The Importance Of Employing The Wellness Program

1084 WordsJun 2, 20175 Pages
Budget managements essential to accomplishing a company’s strategic plan by communicating understandable information, coordinate activities and resource usage, motivate employees, and to provide information to evaluate performance. (Crosson, and Needles, 2014). Research has provided a wealth of financial data in regards to successful wellness programs and how they are producing their savings that result in a Return On Investment (ROI). The cost that a company wishes to spend on their wellness program varies based on the areas of emphasis of their program. Research has proven that unhealthy employees can cost their employer over $200 per year, but the trend can be reversed with a well ran wellness program. The RAND Corp. study has shown…show more content…
A company budget for the maintenance cost of their equipment, why not budget for their most valuable asset, their employee. Indeed, a wellness program can provide a great ROI for a company, but this return is not the same for a smaller company, which could result in a wash. A wellness program if ran properly can result in great returns for big companies, but smaller companies have a greater challenge due to the quantities of participants into a wellness program. A wellness program is beneficial to any size company any can provide the needed maintenance to maintain the ever-growing aging workforce. Companies can produce substantial savings with a healthier workforce. A company’s productivity is lower due to lost time from unhealthy employees. On an average, company’s loss 23.5 days of productive time each year because of time off for sickness or, underperforming at work because of working while sick (Paton 2016). The loss of 23.5 day per year of productivity due to unhealthy lifestyles and poor health equates to an estimated $71.17 billion a year in lost productivity (Paton 2016). The larger English companies in this study instituted wellness programs that have helped in lowering the lost time due to unhealthy life choices by their employees. These programs have reported an 8% increase in the health of employees and companies have reported a 16% increase in productivity. Company lost time also
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