In a recent article published on CFO.com, the author contends that less than half (around 40%) of companies using wellness programs such as employee-assistance or health-improvement programs actually see a return on investment. In fact, he reports that only 19% of companies can capture the costs of using these programs, and 62% underestimate the amount they spend.
Amongst the reasons why wellness programs can be problematic in determining a return on investment are:
- They are difficult to quantify
- The programs are managed often by multiple vendors (no streamlining) – over 58% of employers utilizing wellness programs have two to five vendors
- There is a lack of discipline – changing employee health behavior can be challenging