Wellness by the Numbers
For many organizations, their most valuable asset is their people. To keep your business humming along requires an engaged, creative workforce—and an environment in which they can thrive and feel supported.
This, of course, is common sense to many business leaders. And for good reason: when employees feel well taken care of by their employers, both they—and the overall business—have a better chance of success. The not-so-secret weapon of an increasing number of modern success stories? Employee wellness. Yes, you have to have a great product or service, but without a dedicated team of employees to sell, market, and support your offerings your success will be limited.
The diverse benefits of employee wellness programs are well-documented. As Gallup notes, “Teams that believe their organization cares about their wellbeing perform better too, reaching higher customer engagement, profitability and productivity with lower turnover and fewer safety incidents.”
Spoiler Alert: Appreciating employees means more than just celebrating Employee Appreciation Day.
Why does a commitment to employee wellness look like—and how can you start your own wellness program? How do companies with employee wellness programs benefit from their initiatives? Keep reading for these answers and more, as we explore the world of employee wellness.
What Does “Wellness” Mean in the Workplace?
In the workplace, “wellness” refers to both the physical and mental/emotional wellbeing of employees. Here’s how the Global Wellness Institute defines wellness for companies:
Any workplace health promotion activity or organizational policy designed to support healthy behavior among employees and to improve health outcomes.
As the Global Wellness Institute goes on to note, countries outside of the United States tend to instead call this “corporate wellbeing,” but the definition does not change. Regardless of what you decide to call it, what it actually consists of—and what it looks like in practice—can vary widely from one organization to another. What’s most important is determining what wellness means to your employees, and then finding novel ways to support their success.
What Are the Elements of Employee Wellbeing?
It’s important to remember that while addressing employee wellness often improves productivity and profitability, that’s only one element of wellbeing. After decades of research into what, exactly, defines wellness or wellbeing, Gallup suggests “five universal elements of wellbeing,” which we’ll define in terms of employee wellness:
Career wellbeing: Employees are satisfied with their work responsibilities, and see opportunities for growth.
Social wellbeing: Employees feel comfortable being themselves, and have one or more coworkers they consider friends or confidants.
Financial wellbeing: Employees feel like their work is valued, and that their compensation is fair.
Physical wellbeing: Employees feel safe in the workplace, and are energized by their work.
Community wellbeing: Employees feel like they belong, and like they are part of something that really matters.
As you can imagine, balancing these components of wellness can be difficult, especially if you’re relatively new to the concept of employee wellbeing. This underscores the importance of developing a well-rounded employee wellness program.
Why Is Workplace Wellness So Important?
There is plenty of available evidence that supports the importance of employee wellness programs. From a “big picture” standpoint, organizations that demonstrate a commitment to employee wellness are able to positively impact employee engagement. In turn, this plays a huge role in even broader matters, like attracting and retaining top talent.
In other words, by taking better care of their workers, companies can reduce the amount of employee turnover—and save themselves a ton of money (since retaining employees is much more cost-effective than replacing them). Or, as Gallup puts it, “High wellbeing in the workplace is a retention booster and a talent magnet.”
Is Workplace Wellness a New Concept?
Especially since the turn of the millennium, employee wellness has been a popular concept—but it’s probably not as new an idea as you would think. Some research actually indicates that it goes all the way back to the 17th century and an Italian physician named Bernardini Ramazzini who “is believed to be one of the first to advocate the effects of work exposure on workers and was interested in the possibilities of preventing occupational diseases and helping improve employee well-being.”
Workplace wellness as a more formalized concept began to take hold right around the start of the 1980s, when Johnson & Johnson pioneered their own “Live for Life” initiative. Their not-so-modest goal? To “help 100,000+ employees be at their personal best when it comes to their health and well-being by 2020.”
Do Employee Wellness Programs Work?
Yes, especially if they are well-designed, aligned with their employees’ needs, and soundly implemented. These programs “lead to healthier, more-engaged, and more-productive workers,” according to SHRM.
