Health and Wellness Leads : Benefits of Workplace Wellness Programs*

The costs of health care have been rising more than 10 percent each year for several years. A substantial amount of the money invested in the health care system treats costly illnesses and diseases.

• Approximately 95 percent of the $1.4 trillion that we spend as a nation on health goes to direct health care services, while about 5 percent is allocated to preventing disease and promoting health.
• Potentially, 50 percent to 70 percent of all diseases are avoidable as they are associated with modifiable health risks.
• In an effort to optimize employee health, cut avoidable medical utilization and enhance work execution, and in turn reduced medical expenditures and improve employee satisfaction and retention, many businesses are beginning, or are interested in beginning, Employee Health Promotion Programs for workers.

The advantages of workplace wellness are well documented. Greater than 120 research studies repeatedly show themes such as improvements in health outcomes coupled with high returns on investment (ROI). Some major findings include the following:

• Savings of $3.48 in reduced health care expenditures per dollar invested.
• Savings of $5.82 in reduce absenteeism costs per dollar invested.
• ROIs of at least $3 to $8 per dollar invested within five years of program implementation.
• Lifestyle behavior modification programs: $3 to $6 return on investment within 2 to 5 years.
• Self care, decision reinforcement programs: $2 to $3 return on investment within a year.
• Disease management programs: $7 to $10 ROI within a year.

By offering health improvement programs, employers are not only providing an additional service for employees, but they are also gaining fiscally. Furthermore, the effect of a health improvement program goes beyond decreased medical cost and ROI. A health improvement program can affect work rate, absenteeism, morale, recruitment success, turnover, and medical costs.

• Source: Rees, C., and Finch, R. (2004). Health Improvement: A comprehensive guide to beginning, implementing and evaluating workplace programs. National Business Group on Health, 1 (1), 1-7.