For years, most people looked at their physical health and their financial situation as two very different issues. But that’s changing. Today, the overwhelming majority of American workers recognize the link between health and wealth. Our recent survey found 84 percent of workers see physical health as an investment in their financial future.
Employers are also beginning to see employee wellness as an investment in the financial condition of the business. Healthier employees can lead to a healthier bottom line due to increased productivity, decreased absenteeism and—most significantly—reduced healthcare costs for the business.
Financial benefits to employers
- For every dollar an employer spends on a wellness program, its medical costs are improved by approximately $3.27 — and another $2.73 in savings is realized in lower absenteeism costs, according to the Health Management Research Center at the University of Michigan.
- Healthier employees can also lead to soft cost savings, such as higher-energy employees and increased levels of engagement in their jobs.
There is one other way that wellness programs can help retirement programs. The wellness folks have learned that when it comes to motivating participation, incentives work.