Of course, no initiative is going to be foolproof, so it’s important to be thoughtful about the type of program you develop. Research cited by SHRM shows that companies can increase their chances of success by doing three things:
Acknowledging that wellness is (or should be) both an individual concern as well as an institutional one,
Measuring program success on both an individual and institutional level, and
Understanding that workplace wellness is more than a one-time box to check—it’s an ongoing journey that should adapt and grow with the organization.
What is the Empathy Gap?
The empathy gap is a phenomenon that underscores the importance of meaningful workplace wellness programs. Consider these statistics from Forbes:
Research shows that nearly all (96%) employees “believe showing empathy is an important way to advance employee retention.” (In other words, employees are more likely to stay with a company if that company cares about them.).
A vast majority (92%) of CEOs consider their organization to be empathetic to its employees…
However, only half (50%) of employees consider their company’s CEO to be empathetic.
We don’t want to sound alarmist, but that’s a pretty alarming gap. There is clearly a mismatch between a company’s offerings and what the employees think of them. But there is also an opportunity here: to develop meaningful wellness programs that engage employees and empower them to make healthy decisions in life—to create a program that actually makes a difference. It’s more about demonstrating empathy than merely identifying as empathetic.
The truth is that you cannot support—or positively impact—employee wellness by simply talking about it or describing broad initiatives. The best wellness programs will be tailored to employees’ needs, prioritizing what’s most important to them.
Next, let’s look at the components of an employee wellness program.
What Are Employee Wellness Programs, and What Does a Wellness Program Include?
A “wellness program” can refer to any initiative or series of initiatives dedicated to acknowledging—and improving—employee wellness. The most successful wellness programs will be comprehensive. In other words, rather than being focused on one aspect of employee wellbeing, they will include tools to support users’ physical, mental, and emotional wellbeing, and promote things like preventive health, health education, work-life balance, and so on.
There are a wide range of components for stakeholders to consider as they develop their wellness programs for employees, with examples often including things like:
Regular check-ins and health screenings
Physical fitness programs and incentives
Smoking cessation programs
Other wellness program examples apply a broader, more holistic understanding of employee health. They may, for example, offer programs specifically tailored for anything from smoking cessation to meditation and yoga, emotional intelligence, financial education, and so on.
Organizations can support their employees’ journey to better health by promoting bonding and team-building activities centered around wellness, or offering on-site physical fitness classes or equipment, healthy dining options, and so on.
What Are 3 Goals for an Employee Wellness Program?
The main goals of an employee wellness program is to support employees’ wellbeing, control healthcare costs, and create a culture where everyone feels supported and valued. Let’s take a closer look at each of these.
Goal #1: Support Employees’ Wellbeing
It’s called an employee wellness program for a reason—so, while there are certainly business benefits associated with employee wellness, the main focus should be on the employees. Many employee wellness programs rightfully prioritize boosting employees’ morale and enthusiasm, which can make a world of difference in their day-to-day quality of life. After all, 40 hours a week is a lot of time for anyone to spend in a place where they don’t feel valued or supported.
Employee wellness programs can also be effective in reducing stress (a silent killer), anxiety, and other negative feelings. Effective workplace wellness programs also include plenty of support for preventing illness, controlling chronic conditions, and helping employees to better understand—and take control over—their own health.
Goal #2: Reduce Business Costs
While the development and implementation of employee wellness programs does require a modest investment, these programs generally deliver an impressive ROI. For starters, when employees feel supported—rather than burned out—they’re more likely to stick around, helping to mitigate costly turnover. They’re also less likely to require extended sick leave over the course of their employment, and are more productive when they’re on the clock.
Goal #3: Build a Pro-Wellness Culture
Simply making employees more aware of their health and inspiring them to make positive choices is, in itself, a major step in the right direction. Rather than letting your employee wellness program be yet another initiative that loses its momentum over time, it should be a constant priority.
There’s never a bad time to remind employees about the importance of self-care, and there’s never a bad time to show that you support your employees’ wellness by cheering them on and offering public recognition for personal milestones. Becoming a company that emphasizes the wellness of its employees is also a great way to attract new talent.
