Employee wellness programs are increasingly widespread, but they are probably cursed by the perception that they’re a bit fluffy and not that beneficial to the bottom line of the organization. A recent study from UCLA pours cold water on that myth, finding that wellness programs have a significant impact on productivity.
Wellness programs are incredibly common, with nearly 90% of organizations having something of the sort. The authors reveal that a recent meta-analysis found that every dollar spent on such programs saves companies $3.27 in healthcare costs, and $2.73 in costs associated with absenteeism.
Productivity gains
The researchers examined productivity at five industrial plants over a three-year period. Four of the plants offered a voluntary wellness program that was offered to workers free of charge, with the fifth acting as the control group. Participants were offered a health exam, and a number of seminars on healthy living. Roughly two thirds of participants had a medical condition at the start of the experiment.
Whilst you might expect the health of participants to improve over the course of the program, it was also interesting to see the boost it appeared to give to productivity. Participants saw a 5% boost to productivity, with those whose health markedly improved gaining by 11%. Even healthy workers saw a productivity gain of 10% however if the program managed to improve their health. The message is clear, that a healthier workforce is a more productive one.
The authors propose two main reasons for this. Firstly, employee motivation tended to increase when the employer seemed to show greater interest in their welfare. This was particularly pronounced when undiagnosed illnesses were discovered. Secondly, and perhaps more obviously, the healthier people are, the more physically and mentally capable they are.
“By showing concern for workers, organizations can strengthen employees’ loyalty and commitment to the company. When workers discover unknown health problems through the program they may feel increased gratitude toward their employer and reciprocate that by increasing their efforts. Additionally, when programs help employees make healthy choices this can positively impact their wellness, mood, energy, and ultimately increase their productivity through increased capability,” the authors say.
They believe their work is the first to provide a clear and causal relationship between wellness programs and productivity.
“Our research suggests that corporate wellness plans can boost employee satisfaction by offering a tangible benefit that empowers them to take care of their health in a way that’s integrated into their busy lives. The result is healthier and happier employees who are not only less expensive and less absent, but also more productive,” they say.
