Weighing the costs and benefits of wellness

There's an old adage about advertising: It doesn't cost, it pays.

The same can be said for a company-wide wellness program.

These programs more than pay for themselves, in increased productivity, reduced absenteeism and presenteeism, and a healthier, happier workforce. The return on investment here is significant and measurable, as documented in countless case studies of businesses, large and small, throughout the U.S.

Many employers don't realize the benefits of a good wellness program until they actually undertake such a program – and see the results in black-and-white. After all, workers are your most valuable assets. Their welfare has a direct impact on your success. Offer them a well-thought-out wellness program targeted to their needs and you'll see improved job satisfaction, improved retention, and reduced sick time.

In study after study, the benefits far outweigh the initial and ongoing costs of operating such programs. In fact, one large West Michigan healthcare company showed a 1.8:1 return on investment from their wellness program. In this study, they saved an estimated $1.6 million in total medical, absenteeism, and presenteeism costs. Thanks to a healthy-lifestyles initiative, this company saw its workforce lose more than 2,500 pounds on a company-sponsored weight management program. More than 5,600 employees participated in biometric screenings. And more than 4,400 people participated in one or more physical activity program.

But these numbers tell only part of the story.

This company also saw significant reductions in cardiology and endocrinology episode costs – conditions that are most affected by wellness activities. In fact, the financial impact of health risk reduction for this company totaled $864,000 in medical costs alone. In addition, claims under the Family Medical Leave Act declined by 13%. Long-term disability rates saw a 15% reduction, and decreased overall by 35%. Workers compensation claims were 35% less than other similar employers in the area. And direct costs related to workers comp were $11.8 million less than for other employers.

No wonder this company, and many others in West Michigan, have undertaken a wellness program designed specifically for their employees. Take an informal poll among your fellow CEOs, and most of them will likely talk about the value of these programs, not the costs – for their workers and their company's bottom line.

It's clear why smart owners and managers understand, a wellness program doesn't cost – it pays.