5 Reasons Why Not Having a Wellness Program Can Impact Your Bottom Line
A vital part of a good business is strong employees. Improving productivity and reducing turnover are excellent for improving ROI. When your employees stay, you avoid the costs of hiring replacements, the loss of institutional knowledge and the inevitable productivity dip as a new employee comes up to speed. One of the ways to ensure that your employees are productive and loyal is to implement an employee wellness program.
However, despite strong data supporting the effectiveness of these initiatives, one survey reported that in a sample of 245 HR professionals, administrators, and benefits managers, only 44% are running one.
Even though every dollar invested yields $6 in healthcare savings, 86% of which are saved by the employer. The ROI of employee wellness programs is higher than many companies think.
What Is an Employee Wellness Program?
An employee wellness program is a set of initiatives designed to encourage employees to take better care of their health. Programs are designed to help avoid preventable illness by providing discount gym memberships, smoking cessation programs, flu shot clinics, and education. While it can be hard to know how to measure employee wellness, wellness programs are an excellent way to ensure healthier employees.
Wellness programs are not one-size-fits-all and should be created considering employee demographics, employee preferences (there is no sense in implementing programs nobody is using), your industry and location, etc.
So, how do employee wellness programs benefit employers? Employee wellness programs have been shown to lower turnover and reduce absenteeism. The ROI of employee wellness programs also goes well beyond healthcare costs.
5 Reasons Going Without an Employee Wellness Program Hurts Your Bottom Line
Why does not having an employee wellness program hurt you? There are several reasons.
1. Employee Healthcare Costs Are Higher
Without an employee wellness program, your employees are more likely to skip preventive medicine and screenings and thus more likely to develop more serious (and expensive) problems. These then might not be as well covered by insurance. Your insurance company might refuse to pay a claim, leaving an employee with thousands of medical bills. Over time, as your company grows, you will benefit from a lighter claims history.
2. Employees Are More Likely to Take Sick Leave
Employees who engage in unhealthy habits are more likely to take sick leave. For example, an employee who doesn't get their flu shot is more likely to get the flu and will be sick for longer if they do.
While a wellness program will encourage people to take time off to get routine screenings and stay home if sick, ultimately, they will take less sick leave overall, and it will be for shorter periods.
3. Employee Productivity Is Lower
This is called the employee positivity factor. Employees who aren't feeling well are less productive. They may come into work and go through the motions or feel obligated to come in when not a hundred percent, also known as presenteeism, and is a significant burden on businesses.
Exercise, in general, improves mood, so employees who get regular exercise are happier and more energized. Healthy employees are more likely to be engaged and enjoy their work. Low engagement contributes to low productivity, high turnover, and absenteeism.
4. Injuries Are More Likely
Wellness and safety go hand in hand. Imagine how likely somebody is to get hurt if they are mildly sick, stressed, or simply didn't get enough sleep last night.
An employee wellness program can address these issues through education. For example, employees who have access to education on sleep hygiene are more likely to sleep well and know when their problems need to be addressed with medical attention. They are more likely to show up to work well-rested and less likely to have an accident. Improved safety reduces absenteeism and helps keep your workers' comp premiums down.
5. Morale, Loyalty, and Employee Retention Are Lowered
As more businesses are prioritizing their employees' well-being, not having a wellness program makes it harder to compete with companies with one. Many people want to be treated better by employers, so employees may leave one company for another with better benefits. Having a wellness program is a relatively simple way to help lower turnover and increase employee loyalty. It helps them feel that you are loyal to them, if nothing else.
Design a Wellness Program that Works for Your Business
If you are convinced of the benefits of employee wellness programs but not sure where to start, PRO Resources can help. Contact us to begin the process of designing an employee wellness program to help your company.