Corporate wellness is a super fantastic method of increasing Return On Investment (ROI). With its addition, employee productivity has been measured to double or triple; people in every job title become more, creative, positive, meaningful, proactive when they are fit, happy and enjoy their time at work. Here are two statistics of the many I have collected as proof:
1. According to a study done for a NJ firm in 2005 by ProQuest Information and Learning, for every $1 they invested in corporate wellness, they got back $3-$4. This means that, if you invest a million, you get back $4,000,000.
2. Another research giant has done a study indicating that $1 turns into $3.50 within three years, invested in corporate wellness.
These figures document proof of 300%+ Return On Investment in three years, measuring the results of thousands of people in diverse companies. That’s a lot stronger than the investments most companies make in real estate. And it is a much faster return than money invested in research and development or technology.
When a corporation spends marketing dollars, their ROI is expected to increase, but there is no guarantee. Some campaigns win; some crash. But there is never a question as to whether this department will exist.
With corporate wellness, some companies install it; some don’t. They all know that it would be a “good addition.” But they don’t focus on the numbers that are available, which they do in every other aspect of the company. So it is important to measure and publicize results on a regular basis.
If a human resources VP spends $5,000,000 on corporate wellness in one year, the Board of Directors looks at the expenditure. Up until now, most companies do not track the ROI on the $5,000,000. Everyone “thinks” the program is good, but was it worth $5,000,000? It is mandatory to track and report the results.
I am reminded of something my good friend, Perry Marshall, internet marketing guru, said to me last week, ” Fantasy is more fun than reality, but reality is the only thing that pays the bills.” So, rather than “everyone’s” knowing that corporate wellness programs “feel good in a touchy-feely sort of way,” why doesn’t every company use a standard of measurement of ROI in corporate wellness? There are templates for this tracking that prove that, not only is the original outlay of $5,000,000 recovered in increased employee productivity, presenteeism, employee longevity; sick time reduction which impacts insurance premiums to the company, overall positive attitude, better public image, health care cost reduction; but, according to reality, not fantasy, real statistics; the $5,000,000 becomes $15,000,000 or more within three years.
So, why isn’t it mainstream thinking that corporate wellness is a necessary, rather than an elective, training piece to install in every entity? The numbers say that corporate wellness pays. It is crucial that the evidence be brought to the forefront, that the installation of corporate wellness programs be known to be an equitable option for investing for the company. That corporate wellness is basic, not luxury. Money stream is basic, not an elective. So, this corporate wellness piece as dramatic Return On Investment must become mainstream.