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So What kind of ROI would a Business Expect from Corporate Wellness?

October 17, 2017

First and foremost I should stress that there is no organization that implemented a robust workplace wellness and measured outcome that  did not report a positive Return on Investment ( ROI)!

 

The key word  here is ‘ measurement’. Many organizations implement wellness for their employees but often  they either do not include a  measurement component  at all or they include some form of partial measurement. More on this at the next blog.

 

Much of the research on ROI in workplace wellness has been reported by organizations in  North America, primarily the U.S. and  to a lesser extent in Canada. In general,  ROI   has been reported in terms of reductions in absenteeism  ( $3.50/dollar invested), health care costs ($4.50 /dollar invested),  sick leave( 28%)  and disability claims ( 30%). Overall ROI reported  by  major organizations   vary from $5.95 (Bank of America), $4.60 ( Citibank),  $3.50 ( General Mills), $3.10 ( PacBell), $2.74 ( BC Hydro) and $ $2.05 ( DuPont). Based on a review of 13 different studies, the ROI varied between $3.45 and $5.81 /dollar invested.

 

Research indicates that an ROI between $3.00 and $15.00 per $1 dollar invested is achievable within the first 12 to 18 months with  quality  workplace wellness .  When it comes to specific wellness interventions, the following average ROI  has been  reported per $1 dollar invested:

– Health Risk Assessments–$6.04

– Fitness Programs————$4.90

-Wellness Coaching———–$4.50

-Smoking Cessation———–$3.50

-Flu shots———————–$2.10

-Obesity Management——-$ 1.17

 

As demonstrated above, there are different ROI  values reported by different organizations. The variability  in these   findings is largely due to a number of factors such as the components of workplace wellness , the length of the different interventions and  the types of outcomes measured. The main point of note, however,  is that a positive ROI  is expected following implementation of a quality wellness program. In fact , such a wellness program is cost-neutral if one takes into consideration the cost savings.

 

A quote  reported by the World Economic Forum  in a report titled Working Towards Wellness: The Business Rationale , sums it best: “We have to move from illness to  wellness. There is no choice. It’s not philanthropy. It’s enlightened self-interest”( Shrinivas M Shanhbag, Medical Advisor, Reliance Industries, India).

 

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