For those of us in corporate, I don’t need to tell you that the work is tough. Long hours, tight deadlines, and high stress are common. Not to mention the fabricated emergencies outnumbering the actual emergencies. However, smart companies know that taking care of employees isn’t just nice – it’s good business. This series strays a bit from the regular Wellspiration content because it’s really about how organizations can look at wellbeing, rather than individuals. In spite of that, I felt it was an important topic to tackle because educating us on all the value will hopefully shift the tide. We will be devoting the next few posts to corporate wellbeing programs. This week, we’re focusing on why wellness programs are worth the investment, or “the ROI of wellbeing.”
What are wellness programs anyway?
Wellness programs are more than just gym memberships and they have come a long way since the early aughts. The best programs focus on whole-person health, materially driving the ROI of wellbeing much higher. According to the Society for Human Resource Management (SHRM, 2023), comprehensive wellness programs often include things like:
– Stress management classes
– Healthy eating support
– Sleep improvement tools
– Mental health resources
– Coaching for lifestyle changes
– Fitness challenges and incentives
– Financial wellness education
– Social connection activities
– Mindfulness and meditation sessions
– Ergonomic assessments and support
The most successful programs help people make lasting and sustainable changes, rather than offering quick fixes. They’re designed to fit into employees’ lives and work schedules and are baked into company culture. Many companies incorporate apps and wearables to make it easier for people to track their progress and stay motivated.
Why companies should care
The job market is competitive and especially in tech, where I came from. To stay on top, you need the best people doing their best work. Unfortunately the typical corporate environment in this late capitalism economy is typically in stark contrast to our personal wellbeing. That’s where wellness programs help close the gap. The ROI of wellbeing is clear and here are a few ways it nets out on the bottom line:
Healthy employees cost less
– 91% of HR leaders reported decreased healthcare costs due to wellness programs
– Nearly two-thirds of HR leaders saw at least $2 in return for every $1 spent on wellness programs
The math is simple. When people are healthier, they need less medical care. Even for people with chronic illness, lower stress and better health means less flares, which translates into less time with the doctor and lost productivity. Overall, that means lower insurance costs for the company, and fewer out-of-pocket expenses for employees.
People work better when they feel good
I think you would be hard pressed to argue that when people feel good, they work better. They are more productive, more creative, and more efficient.
According to various research available, I have seen the following:
– 99% of HR leaders believe wellness programs increase employee productivity
– 89% of HR leaders observed fewer sick days among employees with wellness programs
– Employees who participate in wellness programs are 45% more likely to be engaged at work
Think about it. When you’re stressed, tired, or feeling unwell, it’s hard to focus. You make more mistakes. You’re less innovative. In tech, where innovation is key, this matters a lot. Wellness programs help people feel their best, so they can do their best work.
Good wellness programs keep good people around
While there are many factors that keep employees sticking around longer, wellness programs don’t hurt. In fact, based on a survey of over 2,000 HR leaders, Wellhub found that 98% of HR leaders say wellness programs reduce turnover. They also found that “92% of workers said it is very (57%) or somewhat (35%) important to them to work for an organization that values their emotional and psychological well-being,” according to the American Psychological Association (APA).
In tech, talent is everything. According to the Society for Human Resource Management, losing a good employee can cost up to 200% of their salary to replace. Wellness programs show people you care about them as humans, not just workers. This builds loyalty and makes people want to stick around. It also makes managing the work more tenable, because it provides outlets for people to nurture their overall wellbeing.
It’s not just about money
Sure, saving cash is great. But good wellness programs do more than that. They show employees you care. This builds trust and loyalty in a world where employee loyalty feels like a big mistake. It makes people want to stick around and do their best work, in a landscape that inspires anything but.
In tech, where burnout is common, this matters a lot. An analysis by Blind found that 57% of tech workers reported feeling burnout during the pandemic. When people feel supported, they’re more likely to push through tough projects without burning out. They’re also more likely to speak up when they need help, which can prevent small issues from becoming big problems. There’s a reason “an ounce of prevention is worth more than a pound of cure,” is such a popular idiom.
Wellness programs can also boost your company’s reputation. In the age of Glassdoor and LinkedIn, word gets around fast about which companies truly care for their employees. This can give you an edge in recruiting top talent and no study is required to know this.
