits and a 10% decrease in prescription drug expenses.
- A recent study reported similar results, with savings ranging from $1.50 to $3.80 for every dollar invested.
- Other recent research shows that 72% of employers saw reduced healthcare costs after adopting a wellness program.
Given the rising costs of healthcare, these savings are likely even more significant today.
Good Health is Good Business
Many employers are realizing that focusing solely on cost savings from wellness programs doesn’t tell the whole story. Other significant benefits are harder to measure but are critical to a company’s overall success, including:
Attracting and Retaining Top Talent
Beyond compensation, employees and job seekers want companies that prioritize their health and well-being. Wellness programs tailored to individual employee needs can attract and retain top talent across generations. One study found 87% of employees consider health and wellness offerings when choosing an employer. Additionally, employees at companies with a strong focus on health are more likely to recommend their workplace to others.
Improved Productivity
Healthy employees tend to have more energy, better focus, and stress management skills. Moreover, wellness programs can reduce sick days, improve productivity, and boost morale and job satisfaction. Consider:
- A Society for Human Resource Management poll found that 61% of employees participating in wellness programs reported greater job satisfaction than those who did not.
- Worksite wellness programs based on physical activity (WPPAs) consistently improve workers’ productivity and health.
- One study found that employees experienced better mood and performance on days they exercised, noting improvements in concentration and motivation.
Better Job Performance
Beyond enhancing productivity, wellness programs that promote exercise can significantly improve job performance, leading to a more effective and efficient workforce. Consider the benefits of regular exercise:
- Enhanced cognitive function: Regular exercise improves concentration, memory, and learning abilities, allowing employees to process information more efficiently.
- Increased creativity and problem-solving skills: These are particularly beneficial in roles requiring innovative thinking and adaptability.
- Higher energy levels: This leads to better productivity and performance at work.
- Improved teamwork and employee interactions. Exercise reduces stress and improves mood, leading to a more positive work environment and better interpersonal relationships.
Investing in employee wellness programs isn’t just a nice-to-have; it’s a smart business decision that pays off in more ways than one. These programs can offer a clear ROI in dollars saved along with the intangible benefits of creating a healthier, more productive workforce, which is just as important as your bottom line.
Aaptiv: The All-in-One Fitness Solution for a Better ROI
Aaptiv’s affordable AI-powered personalized fitness app offers over 10,000 on-demand classes across a wide variety of fitness and wellness categories, including strength training, stretching, meditation, and aerobic workouts for all fitness levels. Additionally, Aaptiv provides access to one of the largest gym networks in the country, including 20,000 local and national brands and boutique studios— available exclusively as an employer/health plan benefit, with multiple membership options to fit any wellness budget.
Learn more about Aaptiv employee wellness and fitness benefits.
