Points Programs

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Award Program Return on Investment Series: Employee Wellness Program ROI

Showing our clients recognition and incentive program return on investment facts and figures has been an important goal for us in the past and continues on in the future. We are now dedicating the second Monday of each month to an ongoing series on award program return on investment. The goal of this ROI series is to present client case studies and award program research to demonstrate the importance and impact recognition and incentive programs can have when properly designed and implemented by industry experts. To kick off our recognition and incentive program return on investment series, let’s examine the impact awellness program can have on an organization.

In order to achieve the highest return on investment possible, wellness programs must be properly designed and consistently communicated throughout the program. Most wellness programs are overseen by a wellness committee composed of managers and employees. Once the wellness program is established in a company, the results can be monumental in orchestrating a sincere change in employee behavior towards health and wellness.

Consider this fact provided by the Centers for Disease Control and Prevention, “Researchers estimate that preventable illnesses make up approximately 70% of healthcare costs.” By educating employees on preventing illness with a wellness program, companies can mitigate these high healthcare costs.

The Wellness Council of America reports that measurably effective wellness programs cost between $100 and $150 per year for each program participant. These effective wellness programs can have a return on investment of $300 to $450 per participant and often involve engaging employees with health and wellness goals that will reduce healthcare costs and decrease absenteeism. When employees reach their health and wellness goals they are presented with rewards and recognition to commemorate their accomplishments.

This high return on investment for wellness programs is also noted by Health2Resources.com, which found eight out of ten employers who calculated their wellness program returns on investment in 2007 more than broke even.

An important trend to notice in these successful wellness programs is the term of the program, successful wellness programs tend to last from at the least two years to at most five years. The American Journal of Preventive Medicine estimates a return on investment from $3 to $6 in healthcare cost savings for every $1 invested in wellness programs that last from two to five years. Wellness programs must last this long duration in order to create a lasting change in the health and wellness of employees at a given organization.

The returns provided by wellness programs for companies are measurable and justifiable as this research demonstrates. However, the intangible results that wellness programs create are often more important than the tangible results that can be reported. When preventable illness and conditions are avoided and employees are able to change unhealthy habits to extend their quality of life, there is no greater return on investment.

Be sure to check back in on our award program return on investment series on September 7th when I will discuss safety incentive program returns.

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