July 26, 2012

Study Reveals the Real ROI of Wellness Plans

chartA recent analysis of 56 studies on work site health promotion programs, performed by the American Journal of Health Promotions, has been used to determine that the true ROI of wellness programs is staggering. According to the analysis, employers with sponsored worksite health programs see, on average, a 27 percent reduction in sick leave, a 26 percent reduction in health-related costs, and a 32 percent decline in work comp and disability claims.

Even more monumental was the discovery that for every dollar invested in wellness, employers saw an average savings of $5.81 thanks to fewer medical claims and healthier employees. This figure corrects earlier ROI estimates that ranged between $3 to $4 dollars per dollar invested.

This analysis should act as a wake-up call to those executive reluctant to heavily invest in wellness programs due to good and expansive information as it goes to show the real effectiveness of such initiatives in improving the bottom line. In fact, 89 percent of small and mid-sized employers reported that they would increase investment in wellness should the impact of the initiatives be better quantified. This could trigger a heightened willingness of top-level executives to provider more funding for fledgling employee wellness programs.

Read more news in Wellness Programs

Joshua Bjerke, from Savannah, Georgia, focuses on articles involving the labor force, economy, and HR topics including new technology and workplace news. Joshua has a B.A. in Political Science with a Minor in International Studies and is currently pursuing his M.A. in International Security.