September 26, 2018

How to save money by Wellness Programs on Healthcare

Maintaining a healthy lifestyle is very important in the corporate world, but with the long working hours and a sedentary setup, being fit and active becomes a challenge. That is why many employees get sick easily or are dissatisfied with their jobs. These take a toll on productivity which leads to lost company revenues.

As a response to this concern, many organisations offer employee wellness programs. These can vary depending on the company but in general, these programs aim to improve the health and overall well-being of employees. Organisations spend money on wellness programs, but they can save on employees’ healthcare. Here are some saving tips on employee wellness programs.

  • Healthy employees mean lower healthcare premiums.

    The returns are high when companies have wellness programs with high engagement. Healthcare needs decrease with healthy employees. Companies no longer require high healthcare insurance premiums because their staff become qualified for lower premiums. This also means lower healthcare expenses for employees.
    Companies also see a huge return on their investment when they implement programs that aim to help manage chronic diseases. When employees have the ability to better manage their condition, there’s less crisis management which lowers healthcare costs in the long run.

  • Wellness programs lower compensation costs.

    Employees are covered by worker’s compensation that protects them in the case of an injury or sickness due to their work. With a wellness program, healthy employees greatly reduce the risks of getting sick or injured. This can lower their compensation costs.

  • Wellness programs help reduce absenteeism.

    Employees who engage in wellness programs tend to reduce the chances of getting stressed out, de-motivated, sick or injured. This leads to lower absenteeism that greatly reduces sick leave costs and improves productivity and company profit.

  • Wellness programs help lower attrition rates.

    Employees tend to stay with their employer when they feel that their well-being and personal health are valued. This leads to lower rates of attrition which then results to reduced costs in terms of sourcing and hiring new talent.

Employee wellness programs help us save money primarily on healthcare insurance. But the benefits go beyond healthcare-related expenses. Wellness programs also improve the workplace culture that leads to increased retention and productivity. It likewise lowers recruitment costs and fosters a positive behaviour that will help employees in achieving a healthy lifestyle. It’s a win-win situation for both employees and employers.

Do you know other ways to save money on employee wellness programs? Share your ideas in the comments section below.

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