Employee Wellness Programs: How They Benefit Employers

What is an Employee Wellness Program?

An employee wellness program is an employer benefit that provides employees with opportunities to support their health, well-being, and productivity. These programs usually offer various options such as gym memberships, discounts on sports gear, and other similar opportunities to improve employees’ physical, mental, and financial health.

4 Ways Employee Wellness Programs Help Employers

1. Recruitment and Retention

Prospective employees are not just looking at salary when making their final decisions. Candidates now consider the entire benefits package when submitting a signed offer letter to their new employer. In addition, roughly half of employers with more than 50 employees offer at least some form of wellness program. Providing employees with a wellness program is more of a standard benefit now rather than an additional perk. Employees now expect employers to provide opportunities to support their physical and mental health.

In addition, employees who feel supported in their wellness journey are more likely to stay with their employer. An increased retention rate helps to reduce turnover costs associated with recruitment and training.

2. Engagement and Productivity

Offer your employees a wellness program encouraging exercise, such as a gym membership or pushing employer-sponsored charity walks. Studies prove that exercise helps to regain task focus, a cognitive resource that supports information processing, attention, and concentration. Thus, employees who regularly exercise have a higher ability to regain task focus.

In addition to helping support employer cognition, regular and consistent exercise can also boost employee morale and engagement. Employees want to see employers who encourage enough balance for exercise and wellness.

3. Healthcare Cost Savings

According to a study by Baicker, Cutler, and Song, medical costs can fall by about $3.27 for every dollar spent on wellness programs. In addition, absenteeism costs fall by about $2.73 for every dollar spent. So, while there is an upfront cost of investing in wellness programs, those prices help reduce healthcare expenses.

Similarly, investing in a health management strategy can help to increase productivity and minimize absences. For example, offering optional on-site flu shots during flu season is a great way to prevent absenteeism that your office might see during flu season. Investing in your employee's health up front will help save somewhere else in the long run.

While providing your employees with financial benefits may not directly correlate to cost savings for your organization, it can result in those savings elsewhere in your business. Consider how providing financial assistance can release some mental stressors from your employees. If they’re less worried about their family’s health and healthcare costs, they won’t have to stress or worry throughout the day. Helping with financial wellness in all areas, like through health savings accounts or Carbon Savings Accounts, can help ease the burden of financial stressors throughout your workforce.

4. Reduced Injuries and Disability Expenses

Investing in preventative health strategies such as ergonomic assessments and mental health support can help minimize work-related injuries and disability claims. According to the National Safety Council (NSC), the total cost of work injuries in 2021 was $167 billion, including wage and productivity losses and medical expenses.

Providing preventative care for work-related injuries will help reduce the amount of injuries that occur. In addition to providing preventative care, investing in peripherals to help employees create more ergonomic working conditions will reduce injuries and minimize absenteeism.

Benefitted Employees Benefit Employers

By investing in the health and wellness of your employees, your business can see reduced healthcare costs, increased productivity, less absenteeism, and a stronger employer brand. Committing to your employee’s welfare demonstrates your commitment to creating a positive working culture and a sustainable lifestyle. By prioritizing the health of their employees, employers are also contributing to the longevity of their organization.

Employee Wellness Programs FAQ

Do employer-sponsored wellness programs work?

An employer-sponsored wellness program aims to encourage employees to participate in healthy activities outside of the workplace. Employees participating in work-sponsored wellness programs are often more productive, engaged, and happy.

How do wellness programs benefit employees?

Wellness programs help employees by encouraging a healthy lifestyle, promoting a good sense of work-life balance, and preventing work-related injuries due to repeated motion in the workplace.

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