Return on Investment

An employee wellness program can enhance and support an organization's core values and culture. Investing in employees is a win-win situation for everyone. As more and more companies implement these programs, evidence is emerging on the benefits. There is a documented relationship between healthy employees and worker productivity.

Chrysler studied the effects of participating in HRAs and wellness activities such as exercise/nutrition classes. The benefits in healthcare cost savings shown for those who participated were:

  • $344 savings per employee in first year due to just participating in HRA

  • Up to $625 savings per employee who participated in the HRA and wellness activities for three years

Travelers Insurance Company showed improvements in absenteeism, productivity and number of doctor visits over the course of a 15 year program.

  • Costs: $5.6 million. Benefits: $21.3 million.

Proctor and Gamble studied over 8,000 employees at its Cincinnati headquarters. The company compared participants in an employee health program with non-participants over three years.

  • Participants had 29% lower healthcare costs versus non-participants.

A recent study of 200 people at three major corporations revealed that an employee's quality of life, mental performance and time management was 15% better on days they exercised.

Recent review of health promotion/disease promotion programs (Pelletier) showed that HRA participants had better health outcomes and spent fewer healthcare dollars than non-participants. All 12 studies reviewed showed positive financial outcomes. HRAs and telephonic counseling were shown repeatedly to decrease health risk factors such as smoking, lack of exercise and poor nutrition. Cost benefit ratios reported were between 2.3 to 1 and 15 to 1.

Studies have shown reduced medical costs (Citibank), decreased short-term disability (Glaxo-Smith-Kline) and decreased absenteeism (Washington State).

Nearly 60% of all companies and 95% of large companies have programs to encourage individuals to take responsibility for their health.