Nearly all companies want to know what their return on investment (ROI) is on their different business investments. Since their inception, worksite wellness programs have always been under a watchful eye for their true level of ROI.
However, at some level, we all know that worksite wellness programs can improve employee health and productivity, reduce absenteeism and, most notably, lower employees’ use of health care benefits. Often this is done through health awareness education, behavior and lifestyle change, and peer support programs. As more companies realize the benefits of preventive health, more are investing in wellness.
“Employers must keep in mind, however, that wellness programs are not a quick fix for poor health,” says Patty Starr, the senior director of health insurance and benefits for the Council of Smaller Enterprises (COSE). “It could take months, if not years, before one notices change.”
Smart Business spoke with Starr about wellness programs and how to get the most bang for your buck.
Why is a wellness program worthwhile?
Every business is different, and therefore, employers must examine their own circumstances, specifically their average health care cost for each employee, usually at least a couple thousand dollars per year. Investing a few hundred dollars per employee can produce an ROI of several hundred percent. In turn, this can generate a major offset to health care costs. It has been studied; no other business investment can afford that type of return. With health care premiums continuing to increase, businesses that fail to invest in employee wellness are likely to see negative results on their bottom lines.
How can you ensure that a worksite wellness program will provide maximum ROI?
In order for a worksite wellness program to reach maximum ROI, the most significant aspects should include effective programming and frequent evaluation of the program’s competence. Employees must realize that the wellness program is designed to provide important benefits for their personal health, at the same time understanding their own accountability for improving or maintaining their health status. An educational component should be included to build employees’ motivation and commitment to change to healthier behaviors. A needs assessment survey and health risk assessments should help determine specific company wellness goals and health improvement areas. Incentives to reinforce and establish positive health habits also drive maximum ROI.
