NOT JUST ABOUT WELLNESS, BUT COMPETITIVE EDGE

Wellness Initiative-Not Just About Health but Competitive Edge

Companies now can see not just a return on investment with corporate wellness programs, but they are also seeing a shift in focus to value of investment. The value of their workforce being dedicated, happy better producers, less costly, and more profitable through production. Wellness programs have increased as part of the standard operating procedure of task and duties of employees over the past 5 years. In addition, the overall value of the programs have increased by 20%, giving a competitive edge to companies within their industry. This edge has been seen in production and services, but also in acquiring better qualified team players. The attraction to more and better qualified employees is a value not seen or predicted when wellness programs were first initiated and deemed valuable in the workplace. Now this edge has increased the qualification expectation of employers on potential employees, as well as on the existing team of employees. Now the more involvement with the department of labor, local, state and federal regulations on wellness programs, their incentives and procedures; the value has been recognized in every aspect of business.

“The industry is expanding and becoming increasingly diverse and competitive; wellness companies are redefining their business models to promote a culture of health; and the value proposition of employee wellness programs is shifting from a return on investment to a new idea: value on investment.”

(http://content.healthaffairs.org/content/36/2/222.short)

In addition to maintaining employment loyalty, diversity, assisting with the retention of staff, and increasing creative thought as well as productivity. Loyalty, diversity and retention is developed as the employee sees an investment in them and their long term health and value which will cause increases to creative thought as well as productivity. The healthcare value of the wellness program in the corporate workplace saves money in health care cost for both the employer as well as the employee, it is not a one sided benefit.

The savings reflected by a wellness program is not just for the employee any longer. With employers becoming the beneficiaries of significant tax breaks, health care premium discounts and liability insurance savings; the ROI has increased over the past 2 years-and still rising. Most ROI calculations reflect the return on every dollar invested in the wellness program from year to year. However, they do not include the initial investment of the program, the very detailed and important variable of the program implementation or participation aspect. Therefore, there are several hundred hours of research, surveys, and assessments that MUST be done in order to secure a more positive and successful participation rate. This is also a contributing factor in the rise of ROI and value being tracked in wellness programs over the past 2 years. More companies are insuring that the processes and management of these programs are looked upon with the same managed requirements as an accounting or payroll operating procedure.

“Amid soaring health spending, there is growing interest in workplace disease prevention and wellness programs to improve health and lower costs. In a critical meta-analysis of the literature on costs and savings associated with such programs, we found that medical costs fall by about $3.27 for every dollar spent on wellness programs and that absenteeism costs fall by about $2.73 for every dollar spent.”

(http://content.healthaffairs.org/content/29/2/304.short)


Lawrence Jones 2/19/2017
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