This article was originally published in the Summer 2024 issue of ICON/REFINED. Get your copy here. 

Photography by James Patrick

Now more than ever, the well-being of employees plays a pivotal role in organizational success. After all, happy, healthy employees make for a happy, healthy business. Corporate wellness programs are designed not only to enhance employee health and morale, but to also drive productivity and reduce healthcare costs. While often associated with large corporations, small businesses stand to gain equally from implementing wellness programs tailored to their unique needs and resources. By prioritizing employee health through these initiatives, small businesses can foster a happier, more engaged workforce, ultimately contributing to sustained business growth and competitiveness. 

For the Health of It

Corporate wellness programs are a great way to foster a healthier and happier workforce. They are designed to reduce healthcare costs, increase productivity, enhance employee morale and retention, lower stress levels, increase job satisfaction, and improve recruitment. Depending on the size of the company, a variety of initiatives can be offered to improve physical, mental, and emotional health. 

The two types of corporate wellness programs offered are participation or health-contingent/outcome based. Participation-based programs offer incentives and/or rewards for participating in specific wellness activities. Employees receive points for participating and are rewarded based on their participation. Health contingent/outcome-based programs require employees to either meet a health standard or a reasonable alternative standard in order to receive the incentive or avoid penalty. An example of a health standard is having a healthy blood pressure or lipid profile. However, a health-contingent wellness program has a higher risk of pushback from employees if it is not rolled out methodically. 

Participation-based programs are most commonly implemented, and can be highly effective for creating behavior changes that positively impact employees’ health. Motivating employees to want to adopt healthier behaviors for the rest of their lives is the long-term goal. 

Motivating employees to want to adopt healthier behaviors for the rest of their lives is the long-term goal. 

Reduce Costs, Boost Health

Corporate wellness programs create a supportive work environment where employees’ well-being is a priority, and the company saves money by providing that support. Harvard researchers found that the average return on investment was $3.27. That means that for every dollar that was spent on the program, the company saved $3.27 because of reduced healthcare costs. 

Effective corporate wellness programs that help employees adopt and maintain healthy behavior change will see the most healthcare cost savings. Creating healthy behavior change is the core of a successful wellness program. People want to change, but they do not know how or may not have the resources to get help. Employers can bridge this gap.  Reduced healthcare costs are not the only cost savings a company can plan to save when offering a corporate wellness program. 

The cost of presenteeism is estimated to be larger than the cost of absenteeism. Presenteeism is when an employee is not fully functioning in the workplace due to illness, injury, or other conditions. Presenteeism is estimated to cost 2-3 times more than direct health care expenses. Employees with poor health behaviors are associated with presenteeism. 

According to the Population Health Management Journal, employees with an unhealthy diet were 66 percent more likely to have higher presenteeism compared to those who ate a healthier diet, and employees who didn’t exercise regularly were 50 percent more likely to have higher presenteeism than regular exercisers. Additionally, smokers were 28 percent more likely to have high presenteeism than non-smokers.

While 70 percent of companies still measure the success of wellness programs by participation rates, there is a growing recognition that true success is reflected in improved employee health, productivity, and retention. The cost savings from employee retention is often overlooked as another benefit that corporate wellness programs provide. The Society for Human Resource Management found that companies with a wellness program saw a 25 percent decrease in employee turnover compared to those without a program. Programs that effectively support employees’ well-being can result in higher job satisfaction and loyalty, with 84 percent of employees more likely to recommend their workplace if they feel supported.

Corporate wellness programs are a game changer for companies who want to offer a healthier workplace. They are also important for employees who want to improve their health and increase job satisfaction.

A Gallup survey reported that companies with ​​highly engaged employees experienced a 21% increase in profitability.  

No Business Too Small

Small businesses that offer a corporate wellness program can experience improved retention, decreased absenteeism/presenteeism, enhanced employee morale and trust, lower workers compensation fees, lower short and long-term disability and a positive company culture. Having just one employee become healthier in a small company can have a big impact.

