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8 Key Benefits of Employee Wellness Programs
Employee
wellness programs have multiple benefits, both for the employers and the
employees. Discover the 8 key benefits of employee wellness programs backed by
research!
What are
employee wellness programs?
Employee
wellness programs are initiatives implemented by employers aimed at
maintaining and improving their employees’ health and
overall well-being.
There are
many different types of employee wellness programs.
Some examples of
wellness programs include:
• Ensuring healthy lunches and
snacks
• Creating nap rooms.
• Buying wearable activity trackers
for its employees
• Providing on-site gym services and
fitness or yoga classes
• Offering preventative health screenings
• Stress management workshops, etc.
Employee's
wellness programs have proven benefits, both for employers and
employees.
Here are
the 8 key benefits of employee wellness programs consistently
reported in many studies:
Benefit
#1: Reduced health costs
The
implementation of employee wellness programs results in lower health
care costs.
A comprehensive
review of the literature has concluded that employee wellness
programs have the ability to reduce employee-related health
care expenditures.
Among
the 22 different studies that looked at employee wellness
programs and healthcare costs, the average return on investment was
3.27. This means that for every dollar that was spent
on the program the company saved $3.27 because of reduced healthcare costs.
Probably
the most famous example is that of Johnson &
Johnson’s employee wellness program, which saved a total of over $38
million in its first four years, averaging $224 per patient per year.
Benefit
#2: Higher engagement
Companies
with employee wellness programs report higher employee
engagement.
Employee
engagement is positively correlated with better health,
according to Gallup’s research.
A survey by
the American Psychological Association has found that an
overwhelming 91% of employees at companies that support
well-being say they feel motivated to do their best.
Benefit
#3: Improved productivity
Employee
wellness programs lead to higher employee productivity.
According
to the Centers for Disease Control and Prevention (CDC), productivity
losses related to personal and family health problems cost U.S. employers
$1,685 per employee per year, or $225.8 billion annually.
However, study after study confirms
that employers who implement employee wellness programs consistently report improved employee
productivity. The conclusion is clear: Participating in
employee wellness programs can help improve productivity levels among
employees.
Benefit
#4: Higher employee satisfaction
Employees
in companies that have employee wellness programs report higher
satisfaction with their job.
According
to the Workforce Report, employees who took part in a workplace wellness
program are more satisfied with their jobs than those who
don’t partake.
The
International Foundation of Employee Benefit Plans Workplace Wellness
Survey Report reports that employees in companies who offer employee
wellness programs and initiatives are 67% more satisfied than
employees in companies who don’t have an employee wellness program.
Benefit
#5: Reduced absenteeism
Employee
wellness programs lead to reduced absenteeism.
Employees
in companies that have employee wellness programs are less absent from
work. In other words, they are less likely to miss work without
a proper reason (such as taking a vacation, doing jury duty, having surgeries,
attending funerals, etc.).
Research suggests
that employers save on average $5.82 in lower absenteeism
costs for every dollar spent on employee wellness programs.
Benefit
#6: Better company culture
Employee
wellness programs have a positive influence on the company
culture.
A
new survey by Virgin Health Miles Inc. and Workforce Management
Magazine found that an overwhelming 77% of employees think
that employee wellness programs positively impact the company culture.
This is in
part due to the reason that during these programs employees come together
and strengthen their relationships, but also because they feel
being taken care of by their employer who really cares about
them.
Benefit
#7: Higher retention
Employee
wellness programs can help you tackle the problem of employee turnover,
thus resulting in higher retention.
Employees
in companies who have implemented employee wellness programs are less
likely to leave their job than employees in companies without these
programs.
According
to research conducted by an American Psychological Association, fewer
(only 25%) employees in companies with employee wellness programs said
they intend to leave their job in the next year. In companies without employee
wellness programs, 51% of employees said they intend to leave their
job in the following year.
Benefit
#8: Easier recruiting
Employee
wellness programs have another great benefit - these programs
can help you remain competitive within the labor market.
Having an
employee wellness program enhances your employer brand and
makes it easier for you to attract and hire top
talent.
Candidates
are more likely to choose an employer who offers an employee
wellness program.
The Virgin
Health Miles/Workforce survey found that about 87% of
employees said they consider health and wellness offerings when
choosing an employer.
Also,
companies with employee wellness programs report higher rates of successful employee
referrals.
According
to the American Psychological Association, 89% of employees at
companies that support well-being efforts are more likely to recommend their
company as a good place to work.
Why
should companies have an employee wellness program?
Employee
wellness programs have multiple benefits, both for
the employers and the employees. These programs are the key to your employees AND
your company’s health and well-being.
Encouraging
and helping your employees to stay healthy is beneficial for your company as
well. Employee wellness programs have a direct, tangible effect on
the productivity and profits of a company.
Employees
who take part in employee wellness programs are healthier and satisfied with
their jobs. As a result, they are less absent from work, more
engaged and productive, which means greater profits for
the company.
Many
employers realized that implementing employee wellness programs can help
them keep their current employees happy and productive as well
as attract new talent.
Implementing
employee wellness programs can improve your employer brand, build
loyalty among current employees and may even save you money!
In short, a
healthier workplace means that everyone wins.