Corporate Health and Wellness Program Return On Investment (ROI)

December 20th, 2008 · 8:24 am @ admin  -  No Comments

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

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

• Canada Life Insurance reported a return of $3.43 on Corporate Health and Wellness Program, and an overall Corporate Health and Wellness Program return on investment (ROI) of $6.85 on each corporate dollar invested on decreased turnover (32.4 percent lower), productivity gains and decreased medical claims,
• DuPont’s Corporate Health and 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 Corporate Health and Wellness Program return on investment (ROI) was $1.95-$3.75 per employee per dollar spent (as reported by Dr. Roy Shephard),
• Municipal staff members in Toronto, missed 3.35 fewer days in the first six months of their Corporate Health and Wellness Program than staff members not enrolled in the program,
• British Columbia Hydro staff members enrolled in a Corporate Health and Wellness Program had a turnover rate of just 3.5 percent compared with a Company 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 reported that overall rates of absence decreased after implementing a Corporate Health and Wellness Program,
• Coca Cola report saving $500 every year per employee after implementing a Corporate Health and Wellness Program, with only 60 percent of their staff members participating,
• Coors Brewing Co. reported that for each dollar spent on their Corporate Health and Wellness Program they saw a $5.50 return, and the staff members who participated decreased their absentee rate by 18 percent, and
• Prudential Insurance Company reported that the benefits costs for staff members participating in their program were $312, as opposed to $574 for non-participants

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