Small companies can experience a financial return on investment similar to larger companies especially if they are self-insured. However, cost savings can be measured beyond reducing healthcare costs, such as savings on absenteeism and retention. Employees with more health risks are likely to be absent or less productive which can negatively impact a smaller company’s productivity. 

Decreasing presenteeism by promoting a healthy culture and boosting productivity can be attributed  to improved physical health, reduced stress levels. and enhanced mental well-being. These all contribute to a more focused and engaged employee, which will largely impact a small company’s cost savings.

Wellness programs are a great way to build morale, especially in a smaller company where benefit offerings may be limited. Participation tends to be higher in smaller companies which increases the likelihood of improving at least one employee’s health. Small businesses who show they care about their employees’ health will see a return on investment. 

Small businesses are the future of wellness. An effective approach for starting a wellness program is to focus on employees across the risk spectrum. Prioritizing the health of all employees, not just those who are at high risk, will continue to move everyone into a healthier category.

The secret to any successful corporate wellness program is behavior change. Offering services that help employees adopt and maintain healthy behaviors will reduce health risks and reduce employee related expenses. Small businesses can’t afford to not prioritize their employee’s health. Focus on creating a quality wellness program and the results will come. 

For every dollar that was spent on the program, the company saved $3.27 because of reduced healthcare costs, according to Harvard researchers.

Start a Corporate Wellness Program

Small businesses, just like large businesses, have a few options to choose from when implementing a corporate wellness program. Here are a few options to get started. 

Contact your Broker

Your insurance broker may have an in-house wellness specialist who can connect you with wellness vendors, assist with biometric screenings, and provide surveys and guides specific to your industry. Resources may be limited for small business, but this is a great place to start. 

The Carriers Wellness Offering

Most insurance carriers have wellness program offerings. These programs can offer a variety of options such as 100 percent self-serve online options, programs specific to chronic diseases and coaching opportunities. These resources may also be limited for a small business, but it is worth looking into.  

Hire a Wellness Vendor

Hiring a wellness vendor can take all of the guesswork out of doing it on your own. A wellness vendor can be an affordable option and a great way to customize your wellness program offerings. 

Start on Your Own

Depending on your background, implementing your own corporate wellness program can be your best or worst bet. If you don’t have a background in wellness, it would be advisable to hire a wellness vendor who is knowledgeable in corporate wellness. If you do have a background in wellness and you’re interested to fire up your own operation, see sidebar “DIY Corporate Wellness” for tips to get started.

DIY Corporate Wellness

Do you pull double-duty as a business owner and wellness fanatic? You may be the perfect candidate to start your own corporate wellness program. Here’s how to get started.

1. Determine your goals and what is important to improve the health of your company.
2. Decide what type of wellness program you want to offer: Participation or Health Contingent. Participation based wellness programs are safe options to start with. 
3. Create an environment within your business that makes being healthy a no-brainer. For example, offer healthy snacks in the break room or in vending machines.
4. Create a communication plan. Leadership, starting with the CEO, must be willing to promote wellness in a positive manner. This is critical when starting a successful wellness program.
5. Tailor the plan to your company. Survey your employees to get their buy-in and to address the areas that meet their needs. 
6. Deliver, deliver, deliver. Determine the structure and communication strategies that’ll suit your company best.
7. Evaluate and report. Reviewing aggregate data for participation is helpful to determine what is working and what isn’t. Don’t forget to assess participation on a regular basis.
8. Be patient and manage expectations when evaluating the return on investment. Effective corporate wellness programs can take years to improve employees’ health–and the bottom line. 

Health Your Way

Small companies, just like large companies, can start by offering some of these wellness initiatives. 

• Health assessments/screenings
• Incentives and participation tracking
• One-on-one health coaching
• Stress reduction programs
• Walking/step challenges
• Nutrition education
• Exercise programs (onsite or virtual)
• Weight management programs
• Competitions within the company