Lesya Kovaliv

Employee Wellness Programs: A Strategic Guide for Boosting Productivity and Engagement Prepared by WellCo Solutions October 2024 -2- Introduction Let’s face it: the modern workplace can be a pressure cooker. Between endless deadlines, packed calendars, and the constant ping of notifications, it’s no wonder that stress has become a daily companion for so many employees. But here’s the kicker—it’s not just the employees who are paying the price. When stress and burnout take hold, it’s businesses that feel the pinch in productivity, absenteeism, and even turnover. That’s why more companies are waking up to the importance of employee wellness programs. But what exactly is an employee wellness program, and why should it matter to your business? Well, it’s more than just yoga classes and free fruit (though those are great too!). A solid wellness program addresses the physical, mental, and emotional health of your team, making them happier, healthier, and yes—more productive. And the best part? It’s not just a feel-good initiative; there’s some serious data showing how investing in your employees’ well-being pays off in a big way. In this white paper, we’re going to dig into the growing need for wellness programs, how they can transform your workplace, and—most importantly—how they can improve your bottom line. Let’s start by exploring the problem that so many companies are facing today: employee burnout and its costly consequences. The Problem: Burnout is Bad for Business Picture this: your star employee, the one who always goes above and beyond, starts dragging themselves to work, looking worn out and disengaged. They’re missing deadlines, taking more sick days, and their once top-notch work is slipping through the cracks. Sound familiar? You’re not alone. Stress and burnout are becoming all too common in today’s fast-paced, always-on business world. Here’s the thing—burnout doesn’t just hurt the individual; it hurts your entire business. Studies show that a whopping 83% of U.S. workers suffer from work-related stress, and about 76% experience burnout on the job. That means almost every team has people who are feeling the strain, and when they’re not at their best, neither is your company. Burnout leads to lower productivity, poor work quality, and, perhaps worst of all, higher turnover. And that turnover? It’s expensive. Replacing an employee costs about one-third of their annual salary, not to mention the time and resources you’ll spend recruiting and training their replacement. Add to that the lost productivity from absenteeism—$225.8 billion annually in the U.S. alone—and it becomes clear that ignoring employee wellness is a costly mistake. But it’s not all doom and gloom! The good news is that companies who invest in wellness programs are seeing real results. In fact, businesses that implement comprehensive wellness initiatives experience an average return of $1.50 for every dollar invested. That’s right—taking care of your employees is not only the right thing to do, but it also makes financial sense. Employees are also paying close attention to which companies are offering support. According to research, 61% of employees are more likely to stick around if their employer offers a wellness program. They want to feel valued, and they’re looking for workplaces that support their overall well-being, not just their performance. So, what’s the takeaway? Companies that don’t prioritize employee wellness are falling behind, not just in terms of employee satisfaction but in their bottom line. Burnout is bad for business, and it’s time to take action. Case Study: WellBalance Solutions Challenge: WellBalance Solutions, a mid-sized tech company with 400 employees, was facing increasing healthcare costs and a rise in employee absenteeism. The HR team noticed a growing trend of burnout and stress among employees, leading to decreased engagement and productivity. Solution: The company decided to implement a comprehensive wellness program, tailored to address the physical and mental health needs of their employees. The program included several components designed to cater to diverse employee needs: • Fitness Challenges: Employees were encouraged to participate in monthly fitness challenges using wearable trackers. Incentives, such as gift cards or extra vacation days, were awarded to top performers. • Mental Health Resources: WellBalance introduced virtual mental health support, including access to online therapy, mindfulness workshops, and stress management webinars. • Healthy Eating Initiatives: The company partnered with local meal service providers to offer discounted healthy meals delivered to the office, alongside nutrition workshops and cooking classes for interested employees. • Onsite Fitness Classes: Weekly yoga and fitness classes were offered onsite to encourage physical activity during the workday. Results: Six months after launching the program, WellBalance Solutions saw impressive improvements: • Absenteeism: Reduced by 35%, saving the company $75,000 in lost productivity costs annually. • Employee Satisfaction: A post-program survey revealed that 85% of employees felt more engaged and less stressed. 