{"id":257,"date":"2020-01-02T02:36:38","date_gmt":"2020-01-02T09:36:38","guid":{"rendered":"https:\/\/www.wellsteps.com\/blog\/?p=257"},"modified":"2026-03-10T03:02:47","modified_gmt":"2026-03-10T09:02:47","slug":"wellness-programs-in-the-workplace-2","status":"publish","type":"post","link":"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/","title":{"rendered":"Proof Wellness Programs in the Workplace Make You Money"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/#Do_companies_with_workplace_wellness_programs_perform_better_financially\" >Do companies with workplace wellness programs perform better financially?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/#What_distinguishes_companies_with_outstanding_workplace_wellness_programs\" >What distinguishes companies with outstanding workplace wellness programs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/#What_do_these_results_suggest_about_wellness_programs\" >What do these results suggest about wellness programs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/#What_additional_reasons_support_launching_a_workplace_wellness_program\" >What additional reasons support launching a workplace wellness program?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/#Why_should_employers_pay_close_attention_to_wellness_program_performance_data\" >Why should employers pay close attention to wellness program performance data?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/#Can_workplace_wellness_programs_explain_improved_financial_outcomes\" >Can workplace wellness programs explain improved financial outcomes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/#What_steps_should_employers_take_next_to_leverage_wellness_for_financial_performance\" >What steps should employers take next to leverage wellness for financial performance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/wellness-programs-in-the-workplace-2\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n\n<blockquote class=\"wp-block-quote executive-summary is-layout-flow wp-block-quote-is-layout-flow\" style=\"border-width:1px;padding-top:var(--wp--preset--spacing--20);padding-right:var(--wp--preset--spacing--50);padding-bottom:var(--wp--preset--spacing--20);padding-left:var(--wp--preset--spacing--50);font-size:17px\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p style=\"font-size:20px\"><strong>Executive Summary<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group executive-summary\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p style=\"font-size:18px\"><strong>What are workplace wellness programs and why do they matter?<\/strong><\/p>\n<\/div><\/div>\n\n\n\n<p class=\"executive-summary\" style=\"font-size:16px\">Workplace wellness programs are organized efforts that help employees improve their physical, mental, and emotional health while at work. They matter not only for health outcomes, but also for financial performance\u2014companies with award-winning wellness programs consistently outperform the broader stock market. Multiple studies show that publicly traded companies with best-in-class wellness programs achieve higher stock valuations than the S&amp;P 500. This evidence suggests workplace wellness programs create measurable value for employees, organizations, and investors alike.<\/p>\n<\/div><\/div>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-do-companies-with-workplace-wellness-programs-perform-better-financially\"><span class=\"ez-toc-section\" id=\"Do_companies_with_workplace_wellness_programs_perform_better_financially\"><\/span>Do companies with workplace wellness programs perform better financially?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Workplace wellness programs appear to have a massive financial benefit that has just been discovered. Publicly traded companies that have award-winning wellness programs<strong> out-perform the stock market by a huge margin. <\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.ncbi.nlm.nih.gov\/pmc\/articles\/PMC4697959\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Three recent studies<\/a> demonstrate that publicly traded companies with best-in-class workplace wellness programs have better stock valuations than the S&amp;P&#8217;s stock index. A portfolio comprised of award-winning companies would be a dramatically better investment. &nbsp;Before I get into the details, here is a little perspective&#8230;<\/p>\n\n\n\n<p>There are thousands of mutual funds. All of which invest in several companies that balance risk while seeking to maximize return for investors. Another way to invest is to purchase individual stocks in each of the 500 largest companies. These 500 companies make up the Standard and Poor&#8217;s 500 Index.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/Proof-Wellness-Programs-in-the-Workplace-Make-You-Money-1024x576.jpg\" alt=\"Proof Wellness Programs in the Workplace Make You Money\" class=\"wp-image-105708\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/Proof-Wellness-Programs-in-the-Workplace-Make-You-Money-1024x576.jpg 1024w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/Proof-Wellness-Programs-in-the-Workplace-Make-You-Money-300x169.jpg 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/Proof-Wellness-Programs-in-the-Workplace-Make-You-Money-768x432.jpg 768w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/Proof-Wellness-Programs-in-the-Workplace-Make-You-Money-1536x864.jpg 1536w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/Proof-Wellness-Programs-in-the-Workplace-Make-You-Money-800x450.jpg 800w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/Proof-Wellness-Programs-in-the-Workplace-Make-You-Money.