In 2022, employee wellness initiatives are a non-negotiable factor for many qualified jobseekers. A standard salary and benefits package is no longer enough to attract and retain the best talent. Many people are even willing to accept a job with a lower salary if they believe that they will be happier and healthier in the company. In the wake of COVID-19, people’s priorities have shifted. By failing to invest in the wellness of your staff, you may face consequences that can seriously impact your company’s operations and financial health in the long term.

When your employees are supported by a holistic corporate wellness program, you’ll see the return on your investment in quite a few ways.

Decreased Healthcare Costs

In 2020, employers spent an average of $13,728 in healthcare costs for each worker. When calculating premiums, insurance companies place a lot of emphasis on the health of an employee. The more risk factors an employee has, the greater the cost of health insurance, leading to an overall increase in healthcare costs.

Workplace wellness programs help to target a lot of these risk factors. By addressing lifestyle factors (such as poor diet, high stress and lack of physical activity), workers can significantly reduce the likelihood of developing lifestyle diseases. Hypertension, diabetes, and obesity are known to drive up the cost of health insurance premiums. Workers with these conditions are also more likely to need regular doctor’s visits or long-term prescription medication.

In addition to nutrition and exercise, a holistic program will also promote good posture, which can lead to a decline in musculoskeletal disorders and visits to the chiropractor. Wellness programs work to reduce healthcare costs in two major ways. Not only can they help workers to manage or reduce existing risk factors, but they can also promote lifestyle choices that prevent health issues from cropping up in the future. By investing in your employees’ well-being today, you can expect to see reduced healthcare expenditures over time.

Decreased Workers’ Compensation Claims

Back pain is one of the most common injuries experienced by employees. According to data from the National Council on Compensation Insurance, the average workers’ compensation claim for lower back injuries was nearly $37,000 in 2020. It’s a common misconception that back injuries only happen to workers who are always on their feet, or those who are required to lift heavy loads on the job. Over time, even sedentary employees can develop debilitating back pain due to poor posture, a poorly designed workspace or sitting in a chair with insufficient lumbar support. Bad posture puts significant strain on the spine, while improper seating can be detrimental to the lower back, shoulders and neck.

Employees may also claim workers’ compensation benefits for work-related mental health conditions, such as depression, anxiety and PTSD. By investing in a holistic employee wellness program, you’ll be taking care of both the physical and mental health of your workers.

Decreased Levels of Absenteeism

Absenteeism affects every aspect of your business. When employees are consistently absent, your finances will certainly take a hit. If an employee is absent using paid time off, you’re still paying wages for the time that they did not work. You will face additional labor costs if you pay present staff members for overtime hours spent picking up the slack or hire temporary employees to fill operational gaps. If you’re understaffed, your business won’t be able to deliver the highest standard of customer service, which can lead to loss of business or reputational damage. The present staff members may experience burnout, which can easily turn into a disengaged workforce.

Workplace absenteeism is almost always due to physical or mental health issues, as well as poor employee engagement. Several studies show that by investing in the wellbeing of your employees, you’ll notice a significant reduction in absenteeism.

Increased Levels of Productivity

Although absenteeism is a huge productivity killer, presenteeism can have similar, or worse effects. Presenteeism happens when employees are physically at work but are not productive due to poor physical or mental health. For context, the World Health Organization estimates that depression and anxiety cost the global economy $1 trillion annually due to reduced productivity.

When you fail to invest in workplace wellness, don’t be surprised if you begin to notice a drop in productivity. It’s no secret that we do our best work when we’re in good health and feeling positively about ourselves. When workers are dealing with back pain or mental health challenges, it can be impossible for them to function efficiently.

Several studies have shown that there is a correlation between unhealthy lifestyle choices and presenteeism. For example, tobacco smokers and workers with an unhealthy diet have higher rates of presenteeism than non-smokers and those who regularly consume fruits, vegetables and whole grains. Going further, employees who didn’t exercise were shown to be 50% more likely to engage in presenteeism than those with a consistent exercise routine. This is why it’s important for your employee wellness program to address movement.

Are you ready to invest in a corporate wellness program that benefits both your employees and your bottom line? Schedule a consultation to discover how an Employee Health and Wellness expert can positively impact your organization.

4 Ways Employee Wellness Programs Can Impact Your Bottom Line