Wellness Programs

Capitalizing on Wellness

04/23/2024 Written by: AP Employee Benefits

According to a recent report from Fortune Business Insights, the corporate wellness market was valued at $61 billion in 2023 and is expected to grow to over $82 billion by 2030. A thoughtfully designed wellness program can not only return financial savings to the employer but also to the employee. For many organizations, simply relying on physical wellness programs was not yielding the impact they had wished for, leading many employers to shift to a more holistic wellness approach. Holistic wellness approaches encompass multiple areas of employee wellness including mental, social, and financial, in addition to physical well-being.

Wellness and the Bottom Line

Since the COVID-19 pandemic, more and more emphasis has been placed on the importance of preventive healthcare and completing standard health screenings based on an individual’s risk and demographics, and more and more finance professionals are seeing wellness programs as a lever to pull to reduce the overall cost of healthcare on their bottom line. It has been shown that preventive healthcare can result in substantial cost savings for both the employee and employer. While the exact ROI of a wellness program can sometimes be difficult to calculate, can connect the impact of their wellness program with a reduction in healthcare spending.

When it comes to the bottom line, benefits and healthcare spending are typically the second-largest expense in an organization's budget, behind wages. Proactive management of high-cost health conditions becomes especially important when it comes to long-term spending and patient outcomes. Here are some opportunities that organizations may use to be more proactive and aware of their healthcare exposure:

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  • Health Risk Assessments: Understanding your unique population’s overall health risk is a key element to being able to better predict and account for healthcare costs. These annual assessments can create a portfolio of risk to understand the conditions impacting their bottom line the most.

  • Biometric Screenings: For employers with low rates of preventative screening compliance, Biometric Screening programs may be an effective tool for annual measurement of key indicators of physical wellness. When paired with an incentive program, such as discounted health plan premiums or gift cards, health plan sponsors promote screening as well as action, encouraging employees to participate in targeted health-related programs such as smoking cessation, weight management, or health coaching, to name a few.

  • Disease Management Programs: According to a recent report from Wellable, there has been a 12-percentage point growth in the number of employers increasing their investments in disease management programs, from 36% in 2023 to 48% in 2024. Some key areas of concern include diabetes, hypertension, and musculoskeletal conditions.

One key factor that cannot be identified by a hard number is what is known as the “Employee Positivity Factor." This takes into account the increase in productivity and overall commitment from employees as a result of enhanced overall mood and health. This can translate into benefits beyond the bottom line into areas such as client and customer satisfaction after engaging with the employee, increased employee tenure (or, reduced employee turnover), and the creation of an idea-rich environment. This measurement can lead employers to consider the Value on Investment, or VOI, as opposed to the ROI of their wellness program. VOI can take into consideration the non-numerical impact of the program including productivity, morale, retention, and overall employee satisfaction. This measure can give employers a greater picture of the overall impact that the wellness program has on its population. Here are some ways that your organization can work to increase the VOI of your wellness program:

  • Communicate opportunities within the program regularly
  • Create variety in the program offerings to appeal to a diverse range of employee
  • Share success stories and employee testimonials of those who have used the programs
  • Leverage wellness champions to promote the program offerings throughout the organization

Picking the Right Partner

To meet the demand for these kinds of programs, many employers are leveraging outside parties to support their new initiatives. As with any new programming, corporate wellness programs do take careful thought and consideration. Various factors including budget restrictions, implementation, employee communication, technology shortfalls, and concerns over lack of privacy are among some of the hurdles that organizations must overcome when implementing a program.
Your AssuredPartners team can help you evaluate, select, and implement the right vendor partner to help your organization reach their wellness program goals. Reach out to your AssuredPartners team to get the conversation started.

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