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Rather than hunting for bigger returns by investing in companies that look promising, this investment strategy buys stock in all 500 companies. This strategy is called index investing. Over a one, five, and ten year period very <a href=\"https:\/\/web.archive.org\/web\/20240818083608\/https:\/\/money.cnn.com\/2015\/03\/12\/investing\/investing-active-versus-passive-funds\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">few mutual funds perform better than the S&amp;P<\/a>. &nbsp;<\/p>\n\n\n\n<p>Over a 15-year period, the index has an average return of about 11% per year. Not too bad. If, during that same time period, you had invested in companies who won the <a href=\"http:\/\/thehealthproject.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Koop Award<\/a> for offering an outstanding workplace wellness program, <strong>you would have earned over 26% per year<\/strong>. In essence, your money would have doubled every 3 years.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p> If during a 15-year period you had invested in companies who won the Koop Award for offering an outstanding workplace wellness program, <strong>you would have earned over 26% per year.<\/strong>&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p><strong>RELATED:  <a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/workplace-health\/\">How to Choose the Best Workplace Health Promotion Programs<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-distinguishes-companies-with-outstanding-workplace-wellness-programs\"><span class=\"ez-toc-section\" id=\"What_distinguishes_companies_with_outstanding_workplace_wellness_programs\"><\/span>What distinguishes companies with outstanding workplace wellness programs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Each year the board of directors&nbsp;of the <a href=\"http:\/\/thehealthproject.com\/\">Health Project<\/a> review wellness applications for the <a href=\"http:\/\/thehealthproject.com\/award-information-2\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">C. Everett Koop National Health Awards.<\/a> To win the award employers must&nbsp;describe their workplace wellness program in great detail.&nbsp;The job of the reviewers is to identify the award winners. This is based on a <strong>rigorous evaluation of each program based on participation&nbsp;rates, and the&nbsp;improvements in employee health and medical cost savings. <\/strong><\/p>\n\n\n\n<p>So in this study, the investigators tried to answer the hypothetical question: <em>what would happen if you bought stock in the Koop Award winners during the month they won the award? <\/em>Over a 14 year period, there have been 26 publicly-traded companies who won the Koop Award. &nbsp;If you want the exact details of the study methodology, you can<a href=\"https:\/\/pubmed.ncbi.nlm.nih.gov\/26716843\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"> read the paper here<\/a>.<\/p>\n\n\n\n<p>Mostly importantly, here are the results below.&nbsp;The orange line shows the total percent return on investment for Koop Award winners from the time the award was made. &nbsp;The grey line is the total return of the S&amp;P 500. The second graph shows the cumulative advantage of the hypothetical Koop Award portfolio.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" width=\"958\" height=\"617\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/SP-and-Koop-14-years.jpg\" alt=\"ROI for wellness programs, wellness programs in the workplace, workplace wellness programs study, workplace wellness programs can generate savings, wellness programs lower insurance premiums, implementing a wellness program in the workplace, wellness programs save companies money, benefits of wellness programs statistics, workplace wellness programs effectiveness\" class=\"wp-image-267\" style=\"width:958px;height:617px\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/SP-and-Koop-14-years.jpg 958w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/SP-and-Koop-14-years-300x193.jpg 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2015\/12\/SP-and-Koop-14-years-768x495.jpg 768w\" sizes=\"(max-width: 958px) 100vw, 958px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-do-these-results-suggest-about-wellness-programs\"><span class=\"ez-toc-section\" id=\"What_do_these_results_suggest_about_wellness_programs\"><\/span>What do these results suggest about wellness programs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is true that these results can trigger a fair amount of skepticism. Any investment with growth of 26% annually must either be a Ponzi scheme or a once-in-a-lifetime investment opportunity. <\/p>\n\n\n\n<p>Time for the warning: the scientific truth of the matter is that this study proves absolutely nothing. It is not a randomized clinical trial. It is a retrospective study that, at best, can only suggest <strong>an association between companies with workplace wellness programs and their stock performance.