Workplace wellness program can generate savings and reduce absence
Workplace wellness programs can generate savings. Baicker K, Cutler D, Song Z. Health Aff (Millwood). 2010. 29(2): 104-112.
Aim
To assess if workplace wellness programs are cost effective and provide good ROI.
Looked at
Thirty-six studies of employee wellness programs published in English language peer-reviewed journals.
How?
An in depth and systematic review (meta analysis) of the evidence around the cost savings generated by workplace wellness programs. Research databases, such as MEDLINE were used to review the evidence from the last 30 years. The review focused on studies providing results from two groups of employees, one that participated in the wellness program and a similar (control) group that did not take the program for comparison.
Results
- On average, employee wellness programs costs $144 and generates $358 worth of savings per person through reducing healthcare costs. This generates an average ROI of $3.27 on each $1 spent over 3 years.
- The average ROI for saving costs through reducing absenteeism was $2.73. Over 2 years, the average costs of $132 per employee generated $294 worth of savings. It's predicted that the cost of running wellness programs would decrease in time, which may then mean a greater ROI.
What does this mean?
Workplace wellness programs can provide a strong return on investment through reducing healthcare costs and absenteeism, even in the first few years. These programs can also bring benefits such as improved employee health, and reduced turnover.