How Can an Employee Wellness Program Impact Your Bottom Line?


Employers are increasingly focused on the well-being of their employees and continue to introduce wellness programs that address physical, sentimental, social, rational and financial health issues to assist employees in improving both their work and home life.

Employee sponsored wellness programs have been adopted by nearly two-thirds of companies and they make a great deal of effort to ensure that all their employees benefit from these programs. These programs have also become increasingly available via smartphones, which assist in helping individuals track many aspects of their health with ease.

The table below table highlights the ways in which both employers and employees can benefit from company wellness programs:


Benefit to Employers Benefit to Employees
Increase in productivity of employees Boost up employees morale and their efficiency
Reduced absenteeism Enhanced health condition
Strong bond with employees helps in retaining the employees Increase self-dependency and boosts confidence
Decreased healthcare cost helps save money Stress free life
Reduction in employees compensation claims Increased productivity helps gain positive rewards and promotion


Workplace wellness programs have the objective to enhance your work life and overall productivity. These programs aim to help employees, who are suffering from chronic disease, to adopt a healthy lifestyle, which can improve their quality of life and boost their confidence. This can, in turn, help the organisation’s bottom line.


Do wellness programs really help in reducing cost to employers?

As per the study done by RAND Corporation, wellness programs earn an average return on investment of $1.50 for every $1 invested by the employer. The study also found that there is positive correlation between wellness programs and the efficiency of employees. Another survey done with Citi Bank employees on the benefits of their wellness program depicts that on an average there were savings of $4.50 in healthcare costs per employee for every $1 invested on their wellness treatment. While a wellness programs may be costly to employers in the short term, its immense long-term benefits foster a win-win situation for the employers and the employees.

Whether a wellness program really helps employers save on healthcare costs is dependent on factors, such as whether the employer is ready to invest such a significant amount for long-term gain and commit to it. The wellness program needs to be included in the core culture of the organisation and employees need to be educated about its benefits, which will help them increase their productivity and lead a healthy life.


Abena is a Client Services Associate at Optimity. She graduated from the University of Toronto with a BSc in Global Health. She is passionate about human rights and health education, and hopes to develop tailored interventions to combat health inequities around the globe. Her interests include story writing, camping and exploring different cultures on her travels.

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