<\/strong><\/p>\n\n\n\n<p>But it does raise a provocative question: <em>was this just luck or is there really something about successful companies that just happen to have good wellness programs<\/em>? Certainly, there are other publicly traded companies that also perform well but don&#8217;t have wellness programs. Right?&nbsp;<\/p>\n\n\n\n<p>If this were the only study with these results, you probably could have dismissed the findings. After all it could be an academic exercise in retrospective stock picking. But in the same&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20200806125907\/https:\/\/journals.lww.com\/joem\/toc\/2016\/01000\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">January 2016 issue <\/a>of the journal JOEM, there was even more supporting evidence.<\/p>\n\n\n\n<p><strong>RELATED:  <a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/01\/corporate-employee-wellness-programs\/\">Employee Wellness Programs: How They Save Money<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-additional-reasons-support-launching-a-workplace-wellness-program\"><span class=\"ez-toc-section\" id=\"What_additional_reasons_support_launching_a_workplace_wellness_program\"><\/span>What additional reasons support launching a workplace wellness program?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Each year the American College&nbsp;of Occupational and Environmental Medicine (ACOEM) gives out the <a href=\"https:\/\/acoem.org\/About-ACOEM\/Excellence-in-Corporate-Health-Achievement-Award\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Corporate Health Achievement Award<\/a>&nbsp;(CHAA) to the healthiest and safest employers in North America.&nbsp;Applicants for the CHAA are judged on 17 standards in four general&nbsp;categories: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>leadership and management<\/li>\n\n\n\n<li>healthy workers<\/li>\n\n\n\n<li>healthy&nbsp;environments<\/li>\n\n\n\n<li>healthy organizations<\/li>\n<\/ul>\n\n\n\n<p>Employers&nbsp;submit applications that describe each of these areas. Then, a panel of experts&#8217;&nbsp;award points based on the information provided. <a href=\"https:\/\/pubmed.ncbi.nlm.nih.gov\/26716842\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Using a similar study design<\/a>, employers from publicly-traded companies that had high CHAA scores were included in a hypothetical CHAA portfolio.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/wellsteps-guides-2-1024x576.jpg\" alt=\"\" class=\"wp-image-104798\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/wellsteps-guides-2-1024x576.jpg 1024w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/wellsteps-guides-2-300x169.jpg 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/wellsteps-guides-2-768x432.jpg 768w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/wellsteps-guides-2-1536x864.jpg 1536w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/wellsteps-guides-2-800x450.jpg 800w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/wellsteps-guides-2.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Stocks in each of these companies were &#8220;purchased&#8221; once high scores were determined. This mock portfolio was compared to a comparable S&amp;P 500 portfolio<strong>. The CHAA portfolio had an annualized return of 13% more per year than the S&amp;P.<\/strong><\/p>\n\n\n\n<p>In case you are wondering, a mutual fund portfolio or hedge fund that can consistently beat the S&amp;P 500 by 13% per year is truly exceptional. Actually, about one in 10,000. Sound the skeptical alarms yes, but there are more results using an entirely different research methodology with different experts, criteria, and scoring. The combined results become harder to ignore, as you&#8217;ll see below.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>A mutual fund portfolio or hedge fund that can consistently beat the S&amp;P 500 by 13% per year is truly exceptional.<\/p>\n<\/blockquote>\n\n\n\n<p><strong><a href=\"https:\/\/www.wellsteps.com\/blog\/2020\/01\/02\/workplace-health-promotion-programs\/\">RELATED:  7 Reasons Workplace Health Promotion Programs Work (Here\u2019s the Proof)<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-should-employers-pay-close-attention-to-wellness-program-performance-data\"><span class=\"ez-toc-section\" id=\"Why_should_employers_pay_close_attention_to_wellness_program_performance_data\"><\/span>Why should employers pay close attention to wellness program performance data?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/sph.unc.edu\/files\/2016\/03\/Linking-Workplace-Health-Promotion-Best-Practices-and-Organizational-Financial-Performance.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Another research study<\/a> appears in the same journal. Once again, there were different authors, different methods, and a different research design.&nbsp; For years, the Health Enhancement Research Organization (HERO) has offered employers a chance to score the quality of their workplace wellness program by completing the <a href=\"http:\/\/hero-health.org\/scorecard\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">HERO Scorecard<\/a>. &nbsp;<\/p>\n\n\n\n<p>The scorecard is an online tool developed to help&nbsp;employers improve their employee wellness programs with a self-evaluation over six core areas.