Employers focused on employee retention and wellness drive down turnover rates and health costs, improving their company’s overall physical and financial health. How do they do this? Through the development of comprehensive corporate employee wellness programs. Researchers at Harvard found that for every dollar spent on an employee wellness program, the employer saves an average of $3.27 on employee healthcare costs and $2.73 through the reduction of absenteeism.
Developing and implementing an evidence-based employee wellness program will net the organization healthier employees, lower healthcare costs, enhance employee morale and retention, reduce absenteeism, and increase productivity.
HEALTHIER EMPLOYEES
A workplace wellness program study conducted by the RAND Corporation found that employees who participate in health and wellness programs experienced significant improvements in their health focus, including better weight control, reduced smoking behavior, and increased exercise frequency. Overall, this leads to a healthier and happier workforce that is more available and able to reach their maximum performance.
LOWER HEALTHCARE COSTS
Unlocking the healthcare savings associated with employee wellness programs can make or break the success of some companies. Next to wages, health insurance premiums are the largest expense, and for growing firms with increasing numbers of employees but limited resources, this cost can be overwhelming.
Maintaining a healthier workforce can significantly decrease the utilization of offered health benefits and reduce the number of preventable medical conditions that require attention. This leads to lower premiums overall, saving the company and employees significantly.
ENHANCED EMPLOYEE MORALE AND RETENTION
Shockingly, it can cost an employer six to nine months of an employee’s salary to replace them after a departure. For an employee making $50,000 annually, that’s a cost of $25,000-$37,500 in recruitment and replacement costs. Add that to lost time prior to the employee’s resignation, and it’s easy to see why employee morale is of the utmost importance.
Creating a culture of health in your workplace fosters a deeper relationship with your employees, one in which they feel cared about and cared for. Moreover, healthier employees are less likely to suffer from situational depression and anxiety and maintain a higher happiness level than those who are less healthy.
REDUCED ABSENTEEISM
Unscheduled absences due to sick days and long-term illness leave can cost an employer significantly through lost productivity, the high cost of finding short-notice replacements, and the need to maintain higher staffing levels than necessary to cover staffing shortages. A study by Circadian found that a company of 5,000 employees with an average absenteeism rate loses approximately $9 million annually.
A significant number of reasons for excessive absenteeism are related to health and wellness and can be combated with an effective health program that positively impacts turnover rates, the ability to meet one’s full potential, increased morale, better overall health, and an atmosphere of good mental health.
INCREASED PRODUCTIVITY
Increasing the health of your workforce directly impacts their ability to perform, increasing productivity. This increased productivity not only pads the bottom line but also restricts lost revenue over absenteeism and productivity waste.
TYPES OF EMPLOYEE WELLNESS PROGRAMS
An Employee Wellness Program must incorporate facets from different angles of health and wellness to maximize its potential. Focusing on physical wellness alone is not enough; mental wellness, preventative care, and financial wellness are all part of a comprehensive program.
PHYSICAL WELLNESS PROGRAMS
Overall, physical well-being programs should focus on offering educational opportunities and creating incentives to maintain healthy activity levels and nutritionally sound eating habits. Including these will increase employee strength, decrease chronic diseases, and increase overall employee happiness.
Physical wellness programs may include:
- On-site exercise classes such as Yoga or Pilates
- Paid or discounted memberships to local gyms or health spas
- Internal competitions to reach activity goals
- Creation of on-site walking trails
- PTO approval for use when walking/running for charity
- On-site nutritional classes
- Removal of unhealthy food/drink from facility vending areas
- Paid, on-site, healthy lunches
- Smoking cessation programs
- Employee activity clubs for walking, biking, exercising
- Employee activity days
MENTAL HEALTH PROGRAMS
Maintaining good mental health within your workforce is beneficial for both the employees and the employer. Employees are more likely to stay with the employer, work more diligently, and influence others around them in a more positive way if they are living with good mental health. On the other hand, those experiencing depression, anxiety, or other mental health difficulties contribute to higher turnover rates, absenteeism, and poor morale within the entire workforce. Much like physical health, including mental health is imperative for the wellness program’s success.
Mental Health Wellness Programs may include:
- Flexible PTO options
- Guided Meditation Breaks
- Stress Reduction Education
- Gratitude Challenges
- Pet-Friendly Work Days/Spaces
- On-Site Counseling
- Availability of Mental Health Resources
HEALTH SCREENING & PREVENTATIVE CARE
Identifying health risks within your employee pool allows both employer and employee to put forth efforts in mitigating the risk before it becomes a costly condition. Routine checkups and screenings detect red flags, while educational programs serve as a guidepost to navigating complex health issues and prevention. Furthermore, offering preventative care within your wellness program protects your workforce from preventable illnesses.
Health Screening & Preventative Care Programs may include:
- Health Screenings
- On-site or Virtual Health Education Courses
- Physical Exams
- Vaccination Clinics
- PTO to attend off-site screenings, clinics, and educational courses
FINANCIAL WELLNESS PROGRAMS
A study by PWC found that finances are a top cause of stress for more than half of all employees. This not only affects the employee’s bank account, but also their sleep, mental health, self-esteem, physical health, and interpersonal relationships. As economic pressures stress companies’ bottom lines, there’s little room to pour more into salaries. Therefore, employee financial wellness programs benefit both the employees and employers.