70% reported that the wellness initiatives improved their overall quality of life at work. -4- • Healthcare Costs: By offering proactive wellness solutions, the company reduced healthcare costs by 20% over the first year. • Employee Retention: Employee turnover dropped by 15%, thanks to improved morale and job satisfaction. This success story demonstrates how a well-rounded wellness program can not only boost employee well-being but also deliver measurable financial benefits for the company. The Solution: Wellness Programs to the Rescue So, what’s the secret sauce for keeping your employees engaged, energized, and showing up as their best selves? The answer is simple: employee wellness programs. These programs are designed to support not only the physical health of your team but their mental and emotional well-being too. After all, a healthier, happier workforce is a more productive and loyal one. But let’s be clear—this isn’t about throwing a few fitness classes into the mix and calling it a day. The best wellness programs go beyond just physical activity. They’re comprehensive, addressing everything from stress management and mental health support to financial wellness and work-life balance. Imagine offering your employees virtual mental health resources, personalized wellness coaching, or even financial literacy workshops to ease their stress. Now, I know what you’re thinking—“Will this really work for my company?” The short answer: absolutely. Studies show that companies with wellness programs see lower absenteeism, higher productivity, and better employee retention. But here’s the kicker: they also save money in the long run. Every dollar spent on wellness programs returns $1.50 to $6 in savings due to reduced healthcare costs and lost productivity. Think of it this way: wellness programs are like preventative maintenance for your business. Just like regular checkups keep your car running smoothly, a well-rounded wellness program helps your team stay healthy and motivated. And when your employees thrive, so does your company. The Benefits: Why Wellness Programs Are a Win-Win Now, let’s get to the fun part—what’s in it for you? Spoiler alert: a lot. Investing in wellness programs offers a range of benefits that directly impact both your bottom line and your company culture. Here are just a few reasons why wellness programs are a smart business move: 1. Boosted Productivity We all know that a tired, stressed-out employee isn’t going to be at their best. Wellness programs help employees manage their stress, improve their physical health, and stay focused, leading to higher productivity across the board. In fact, a study by RAND Corporation shows that companies with wellness programs experience a significant increase in employee productivity, which directly translates into better business outcomes. One company implemented a wellness program focused on mental health support and saw a 25% increase in productivity within the first year. Just imagine the difference that could make in your team! 2. Lower Healthcare Costs Sick days, doctor visits, and rising healthcare premiums can add up quickly. Wellness programs help employees maintain their health, which means fewer trips to the doctor and lower healthcare costs for your company. On average, businesses save $3.27 in healthcare costs for every dollar spent on wellness. Think of it like investing in a well-oiled machine. If you take care of the engine (your employees), you won’t be stuck paying for expensive repairs (healthcare costs) down the road. 3. Reduced Absenteeism Healthier employees mean fewer sick days. It’s as simple as that. By giving your team the tools and resources to stay well, you’re reducing the number of days they’re out of the office. The CDC estimates that absenteeism costs U.S. employers $1,685 per employee per year. Wellness programs can help cut those losses significantly. 4. Better Employee Retention It’s no secret that top talent is hard to keep these days. People want to work for companies that value their well-being. Wellness programs show that you care about your employees as whole people—not just workers—and that goes a long way in building loyalty. A recent survey found that 89% of employees would recommend their employer if they offered a wellness program. Picture this—two employees, equally talented, working in the same industry. One company offers a wellness program with mental health support, financial wellness workshops, and fitness challenges. The other doesn’t. Where do you think they’ll want to stay? Exactly. 5. Improved Company Culture Wellness programs foster a sense of community and show that you’re committed to creating a positive, supportive work environment. Whether it’s through team-building wellness challenges or offering mental health days, you’re creating a culture where people feel valued—and that’s something money can’t buy. A wellness program is like a garden. If you tend to it regularly and give it the right nutrients (support and resources), it will blossom into a thriving, engaged workforce. 