Return On Investment

Organizations in the top quartile of "Sibson’s "Healthy Enterprise Study" [1] Wellness Index experienced 16 percent lower health care costs (adjusted for demographics and industry) and a 35 percent lower rate of increase in costs than all other organizations. This demonstrates that it is the effectiveness, rather than just the presence, of a wellness program that makes the difference.

Know Where to Invest Your Resources

When you have a company of +200 employees, how do employers know where to spend the money? How do they know which kind of activities their employees love and engage in? For example, tracking the percentage of employees in each territory and business unit who are at risk in areas such as high blood pressure, physical inactivity, and smoking against benchmark goals. The information helps management decide where to allocate resources.

Our goal is improving the health status of the workforce. The issue is not what it costs to keep people healthy and productive but what it costs not to.

Reasons for Investing

Rising health care costs are unsustainable
  • In 2007, national health care expenditures in the United States totaled $2.2 trillion or 16% of its gross domestic product, a 14% increase from 2000
  • In 2007, private health insurance obtained through the workplace covered nearly 158 million people under the age of 65 years or 61.6% of the population
  • Since 2000, health insurance premiums for a typical family of four have increased by 114%
  • After adjusting for population age and sex differences, average medical expenditures among people with diagnosed diabetes were 2.3 times higher than people without diabetes. [2]
Health’s impact on worker productivity
  • Productivity losses related to personal and family health problems cost U.S. employers $1,685 per employee per year, or $225.8 billion annually

Emphasis on Health

Emphasis on Health

Organizations placing more emphasis on health and wellness promotion are seeing not only larger cost savings, but also greater return. A study by Health Affairs found that for every dollar spent on wellness programs, medical costs fall by about $3.27 and absenteeism costs fall by about $2.73. [3] And, a recent survey [4] given to employers who have already implemented wellness initiatives showed

  • 72 percent of organizations reduced the cost of health care
  • 78 percent of organizations improved employees’ overall physical health
  • 80 percent of organizations who measured their wellness program’s ROI saw positive impact
  1. Is Your Organization a Healthy Enterprise
  2. National Diabetes Statistics Report, 2014
  3. Workplace Wellness Programs Can Generate Savings
  4. Wellness Programs in 2015: Trends, Tactics and Insights