About Wellness Corporate Solutions

Monday, February 9, 2009

Wellness ROI in 18 Months?

Just read an excellent post from our friends at HR Benefits Alert: "Wellness Program Pay-Off: How Long Is Too Long to Wait?" by Bill Metzger. It's on a subject near and dear to wellness professionals' hearts--demonstrating the ROI of wellness programs.

The key details from the post:

It usually takes at least 18 months from the launch of a wellness program to see any results in your healthcare plan bottom line.

For many firms, 18 months is the point at which workers’ improving health starts to cancel out the cost of sponsoring and administering the wellness program.

By and large, the long-term cost savings from a wellness program will be driven by how much you’re willing to spend. Generally, companies get what they pay for – both in time and money invested.

As a rule of thumb, the average cost to the employer is about $3 to $5 per participating employee per month. Within three years of launch, you should be seeing significant savings.

All good information to keep in mind as companies are wielding budget knives: investment in wellness today will pay off--maybe not as quickly as a we hope, but not long after year one.

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