In the previous chapter, we learned what to consider and how to develop a creative Corporate Wellness solution that fits you company’s unique profile. We will now develop a more quantitative understanding of our program, understanding the costs and return of investments (ROI) associated with implementing your Corporate Wellness program.
Studies have found that the average cost of Corporate Wellness programs is around $742 per employee per year1. This range may be startling but rest assured. Similar to how creating a Corporate Wellness solution is tailorable based on your business, so is the cost.
Building on a Comprehensive Foundation
Corporate Wellness solutions are and should be very customizable. The best Corporate Wellness solutions, however, are built on a comprehensive foundation, containing specific elements needed to drive success.
81% of corporations implement health risk assessments, serving as the initial step of employee participation and 66% of corporations center their programs around weight loss and fitness2. Additionally, the inclusion of incentives in Corporate Wellness solutions are associated with a 20% higher employee participation rate3. Incentives can range in price and scale, from gift cards to local healthy restaurants to discounts on an employee’s health insurance premiums. The scale and price of your incentives can have varying impact on your program’s overall engagement. We will go in more depth on this later in this series when we further explore the use of incentives in Corporate Wellness Program.
A comprehensive program is the key driver of success and produces the highest participation rates3. Including the above listed elements will serve as a great foundation for your own Corporate Wellness solution. From there, you can build upon and finely tune it to perfectly fit your company’s profile.
Here is a basic price range when looking at the costs of these elements. A common health assessment is a biometric screening which can cost around $40-$70 per participant4. The price of an incentive system can vary and can make up the bulk of the cost of your Wellness solution, ranging from $200-$800 dollars per each employee5.
Costs Justify the Means: ROI
Yes, the cost of a Corporate Wellness program can be quite large. Tailoring your program to best fit your company’s needs and profile will allow you to create a solution that best fits your budget and business model.
A key thing to remember is that every penny you invest will be worth it in the long run. In addition to the satisfaction of knowing that you have promoted the health, wellbeing, and happiness of your employees is the high return of investment associated with implementing Corporate Wellness. For every dollar spent on implementing a Corporate Wellness Program, businesses save $2.73 in absence day costs and $3.27 in health care costs2.
Figuring out the cost of your Corporate Wellness solution involves, first, creating a comprehensive foundation, and, second, adjusting and customizing your solution to best fit your profile. In the end, you will be left with a perfect Corporate Wellness Program which will end up fitting your budget and maximizing the return of every dollar you invested.
In the next chapter, we will learn about various support options available in your journey of developing a Corporate Wellness program to make the development and integration more seamless, effective, and affordable.
- Migneault Jesse. “Employees Like Wellness Programs, But Don’t Use Them Much.” HealthPayerIntelligence, 5 July 2017, healthpayerintelligence.com/news/employees-like-wellness-programs-but-dont-use-them-much.
- Baicker, K., et al. “Workplace Wellness Programs Can Generate Savings.” Health Affairs, vol. 29, no. 2, 2010, pp. 304–311., doi:10.1377/hlthaff.2009.0626.
- Mattke, Soeren, Kandice A. Kapinos, John Caloyeras, Erin Audrey Taylor, Benjamin Saul Batorsky, Harry H. Liu, Kristin R. Van Busum, and Sydne Newberry. Incentives for Workplace Wellness Programs: They Increase Employee Participation, but Building a Better Program Is Just as Effective. Santa Monica, CA: RAND Corporation, 2015. https://www.rand.org/pubs/research_briefs/RB9842.html.
- Stovall, Lisa. “Biometric Screening Prices: How Much is it Really Going to Cost?” Total Wellness Health, 23 May 2013, info.totalwellnesshealth.com/blog/bid/293297/Biometric-Screening-Prices-How-Much-is-it-Really-Going-to-Cost.
- Aldana, Steven. “How Much Does An Employee Wellness Program Cost?” WellSteps, 10 Jan. 2018, http://www.wellsteps.com/blog/2018/01/07/employee-wellness-program-cost/.