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Worksite Wellness Program Return On Investment (ROI)

For well over a decade, research has been showing the effectiveness of Worksite Wellness Programs. For every dollar spent on Worksite Wellness 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, reduced WSIB/WCB claims, lowered health and insurance costs, and improvements to employee performance and productivity.

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

• Canada Life Insurance reported a return of $3.43 on Worksite Wellness Program, and an overall Worksite Wellness Program return on investment of $6.85 on each corporate dollar invested on reduced turnover (32.4% lower), productivity gains and decreased medical claims,
• DuPont’s Worksite Wellness Program pilot sites saw a saving of 11,726 disability days and a return of U.S. $2.05 for every dollar invested by the end of the second year,
• The Canadian government’s Worksite Wellness Program return on investment was $1.95-$3.75 per employee per dollar spent (as found by Dr. Roy Shephard),
• Municipal staff members in Toronto, missed 3.35 fewer days in the first six months of their Worksite Wellness Program than staff members not enrolled in the program,
• British Columbia Hydro staff members enrolled in a Worksite Wellness Program had a turnover rate of just 3.5% 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 Worksite Wellness Program,
• Coca Cola report saving $500 every year per employee after starting a Worksite Wellness Program, with only 60% of their staff members taking part,
• Coors Brewing Co. found that for each dollar spent on their Worksite Wellness Program they saw a $5.50 return, and the staff members who participated reduced their absentee rate by 18 percent, and
• Prudential Insurance Company found that the benefits costs for staff members taking part in their program were $312, as opposed to $574 for non-participants

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Worksite Wellness Program ROI

Worksite Wellness Program ROI: Fact or Fiction?

Worksite Wellness Programs … do they offer a strong return on investment? This is a question that we are sure goes through ever organization’s mind. HR Magazine addresses the Worksite Wellness Program ROI topic in their June 2008 issue.

Worksite Wellness Program ROI: The Bottom Line

According to the article, titled “Finding Wellness’ Return on Investment,” determining Worksite Wellness Program ROI is not an easy thing to do for corporations because it involves a lot of different variables and time.

However, the organizations that have taken the time to determine the Worksite Wellness Program ROI of their Worksite Wellness Programs have found that it is quite significant. Not to mention, the Wellness program’s effect on the improvement of worker health and the slowing of the rate of their worker healthcare costs.

Worksite Wellness Program ROI Alliance

Worksite Wellness Program ROI is such an important aspect of today’s corporate culture, that several large organizations have come together to form the Alliance for Wellness ROI, Inc. According to the HR Magazine article, The Alliance for Wellness ROI was specifically created to address the lack of consistency in proving the value of Worksite Wellness Programs.

The alliance, formed by Henry Ford Health Systems, BMW of North America, Kraft Foods Global, MasterCard Worldwide and Schlumberger Limited, strongly believes in showing the value of Worksite Wellness Programs and want to develop a standard for how Worksite Wellness Programs are measured.

Worksite Wellness Programs Components

According the alliance, the following components should make up an corporate-provided worker Worksite Wellness Program:

Employee assistance Program (EAP)
Disease Management Programs (DM)
Fitness and exercise Programs
Health risk assessments
Onsite healthcare Programs
Individual wellness profiles
Preventive Health Screenings and immunizations
Tobacco-cessation Programs
Telephonic Worksite Wellness Programs
Weight Management / Loss Programs
Self-Care Programs.

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