4 Reasons Employee Wellness is Worth the Investment

• 1. Healthy, active employees incur lower health costs.

  Lower health costs benefit both the employer and the employee. If health costs are lower, employers may pass a smaller percentage of the bill on to workers. In a case study of large companies, total medical spending at a company with an employee wellness program experienced slower growth in health costs than companies without a program. Employees saw meaningful reductions in chronic disease risk factors; and average annual savings per employee were $565 (in 2009 dollars), producing a return on investment equal to a range of approximately $2 to $4 saved per dollar spent on the program.

  Another study estimated health care expenses were less expensive per person per year across several areas. For example, total costs were $176 lower for health program participants, and inpatient hospitalization expenses were lower by $182. Over four years, the program produced a return on investment of $1.65 for every dollar spent on the program.

• 2. Employees who take advantage of wellness are more productive

  Research in adults shows a link between physical activity and cognitive benefits like memory and focus. One study found employees who participated in a health promotion program and improved their health care or lifestyle regained an average of 10.3 hours in additional productivity annually and saved their companies an average of $353 per person per year in productivity costs compared to non-participants. According to the Centers for Disease Control and Prevention (CDC), productivity losses related to personal and family health problems cost U.S. employers $1,685 per employee per year, or $225.8 billion annually.

  Evidence also indicates that instituting workplace health programs can reduce the average sick leave, health plan, and workers’ compensation and disability insurance costs by approximately 25 percent.

• 3. Physically active employees are healthier

  Employee wellness programs that encourage physical activity can improve the overall health and well being of the workforce. A study released in a 2012 issue of The Lancet found that physical inactivity has become more deadly – and more costly – than smoking. The good news is recent evidence suggests that an hour a day of exercise can help mediate the risks of sedentary lifestyle. Exercise has also been associated with lower risks of multiple chronic diseases and can amplify weight loss efforts.

• 4. Wellness programs inspire important behavior changes

  Making lasting changes to behaviors is challenging for many Americans, but a comprehensive research report sponsored by the federal government, workplace wellness programs can provide a much needed assist. According to the report, research shows that the benefits of employee wellness programs include improvements in physical activity; higher fruit and vegetable consumption; lower fat intake; and a reduction in body weight, cholesterol levels, and blood pressure.