When a company considers launching an employee wellness program, return on investment is one of the first topics discussed by executives. How will the program affect the bottom line? How much will it cost, and how much will it save?
Fortunately, there is a mountain of evidence to support the many benefits of wellness. A comprehensive new study out of the University of Michigan is one of the first to examine the long-term cost savings of employee wellness programs -- addressing a few metrics that other studies tend to ignore.
Researchers examined the wellness program of a large utility company. Over nine years, the program cost $7.3 million and saved $12.1 million -- a net savings of $4.8 million!
To calculate the true cost of implementing the company's wellness program, researchers took into account both direct and indirect implementation costs. (Some studies measure only direct costs.) They also analyzed important metrics like absenteeism, which other studies have struggled to quantify.
If you're an HR professional, you already know that upper management thinks in terms of dollars and cents. If you're considering launching a wellness program, rest assured that numerous studies support your efforts. If you need help making the case, drop us a line. We'll be happy to help!