Many organizations are coming to the realization that the “wellness” of employees is a hugely significant business concern given the relative costs of health-care, absenteeism and turnover, not to mention reduced productivity. A U.S. Department of Health and Human Services report revealed that work sites with wellness programs have:
- Reduced health-care costs by up to 55%
- Reduced short-term sick leave by up to 32%
- Increased productivity by up to 52%
Finally organizations that promote employee health and well-being are 3½ times more likely to encourage creativity and innovation, according to a study presented by Right Management’s research team at the World Economic Forum.
Consequently, organizations are now providing programs where the emphasis is on the employee. By providing flexible work hours, free health screening, company events, coaching, online training programs of choice etc., employees can experience a greater connection between their personal and professional lives. This in turn tends to “pay forward” to the company as it is seen to be a caring organization, a good place to work and consequently employees are more motivated and committed to its successes.
All of this can be accomplished in a cost effective way. Billions of dollars are spent annually on employee development that enhances the technical capacity. However this can reach a point of diminishing return and companies are now assessing their “training” budgets and looking for novel and effective ways to get more meaningful returns on their investments. Wellness Programs are an efficient way of better managing people related costs by creating happier and healthier employees.