Wellness programs investment value has become a hot topic in recent years. With rising healthcare costs, many companies are looking into wellness programs to improve employee health and productivity while reducing insurance claims. This article summarizes key information and conclusions from a 2020 presentation on the value on investment of wellness programs.
Wellness programs shown to deliver positive ROI
The 2020 presentation highlights studies showing wellness programs can deliver substantial returns on investment. One study found an average ROI of $1.50 for every $1 invested in wellness programs. Another found medical costs fell by $3.27 for every $1 spent on wellness programs.
ROI differs by program type
Not all wellness programs are equal when it comes to ROI. The presentation notes that programs incorporating health risk assessments and biometric screenings tended to have higher returns. More comprehensive programs addressing nutrition, exercise, stress, and health literacy also outperformed programs with a narrower focus.
Successful programs require senior management support
For wellness programs to succeed and provide strong ROI, they need senior management support to devote necessary resources and communicate the program’s importance. Organizations seeing the highest returns had C-suite engagement in their wellness initiatives.
Barriers to success remain around participation
One major barrier to wellness program success and ROI is low participation rates. Factors like lack of awareness, unattractive incentives, privacy concerns, time limitations and scheduling difficulties were called out. Creative engagement strategies, customized offerings and securing leadership endorsement are key.
The 2020 presentation makes a strong case that properly designed and promoted wellness programs can provide substantial returns on investment for organizations from reduced healthcare costs and improved productivity.