Corporate Wellness Leads to Happier Employees & a Healthier Bottom Line

Invest in Corporate Wellness for Happier Employees and a Healthier Bottom Line

Are healthcare costs for your business skyrocketing? Many companies are struggling to afford rising premiums without asking employees to bear more of the burden in the form of high deductibles and other out-of-pocket costs. Premium growth has slowed from the double digit increases seen in the early 2000s, but costs are still predicted to grow another 5% in 2016. Insurance costs are just the tip of the healthcare iceberg. As the burden of chronic diseases like diabetes and heart disease grow, employers must begin to address the root cause and hidden costs of unhealthy — and in turn, unproductive — employees.

What is an employer’s role in curbing the astronomical costs of our collective poor health? A surprisingly hands-on approach to employee health might be the answer. According to Harvard Business School researchers, corporate wellness programs may be “our biggest hope for fixing a national health crisis.”

What are Corporate Wellness Programs?

Executive Wellness Programs are employer-sponsored initiatives that support employees in making healthy behavior changes. Wellness programs address a range of health risk factors including physical inactivity, unhealthy eating, and tobacco and alcohol use. In most wellness program arrangements, employers contract with third-party corporate wellness organizations to provide their employees with the tools to achieve better health and lower stress.

Are Corporate Wellness Programs Worth the Investment?

Executive Wellness Plans and Programs are not just another feel-good incentive program operating on the fringes of the business world. A large and growing body of research shows significant financial returns on investment for companies instituting wellness programs. In one such study, a wellness intervention involving cardiac rehab and exercise carried out with a random sampling of employees lowered medical costs by nearly $1,500 per participant — a savings of $6 for every dollar invested. Interventions focused exclusively on chronically ill employees may yield even higher ROIs.

With compelling evidence of cost savings backing them up, corporate wellness programs are quickly becoming the new American norm: 60% of companies now have a wellness program in place. But lower healthcare costs are just the beginning. What’s better than saving dollars from going down the healthcare drain? Here are some other proven benefits of corporate wellness programs:

Fewer Sick Days: Wellness program participation has been shown to lead to a major reduction in sick days taken.

Increased Loyalty: Companies initiating wellness programs have shown a major decrease in voluntary employee turnover, and employees participating in wellness programs are often very fond of the program. While it’s unclear if increased loyalty is the result of improved health outcomes, perceived benefits of the wellness program, or just a stronger sense of corporate community, employees want to stick around at companies investing in wellness. In fact, wellness programs may soon be a recruiting necessity that employees expect in their benefit package.

Better Productivity: Current estimates predict that presenteeism — when employers come to work, but aren’t at the top of their game due to physical illness or stress — is costing employers hundreds of billions of dollars annually. It’s hard to measure the exact impact of presenteeism, but the losses from this hidden productivity drain are likely to far outweigh the growing burden of healthcare costs. Researchers know that diabetes, back pain, depression and anxiety, or multiple co-occurring chronic conditions are major causes of this phenomenon. Workplace wellness programs give unhealthy employees the support they need to address many of these conditions and keep healthy employees at the top of their game.

The corporate wellness trend is here to stay. New federal regulations included in the Affordable Care Act are making it easier than ever for employers to design compelling incentives for employees to participate in wellness programs. Employers can offer their employees up to 50% of their out-of-pocket healthcare costs back for active participation in a wellness program that includes tobacco cessation. Employer tax incentives to promote widespread adoption of wellness programs are already cropping up at the state-level, and federal incentives may be just around the corner.

Wellness programs can indeed improve your employee’s quality of life while improving your organization’s bottom line. The corporate wellness industry is booming and ready to adapt an evidence-based plan to your business’ unique needs.

EliteHealth is committed to providing high quality corporate healthcare at rates you would never expect. Recently, Snack Nation named EliteHealth as a top 40 corporate and executive wellness provider in the country. Contact EliteHealth today to learn how our corporate wellness plans and programs will enhance your company’s productivity.

Originally published at university.elitehealth.com.