Are Employee Wellness Programs Worth It?
Employee wellness programs are almost always worth the investment, especially among companies that are truly committed to supporting their employees’ wellbeing—and who work with reputable wellness platform companies. From attracting new talent to keeping existing employees engaged, a commitment to employee wellness can be a game-changer.
Research shows that around 90% of employees evaluate potential employers’ benefits packages before deciding whether to work for specific companies, with that number likely to creep even higher as more Gen Zers and Millennials enter the workforce.
Next, let’s explore the positive impact a company wellness program can have on employees, employers, and an organization’s overall culture.
Benefits for Employees
One of the biggest benefits of employee wellness programs is the ability to prevent burnout. When employees get burnt out, no one wins, as they become less productive and less content in their jobs, which can lead to larger problems. By contrast, when employees feel valued, understood, and supported, they are not only more content, but more productive as well. They might even recommend their employer to friends or family.
When their employers demonstrate a commitment to their holistic wellbeing, “employees are up to 90% less likely to report being burned out at work” and “as much as 2x as likely to evaluate their lives and futures positively.”
Another aspect of successful employee wellness programs concerns financial support—more specifically, connecting employees with resources they need not only for educational purposes, but to access financial assistance as well. This removes yet another common barrier to employee wellness.
Benefits for Employers
Employee wellness programs help companies to attract and retain talent, keep employees healthy and productive, and prevent burnout and turnover. Absenteeism is expensive, after all, and it can disrupt an organization’s ability to reach its goals. When wellness programs focus on preventative health and a wide range of support resources, it not only reduces absenteeism but also increases employee engagement. When workers feel truly valued and taken care of, they simply do better work.
By reducing absenteeism and burnout, employers can save a significant amount of money—especially when the alternative is replacing employees, which costs several times as much as taking care of the employees you already have.
When an employee wellness program is run well, it can be a differentiating factor when it comes to attracting the best talent to your organization. Unsurprisingly, employees’ interest in wellness programs has been increasing over time. One WebMD study found that “employees across all generations now expect more from employers when it comes to ensuring well-being,” and “70% believe employers should offer a mental and emotional health program.”
Impact on Company Culture
Based on the benefits described above, creating a company culture of wellness is a win-win for employees and employers alike. Creating a well-rounded employee wellness program not only provides a morale boost and increases a feeling of camaraderie, it can also become a powerful competitive advantage as an increasing number of workers are prioritizing companies with corporate wellness programs.
It also empowers people to realize that change and growth are possible, no matter who they are or what challenges they face. And when employees feel like their wellness isn’t just their concern but their employer’s as well, an uplifting, wellness-centered culture begins to develop.
How Do I Set Up an Employee Wellness Program?
Here’s how to develop a wellness program, in 9 steps:
1. Start by conducting an employee wellness assessment
This way, you will be able to tailor your program to your employees’ most pressing needs—which is especially important if your budget is tight but you want to start building out your program. It’s important to respect your employees’ privacy, so it’s not appropriate to ask a bunch of prying questions.
Instead, try to design a survey that helps you identify the types of health-enhancing measures that matter most to your employees. The CDC provides in-depth resources for developing employee surveys and workplace health assessments, so you can get the information you need without violating HIPAA and other privacy-based regulations.
Finally, you can also review things like group health plan utilization rates, to gain even more perspective into employees’ wellness priorities.
2. Bring management into the conversation to generate support
Without buy-in from management, your employee wellness program will likely be limited in its effectiveness. That’s why it’s so important to consider both the mental/emotional side of employee wellness as the practical ROI of any potential wellness program. This article from Corporate Wellness Magazine provides a nice overview of the business case for employee wellness programs.
3. Get a committee together
Whether or not this cadre becomes your official “wellness committee” when your program launches, it’s important to build a cross-functional team of people to start brainstorming what a wellness program could look like. Among their responsibilities, this committee should evaluate current programs, assess what services employees want/need, decide how to incentivize healthy habits and decisions, and so on.
