Worksite Health and Wellness Program Return On Investment (ROI)
For well over a decade, research has been showing the effectiveness of Worksite Health and Wellness Programs. For every dollar spent on Worksite Health and Wellness Programs, the returns have been cost savings of between $2.30 and $10.10 in the areas of decreased absenteeism, fewer sick days, reduced WSIB/WCB claims, lowered health and insurance costs, and improvements to staff member performance and productivity.
Statistics do show that Worksite Health and Wellness Programs increase staff member morale, improve the ability to attract and retain key people, all while having more alert and productive workers. Some Worksite Health and Wellness Program ROI statistics of note:
• Canada Life Insurance reported a return of $3.43 on Worksite Health and Wellness Program, and an overall Worksite Health and Wellness Program ROI of $6.85 on each corporate dollar invested on reduced turnover (32.4 percent lower), productivity gains and decreased medical claims,
• DuPont’s Worksite Health and Wellness Program pilot sites saw a saving of 11,726 disability days and a return of U.S. $2.05 for every dollar invested by the end of the second year,
• The Canadian government’s Worksite Health and Wellness Program ROI was $1.95-$3.75 per staff member per dollar spent (as found by Dr. Roy Shephard),
• Municipal workers in Toronto, missed 3.35 fewer days in the first six months of their Worksite Health and Wellness Program than workers not enrolled in the program,
• British Columbia Hydro workers enrolled in a Worksite Health and Wellness Program had a turnover rate of just 3.5 percent compared with a Corporation average of 10.3 percent,
• Johnson & Johnson estimated an average saving of U.S. $224.66 per staff member per year for the four years examined after the program introduction, with the bulk of the savings being in the third and fourth years,
• Pacific Bell found that overall absenteeism decreased after implementing a Worksite Health and Wellness Program,
• Coca Cola report saving $500 every year per staff member after implementing a Worksite Health and Wellness Program, with only 60 percent of their workers taking part,
• Coors Brewing Co. found that for each dollar spent on their Worksite Health and Wellness Program they saw a $5.50 return, and the workers who participated reduced their absentee rate by 18 percent, and
• Prudential Insurance Company found that the benefits costs for workers taking part in their program were $312, as opposed to $574 for non-participants
November 24th, 2008 at 2:29 am
Articles like this always bring me such great joy and appreciation. I have been in the wellness field for 30 years and for so long, it was looked at as woo woo, a waste of money at the worst, and a nice thing to do at the best. I am so very thankful that finally statistics are bearing out what I have been saying all along….that money spent on helping your employees stay well, focused, centered, healthy and happy…saves the company money and creates more empowered and powerful workers. Just as taking care of the local community and environment will reflect back on the companies well-being and profit as well.
Years ago I was part of a Motorola in the year 2012 conference. I was so heartned to hear people saying that it didn’t matter if everyone in Tibet was able to have cell phones…if you couldn’t even feel safe in your own community because the focus had been profit and not people.
Thanks for posting this article!!!!