How Much Does an Employee Wellness Program Cost?

Wellness programs can have great effects within the workplace, including boosting productivity and cost-saving benefits. It’s no wonder why wellness programs have become so popular with more employers looking to invest in more opportunities to promote health and fitness. Even though these programs have a multitude of positive effects, they are still an investment in both time and money.

Today we will analyze how much wellness programs cost, as well as the importance of a well-rounded program.

What is an Employee Wellness Program?

Wellness programs are usually offered through the workplace and are intended to improve and promote health and fitness.

Employers will often encourage employee participation by offering premium discounts, cash rewards, gym memberships, and other incentives.

Examples of wellness programs often encompass weight loss programs, diabetes management, or preventative health screenings.

Common benefits offered in wellness programs include:

Resources for smoking cessation
Weight loss programs
Stress management
Company/gym workout rooms
Company-sponsored sports teams
Medical screenings
Immunization/flu shots

Importance of Wellness Programs

The emphasis on employee wellness programs continues to grow, with new data highlighting their impact on productivity and overall employee well-being. According to recent studies:

53% of organizations offer standing desks, a marked increase from 44% in 2017, reflecting the ongoing trend towards healthier work environments according to a SHRM report.
53% of employees reported better health due to wellness programs, with 67% noticing weight reduction and 30% detecting diseases early shown by Shortlister.
56% of employees who participate in wellness programs report taking fewer sick days, demonstrating the direct link between wellness initiatives and reduced absenteeism reported by Shortlister.
70% of employees involved in these programs reported higher job satisfaction compared to those who were not, indicating that wellness programs contribute to a more engaged and motivated workforce.

Not only do wellness programs boost productivity, but it can also have an effect on healthcare costs. Wellness programs aim to work as a preventative measure for avoiding illness, while improving or maintaining an employee’s general health. The healthier employees are, the less days they tend to miss due to illness, as well as reducing their risk for chronic disease or conditions.

Employee Health Education

In order to truly promote a healthy lifestyle, your program must extend beyond just the incentives. Your program should aim to encompass health education, communication, and implement a supportive work environment.

Common wellness program education topics often include:

Back care
Cancer prevention
HIV/AIDS awareness
Proper eating and exercise habits

How Much Do Wellness Programs Cost?

When determining the monetary value of a wellness program, it truly depends on how much the employers want to offer their employees. An effective employee wellness program can cost between $36 and $90 per employee per year.

This is definitely a large range, but the reason is due to which wellness program options an employer wants to include. As mentioned above, there are a variety of different benefits that can be included within your wellness program, combined with education and resources for employees the time and money spent can vary for more extensive programs.

A more cost-effective solution would be to partner with a wellness vendor, such as C.A. Short that offers a comprehensive wellness program along with a proprietary wellness platform.

Wellness platforms often provide the materials that allow your company to create a wellness program and typically have monthly costs of $15 to $30 per employee.

Most wellness platforms include access to a mobile app and website that offer incentive management, a health risk appraisal, online resources, wellness campaigns and team challenges. You can also choose to hire a wellness vendor to manage your wellness program. Standard Managed Wellness Programs generally range from $20 to $50 per employee per month and Comprehensive Managed Wellness Programs can range from $50 to $100 per employee per month or more.

ROI of Wellness Programs

While implementing a wellness program for your business may seem like an expensive task, the ROI proves the cost and benefits are worthwhile.

The overall ROI for wellness programs can vary, with estimates ranging from $0.50 to $3.80 return for every dollar invested.

In 2024, the return on investment (ROI) and savings from wellness programs continue to be a significant focus for companies, but the landscape has evolved.

ROI of Wellness Programs: Recent studies indicate that the ROI from wellness programs can vary significantly. On average, wellness programs yield a $1.50 return for every dollar invested. However, it's important to note that not all programs generate immediate savings. The most substantial cost savings often come from disease management programs rather than lifestyle management initiatives. For example, a recent RAND Corporation study found that disease management programs resulted in $136 savings per member per month, with a 29% reduction in hospital admissions (FlexiBenefits) (Time Well Spent).
Value on Investment (VOI): Companies are increasingly looking at the broader value on investment (VOI), which includes non-financial benefits like increased employee satisfaction, reduced absenteeism, and improved productivity. These factors contribute to long-term savings, even if immediate healthcare cost reductions are not always apparent (Time Well Spent).

By partnering with C.A. Short Company, we can help you easily deploy your program, while giving you data and insights into program performance. Our comprehensive wellness platform provides convenience while boosting employee engagement and employee health. Download our whitepaper, Creating Healthier Employees and Stronger Companies with Wellness Programs to learn more about C.A. Short and our wellness programs.