Financial Wellness Programs may include:
- Financial Literacy Education
- Financial Planning Assistance
- Debt Counseling
- Credit Counseling
- Budget Counseling
- Retirement Planning Assistance
Employee Wellness Program Development
Designing and implementing a comprehensive wellness program starts with assessing the needs of your workforce. You might do this through the development of surveys or careful consideration of your workforce’s overall demographics. Overall budget and cost should be considered in the early stages as well.
Set clear and measurable goals and objectives as the wellness program progresses into the development stage. While improving the workforce’s overall health is likely the highest target, measurable goals such as decreasing healthcare costs, increasing productivity, and improving employee retention are best.
Developing a comprehensive communication and engagement plan is necessary for the wellness program’s success. Strategies to encourage employee participation may include:
- Clearly Communicate Program Offerings
- Offer Incentives (financial or otherwise)
- Encourage Healthy Competition
- Organize Team Building Activities
Resources
When designing and implementing your employee wellness program, consider utilizing the resources available to your employees through their health insurance carrier. Each individual carrier offers its own set of benefits. All that’s left to do is educate your employees on their availability.
Some available assistance programs available include:
United Healthcare’s Employee Assistance Program offers no-cost, confidential assistance with mental health, legal, or financial needs.
Anthem Blue Cross’s caregiver resources are available to members who require assistance navigating the caregiving process.
Kaiser Permanente’s community resources help provide access to financial, caregiving, food, transportation, and medical needs.
Humana’s free Loneliness and Social Isolation Toolkit provides information and resources for those experiencing these feelings and resources for finding help.
EMPLOYEE WELLNESS MONTH
June is National Employee Wellness Month, but focusing on employee wellness is essential all year. While you can wait until June to celebrate, another idea is to celebrate wellness each month with a new challenge. These can be communicated in any way you choose and serve as morale boosters and conversation starters within the organization.
Monthly Employee Wellness Ideas
January
Celebrate National Popcorn Day on January 19th with Free Popcorn (a healthy snack) for Everyone. Offer fun and healthy popcorn recipes and samples throughout the month.
February
Valentine’s Day is also Library Lover’s Day. Consider starting a book club, book nook, or reading break for your workforce.
March
March 3rd is Employee Appreciation Day. Do something special to let your workforce know how much you appreciate them.
April
National Walking Day on April 5th is a great reason to start a walking challenge within your organization.
May
International No Diet Day falls on May 6th. Use this opportunity to educate your workforce on the importance of healthy eating over diet culture. Throw in a healthy and delicious catered lunch to boost morale.
June
June 28th is the National Day of Joy. Why not make it a month of joy and encourage your workforce to participate in Joy/Gratefulness activities all month?
July
July 31st is National Avocado Day. This is an opportunity to share the health benefits of eating Avocados and share daily recipe ideas with your workforce. Providing the Avocados might be a nice touch as well.
August
National Nonprofit Day on August 17th is a grand opportunity to get your workforce involved in charity work. Use this month to encourage them to get involved with PTO hours and the opportunity to post information about their favorite charity and how others can help.
September
September 10th is World Suicide Prevention Day. Take this time to focus on mental health awareness and promote available resources throughout your workforce all month.
October
On October 4th, Improve Your Office Day, encourage your workforce to consider ways in which they would improve their work areas if given the chance. Allow them to submit their ideas and use this month to make improvements where possible.
November
International Stress Awareness Day falls on November 2nd. With the Holidays quickly approaching, November is the perfect time to create a de-stressing campaign within your workspace.
December
The year wraps up with a busy Holiday season. This is also an extremely stressful time for many. Consider offering assistance programs for those who cannot afford to celebrate in traditional ways, and encourage your workforce to get involved. Offer Holiday gatherings for the employees and their families, and promote charity where possible.
If you want to cultivate a healthier, more productive workforce while driving down costs and lost productivity, invest time and resources into crafting a comprehensive Employee Wellness Program. It’ll make a difference in the lives of your employees both in and out of work and significantly benefit the organization.
Tammy McKinney, RN, creator of HelpfulHospiceNurse, is a healthcare writer and seasoned registered nurse. Drawing from her extensive experience in acute care, long-term care, rehabilitation, drug & alcohol, and hospice & palliative care, she seamlessly merges her medical expertise with her love for writing. You can view a snippet of her portfolio here or contact her directly on LinkedIn!
RESOURCES:
https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Documents/2010-Harvard-Wellness-Program-Meta-Study-Health-Affairs.pdf
https://www.kff.org/report-section/ehbs-2022-section-12-health-screening-and-health-promotion-and-wellness-programs/
https://www.rand.org/pubs/research_reports/RR254.html#:~:text=We%20found%20statistically%20significant%20and,and%20decreasing%20health%20care%20use.
https://lrshrm.shrm.org/blog/2017/10/essential-elements-employee-retention
https://www.americanprogress.org/article/health-insurance-costs-are-squeezing-workers-and-employers/
https://www.circadian.com/white-paper-absenteeism
https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html
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