Corporate wellness programs are becoming a booming trend. As plenty of workplace studies report their success stories and their promising benefits, more companies are adopting these programs.
But, how effective are these employee wellness programs?
A recent survey reported that almost two-thirds of HR professionals from companies that offer employee wellness programs agreed that these programs were ‘very effective’ or ‘somewhat effective’ in reducing healthcare costs.
Typically, the effectiveness of any investment is assessed by its return on investment or ROI. The ROI of corporate wellness programs can be evaluated with metrics like healthcare costs, absenteeism, and productivity. Successful workplace programs can reduce healthcare expenses, absenteeism, and presenteeism and enhance employee engagement, productivity, and overall wellbeing. The outcomes of these metrics can be used as justification to implement the right corporate wellness programs.
HBR Study Outcomes of Employee Wellbeing Program ROI
A recent study by the Harvard Business Review (HBR) has shed light on the ROI obtained by employee wellbeing programs. The study was conducted on 185 participants who were at a high risk of acquiring cardiovascular or heart diseases. For 6 months, the researcher team offered employee wellbeing programs to the study group. The program included exercise and training sessions to help them improve their cardiovascular health.
At the end of the program, the researchers and the organization evaluated these outcomes –
- Almost 57% of the participants reported as low risk for acquiring any cardiovascular disease.
- Compared to earlier years, healthcare cost claims dropped by around $1,421 per participant.
- The entire workplace program yielded a massive ROI of 600%. For every dollar invested in the workplace program, almost $6 was saved towards healthcare costs.
RAND Study Outcomes of Wellbeing Program Effectiveness
The RAND Corp, another well-known non-profit research institution, also investigated the effectiveness of corporate wellbeing programs to justify the many other positive reports. The study mainly focused on 2 components of the corporate wellness programs –
- Disease management component
- Lifestyle management component
The study also revealed a significant correlation between disease management programs and healthcare costs. The disease management program saved around 86% of employee healthcare costs which accounted for almost $136 per employee, per month, along with a 30% reduction in hospital admission expenses.
According to RAND Corp’s study, the ROI of the overall corporate wellness program was $1.50 for every invested dollar. While the disease management component gave an ROI of $3.80, the lifestyle management component established an ROI of $0.50. Moreover, the positivity factor of employee engagement and higher productivity levels were not considered.
It is pretty evident that healthy employees are happy, energetic, productive, and brimming with positivity. And good health is achieved by eating healthy, exercising well, following good lifestyle habits, and enriching holistic health.
Also, employee positivity has a crucial impact on workplace wellbeing. Positive employees are more likely to be productive and engaged, reflecting higher profits and creativity. And so, the corporate wellness programs from FreeWellnessPlatform.com focus on holistic health dimensions and improving employee engagement to enforce positive workplace culture and business growth, bringing in the anticipated ROI and success.