6. Higher Employee Engagement Engaged employees are not just clocking in—they’re invested in their work and in the success of your company. Wellness programs offer tools to help employees manage stress, achieve -6- better work-life balance, and feel more connected to their workplace. And when employees are engaged, they’re more likely to go the extra mile. In short, wellness programs are a win-win. They not only improve the health and happiness of your employees but also lead to tangible business results. So, why wait? Investing in employee wellness isn’t just a nice perk—it’s a strategic business decision that pays off in more ways than one. ROI and Financial Impact of Wellness Programs The ROI (Return on Investment) of a well-structured employee wellness program can be substantial, with numerous studies and real-world data backing the financial benefits. Let’s break down the key areas where companies see measurable impact: Reduction in Healthcare Costs According to a study by the Harvard Business Review, for every $1 invested in employee wellness programs, medical costs fell by approximately $3.27. This is especially significant when you consider the rising healthcare premiums businesses are facing today. By addressing common health concerns proactively—like chronic diseases, stress, and poor lifestyle habits—companies can substantially reduce the frequency of employee healthcare claims. Example: A company with 200 employees that spends $500,000 annually on healthcare could save up to $100,000 to $150,000 a year by introducing wellness programs aimed at stress reduction, fitness, and nutrition. Improved Productivity and Decreased Absenteeism Another key factor driving the financial success of wellness programs is the reduction in absenteeism. Studies by the Centers for Disease Control and Prevention (CDC) indicate that healthier employees take fewer sick days. For every dollar spent on wellness, absenteeismrelated costs dropped by about $2.73. Example: Consider a mid-sized company with 500 employees. Before the wellness program, absenteeism costs the company $300 per employee annually in lost productivity. With a 25% reduction in absenteeism due to wellness initiatives, the company could save around $37,500 in lost productivity. Increased Employee Retention Wellness programs are also a strategic tool for improving employee retention. A study from the American Journal of Health Promotion found that companies with robust wellness programs saw a 15% to 20% reduction in employee turnover. Retaining talent saves the significant costs associated with hiring, training, and onboarding new employees, which can run from 50% to 200% of the departing employee’s annual salary. Example: For a company with 100 employees, if turnover drops by 15% thanks to wellness efforts, and the average cost of replacing an employee is $50,000, the company saves $750,000 annually in recruitment and training costs alone. Engagement and Morale Leading to Higher Performance A Gallup study found that engaged employees are 21% more productive than their lessengaged counterparts. Wellness programs play a critical role in driving employee engagement by showing that the company cares about their well-being. This boost in morale can directly impact a company’s bottom line, translating into higher revenue, customer satisfaction, and overall team performance. Financial Model: Let’s look at a hypothetical example of a company investing $100,000 in a wellness program over the course of a year. The expected financial benefits might look like this: • Healthcare cost savings: $200,000 (due to reduced claims and medical expenses) • Absenteeism savings: $50,000 (from fewer sick days) • Turnover savings: $250,000 (from retaining talent and reducing recruitment costs) • Increased productivity: $150,000 (due to higher engagement and morale) Total ROI: $650,000 in benefits against $100,000 in program costs, delivering a 6.5x ROI in just the first year. Long-Term Benefits The long-term benefits of wellness programs are just as compelling. Companies that invest in the overall health of their workforce tend to build a stronger, more resilient culture. Over time, these programs lead to reduced burnout, lower insurance premiums, and enhanced employer branding, making the company more attractive to top talent. In conclusion, when implemented thoughtfully, wellness programs are more than a “feel-good” initiative; they are a strategic business decision with measurable ROI that directly benefits the company’s bottom line. Implementation: How to Make Wellness Work for Your Company Okay, so you’re sold on the idea of wellness programs. But how do you actually make it happen? No worries—we’re here to guide you step by step. Implementing a wellness program -8- is easier than you might think, and the rewards? Well, we’ve already covered how huge those are. Let’s break it down into simple steps to ensure your wellness program not only launches successfully but also sticks around for the long