Do Employee Wellness Programs Work?

Gym sessions

Wellness programs at workplaces have become a common practice in both large and small corporations of the United States. These initiatives are assured of healthiness, less absenteeism, and heightened production. However, the question is; Are employee wellness programs even effective?

This paper will discuss the nature of wellness programs, the advantages of these programs, the possible pitfalls, and the question of whether these programs are effective.

What Are Employee Wellness Programs?

Employee wellness programs refer to those programs that employers have implemented to ensure the health and well-being of their employees.

Some of these programs may differ greatly, but commonly, they include:

  • Gym sessions or fitness classes
  • Health screenings
  • Mental health resources
  • Smoking cessation support
  • Weight-loss and nutrition programs
  • Management of stress workshops
  • Wellness issues or incentives

This is aimed at making employees healthier thus likely to increase performance at work and also leads to savings in healthcare expenditures.

Why Companies Invest in Wellness Programs

Healthcare expenses are one of the major burdens to employers and employees. The Kaiser Family Foundation believes that the premiums of health insurance offered by employers are increasing year after year. Wellness programs are viewed as a proactive remedy in order to contain these costs and enhance employee satisfaction in general.

Employers also suppose that wellness programs have the ability to:

  • Reduce absenteeism
  • Increase productivity
  • Enhance job satisfaction and morale
  • Lower employee turnover
  • Establish a healthier work culture.

Do They Actually Improve Employee Health?

Research has revealed that wellness programs are able to enhance health behaviors- particularly when the participation rate is high and the program is carefully designed.

For example:

  • The employees who participate in the programs of fitness or smoking cessation tend to improve their health in a measurable way.
  • Wellness screenings will allow detecting such problems as high blood pressure or diabetes at the initial stages, which will enhance the results later on.
  • The effectiveness however relies on the participation, involvement and quality of the program.

Employee Health

What the Research Says

Positive Outcomes

There is some research about the effectiveness of wellness programs.

A study commissioned by the RAND Corporation found:

  • Individuals enrolled in wellness programs had better health behaviors such as physical activity and weight management.
  • Other companies had fewer sick days and healthcare claims as time went by.
  • In another study, Harvard researchers discovered that medical expenditures on wellness programsreduce by an average of 3.27 per dollar.

Mixed or Minimal Impact

Other studies provide a more pessimistic perspective on this despite these positives:

  • In a 2019 study of 33,000 employees conducted by the University of Chicago and Harvard, there was not much or no difference in health outcomes, productivity, or healthcare spending among participants and non-participants.
  • The rate of participation is usually low- particularly when the programs are not rewarded or when they are considered as irrelevant.

Common Challenges with Wellness Programs

Low Engagement Rates

It is a case where many employees do not participate.

Reasons include:

  • Lack of time
  • Concerns about privacy
  • Failure to give the program relevance to their needs.

One-Size-Fits-All Approach

Stock programs fail miserably. An employee aged 25 will have different health priorities than the one aged 50 and workers with chronic conditions will require different support as compared to the healthier workers.

Privacy and Trust Issues

Workers might be concerned with how their medical information will be utilized, particularly in business settings. Although there are protections created by HIPAA, the fear of being judged or punished may prevent participation.

Care about Physical Health Only

Most wellness programs concentrate mostly on the physical aspect of health and neglect mental health, financial wellness, and social well-being- all which are significant outcomes of the general wellness.

Best Practices: What Are the Successful Wellness Programs?

Incentives That Motivate

Providing substantive rewards such as gift cards, additional vacation days or health insurance credits are some of the factors that can be used to compel higher participation.

Leadership Support

Employees will tend to emulate the leaders of the companies when the leaders themselves engage in wellness programs. The company culture should have wellness not as a checklist.

Extensive and Broad-based Programs

Effective wellness initiatives consist of physical, mental, emotional, and even financial health services.

Examples include:

  • Complimentary sessions of therapy or mental health applications.
  • Financial literacy seminars.
  • Grand work schedules to minimize burnout.
  • Fitness or wellness involving the family.

Frequent Feedback and Readjustments

Conducting the surveys of the employees and modifying the programs in accordance with the feedback will help to keep the initiatives relevant and interesting.

Do They Save Companies Money?

This is the million-dollar question. Whereas some businesses record a huge ROI, others experience little or no cost reductions.

Short-Term vs. Long-Term ROI

  • The initial costs of the program and its maintenance may result in low savings in the short-term.
  • Wellness programs that lead to employee retention and chronic illness reduction can give real returns in the long run.
  • ROI is not financial only. Better morale, employee satisfaction, and lower turnover would also be good results- although not necessarily leading to saving of healthcare costs.

Should Your Company Invest in a Wellness Program?

In case you are an employer and want to think of a wellness program, here are some fast tips:

  • Small to begin with and grow bigger.
  • Hear your staff–poll them to get to know what they actually need.
  • Make it not mandatory but voluntary.
  • Provide a variety of events that would attract the interests and age groups.
  • Measure effectiveness by monitoring engagement and results.