Return on Investment in Worksite Wellness Programs

Why Should your Business Invest in a Worksite Wellness Program?1

Employees at small or medium-size businesses with wellness programs consistently report that they're working harder, performing better, and are motivated to stay with the company.

Wellness ProgramImplementing a wellness program helps

retain current employees and improves their overall health and production. As the work population average increases with age, it is important to implement wellness programs to fit the needs of your employees.

You also save on costs from hiring and training new employees by offering a wellness program to retain employees.

Return on InvestmentThe next question to ask is how do

we determine whether or not a wellness program will be beneficial to your company.

The answer is to implement an assessment on your return on investment (ROI) to see if there is a positive change in your employees and your work environment as a result from the Wellness Program.

What to measure for ROITo physically measure changes in

health, conduct biometric health screenings◦Blood pressure ◦Cholesterol test◦BMI◦Blood Glucose test◦Cardiovascular screening

Measurement

Take a look at two major challenges that may be present in the workplace, absenteeism and presenteeism.

Another way to measure for ROI is to look at the rate of worker compensation claims if they increase or decrease

Absenteeism Recording absenteeism to record the

potential benefits of a worksite wellness program may be problematic since there are other factors to consider about why someone would report an absence.

Stress and personal illness are big factors and with worksite wellness programs, those absences can be reduced, but you also have to keep in mind of other factors.

Reasons for Absenteeism

PresenteeismPresenteeism is when employees come to

work but they are unable to work at full productivity level because of multiple reasons, the main one being health issues.

Being ill and refusing to take sick leave because of stress and costs drive down their personal and mental health. There are other confounding variables to consider.

Another aspect to consider is how to measure if there is a decrease in presenteeism in the first place.

Presenteeism Continued2

More than half (58%) of surveyed employers chalked presenteeism to chronic conditions (diabetes, heart disease, chronic back pain); while just under half (43%) noted it was due to mental health issues like anxiety and depression; and 39 percent said it was because of physical injuries such as sprains and broken bones, all of which can reduce productivity.

Presenteeism Continued2

So why do employees haul themselves off to work when common sense tells them not to?

The top three reasons for presenteeism, according to CCH researchers, are: (a) employees have too much work to do (65%); (b) no one is available to cover their workloads (56%) and (c) employees are reluctant to use vacation time for illnesses (55%)

Beyond Quantitative DataTo figure out how to measure out

outcomes from a worksite wellness program, there is a need to look beyond the numbers and evaluate the atmosphere and culture of the workplace.

You can get a more in depth detail about the mindset of the employee and how you can work with them to develop plans to suit their health needs.

Value of InvestmentOne way to consider how to focus on

what you are measuring qualitative data is to call it a value of investment (VOI); which is what are employees getting out of your wellness program and how is it changing the workplace.

Similar to return on investment, but VOI puts more personal emphasis on the employee’s mindset and progress throughout the program.

How to Measure VOIConsider conducting job

satisfaction surveys and/or interviews about their workplace environment

Evaluate the environment and working conditions of the workplace. Are there any barriers preventing employees to live healthier lives and become more productive?

Behavior ChangeEncourage positive behavior

change in the workplace◦Team challenges◦Corporate sponsored activities◦Open communication◦Easy access to healthcare resources

and information

Tracking Participation3

Participation tracking is very important, as is talking with your employees about their personal goals, their efforts to achieve those goals, and the support they get or feel they’re getting from their workplaces.

Keys for Successful ROI3

Companies that are able to demonstrate ROI for wellness initiatives typically share five common elements:◦A comprehensive program◦Effective incentives◦Biometrics◦Multiple program modalities◦Communication programs.

A ReminderKeep in mind for wellness

programs to succeed is to encourage participation and to keep employees engaged throughout the program.

Also, consider the cost and time involved in evaluating worksite wellness programs too.

ConclusionImplementing a Wellness

Program promotes a positive work culture, improves employee health, and is a solution to prevent and treat chronic diseases

Resources1. Workplace Wellness Programs: Advantages For

Your Company1. http://www.nolo.com/legal-encyclopedia/how-

wellness-program-can-help-29602-2.html2. Managing Absenteeism and Presenteeism in

the Workplace1. http://www.cpa2biz.com/Content/media/

PRODUCER_CONTENT/Newsletters/Articles_2008/Careers/Workplace.jsp

3. How are you measuring your wellness program’s ROI?

1. http://www5.cbia.com/healthyconnections/article/how-are-you-measuring-roi/