Wellness investment yields better than 1:1 return

For companies to commit financially to anything these days, executives first need to know that the return on investment (ROI) is worth getting involved. Even internal investments such as employee wellness programs, which have lacked hard ROI data in the past, must prove that they’re a sound investment.

If you’re one of those searching for wellness program ROI data, you’ll be happy to hear that recent research suggests companies that invest in employee wellness get their investment back, and then some.

A survey of 225 employers by Health2 Resources revealed that 73% of companies successfully measured the ROI of wellness programs. Of those that measured ROI, 83% said their programs had a return of better than 1:1 on their investment.

"Employers are becoming more sophisticated about measuring the return on investment from wellness and disease management programs, and today's economic outlook dictates that these programs bring a positive ROI," said Sean Sullivan, president and CEO of the Institute for Health and Productivity Management.

"No other kind of health management program has been given the same scrutiny as health and productivity management in measuring its effectiveness in reducing total health-related costs, including sick days, disability claims and impaired performance at work. Employees are too valuable a human capital investment for companies to take their health and productivity for granted."

The survey also found that most employers with and without wellness programs in place believe that paying employees to participate boosts program success and return value. An estimated two out of three U.S. companies offer programs dedicated to employee health, and 66% of those with programs also use incentives.

Other key findings:

• The most commonly used incentives are premium reductions followed by merchandise/tokens and gift cards.
• Smoking cessation programs are the most popular health and wellness program to offer, with weight management and physical activity programs a close second.
• Some organizations with as few as 210 employees are offering incentives valued at $1,450 per year to keep employees healthy.
• Diabetes programs are the most popular disease management program offered in 2009.

Does your company offer any health and wellness programs for employees? What kind of incentives, if any, are promoted to get employees involved? Have they seen a positive ROI?

Please leave a comment and let us know about your company’s experience with wellness programs.

Wellness investment yields better than 1:1 return