haul. 1. Assess Your Company’s Needs The first step in building a wellness program is figuring out what your employees actually need. There’s no point in offering yoga classes if your team is more stressed about their finances than their flexibility, right? Pro Tip: Start by surveying your employees to identify their top wellness concerns—whether it’s mental health, work-life balance, or physical fitness. Get a sense of what’s going on in their world. You can use anonymous surveys or host an open discussion to gather insights. Think of this like preparing for a road trip. Before you hit the highway, you need to know the destination—otherwise, you might end up driving in circles. Understanding your employees’ needs is like punching the right address into your GPS! 2. Set Clear Goals and Objectives Now that you know what your employees need, it’s time to define your wellness goals. Are you looking to reduce absenteeism, lower healthcare costs, or boost overall employee engagement? Whatever your goals, make them measurable so you can track progress. Setting goals is like planting a tree. You can’t just throw seeds on the ground and hope for the best—you need to tend to it, measure its growth, and ensure it gets the right nutrients (resources). In the same way, measurable goals keep your wellness program growing strong. 3. Build Your Program: One Size Doesn’t Fit All Here’s the fun part—designing your wellness program! The key here is to offer a variety of resources that appeal to a broad range of employees. Remember, one size definitely doesn’t fit all, so aim for a mix of options, such as: • Physical Wellness: Fitness classes, gym memberships, or step challenges • Mental Wellness: Access to therapy, mindfulness workshops, or meditation apps • Financial Wellness: Budgeting seminars, financial planning services • Work-Life Balance: Flexible hours, remote work options, or mental health days Imagine your wellness program as a buffet—you wouldn’t expect every employee to pile their plate with the same dish. By offering a variety, you ensure everyone can find something they love and benefit from! 4. Communicate and Roll Out the Program A wellness program is only as good as its promotion. If your employees don’t know about it, how can they participate? That’s why clear communication is crucial. Use a multi-channel approach—emails, company newsletters, and even a dedicated wellness portal on your company’s intranet—to get the word out. Launching a wellness program without communication is like throwing a party and forgetting to send the invites. Make sure everyone knows about the fantastic resources available to them! Pro Tip: Start with a kickoff event or webinar to introduce the program. You could even bring in a wellness expert or coach to get employees excited about participating. 5. Monitor and Measure Progress Once your program is up and running, you can’t just set it and forget it. It’s important to track how well the program is performing and make adjustments as needed. Keep an eye on participation rates, employee feedback, and, most importantly, the key metrics you set during your goal-setting phase (reduced absenteeism, healthcare savings, etc.). One company noticed a dip in participation after a few months. By gathering employee feedback, they learned that their lunchtime fitness classes conflicted with busy schedules. After moving the classes to after-hours, participation jumped back up. The lesson? Be flexible and adapt the program as needed! 6. Keep the Momentum Going Wellness programs are a long-term investment. To keep employees engaged, mix things up and introduce new initiatives regularly. Whether it’s a quarterly wellness challenge or a new set of resources, ongoing engagement keeps your program fresh and exciting. Think of your wellness program like a garden. You can’t just plant the seeds and walk away. Regular care, updates, and engagement will keep it flourishing all year round. Wellness Program Implementation Roadmap 1. Assessment & Planning o Conduct employee surveys to identify key wellness needs. o Set specific, measurable goals for the wellness program (e.g., reduce absenteeism by 10%). 2. Design the Program o Develop a balanced program that includes physical, mental, and emotional health components (e.g., fitness challenges, counseling services, stress management workshops). 3. Launch & Promotion o Promote the program through internal communication channels like email newsletters, webinars, and posters. - 10 - 4. Engagement & Participation o Introduce incentives to encourage participation, such as wellness rewards or extra vacation days. 5. Evaluation & Adjustment o Measure success through regular feedback and adjust the program based on employee input and participation rates. By following these simple steps, you’ll have a wellness program that’s not only effective but also embraced by your employees. And the best part? It’s a win-win. Your team will feel healthier and more supported, while your company reaps the benefits of improved productivity, reduced absenteeism, and a more positive work environment. Frequently Asked Questions About Wellness Programs 1. How long will it take to see results from the program? Results can vary depending on the company and the level of engagement. Typically, companies start to see improvements in employee morale and productivity within the first 6–12 months. Healthcare cost savings may take a bit longer but generally become noticeable within the first year. 2. What’s the typical ROI for wellness programs? On average, companies see a return of $3–$5 for every dollar invested. This comes from reductions in healthcare costs, improved productivity, and lower turnover rates. 