Why Employee Wellness?
1. Strategic Advantage
With health insurance costs rising higher than ever before, you must find effective ways to reduce your expenses while maintaining your competitive edge. One of the most effective ways for you to reduce your health care expenses is to reduce your employees’ need for illness care services. A healthy employee requires less costly health care than an employee who is plagued with chronic disease.
Source: Kaiser Family Foundation calculations based on data from the National Compensation Survey, 1999-2010, conducted by the Bureau of Labor Statistics.
By making small, long-term investments into positively impacting the health of your employees, you can realize the great benefits of a healthier company.
Studies show that investment in employee wellness generates savings in medical costs. In a meta-analysis of the literature on the costs and savings associated with employee wellness programs, a team of Harvard researchers found that:
“Medical costs fall by about $3.27 for every dollar spent on wellness programs,
and that absenteeism costs fall by about $2.73 for every dollar spent.” 1
Clearly, a healthier bunch of employees typically results in a healthier bottom line for your company. Additionally, healthier employees feel better and consequently perform better on the job, resulting in the following company benefits:
- Enhanced retention of healthy employees (healthy employees can serve the company longer than sick employees)
- Enhanced recruitment (people like working for companies that are known for taking good care of their employees)
- Reduced absenteeism (healthy employees need less sick time)
- Reduced presenteeism (healthy employees are more alert, energetic and focused)
- Increased employee productivity (healthy employees can work more efficiently than sick employees)
- Decreased rates of illness and injuries (a healthy workplace reduces employees’ need for health care)
- Improved employee satisfaction (employees enjoy a healthier body, mind and workplace)
2. The Caring Arm of Management
Your employees are the greatest assets that your company has. Therefore, caring for the health and wellness of your employees is just as logical as the maintenance of your company machinery and buildings.
Wellness programs help you communicate to your employees that they are highly valued and appreciated. Giving wellness to your employees communicates this message of value more strongly than simply doing payroll.
Your employees realize many benefits from quality wellness programs, including:
- Awareness of potential health risks
- Lowered risks of disease
- Practical tools and strategies for successful lifestyles
- Increased well-being, self-esteem and self-image
- Increased job satisfaction
- Convenient and confidential support for positive changes
1 Baicker, Katherine, David Cutler, and Zirui Song. "Workplace Wellness Programs Can Generate Savings." Health Affairs 29.2 (2010): 304-11