Employer Wellness Program Return On Investment

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Posted by Employer Wellness | Posted in Employer Wellness | Posted on 04-12-2008

For well over a decade, research studies have been showing the effectiveness of Employee Health Promotion Programs. For each dollar spent on Employee Health Promotion Programs, the returns have been cost savings of between $2.30 and $10.10 in the areas of decreased rates of absence, fewer sick days, decreased WSIB/WCB claims, lowered health and insurance costs, and improvements to employee performance and productivity.

Statistics do show that Employee Health Promotion Programs increase employee morale, improve the ability to attract and retain key workers, all while having more alert and productive workers. Some Employer Wellness Program return on investment statistics of note:

• Canada Life Insurance reported a return of $3.43 on Employee Health Promotion Program, and an overall Employer Wellness Program return on investment of $6.85 on each organization dollar invested on decreased turnover (32.4 percent lower), productivity gains and decreased medical claims,
• DuPont’s Employer Wellness Program pilot sites saw a saving of 11,726 disability days and a return of U.S. $2.05 for each dollar invested by the end of the second year,
• The Canadian government’s Employer Wellness Program return on investment was $1.95-$3.75 per employee per dollar spent (as found by Dr. Roy Shephard),
• Municipal workers in Toronto, missed 3.35 fewer days in the first six months of their Employer Wellness Program than workers not enrolled in the program,
• British Columbia Hydro workers enrolled in a Employer Wellness Program had a turnover rate of just 3.5 percent compared with a Organization average of 10.3 percent,
• Johnson & Johnson estimated an average saving of U.S. $224.66 per employee per year for the four years examined after the program introduction, with the bulk of the savings being in the third and fourth years,
• Pacific Bell found that overall rates of absence decreased after starting a Employee Health Promotion Program,
• Coca Cola report saving $500 every year per employee after starting a Employee Health Promotion Program, with only 60 percent of their workers taking part,
• Coors Brewing Co. found that for each dollar spent on their Employer Wellness Program they saw a $5.50 return, and the workers who participated decreased their absentee rate by 18 percent, and
• Prudential Insurance Company found that the benefits costs for workers taking part in their program were $312, as opposed to $574 for non-members

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