We live in a world dominated by numbers and metrics. From the rise and fall of stock values and gas prices, to political approval ratings and prime time television ratings, it’s all about the stats. This is never more evident than in the business world, where corporations split one financial hair after another to ensure that monthly reports don’t send stockholders running. Still, amidst all the balance sheets and complex algorithms, many corporations are addressing arguably the most profound variable on their bottom line: employees.
To find out why corporate fitness solutions and employee wellness should be a priority for every company, look no further than…you guessed it…the stats!
At least 100 million workdays are lost each year due to lower back pain at a cost to employers of $20 billion and annual workers compensation claims related to lower back ailments total $8.75 billion.
American industry loses $32 billion and 132 million workdays due to premature employee deaths related to cardio-vascular disease (high blood pressure, heart stroke, diabetes and obesity). Billions more are lost as a result of absenteeism and lowered productivity related to sickness and disability. The numbers are daunting to say the least.
Some companies align themselves with local health clubs, offering special employee membership rates. Others bring corporate wellness closer to the fold and develop state-of-the-art on-site corporate fitness centers. In any event, the results speak for themselves, and ironically, these corporate fitness efforts are making a profound impact on the company bottom line.
For more than a decade, consistent research has demonstrated the effectiveness of an investment in employee wellness and corporate fitness programs:
For every dollar spent on a corporate wellness program, a return in the form of cost savings of between $2.30 and $10.10 stemming from decreased absenteeism, fewer sick days, reduced worker’s comp claims, lowered health and insurance costs, and improvements to employee performance and productivity.
Coca Cola reported saving $500 every year per employee after implementing a fitness program, with only 60% of their employees participating.
Coors Brewing Co. reported that for each dollar spent on their Corporate Wellness Program they saw a $5.50 return and the employees who participated reduced their absentee rate by 18%.
Prudential Insurance Company reported that the benefits costs for employees participating in their program were $312, as opposed to $574 for non-participants.
More and more companies are wising up by pumping up their employees. The results are measurable: reduced absenteeism, increased productivity and resulting profitability. Look no further than the numbers, and it all makes perfect sense.
This post is an excerpt of an article that originally appeared in Spa Business Magazine.
Posted on 02/16/2015 at 08:00:00 AM