3. How much does it cost to implement a wellness program? The cost can vary greatly based on the size of the company and the scope of the program. Basic wellness initiatives (e.g., mindfulness apps, health challenges) can be very cost-effective, while comprehensive programs (e.g., onsite gyms, counseling services) may require a higher investment. 4. Can small businesses benefit from wellness programs? Absolutely! Wellness programs are not just for large corporations. In fact, small businesses may see an even greater benefit due to the close-knit nature of their teams, where improved morale and health can make a big difference quickly. Conclusion: Prioritizing Wellness is Prioritizing Success Investing in an employee wellness program isn’t just about ticking a box—it’s about actively investing in your team’s well-being and your company’s future. From improving productivity to reducing turnover, the benefits are clear: healthier, happier employees lead to a healthier, more successful business. By understanding your company’s unique needs, setting clear goals, and rolling out an engaging, flexible program, you’re setting the stage for long-term success. The path to a thriving workplace starts with wellness. Now’s the time to make it happen. Ready to take the next step toward building a healthier, more productive workplace? Contact WellCo Solutions today to schedule a consultation and learn how we can tailor a wellness program specifically for your company’s needs. Get in touch Email:-Phone: 1-800-WELL-CO Visit our website: www.wellcosolutions.com Let’s work together to create a healthier future for your team! - 12 - Appendix: Additional Resources and Data Employee Wellness Survey Introduction We care about your health and well-being and want to create a wellness program that meets your needs. Please take a few minutes to complete this anonymous survey to help us understand your wellness preferences and how we can better support you. Your feedback is important! 1. Overall Well-Being a. How would you rate your overall well-being on a scale of 1 to 10? (1 = Very Poor, 10 = Excellent) b. What areas of your health would you like to improve? (Check all that apply) • Physical fitness • Nutrition • Mental health and stress management • Sleep habits • Work-life balance • Financial wellness • Other (please specify): ___________________ 2. Physical Health and Fitness a. How often do you engage in physical activity? • Daily • 3-4 times a week • 1-2 times a week • Rarely • Never b. What types of physical activity do you prefer? (Check all that apply) • Walking/running • Yoga/Pilates • Strength training • Group fitness classes • Cycling • Other (please specify): ___________________ c. Would you be interested in participating in any of the following wellness activities at work? (Check all that apply) • On-site fitness classes • Group walks/runs • Gym membership discounts • Fitness challenges (e.g., step challenges) • Healthy cooking or nutrition workshops • Other (please specify): ___________________ 3. Mental Health and Stress Management a. On a scale of 1 to 10, how would you rate your stress levels at work? (1 = No Stress, 10 = Extremely High Stress) b. What would help you better manage your stress? (Check all that apply) • Mindfulness or meditation sessions • Mental health resources (e.g., counseling) • Stress management workshops • Flexible work hours • Breakout areas or quiet rooms • Other (please specify): ___________________ 4. Work-Life Balance a. How would you rate your work-life balance? (1 = Very Poor, 10 = Excellent) - 14 - b. What would help improve your work-life balance? (Check all that apply) • Flexible or remote working options • Time management training • More vacation or personal days • Clearer boundaries between work and personal life • Other (please specify): ___________________ 5. Nutrition and Healthy Eating a. How often do you eat nutritious meals at work? • Every day • Most days • Some days • Rarely • Never b. What would help you improve your eating habits at work? (Check all that apply) • Healthier snacks in the break room • On-site healthy meals • Nutrition workshops • Recipes and meal-prep guides • Other (please specify): ___________________ 6. Financial Wellness a. How would you rate your financial well-being? (1 = Very Poor, 10 = Excellent) b. What types of financial wellness programs would you find helpful? (Check all that apply) • Budgeting and saving workshops • Retirement planning • Debt management resources • Investment education • Other (please specify): ___________________ 7. General Feedback a. Are there any additional wellness programs or resources you would like to see offered? b. What would make you more likely to participate in a company wellness program? (Check all that apply) • Incentives (e.g., gift cards, rewards) • Peer support or team participation • Accessible programs during work hours • Convenient locations • Regular communication and reminders • Other (please specify): ___________________ 8. Closing Thank you for completing the survey! Your input will help us create a wellness program that supports your health and well-being. We appreciate your honesty and feedback. Optional: If you'd like to provide further comments or suggestions, please do so here: - 16 - Wellness Program Components 1. Mental Health Resources • Counseling and Therapy Services Offering confidential access to licensed counselors or therapists can help employees manage stress, anxiety, depression, and other mental health concerns. These services can be available in-person, via phone, or through virtual platforms. • Employee Assistance Programs (EAPs) An EAP provides short-term counseling and support for employees dealing with personal or work-related issues. It can include referrals to specialists, legal aid, or financial counseling. • Mindfulness and Meditation Sessions Mindfulness programs and meditation workshops can help employees manage stress, improve focus, and enhance emotional resilience. Sessions can be conducted during lunch breaks or after work hours. • Stress Management Workshops Regular workshops or webinars on stress management techniques, time management, and relaxation strategies can equip employees with tools to handle workplace pressure effectively. 2. Physical Fitness Initiatives • On-Site Fitness Classes Offering on-site group classes like yoga, Pilates, Zumba, or strength training can encourage physical activity and promote team bonding. Classes can be held before or after work, or during lunch breaks. • Fitness Challenges Organizing team-based or individual fitness challenges, such as step-count competitions, cycling challenges, or weight loss programs, can motivate employees to stay active. Prizes or recognition can be offered as incentives. • Gym Membership Discounts Partnering with local gyms to offer discounted memberships gives employees an affordable way to maintain their fitness outside of work. This can also include discounts for fitness apps or online workout platforms. • Walking or Running Groups Encouraging employees to join walking or running groups fosters camaraderie while promoting physical health. Walking meetings can also be introduced for a change of pace during the workday. 3. Nutrition and Healthy Eating • Nutrition Counseling Providing employees with access to registered dietitians or nutritionists can help them create personalized nutrition plans, improve their eating habits, and manage conditions like diabetes or heart disease. • Healthy Snack Options Stocking the break room with nutritious snacks like fruit, nuts, yogurt, and whole grains gives employees healthier choices. Vending machines can also be stocked with healthier alternatives. • On-Site Healthy Meals Offering fresh, nutritious meals in the company cafeteria or through catering services ensures that employees can make healthier food choices during the workday. Meal options can be tailored to various dietary needs (e.g., vegetarian, gluten-free). • Cooking Workshops Hosting cooking or meal-prep workshops led by nutritionists or chefs teaches employees how to prepare healthy, delicious meals at home. Recipe cards and mealplanning tips can be shared as takeaways. 4. Financial Wellness Programs • Budgeting and Savings Workshops Financial literacy programs that teach employees how to manage their finances, create budgets, and plan for savings can alleviate financial stress, contributing to overall wellbeing. • Retirement Planning Resources Offering workshops or consultations on retirement planning can help employees make informed decisions about their financial future, from 401(k) contributions to investment strategies. • Debt Management Counseling Providing access to debt management services, including education on reducing personal debt, improving credit scores, and managing loans, can empower employees to regain financial control. 5. Work-Life Balance Support • Flexible Work Hours Offering flexible or remote work options allows employees to better balance personal responsibilities with their job, leading to reduced stress and increased job satisfaction. - 18 - • Paid Time Off (PTO) Enhancements Encouraging employees to use their PTO by offering additional vacation days or "wellness days" can prevent burnout and support overall health. • Family-Friendly Policies Including programs like paid parental leave, childcare assistance, or family health days promotes work-life balance and shows that the company supports employees’ personal lives. 