Continuous Improvement
Improving employee health is a worthwhile goal in itself, there is also the added benefit of lowering your company's work related medical costs. Health care costs are rising and much of these costs are due to poor health habits. Employers can contain these expenses by investing in a comprehensive worksite wellness program. Up to 70% of the health care costs in the United states are from preventable illnesses caused by such things as smoking, alcohol, inactivity, and poor nutrition. Not only will medical costs and time lost from work due to illness be cut down with a wellness program, but productivity and morale will increase as a result of having a healthier workforce. Become a well workplace.
There is an average return of $3.00-$6.00 for every dollar invested in a comprehensive wellness program over a 2-5 year time frame. Medical costs, absenteeism, worker's comp claims, and short-term disability costs all decrease significantly.
Source: American Journal of Preventive Medicine, December 2005
The results of a meta-analysis which is regarded as the most thorough assessment of the economic return literature that exists in the field of health promotion show positive return on investment with a comprehensive wellness program. The meta-analysis evaluated 42 peer reviewed health promotion studies to determine wellness ROI, and came to the following conclusions.
- 28% reduction in sick leave absenteeism
- 26% reduction in use of health care benefits
- 30% reduction of worker's comp claims and disability management
The evidence is very strong for average reductions in sick leave, health plan costs and workers’ compensation and disability costs of slightly more than 25%. This has profound implications for all American employers and should eventually lead to the institutionalization of appropriately designed and executed worksite health promotion programming in all working populations. Based on these results, worksite health promotion represents one of the key strategies for maintaining the productivity of American workers at a time when their average age is increasing faster than most of our global competitors.
Source: Larry Chapman, "Proof Positive, An Analysis of the Cost-Effectiveness of Worksite Wellness" 2007

