Wellness Programs: A Tool for Recruitment, Performance, and ROI

Filed under: Benefits

As of 2019, more than eight out of 10 large employers and about half of all small employers offered a wellness program at work. This lifestyle wellbeing benefit, first introduced in the 1970s, began to proliferate in the 2000s when healthcare expenses started rising exponentially.

The typical employer-sponsored wellness program offers a range of benefits to engage workers with different needs, including smoking cessation, weight loss resources, fitness options, personal health assessments and biometric screenings and, particularly in recent years, stress management and mental health options.

The philosophy behind the investment in wellness programs is that healthier workers become

more engaged and productive workers. A 2010 study concluded that every dollar spent on wellness programs yielded a return on investment (ROI) of more than $3.00 in the early years of implementation. However, aggregate analyses of studies conducted since then have found that these programs tend to generate more goodwill than healthcare savings.

Goodwill, in and of itself, is no small return on investment. First of all, it sends a message: We care about you, your health, and your overall wellbeing. Second, high health-related savings would come from the prevention of serious medical conditions over the long term. And yet, this variable is difficult to gauge when the average worker’s tenure hovers around four years.

Still, by focusing on the following factors, a workplace wellness program (WWP) can help get the most from workers regardless of how long each individual stays on the job.

• Specific goals (e.g., disease management, quit smoking, lose weight)
• Improved productivity by satisfying daily wellness concerns
• Reduced absenteeism and presenteeism
• Enhanced employee morale
• Employer appreciation and loyalty

And, let’s face it, if one employee in 100 loses enough weight to reduce his risk of diabetes or  heart disease…or if one in 100 stops smoking and avoids lung disease or cancer…or if that one worker gets mental health support, gains confidence, and becomes a top performer – then ROI is achieved whether it can be measured in hard dollars or not.

Wellness programs have morphed through the years to include a wide variety of offerings. The key is to get to know your workforce, the type of health and lifestyle challenges they face, and offer a breadth of wellbeing benefits that will be utilized and generate individual triumphs that help sustain goodwill and retention.

The following are some high-value wellness program benefits offered by today’s employers.

Preventative Care Health Screening Kiosk

This benefit delivers several conveniences. An onsite, self-service, automated machine enables workers to measure key health metrics (e.g., blood pressure, cholesterol and glucose levels, body mass index) at any time during the workday and as often as they like. This perk eliminates the need to schedule a doctor’s appointment to monitor their vitals and empowers them with the ability to learn when they need healthcare intervention. This level of engagement is not only emboldening, but also time-saving and can lead to higher productivity due to less worry and less time-off for routine health checks.

Specific Disease Management Programs

Disease management programs (DMPs) are typically offered by health insurance plans or healthcare systems, but they also can be provided ad hoc by employers. Each program provides structured treatment plans for people suffering from a chronic condition. The objective is to offer ongoing and personalized care in order to relieve symptoms, reduce complications, and improve collaboration among providers. A DMP may include medication management, education courses, regular check-ups, and electronic documentation of progress.

Each DMP is specific to a target chronic condition, such as diabetes, heart disease, asthma, chronic obstructive pulmonary disease (COPD), or depression. Fortunately, most condition-specific DMPs do have well-documented studies that demonstrate ROI. For example, one study found that a cardiovascular disease DMP yielded an overall annual cost-savings of $1,224 per person – or nearly a $5.00 ROI for every dollar spent.

Mental Health and Stress Management

Mental health is on everyone’s radar this year. Workers are worried about high inflation, investment market volatility, politics, global wars, and the ever-increasing threat of natural disasters – and that doesn’t even include any stressors directly related to work. Many employers sponsor resources such as counselling and therapy via employee assistance programs (EAPs), stress management workshops, and mindfulness sessions to help reduce burnout and improve job performance and satisfaction.

In today’s stressful environment, sponsoring mental health benefits isn’t so much about achieving ROI as it is risking the consequences of not offering this valuable benefit.

Physical Activity and Fitness Incentives

One of the cornerstones of a WWP is the opportunity to engage in regular physical activity. Many workers lack both the time and discretionary income to pay for a fitness facility, so offering resources and incentives are generally highly appreciated. Benefits may include gym memberships, organized fitness challenges, or even worksite initiatives such walking clubs, yoga or aerobics classes. In recent years, fitness technology has begun to play a role in WWPs, in which employers make mobile health apps, wearables, and digital health tools and platforms available to help participants set goals and track their progress.

Social Support and Community Building

When an employer wellness program includes group activities, such as fitness classes, wellness challenges, and support groups, workers are more apt to increase workplace friendships. Not only does this create opportunities for social interaction and camaraderie, but it makes their current employment more desirable. When people are happy where they work, and feel a sense of community and social support, they are less likely to seek employment elsewhere.

Participation ROI

While health savings ROI may be difficult to quantify, there are valuable metrics that employers should track via workplace wellness programs. For example:

• Utilization rates
• A decrease in absenteeism rates
• An increase in performance/productivity reviews
• Participation levels in specific programs, to track which are most popular
• Feedback surveys in order to tweak offerings each year
• Specifically, survey non-participants to find out why they do not utilize specific benefits

If a large share of an organization’s labor pool is engaged in its wellness program, there is an inherent goodwill return on that investment, regardless of healthcare savings.

Hybrid Work Models

For businesses with remote workers, it is important to offer WWP resources that can be utilized by all. Some companies have opted to provide workers with wellness benefits they can use at home, such ergonomic equipment and virtual fitness classes. The remote or hybrid staffing model itself is a form of wellness benefit, as it empowers workers to manage their own work-life balance, in turn reducing stress and improving work-life balance issues.

Recruitment: Natural Selection

Employer-sponsored wellness benefits combined with health insurance offer a multifaceted approach to healthcare. While employers can work to target non-participants via monetary and rewards incentives, it’s important to recognize perhaps the greatest advantage of offering wellbeing benefits: fit workers are attracted to them.

In recent years, research has found that employees who participate in WWPs tend to already have lower medical expenses and be on the healthier end of the healthy scale. Therefore,  offering a robust wellness program is an attractive benefit for fitness-minded job candidates. When top recruits become top WWP users, the return on investment may include reduced healthcare expenses and lower absenteeism in combination with higher levels of productivity and performance.

---

The Loop Archives