What works: Nike’s example
Nike isn’t just about sports gear. They’re also good at employee wellness. Part of that is due to the hard lessons they learned about using sweat shops and being basically a terrible company. They have also learned a lot of tough lessons, including not vetting and caring for their upstream suppliers, which did a lot of damage to their brand. They are putting in the work to make amends, as a result. According to their 2022 Impact Report, here’s what they do now for US employees (read more about supplier wellbeing in their impact report):
- On-site fitness centers
- Healthy food options in cafeterias
- Stress management workshops
- Flexible work hours
- Mental health support
- Paid sabbaticals for long-term employees
- Family support services
- Financial wellness education
The result? Nike sees lower healthcare costs and higher employee satisfaction. People want to work there and stay there. In fact, Nike’s voluntary turnover rate is about half the industry average, representing a remarkable transformation from the late 90s.
It’s not just about keeping people around, though. Nike’s wellness program aligns with its brand values of health and performance. This creates a strong culture where employees feel connected to the company’s mission. It only makes sense that a company devoted to the athleticism and health of their customers would treat employees with the same ethos.
Making it work for any size company
Not every tech company can do what Nike does, but any company can start somewhere. Here are some tips based on best practices from the International Foundation of Employee Benefit Plans:
Start small
Begin with low-cost, high-impact options like flexible work hours or mental health resources. Even something as simple as a weekly group walk can make a difference. Scheduling “Summer Fridays” so there are only 4-day workweeks during the Summer is another way.
Use tech
There are lots of wellness apps out there. Find ones that fit your team’s needs. Many offer features like meditation guides, fitness tracking, and sleep analysis. Some even gamify wellness, turning healthy habits into fun challenges.
Get feedback
Ask your team what they want. Then actually listen and do what they ask. If it’s not cost-prohibitive, it shows you really care in a meaningful way. Perhaps they want more mental health support, or maybe they’re interested in financial wellness education. Tailor your program to what your people actually need and are asking for. Otherwise, it isn’t worth asking in the first place.
Lead by example
If the bosses don’t care about wellness, why should anyone else? Make sure leadership is visibly participating in and supporting wellness initiatives. Additionally, ensure managers are actively demonstrating healthy wellbeing habits like honoring vacation time, not expecting people to answer emails all night, and keeping weekends free, with rare exceptions.
Measure results
Track things like sick days, healthcare costs, and employee satisfaction. This helps you see what’s working, but don’t just look at data. Collect stories and testimonials, too. Data is much more effective when it has a corresponding story to tell. This is where the real value lives and it’s also what will land on LinkedIn or Glassdoor, when you do it right (or wrong).
Partner up
Look for local gyms, mental health providers, or nutrition experts who might offer discounts for your employees. This can help you offer more services without breaking the bank. Local options are often much more feasible than large conglomerates, as well. Plus, why not support local small business at the same time.
Make it inclusive
Ensure your wellness program caters to all employees, regardless of age, fitness level, or health status. A good program has something for everyone. Don’t limit it just to gym memberships, as not everyone can benefit from a gym membership. This goes back to getting feedback so you know what people really need and want.
Communicate clearly
Make sure everyone knows what’s available and how to access it. The best wellness program in the world won’t help if people don’t know about it. This is an ongoing effort, too. It’s one thing to roll out a new program with a bang, but we are busy. People need to be reminded and encouraged. This is where managers demonstrating the importance in their own adoption is important.
Common worries (and why they’re wrong)
It’s no surprise that people and organizations will always have obstacles. That doesn’t make these programs any less important. Here are few common objections and why they are wrong:
“We’re too busy for wellness programs”
If this is the obstacle you’re hearing, that means you NEED wellbeing interventions stat. Being “too busy” likely your employees are on the brink of burnout, if they aren’t already. We also know that burned-out employees aren’t productive, so if you want them to stick around, you have to help and support them. Plus, many wellness activities can be integrated into the workday, like standing meetings or meditation breaks.
“Our employees are young and healthy”
Young doesn’t always mean healthy. Also, it’s a pretty bold assumption to make about employees since most folks won’t tell you if they have chronic illness, for fear of discrimination. Finally, this is just a really ignorant thing to say in the first place, if I’m really honest, so cut that shit out. A study by the American Heart Association (2023) found that poor health behaviors in young adulthood can lead to higher risks of chronic diseases later in life. As I mentioned before, prevention is always cheaper than treatment. It’s never too late to play a positive and active role in someone’s wellbeing.