4. Plot the program’s goals and objectives
You might start small, by incentivizing one or wellness-promoting behaviors, or you might be more ambitious in your scope. Especially if you’re developing a workplace wellness program for the first time, we recommend the former approach—starting small and growing the program over time.
5. Set a budget
If your wellness program isn’t adequately funded, it doesn’t have the best chance of making the kind of impact that justifies the price tag. To set a proper budget, you’ll need to consider direct and indirect costs, including things like incentive costs, provider/vendor fees, and even software licenses if you opt for digital or online health and wellness software.
6. Design your wellness program
Whether you decide to start small or you want to take a more ambitious or multifaceted approach, don’t lose sight of your program objectives and priorities—as well as the budget. Don’t forget, the actual elements of your wellness program (as well as how you conduct the program) should align well with what matters most to your employees.
7. Decide what incentives to offer.
If you want to ensure that as many employees as possible embrace your wellness program, you’ll need to provide meaningful incentives. In the context of promoting workplace wellness, incentives could include anything from merchandise or gift cards to bonuses and paid time off.
8. Promote the program
Let people know what to expect when your program formally launches. Key information to share in advance of the program’s launch include its objectives, the types of incentives you’re offering, practical considerations, and more.
9. Evaluate the program’s success
Ideally, you will be able to evaluate your wellness program based on a variety of metrics. On one hand, you can look at metrics like how many sick days employees are taking (this number should decrease if the program is making an impact). On the other, you can gather anecdotal data by asking employees and other stakeholders for candid feedback and even ideas for improvement.
You can’t inspire more health-conscious behavior without first making employees aware. A wellness platform should connect users with accessible educational materials (including text resources, as well as “explainer” type videos) around specific health topics, as well as interactive, awareness-building tools like personal health assessments.
In a perfect world, the idea of becoming a healthier, happier, and more productive person would, in itself, be enough to inspire change. Unfortunately, we don’t live in that world. So how can you inspire employees to embrace the program? The answer largely lies in behavioral psychology. When people can track the development of new, positive habits, they will often feel empowered by seeing their progress. Some companies opt to include elements of gamification in their programs, though the jury is still out on whether this is the best approach for adults.
Would it surprise you to learn that less than 10% of people are able to keep their New Year’s resolutions over the course of a year? One of the biggest reasons why they fail is that they are conceived and carried out in total isolation. By contrast, when a company’s wellness program supports their healthy intentions, their chances of maintaining their resolutions and building new habits significantly go up. Using a wellness platform can encourage social support on both an individual \ and company level.
How Much Does an Employee Wellness Platform Cost?
While a high-quality employee wellness is likely to cost less than you expect, there are too many variables—and too many different corporate wellness pricing models—involved to calculate a meaningful average cost. The deeper you dig into different platforms and corporate wellness pricing models
For example, you might decide to go for a wellness platform with a limited scope—something employees can use to track one or more healthy habits, for example. Alternatively, you might go for a comprehensive platform that brings together the education, inspiration, and community elements covered in the previous section. Wellness platforms don’t always use the same pricing model, either, making comparison difficult.
To keep things simple and efficient, our own corporate wellness app, Wellness by Moser Labs charges a flat monthly rate—with no minimum spend or minimum users. You’ll only pay for what employees submit for reimbursements. For example, if you have allocated $300 per employee but your worker only submits for $100, you’ll only pay out that $100. All features are included in the monthly subscription and you can cancel at any time!
Explore Our Wellness App Today
Adopting the right platform can help ensure that your employee wellness program is successful. And there’s no better time to start your journey than right now. Whether you start with modest objectives or envision becoming one of the best companies for employee wellbeing—a strong competitive advantage—choosing the right employee wellness software is important.
At Wellness by Moser Labs, we have been following the trends in employee wellness. And our wellness app brings together everything you need to empower your employees, boost morale and productivity, attract and retain key talent, and so much more. When you’re ready to begin your employee wellness journey, don’t hesitate to reach out to our team.
Learn more about Wellness Programs and how they can benefit your workplace!
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Embark on your corporate wellness journey with Moser Labs
Contact us today to learn more and schedule a demo.
