Wellness Programs are Key to Containing Healthcare Costs

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working outA new ADP survey has revealed that employer-provided wellness programs are a key part of any successful HR strategy when seeking to improve the health of employees, boost productivity, and control healthcare costs. However, the survey revealed that while 79 percent of large companies and 44 percent of midsized companies have developed wellness programs, nearly two-thirds do not measure ROI. Despite this, most of the surveyed companies reported that their programs performed as expected or better in reducing the overall cost of healthcare.

Tim Clifford, President of Benefits Services for National Accounts at ADP said, “Wellness programs are employers’ ‘next best hope’ for containing healthcare expenses,” he continued, “These programs can also increase productivity without the negative impact on employee morale of layoffs or cutting plan options – yet few companies are measuring their return on investment from wellness initiatives.”

Key findings from the ADP Wellness Survey include:

  • 15 percent of midsized and 12 percent of large companies require employee participation in the provided wellness programs.
  • 81 percent of midsized and 78 percent large companies reported that the primary reason that they offer wellness programs is improving employee health. Coming in close second is for reasons of controlling healthcare costs. Additionally, over 30 percent feel that their wellness programs works to attract and retain employees who see the offering as a valuable benefit.
  • On average, about 50 percent of employees in midsized companies and 39 percent in large companies participate in the offered wellness program.

By Joshua Bjerke