Wellness programs can benefit a company in a wide variety of ways.
Wellness programs represent a growing trend emphasizing all around health in the business world. According to Ilona Bray's 2009 book, "Healthy Employees, Healthy Business: Easy, Affordable Ways to Promote Workplace Wellness," a wellness program refers to a series of efforts instituted by a company to encourage their employees' good health. This may include physical activity breaks, healthier options in the cafeteria, a fitness center, or workshops regarding mental and emotional health. Such programs offer a variety of benefits to companies and their employees.
Healthcare Costs
Obesity is one of the single most costly components of workplace health related costs. According to a 2008 report from Consumer Affairs, obesity costs American companies an estimated $45 billion a year in insurance costs and sick day payouts. Wellness Proposals, a wellness consulting program, reports on their website that, "Health care costs in the United States doubled between 1990 and 2001. They're expected to double again by 2012."
Wellness programs help to combat these costs by encouraging a more healthy lifestyle. Wellness Proposals explains that, " implementing a work site wellness program in the workplace lowered sick leave by 28 percent, lowered the use of health care benefits by 26 percent, and lowered employees' compensation claims by 30 percent."
Employee Retention
A 2009 study conducted by Synergy Health found that individuals who were healthier were also happier. As the Wellness Proposals website reports, happier workers are statistically more likely to stay with a company in the long run. Wellness programs encourage healthier habits, helping to promote this increased morale. This matters to companies because, as a 2007 survey of turnover costs conducted by consulting company Sasha Corporation found, the average cost of employee turnover is over $9,000 per employee.
Productivity Costs
According the Centers for Disease Control, wellness programs improve productivity. Their data suggested that wellness programs improve health, cutting absenteeism by over 25 percent. Consulting company Pihms Analytics Solutions found in 2009 that the average cost of absenteeism per employee for a company is $755. If a company institutes a wellness program for a fifty person workforce, they could end up saving up to $37,000 a year.
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