Employers See Wellness Programs as Key to Improving Health & Containing Employee Health Costs
Press release from the issuing company
Sunday, April 8th, 2012
A new ADP survey shows that wellness programs are one of the best ways for employers to promote a healthy workforce, contain rising healthcare expenses, and generate productivity among their employees.
However, while 79 percent of large and 44 percent of midsized companies offer wellness programs, over 60 percent of these companies do not measure their return on investment. Yet, the majority of midsized and large companies report their wellness programs met or exceeded their senior executives’ expectations in regards to reducing overall healthcare costs.
“Wellness programs are employers’ ‘next best hope’ for containing healthcare expenses,” said Tim Clifford, President of Benefits Services for National Accounts atADP, Inc., a leading provider of human resource management, payroll and benefits administration services. “These programs can also increase productivity without the negative impact on employee morale of layoffs or cutting plan options – yet few companies are measuring their return on investment from wellness initiatives.”
Clifford noted that using organizations like ADP’s Strategic Advisory Services group, which provides benefits intelligence and analysis to existing clients, can help employers assess the investment return from programs like wellness.
From the ADP HR/Benefits Survey on Wellness:
- The majority of companies provide voluntary or incentive-based wellness programs, but 15 percent of midsized companies and 12 percent of large ones make participation in these programs mandatory.
- Reasons that employers cite for offering wellness programs vary. A strong majority (81 percent midsized, 78 percent large) say they are most interested in improving employee health, closely followed by controlling health care costs. Additionally, a third or more are interested in attracting and retaining employees, and maintaining or increasing benefits offerings.
- Midsized companies have been offering wellness programs to employees for about six years and large employers for about six and a half years. An average of 51 percent of employees in midsized companies and 39 percent of employees in large companies participate in these programs.
Among all companies who offer wellness programs, one-quarter of midsized companies and slightly more than one-fifth of large companies measure the ROI of their wellness programs.
- A majority of midsized companies (53 percent) and large companies (60 percent) report that the wellness programs they offered met or exceeded expectations in regards to reducing overall health care costs.
- On average, five wellness program components or interventions are offered at midsized companies and six at large ones. To read more about what types of wellness programs companies are offering, click here to read the full white paper.