an investment in wellness is a sound business decision
TRANSCRIPT
Demonstrating Return on Investment (ROI)An investment in Wellness is a sound business decision.
Is your organization spending too much on absenteeism, short-term disability and modified work assignments?
The good news is wellness investments not only increase productivity, morale and employee engagement.
• but also generate significant financial returns.
• Research shows a $3.27:$1 return on investments in Wellness.*
*Baicker, K., Cutler, D., and Song Z., (2010). Workplace Wellness Programs Can Generate Savings, Health Affairs.
ARE YOUR EMPLOYEES VIEWED AS AN ASSET OR A COST?
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If you have 500 employees, what if you invested $150 per employee/year
into a comprehensive workplace wellness program?
500 employees x $150 per employee$75,000
$245,000 estimated cost savings$75,000 wellness program
=3.27 ROI
CALCULATING ROI: LET’S DO THE MATH
MEASURING ROI-THE PROCESS
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1• Establish a base line measurement• Analyze historical trends and report
2• Implement wellness programming• Isolate and track costs of programming
3• Recalculate base line measurement• Analyze recent trends and report
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Short-Term DisabilityClaim incidence per 100 insured employees
Claim duration
Lost workdays per 100 employees
Cost per employee
Cost per diagnosis
Long-Term Disability
Claim incidence per 100 insured employees
Claim duration
Cost per diagnosis
Casual AbsencesLost workdays per employeeCost as percentage of payroll
Workers’ Compensation
Total premiums
Cost per claim
Cost per employee
Accident frequency rate per 100 employees
Health Risk Assessments
HRA participation per 100 employees
Health status of employees
Top risk factors
Employee Assistance Program
New cases per 100 covered employees
Reasons for access
Program cost per employee
Source: Conference Board of Canada
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METRICS THAT CAN BE USED TO MEASURE ROI
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Kristina HultonManager, Wellness in the Workplace
Corporate Learning & Performance Improvement
Feel free to contact me for more information:[email protected]
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