Numerous benefits come with implementing an employee wellness program, but when considering one for your organization, the costs are one of the primary concerns. A cost versus benefit analysis can help your organization understand the economic value of a corporate wellness program and choose the best one.
A typical wellness program can cost anywhere from $150 to $2000 per employee per year, depending on the size of the company and the benefits provided. Companies can be hesitant to invest so deeply; however, the many benefits of wellness programs make it worth it in the long run.
How much should a company invest in a workplace program? According to the Wellness Council of America, $100 to $150 per participant investment may have been enough a few years ago, but now they recommend about $200 to $400 per eligible employee per year.
The costs of a wellness program will depend on the range of services the solution offers, how many employees participate, the level of customization the platform offers, and the incentives and rewards planned.
The costs associated with creating and maintaining an employee wellness program will depend on the type of benefits and incentives offered to employees. Some of the most common costs include the following:
Biometric screening
Biometric screening assessments aim to detect health risk warning signs. They may take into account blood pressure, stress, cancer screens, body mass index, cholesterol, blood sugar, and tobacco use. The average cost of on-site screening is $45 to $70 per employee.
These assessments may work as a financial incentive, since self-funded health insurance is a concern for most employees in medium- to large-sized companies.
Health assessments
Bringing in a health coach or evaluator to meet with employees and devise a personalized wellness plan can be an interesting incentive for many employees. The health coach can assess employees’ nutrition, healthy habits, management of chronic conditions, and medication.
Benefits-based incentives
Benefits-based incentives tend to be the most expensive since they involve health insurance premiums or increasing contributions to a health fund. Their cost will depend on what incentives you add to the wellness program. According to a Fidelity Investments study, the average budget per employee in 2021 was $238.
Health benefits costs are rising too. Mercer’s National Survey of Employer-Sponsored Health Plans of 2022 stated a health benefit cost growth of 5.6% in 2023.
Workout programs, such as gym membership discounts
Companies can partner with local gyms and offer employees discounted rates on memberships. The cost of this benefit will depend on their arrangement with the gym. Sometimes companies will cover the discount, and if so, there will be an added cost for the company.
Monetary gifts and rewards for employees
Some incentives can be monetary, and would need to be factored into the total costs. Some ideas for monetary incentives may include gift cards to health shops, health food markets, athletic shops, or fitness coaching.
Because implementing a wellness program requires investing time and money, it is unwise to simply wing it. Making data-driven decisions reduces the risk of going over budget and ensures ROI. There are a few critical steps to take when creating a wellness program:
Conduct surveys, focus groups, and health risk assessments (HRAs) to gather data on what aspects of wellness employees value most. Then tailor the program to these insights.
Analyze insurance claims, absenteeism records, and productivity metrics to identify common health issues that impact the business.
Incorporating technology can simplify data collection by providing real-time data on employee participation and progress.
Once you have employee data, conduct strict analysis to identify patterns and potentially problematic areas. The organization can discover prevalent health issues and factors that may impact employee wellness, and use education and incentives to improve any weak areas.
Once you have a clear understanding of your employees' needs and health data, you can evaluate different program options. From outsourced options to managed or unmanaged platforms, consider what is a better fit for your business.
Track key performance indicators for the wellness program so you can know how it is doing. For example, track whether it is reducing the number of sick days, or lowering health insurance costs.
Investing in wellness programs is a strategic decision that can yield significant benefits for both employees and employers. While the initial costs may seem substantial, the long-term advantages outweigh the expenditures. Well-designed wellness programs are not just a luxury but a necessity for forward-thinking organizations.
CoreHealth offers a robust platform that simplifies the implementation and management of wellness programs. Via a comprehensive suite of tools, it allows organizations to customize wellness initiatives, track progress, and measure outcomes effectively. By providing an all-in-one solution, CoreHealth's platform leverages advanced data analytics to provide actionable insights, reducing the administrative burden and costs associated with wellness program management.
Want to learn more about how it works? Get in touch and we'll be happy to walk you through a demo.
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