&nbsp;<\/p>\n\n\n\n<p>Scores from the 745 employers&nbsp;who completed the questionnaire from 2009 to 2012 were ranked from highest to lowest. Publicly-traded companies that had high scores were used to create another retrospective portfolio. <\/p>\n\n\n\n<p>In 11 of the 14 years evaluated, these companies outperformed a similar portfolio comprised of the S&amp;P 500 companies.<strong> The HERO portfolio had annualized returns that exceeded the S&amp;P returns by an average of 15% per year.<\/strong><\/p>\n\n\n\n<p>Using the results from these studies, a comparison can be made in the hypothetical returns on each portfolio. Had you invested $500 every month in each of the portfolios described here, you can see how your money would have grown. The companies that have award winning wellness programs consistently outperformed the S&amp;P 500 companies by a huge margin.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"483\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/comparison-1024x483.png\" alt=\"mock investment portfolio results based on wellness companies\" class=\"wp-image-105816\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/comparison-1024x483.png 1024w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/comparison-300x141.png 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/comparison-768x362.png 768w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/comparison-1536x724.png 1536w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/06\/comparison.png 1588w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>&#8220;Outperformed&#8221; might not even be strong enough. These portfolios smashed the S&amp;P 500 portfolio. <strong>The annualized return of these hypothetical portfolios is greater than 99% of all actively managed mutual funds in existence today. <\/strong><\/p>\n\n\n\n<p>Said another way, if you had selected a portfolio of stocks from companies with exceptional wellness programs, you would have enjoyed a return on investment greater than nearly every hotshot stock picker on the planet.<\/p>\n\n\n\n<p><strong>RELATED:  <a href=\"https:\/\/www.wellsteps.com\/blog\/2022\/03\/23\/employee-health-programs\/\">Employee Health Programs Worth Investing In<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-can-workplace-wellness-programs-explain-improved-financial-outcomes\"><span class=\"ez-toc-section\" id=\"Can_workplace_wellness_programs_explain_improved_financial_outcomes\"><\/span>Can workplace wellness programs explain improved financial outcomes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Researchers dedicated to studying workplace wellness programs devote their careers to generating scientific insights into their efficacy. At WellSteps, our wellness solutions are meticulously crafted based on<a href=\"https:\/\/www.wellsteps.com\/explore\/wellsteps-research\/\"> this rigorous scientific foundation<\/a>.<\/p>\n\n\n\n<p>For years, studies have demonstrated the significant impact of workplace wellness programs on employee productivity, morale, recruitment, retention, and more. <strong>But not in a million years would anyone have predicted that an excellent wellness program could actually result in corporate financial success.<\/strong><\/p>\n\n\n\n<p>Through diverse research methodologies, findings consistently reveal that publicly traded companies with outstanding wellness initiatives outshine the S&amp;P 500 by a considerable margin. A valuable avenue for further investigation would involve examining the stock performance of companies with subpar wellness programs over time.<\/p>\n\n\n\n<p>The presence of an excellent wellness program can act as a barometer of corporate success. &nbsp;Author of the <a href=\"https:\/\/sph.unc.edu\/files\/2016\/03\/Linking-Workplace-Health-Promotion-Best-Practices-and-Organizational-Financial-Performance.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">HERO portfolio study<\/a>,&nbsp;Jessica Gossmeier, put it this way:<\/p>\n\n\n\n<pre class=\"wp-block-verse\">\"Maybe it is a proxy measure of great management. That is good enough, because great management is what makes companies perform and great management is what makes sophisticated investors invest.\"<\/pre>\n\n\n\n<p>Longtime colleague&nbsp;<a href=\"https:\/\/pubmed.ncbi.nlm.nih.gov\/26716860\/\">Dr. Michael O&#8217;Donnell<\/a> explains these results from a different perspective:<\/p>\n\n\n\n<pre class=\"wp-block-verse\">\"Employers who are sufficiently capable and determined enough to develop excellent wellness programs, evaluate those programs, seriously reflect on the quality of their program, and\/or apply for and win awards also understand how to manage their core business in such a way that revenues and profits will grow . . . which in turn causes the stock value to outperform the market.\"<\/pre>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-steps-should-employers-take-next-to-leverage-wellness-for-financial-performance\"><span class=\"ez-toc-section\" id=\"What_steps_should_employers_take_next_to_leverage_wellness_for_financial_performance\"><\/span>What steps should employers take next to leverage wellness for financial performance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All wellness professionals and researchers take pride in contributing to a field that positively impacts individuals&#8217; lives and fosters thriving, resilient organizations. Top-tier workplace wellness programs are found within companies deeply committed to their employees&#8217; well-being, their products and services, and the overall success of the organization. Initiating a wellness program can yield numerous benefits beyond just enhancing stock performance. <\/p>\n\n\n\n<p>If you&#8217;re unsure about initiating a wellness program at your company, consider <a href=\"https:\/\/www.wellsteps.com\/explore\/demosignup\/\">scheduling a complimentary demo with the WellSteps team<\/a>. Discover how implementing such a program can enhance not only your company&#8217;s stock performance but also the health and productivity of your employees and teams, leading to positive outcomes across the board.