1. Increased Employee Health
For all employers, it is important to have a healthy workforce. Healthier workforces have been proven to be more engaged and productive. Overall increased health of an employee population reduces costs related to healthcare expenses, sick pay, productivity while at work, and a handful of other indirect expenses.
2. Improved Employee Wellbeing
Even though wellness and preventative health programs take on many different forms, it is evident that the implementation has a positive effect on the overall wellbeing of an employee population. Increased wellbeing and overall health increase employee engagement and productivity. The investment in a wellness and preventative health program also shows employees that their employer is investing in their both personal and professional lives.
3. Increased Employee Retention
Increased employee retention is another very important indirect effect of wellness and preventative health programs. While hard to measure directly, the costs associated with employee retention and turnover can significantly affect an organizations performance and overall expenses. Happy healthy long-term employees increase the internal harmony of a work environment.
4. Reduced Employee Absenteeism
The Workforce institute recently published a study showing that on average absenteeism cost an employer $2,600 to $3,600 per person per year. While there are many factors that contribute to an employee missing work, from personal matters to serious illnesses. It has been proven that with an effective wellness and preventative health program, a large portion of absenteeism costs can be avoided.
5. Reduced Healthcare Expenses
A recent study conducted at Harvard reported that medical costs fall by approximately $3.27 and $2.73 for every $1 spent on wellness programs, respectively. This has equated to a reduced healthcare claims costs of $1,421 per participant. With an effective wellness and preventative health program, employers are able to capitalize on the overall improved health of their population with a decrease in healthcare related expenses. This is true for all organizations that share in the risk associated with the continued increase in medical insurance as a result of rising healthcare costs.