What if I told you that you could invest one dollar in your business that would generate three dollars in return. Is that an investment you would make?
That's how much you can save by investing in corporate wellness. Programs that reduce health care costs, increase productivity, decrease absenteeism, and increase job satisfaction are well worth investing in. The data proves it.
The exact amount you save depends on a number of factors, but the overwhelming evidence is that you will experience a positive ROI that could reach as high as $3 for every buck you invest, according to Ron Goetzel, director of the Institute for Health and Productivity Studies (IHPS) at the Johns Hopkins University Bloomberg School of Public Health. A recent meta-analysis of 51 studies of wellness programs produced a lower figure but still showed an average return of $1.38 for every dollar invested. Either way, the program pays for itself... and then some.
Figuring out what to measure -- and how -- is an important aspect of launching a wellness program and proving its ROI. Because you can't manage what you can't measure. There are ample online resources to help you get started, such as this informative benchmarking advice from the Wellness Council of America.
Some of the biggest areas of potential savings include:
- Health insurance costs: This is the big one of course, with companies spending thousands of dollars per employee on health care. Even a small reduction in these costs will produce bottom line impact.
That's some of the data worth measuring. How can you get this information? Here are some ideas:
- Analyze your health insurance claims: You can work with your health insurance provider and third-party consultants to learn whether benefit claims have been reduced after you implement a wellness program. Fewer claims will result in lower insurance costs.
With more than enough evidence in hand that these programs work, the corporate wellness revolution is underway. Just last month, CEOs of major corporations including Coca-Cola, Verizon, and Bank of America formed The CEO Council on Health and Innovation to "improve the health and wellness of employees and the quality and cost-effectiveness of care."
They already know that their wellness programs are paying dividends that will only get better over time. It's time for all companies large and small to make the investment, as it's one of the best things you can do for your company and for your employees.