6. Preventative Health and Wellness Screenings • Health Risk Assessments (HRAs) Offering confidential health assessments, such as biometric screenings, blood pressure checks, and cholesterol tests, helps employees understand their health risks and make necessary changes. • Vaccination Clinics Hosting on-site flu shots or vaccination clinics makes it convenient for employees to stay up-to-date on immunizations, which in turn can reduce absenteeism and promote a healthier workplace. • Health Fairs Organizing an annual or semi-annual health fair with vendor booths offering free screenings, information on health services, and wellness products encourages employees to prioritize their health. 7. Social Wellness Initiatives • Team Building Activities Offering regular team-building exercises, from company outings to collaborative group projects, strengthens interpersonal relationships and fosters a sense of community within the organization. • Volunteer Opportunities Encouraging employees to participate in volunteer work through company-sponsored events or providing paid volunteer days helps employees feel connected to their communities and can boost morale. • Employee Recognition Programs Recognizing and rewarding employees for their achievements, either through peernominated awards or monthly recognition programs, enhances job satisfaction and motivation. ROI Calculator: Wellness Program Impact Instructions: 1. Fill in the estimated costs and expected improvements based on company size, program expenses, and workforce trends. 2. The calculator will output the expected savings and ROI percentage based on reduced absenteeism, healthcare savings, and employee retention improvements. Step 1: Program Costs • Annual Wellness Program Cost (A): This includes all costs associated with the wellness program (e.g., external vendors, facilities, employee time, etc.). Example: $50,000 Step 2: Absenteeism Reduction • Number of Employees (B): Total number of full-time employees who will be part of the wellness program. Example: 500 • Current Annual Absenteeism Rate (C): Average number of sick days per employee per year (e.g., 7 days). Example: 7 days • Expected Reduction in Absenteeism Rate (D): Estimated percentage reduction in absenteeism after implementing the wellness program (e.g., 25%). Example: 25% reduction • Average Employee Salary (E): The average annual salary for employees, which will help calculate the savings from reduced absenteeism. Example: $60,000 per year • Absenteeism Savings Formula (F): 𝐶xBxDxE 260 This formula calculates the financial impact of reduced absenteeism, where 260 is the average number of workdays per year. 𝐹= - 20 - Example Calculation: 7 x 500 x 0.25 x 60,000 = $201,923 260 This shows how much the company will save from reduced absenteeism. 𝐹= Step 3: Healthcare Cost Reduction • Current Annual Healthcare Costs per Employee (G): Average amount the company spends on healthcare for each employee. Example: $7,500 per employee per year • Expected Reduction in Healthcare Costs (H): Estimated percentage reduction in healthcare costs after implementing the wellness program (e.g., 10%). Example: 10% reduction • Healthcare Savings Formula (I): I=BxGxH This formula calculates the savings from reduced healthcare expenses. Example Calculation: I = 500 x 7,500 x 0.10 x = $375,000 This shows how much the company will save on healthcare expenses. Step 4: Employee Retention • Current Employee Turnover Rate (J): The percentage of employees who leave the company each year (e.g., 12%). Example: 12% turnover • Expected Reduction in Turnover Rate (K): Estimated reduction in employee turnover due to improved wellness and job satisfaction (e.g., 20%). Example: 20% reduction • Average Cost of Employee Turnover (L): The estimated cost to replace a single employee, including recruitment, onboarding, and lost productivity. Example: $30,000 per employee replaced • Retention Savings Formula (M): M=BxJxKxL This formula calculates the savings from reducing employee turnover. Example Calculation: M = 500 x 0.12 x 0.20 x 30,000 = $360,000 This shows the savings from improving employee retention. Step 5: Calculate Total Savings • Total Savings (N): Add together absenteeism savings (F), healthcare savings (I), and retention savings (M). N=F+I+M Example: N = 201,923 + 375,000 + 360,000 = $936,923 Step 6: Calculate ROI • ROI Formula: 𝑁− A 𝑅𝑂𝐼 = 𝐴 ( ) 𝑥 100 This formula calculates the return on investment as a percentage. Example Calculation: 𝑅𝑂𝐼 = ( 936,923 − 50,000 ) 𝑥 100 = 1,773.8% 50,000 In this example, the wellness program yields a 1,773.8% return on investment, demonstrating the significant financial benefit. - 22 - About WellCo Solutions WellCo Solutions is a leader in corporate wellness, dedicated to helping companies create healthier, happier, and more productive workplaces. With over 10 years of experience in the industry, WellCo has successfully implemented wellness programs for businesses of all sizes, improving employee well-being and reducing healthcare costs. We offer tailored solutions to meet the unique needs of each company, ensuring that our clients achieve sustainable results.