Improve Employee Wellness While Decreasing
Your Company Healthcare Expense
The Centers for Disease Control (CDC) estimates that up to 111 million workdays are lost because of influenza, at an estimated $7 billion a year in sick days and lost productivity and according to a study funded by the National Institutes of Health (NIH), the average cost of an emergency room visit is around $2,168. This is why employers all over the country are implementing health and wellness initiatives.
Savings from health programs are clear. According to a Harvard Business Review article, disease management generated an average of $136 in savings per member, per month and a 30% reduction in hospital admissions. Giving employees easy access to your company’s health and wellness resources combats these numbers by offering employees access to resources for symptom care and empowering them to be healthy. This saves both employees and employers money and time. In addition, companies experience reduced absenteeism and presenteeism, greater employee engagement and productivity, less unscheduled paid time off, fewer workers’ comp claims, greater employee retention, increased employee satisfaction and morale, and demonstrable competitive advantage.
Most companies put more effort in measuring potential savings because wellness programs generally save money rather than generate revenue. There are four factors that have data that can be analyzed. Most companies can easily report the costs in dollars but can only track data on three of the four categories.
Savings on Medical Claims
Having a program that educates employees on better usage of medical resources can decrease overall medical claims. The decrease in claims is part of the savings in the measure of ROI.
Savings in Disability Claims
Similarly to medical claims, a decrease in the disability claims directly impacts the bottom line and reflects in the ROI from a wellbeing program.
Percentage Decrease in Absenteeism
A strong wellness program that encourages healthy behavior also means less sick days off from employees.
Percentage Decrease in Employee Turnover
Losing and replacing employees is a costly hardship on companies. There may be a direct lack of production and efficiency when a vacancy is left open. There are costs associated with recruitment, hiring, onboarding, and training. (See related article on Decreasing Turnover)
Successful programs are built around helping employees reduce healthcare costs, including absence for sick days taken and employee turnover.
Measuring the value of most well-being programs in the workplace falls outside of the traditional categories. The benefits are difficult to measure in dollars, yet still have been shown to contribute to significant financial gains for companies when implementing a quality well-being program.
- Reduces health risks
- Reduces absenteeism
- Increases productivity
- Improves job safety
- Improves morale and loyalty to the company
It does not take a major investment to begin your company’s wellbeing program. According to SHRM, “The most common wellness benefit is providing wellness resources or information.”
New technical solutions such as Continuwell allow employees to easily search and access the resources that their company provides. Administrators can even send well-being tips to employees through push notifications.
One final tip: Looking to change your staff behavior? Look for a technical solution that allows you to modify the resources in your company app to continue adapting and offering new wellness resources slowly.