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Workplace wellness programs get a bad rap—but HR departments can’t get enough of them for a reason

fromermedia@gmail.com
fromermedia@gmail.comSeptember 6, 20243137 comments
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Every few years, businesses are told that the latest wave of technology requires them to fundamentally transform. This way of thinking has led to claims like “every company is a media company,” “every company is a tech company,” and, more recently, “every company is an AI company.”

But there’s been a fundamental piece missing through all of this. These phrases have focused on tools, industries or technologies rather than on people. As someone committed to building the healthiest workforce possible, I see that we need a new adage—one that finally puts people first.

It’s time to state that “every company is a wellness company.” I believe this is so essential that it calls for a revolution in how we run organizations. As much as possible, business operations should maximize workforce wellness, including when and where people work, how they’re treated, and what kinds of wellbeing programs they’re offered.

The real ROI of wellness programs

For our report Return on Wellbeing ‘24, Wellhub surveyed more than 2,000 human resources leaders at organizations that offer a variety of wellness programs across the Americas and Europe. Eighty percent said their organizations now track the return on investment (ROI) of their wellness programs. Of them, virtually all—95%—said they see a positive return. That’s even higher than the 90% in our study last year.

We then asked them approximately what kinds of returns they were seeing. More than half (56%) said they get returns of more than 100%—meaning they are getting at least double their investments.

To determine whether you are successfully becoming a wellness company, gather data for three categories: productivity increases, talent management savings, and healthcare savings. A slew of studies show that when employees are healthier, they’re not only more productive, but also more likely to stay with the company, and less likely to take sick days or have medical expenses. Combine this data, subtract the costs of your wellness program, and you’ve got a strong sense of your ROI.

Putting people front and center

The best returns come when a wellness program is designed right. It’s the poorly designed ones that often get a bad rap—or even lose money.

Another key factor in the credibility of a wellness program is the participation of company leaders. In our survey, a staggering 98% of HR leaders stressed the importance of employees seeing executives use wellness options. As more members of the C-suite take part, employee participation rates skyrocket. With our clients, we have seen enrollment jump quickly to 20% of employees when leaders get involved, and keep growing over time.

As two of my colleagues write in the report, “The best way to grow your business is by taking care of your workforce first and foremost, not your spreadsheets and presentations.” Why is this? Labor costs are often the majority of any business’s budget. That figure can be as high as 70%. Businesses have long thought of these costs as expenses. It’s time to instead think of them as investments. How do you get the most out of that investment? By helping your people be the healthiest, and therefore most productive, they can be.

To most Americans, this is how businesses should be judged. Even more than what products or services they offer, how they reward investors, or what positions they take on issues, the biggest determinant of the company lies in how they treat their people. Employees are making clear that helping them improve their wellbeing is now a centerpiece of how they want to be treated. Our surveys have found that 83% of employees consider their wellness as important as their salary. Even more, 87%, say they’ll leave any employer that does not focus on their wellness (a jump of 10 percentage points since 2022).

It’s time to end the days of seeing a wellness program as a “nice to have,” or adopting a program that doesn’t move the needle. It’s time for every company to become a wellness company, putting people front and center.

More must-read commentary published by Fortune:

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