“We can’t measure the impact”
You can measure lots of things: healthcare costs, sick days, employee satisfaction, turnover rates. The data is there if you look for it and as long as you are tracking it, it should be easy to see the trends. You may not have the rigor of a double blind study with causation, but most formal studies can’t prove causation, so don’t let this be an excuse. Additionally, there are plenty of qualitative measures – employee stories can be just as valuable as numbers. You may also see it jump in your LinkedIn and Glassdoor mentions. Data abounds!
“It’s too expensive”
Like your personal retirement, this is an investment, not an expense. Remember, good wellness programs save money in the long run through lower healthcare costs and higher productivity. Start small and scale up as you see results.
Reiterating the ROI of Wellbeing
In tech, your people are your biggest asset. Taking care of them isn’t just nice – it’s smart business. Wellness programs can save money, boost productivity, and keep your best people around.
The tech industry may be known for innovation, but it’s often synonymous with burnout. Wellbeing is an opportunity to change the narrative and set your org apart. Additionally, tech is the Queen of innovation, so why not apply that same innovative spirit to employee wellbeing? With the right approach, you can create a wellness program that fits your company’s unique culture and needs.
Start small if you need to, but start. Your team (and your bottom line) will thank you. And who knows? You might just find that a focus on wellness sparks the next big innovation in your company. I feel like we need a “save the cheerleader, save the world” riff here, but I will leave you with this thought. The companies that win are often the ones that take the best care of their people. Make wellness a priority, and you’ll be setting your company up for long-term success.
If you’re looking for more information on how to start an internal wellness program or a Fractional Chief Wellness Officer, let’s talk. If you aren’t quite there yet, that’s OK. Follow Wellspiration here or here for the next post about the common mistakes corporate wellness programs make and how to avoid them.
Resources
- Wellhub. (2024). 2024 Return on Wellbeing Report. https://assets-cdn.gympass.com/docs/Lead-Magnets/US/ROW24/US_ROW_REPORT_167eed42d9.pdf
- Gallup. (2022). State of the Global Workplace Report. – https://www.gallup.com/workplace/349484/state-of-the-global-workplace-2022-report.aspx
- Wellsteps. (2023). 11 Corporate Wellness Statistics: Pros and Cons of Employee Wellness Programs. https://www.wellsteps.com/blog/2020/01/02/corporate-health-and-wellness-programs/
- Society for Human Resource Management (SHRM). (2023). Employee Benefits Survey. https://shrm-res.cloudinary.com/image/upload/v1718810601/Employee%20Benefits/2024_Annual_Benefits_Survey_Executive_Summary.pdf
- Blind. (2021). State of Burnout in Tech. https://www.teamblind.com/blog/content/files/StateofBurnoutCovid19.pdf
- Nike. (2022). FY22 Nike Impact Report. – https://about.nike.com/en/newsroom/releases/fy23-nike-inc-impact-report
- International Foundation of Employee Benefit Plans (IFEBP). (2023). Workplace Wellness Trends. – https://www.ifebp.org/resources—news/survey-reports/workplace-wellness
- American Psychological Association. (2023). Work and Well-being Survey. https://www.apa.org/pubs/reports/work-in-america/2023-workplace-health-well-being
- American Heart Association. (2023). Heart Disease and Stroke Statistics—2023 Update. https://www.ahajournals.org/doi/epub/10.1161/CIR.0000000000001123
- WELCOA (Wellness Council of America). (2023). Seven Benchmarks of Success. https://www.welcoa.org/resources/7-benchmarks/
- Grandview Research – https://www.grandviewresearch.com/industry-analysis/corporate-wellness-market
- Deloitte – https://www2.deloitte.com/us/en/insights/multimedia/podcasts/the-problem-with-employee-wellness-programs.html
- Dice – https://www.dice.com/career-advice/work-overload-biggest-cause-tech-worker-burnout
- Rand – Workplace financial wellbeing interventions and the mental health of young workers – https://www.rand.org/pubs/infographics/IGA839-1.html
- Business cost effectiveness calculator – ://evolveworkplacewellbeing.org/business-calculator/?&frm_page=1