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"wellsteps.com\/demosignup\"><img decoding=\"async\" width=\"1024\" height=\"601\" src=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/CTA1-1024x601.png\" alt=\"\" class=\"wp-image-104675\" srcset=\"https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/CTA1-1024x601.png 1024w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/CTA1-300x176.png 300w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/CTA1-768x451.png 768w, https:\/\/www.wellsteps.com\/blog\/wp-content\/uploads\/2022\/04\/CTA1.png 1201w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1772841259490\"><strong class=\"schema-faq-question\"><strong>What are workplace wellness programs? <\/strong><\/strong> <p class=\"schema-faq-answer\">Workplace wellness programs are initiatives implemented by companies to promote the health and well-being of their employees. These programs typically offer a range of activities and resources aimed at improving physical, mental, and emotional health. The goal is to create a supportive environment that encourages employees to adopt and maintain healthier lifestyles, leading to increased productivity, reduced absenteeism, and overall improved employee satisfaction.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1772841260873\"><strong class=\"schema-faq-question\"><strong>How successful are workplace wellness programs?<\/strong><\/strong> <p class=\"schema-faq-answer\">Working with an impactful and experienced wellness program provider or broker is essential in the success that you many see with a wellness program in your workplace. Utilizing an award winning program provider like WellSteps with a documented history of success with their clients will ensure the success of your workplace wellness program.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1772841261693\"><strong class=\"schema-faq-question\"><strong>How do employee wellness programs benefit employers?<\/strong><\/strong> <p class=\"schema-faq-answer\">Not only will employees have many positive benefits from wellness programs such as better health outcomes, decreased stress, reduced health risks, increased mental wellbeing, the employers see many benefits as well. These benefits include lowered health care costs, increased productivity, retention, and morale, reduced absenteeism and presenteeism, and many more.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1773133293818\"><strong class=\"schema-faq-question\">How do wellness programs in the workplace actually save money for employers over time?<\/strong> <p class=\"schema-faq-answer\">When leaders ask how wellness programs in the workplace save money, we often start with reduced healthcare claims and fewer high-cost conditions. Over several years, organizations tend to see fewer claims tied to preventable issues like unmanaged diabetes, hypertension, and stress-related illness. On top of that, wellness programs in the workplace often reduce absenteeism and presenteeism\u2014those \u201cI\u2019m here but not really functioning\u201d days that quietly drag productivity down.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1773133294588\"><strong class=\"schema-faq-question\">Do wellness programs in the workplace generate financial benefits beyond healthcare savings?<\/strong> <p class=\"schema-faq-answer\">Yes\u2014wellness programs in the workplace impact far more than medical spend. Companies often see lower turnover, better engagement scores, improved morale, and stronger retention of high performers. Those outcomes are financial too, even if they\u2019re not always coded as \u201chealthcare.\u201d Replacing employees, training new staff, and losing institutional knowledge are all expensive, and wellness programs in the workplace help reduce those costs.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1773133295349\"><strong class=\"schema-faq-question\">How soon can employers expect to see ROI from wellness programs in the workplace?<\/strong> <p class=\"schema-faq-answer\">The timeline depends on your starting point, but most organizations see early wins in year one and deeper ROI by years two and three. In the first year, wellness programs in the workplace typically improve morale, engagement, and participation in preventive care. Over time, as healthier habits stick, you begin to see fewer chronic disease claims and a healthier risk profile across your population.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1773133296730\"><strong class=\"schema-faq-question\">How can HR present the financial case for wellness programs in the workplace to leadership?