With health insurance premiums on the rise, organizations are learning to navigate a higher-cost environment without breaking the budget. While 24% of employers plan to shift costs to employees, 52% are turning to wellness plans as a financially feasible solution. In addition to an organization’s internal finances, health plans are motivated to financially support healthier workplace cultures as a measure of cost containment.

There are various approaches to implementing a wellness program that affects the overall cost, as well as factors like the size of the organization, the workplace model, the type of workforce, and the amount of internal contribution.

How Much Does an Employee Wellness Program Cost?

In this post:

1. Corporate Wellness Vendors & Platforms

2. How Much Do Corporate Wellness Programs Cost?

3. Utilizing a Wellness Specialist

4. Corporate Wellness Program Costs as Investments

5. Strive Wellness Programs

Corporate Wellness Vendors & Platforms

Wellness solutions are not one-size-fits-all. A macro employee population has different needs than a micro population, and there are vendors and platforms to satisfy each. Tech-based solutions utilize a per-employee per month (PEPM) pricing model. PEPM or a-la-carte models aren’t ideal for mid-market organizations because they can get expensive and require time-consuming internal administration for frequent invoicing and program planning.

Organizations looking to save administrative time should consider a vendor that employs a fully-burdened unit cost model. This pricing model typically invoices just once annually or at the frequency that works best for clients’ budgetary needs. With all services included, there’s no hidden costs for management, reporting, or technology.

How Much Do Corporate Wellness Programs Cost?

Many contributing factors determine the cost of a wellness program. Beginning with a needs interest survey drives the framework and provides a scope of complexity. Consider the number of employees, internal funding, and available wellness dollars to set a budget. The cost for an effective program ranges from $100-$400 per employee per year, but it could be up to $2,000 depending on the volume of services and program offerings. Additional costs might include assessment tools such as biometric screenings or benefits-based incentives like gift cards or bonuses.

Discover the 5 best wellness initiatives of the year here or learn about trends in workplace fitness and wellness.

Utilizing a Wellness Specialist

In addition to resources dedicated to each employee, it’s important to consider allocating spend to implementing the program. Even programs designed with ample resources won’t be as effective as they could be without proper implementation.

There are several ways to accomplish this. Organizations can leverage a current employee’s role to contribute to wellness program initiatives. While this may be cost-effective, a full-time employee often already has their hands full and doesn’t have the time needed to fully support a wellness program.

Strive offers two additional courses of action by staffing a virtual or onsite wellness coordinator, or by collaborating with the organization as a wellness vendor. The latter option includes:

• Help designing and managing the program
• Administrative technology:
  • • Liability waivers
    • Class/event registration
    • Data tracking & reporting

Learn more about hiring a wellness coordinator.

Corporate Wellness Program Costs as Investments

In the end, a successful wellness program pays for itself. A comprehensive wellness program encourages lifestyle changes, addresses all aspects of wellness, and is an effective cost containment plan. More than a simple solution, wellness programs are a smart business strategy that reduces healthcare costs and increases productivity while retaining a positive VOI.

In addition to health care cost reduction, wellness programs support employee retention. Employees are finding solace from some of the leading causes of resignation in wellness programs that strategically address their total well-being and have full leadership support. Whether it’s a lack of advancement opportunities, child care issues, or unsatisfactory benefits, employers have the power and incentive to introduce wellness initiatives that positively impact their workforce, and in turn, the entire organization.

Are Workplace Wellness Programs Effective?

Strive Wellness Programs

Wellness is easily accessible with Strive. Our team relieves clients of administrative burdens by providing the technology, coordination, liability waiver management, and data collection and reporting necessary for a successful program.

Strive’s financially efficient cost model and our collaborative approach allows organizations to customize their wellness program. For example, upon reviewing an organization’s budget, our team can construct a wellness plan that consists of fitness and stress management classes, educational health talks, and a bi-annual chair massage.

Proactively investing in healthcare is not only a great decision financially, it creates a culture that attracts and retains good people that take pride in their work. Book a discovery call today with a Strive wellness expert to explore the possibilities for your organization.