The ROI of Employee Wellbeing: How Workplace Wellness Programs Impact the Bottom Line & So Much More
As we approach the end of the year, many companies turn their thinking to the year ahead. Reviewing the year, setting goals, and organizing plans and resources for future initiatives all happen in this final quarter of the year, so it’s the perfect time to start thinking about what your company can do to promote a healthy, productive workforce in the year ahead.
One of the smartest moves you can make? Investing in employee wellness. Some employers look at workplace wellness programs as an unnecessary extra or a “nice-to-have” but not something they want to invest resources into developing. But workplace wellness programs are so much more than just a bonus perk of the job. In fact, a well-designed wellness initiative can actually boost your bottom line in a big way. And research backs this up!
One Harvard study showed that for every dollar companies invest in wellness programs, they save over $3 on medical costs and nearly $3 on absenteeism. That’s a return of $6 for every $1 spent. Plus, these programs help create a company culture where employees feel valued, happy, and motivated—leading to higher productivity, less turnover, and a more engaged team overall.
A meta-analysis of 42 studies published in the American Journal of Health Promotion found that organizations with workplace wellness programs had about 25% lower medical and absenteeism expenses.
And research by Towers Watson and the National Business Group on Health indicates that companies with strong, well-executed wellness programs experience must lower rates of voluntary employee turnover.
With strong evidence behind the value of workplace wellness programs, it’s a no-brainer initiative to consider implementing in your workplace! But what are the biggest benefits, how do you choose what program is right for your business, and how do you get started?
Keep reading to explore why workplace wellness programs are one of the best investments you can make for both your employees and your business and how you can build a program that delivers real results.
Why invest in a workplace wellness program?
For starters, it’s not just about offering employees a place to do a few jumping jacks or eat some kale (although we’re not knocking a good salad!). Wellness programs can actually lead to huge benefits for your company and your employees.
The Bottom Line
Let’s talk dollars and cents first. Studies show that wellness programs can offer a serious return on investment. Anyone who owns a business knows just how expensive it is to provide employee health insurance coverage. On average, employers cover 73% of the cost for family health insurance premiums and 83% for individual coverage. This means companies typically pay around $16,357 per year for family plans and $6,584 annually for individual plans. Over the past five years, family health insurance premiums have risen by 20%, and over the past decade, they've jumped by 43%!
But, for every dollar you spend on employee wellness, you could save up to $6 in healthcare costs and absenteeism. That’s a solid ROI—especially when you consider how much companies spend on health insurance premiums alone. By promoting healthier habits, you’re likely to see fewer medical claims, fewer sick days, and even reduced disability costs.
Healthy Employees Are Happy Employees
But it’s not just about saving money. A wellness program shows your employees that their health matters to you. When people feel like their company values their wellbeing, they’re more engaged, more productive, and a whole lot happier. Happy employees = better performance, more energy, and less turnover. In fact, many companies with wellness programs report lower voluntary attrition, meaning employees are sticking around longer—and who doesn’t want to keep great talent on board?
Good workplace wellness programs can even attract new talent to your company. Today’s workforce is looking for more than just a paycheck—they want to work for companies that support their overall health and wellbeing. For example, according to employee departure records at Nelnet, an education finance firm, the number one thing departing employees said they would miss about working at Nelton is their wellness program.
In short, a workplace wellness program is a win-win—it saves you money and keeps your employees healthy, happy, and thriving. What’s not to love?
How do you offer an effective workplace wellness program?
What do all the most successful workplace programs have in common? There are a few main pillars that lead to success when implementing a workplace wellness program in your organization.
1. Culture is key
Even the most robust workplace wellness programs can fall flat if they aren’t built on a foundation of strong company culture. If you want your employees to truly embrace wellness, it has to feel like a default, supported part of their work environment, not just an optional extra to save the company money. A strong company wellness culture requires leadership to be fully on board so that employees can see that this isn’t just for optics—it’s truly about prioritizing health and wellness for everyone in the company. Leading by example is key.
2. It’s more than just exercise
Yes, offering opportunities for more movement is important! But research shows that providing educational opportunities that focus on skill development, lifestyle & behavior changes, nutrition, and mental wellness are proven parts of a successful workplace wellness program.
3. It has to feel fun!
Don’t forget—cultivating wellness into the day-to-day has to be enjoyable! A vibrant, wellness-focused culture should feel inviting, offer incentives, and go beyond cookie-cutter programs. Whether it’s fitness challenges, team-based activities, team nights out, or wellness days, making the program fun will encourage people to get involved and promote team bonding.
4. Have a plan
Communication is also a huge part of the puzzle. Even the best wellness program won’t make an impact if employees don’t know about it. You need a clear rollout plan that highlights the benefits and makes it easy for everyone to get involved. Make sure your messaging is consistent and tailored to your company’s culture so that it feels easy to access.
5. Be patient and persistent
Wellness programs take time to gain traction, and some employees may be a little hesitant at first. That’s totally normal! Start small and build momentum. The more you communicate the value of these programs—and show that leadership is fully on board—the more participation will grow over time.
6. Take time to review
A workplace wellness program should be a living part of your workplace culture. You can’t just set it and forget it. Regularly evaluate your wellness program to see what’s working and what might need adjusting. A program that evolves with your employees' needs is one that will stand the test of time.
7. Find the right partners
Bringing in top-tier partners who specialize in wellness programs can help you design something that fits your company's specific needs. Whether it’s fitness classes, team building, nutritional services, education, or something else, working with credible partners shows your employees that you're serious about their wellbeing.
Work with Western for a wellness program that works for you
Investing in employee wellness doesn’t just pay off in terms of health—it strengthens your company culture, increases employee engagement, and, yes, improves your bottom line. When done right, a workplace wellness program is a win for everyone involved. But the key is to make it work for your unique business, and that’s where Western comes in.
We make it easy to offer your employees access to membership and become part of the Western community with discounted rates and special offers. Plus, we know investing in workplace wellness can take time to build, so we don’t lock you into long-term contracts or require any upfront costs to offer your employees membership at Western.
We also specialize in fully customized workplace wellness programs that fit the specific needs of your organization. Whether you're looking for on-site or off-site fitness classes, interactive team-building activities like scavenger hunts or trivia nights, or engaging educational sessions that give employees real, actionable insights into their health, we’ve got you covered. You can mix and match any of our offerings to create a program tailored to your employees' interests and your company’s goals and budget.
Interested in learning more about our workplace wellness programs? Check out our Workplace Wellness webpage and contact our Workplace Wellness team leaders, Katie DuBois and Tad Taggart, today!