<\/strong> <p class=\"schema-faq-answer\">HR can make a strong business case by connecting wellness programs in the workplace to the metrics leaders already care about: sick days, turnover, disability claims, worker\u2019s comp, and engagement survey results. When you show trends\u2014like reduced absences, higher satisfaction scores, or better retention in teams with high program participation\u2014leadership can see that wellness is not just \u201cnice to have\u201d but a strategic investment.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1773133297331\"><strong class=\"schema-faq-question\">What can companies do to make sure wellness programs in the workplace keep delivering value?<\/strong> <p class=\"schema-faq-answer\">To keep seeing financial returns, companies need to consistently measure participation, outcomes, and employee feedback\u2014and refine their approach accordingly. Wellness programs in the workplace work best when they evolve with the workforce, introducing fresh challenges, relevant themes, and supportive tools that make it easy to stay engaged year after year.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Recent research findings now give us three huge studies that prove wellness programs in the workplace are a wise investment.<\/p>\n","protected":false},"author":1,"featured_media":105708,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[12,5,19,11],"tags":[15,30,22,23],"class_list":["post-257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employee-wellness","category-productivity","category-workplace-wellness","category-worksite-wellness","tag-evidence","tag-return-in-investment","tag-wellness-programs","tag-wellness-roi"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ 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These programs typically offer a range of activities and resources aimed at improving physical, mental, and emotional health. 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Utilizing an award winning program provider like WellSteps with a documented history of success with their clients will ensure the success of your workplace wellness program.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.wellsteps.com\\\/blog\\\/2020\\\/01\\\/02\\\/wellness-programs-in-the-workplace-2\\\/#faq-question-1772841261693\",\"position\":3,\"url\":\"https:\\\/\\\/www.wellsteps.com\\\/blog\\\/2020\\\/01\\\/02\\\/wellness-programs-in-the-workplace-2\\\/#faq-question-1772841261693\",\"name\":\"How do employee wellness programs benefit employers?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Not only will employees have many positive benefits from wellness programs such as better health outcomes, decreased stress, reduced health risks, increased mental wellbeing, the employers see many benefits as well. These benefits include lowered health care costs, increased productivity, retention, and morale, reduced absenteeism and presenteeism, and many more.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.wellsteps.com\\\/blog\\\/2020\\\/01\\\/02\\\/wellness-programs-in-the-workplace-2\\\/#faq-question-1773133293818\",\"position\":4,\"url\":\"https:\\\/\\\/www.wellsteps.com\\\/blog\\\/2020\\\/01\\\/02\\\/wellness-programs-in-the-workplace-2\\\/#faq-question-1773133293818\",\"name\":\"How do wellness programs in the workplace actually save money for employers over time?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"When leaders ask how wellness programs in the workplace save money, we often start with reduced healthcare claims and fewer high-cost conditions. Over several years, organizations tend to see fewer claims tied to preventable issues like unmanaged diabetes, hypertension, and stress-related illness. On top of that, wellness programs in the workplace often reduce absenteeism and presenteeism\u2014those \u201cI\u2019m here but not really functioning\u201d days that quietly drag productivity down.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.wellsteps.com\\\/blog\\\/2020\\\/01\\\/02\\\/wellness-programs-in-the-workplace-2\\\/#faq-question-1773133294588\",\"position\":5,\"url\":\"https:\\\/\\\/www.wellsteps.com\\\/blog\\\/2020\\\/01\\\/02\\\/wellness-programs-in-the-workplace-2\\\/#faq-question-1773133294588\",\"name\":\"Do wellness programs in the workplace generate financial benefits beyond healthcare savings?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes\u2014wellness programs in the workplace impact far more than medical spend. Companies often see lower turnover, better engagement scores, improved morale, and stronger retention of high performers. Those outcomes are financial too, even if they\u2019re not always coded as \u201chealthcare.\u201d Replacing employees, training new staff, and losing institutional knowledge are all expensive, and wellness programs in the workplace help reduce those costs.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.wellsteps.com\\\/blog\\\/2020\\\/01\\\/02\\\/wellness-programs-in-the-workplace-2\\\/#faq-question-1773133295349\",\"position\":6,\"url\":\"https:\\\/\\\/www.wellsteps.com\\\/blog\\\/2020\\\/01\\\/02\\\/wellness-programs-in-the-workplace-2\\\/#faq-question-1773133295349\",\"name\":\"How soon can employers expect to see ROI from wellness programs in the workplace?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The timeline depends on your starting point, but most organizations see early wins in year one and deeper ROI by years two and three. 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