Strategy and Cost Justification For Corporate Wellness Programs
The simplest definition of strategy rests at the core of any successful business. A strategy is a plan of action designed to achieve a vision. Strategy is all about gaining (or being prepared to gain) a position of advantage over adversaries or best exploiting emerging possibilities. As there is always an element of uncertainty about future, strategy is more about a set of “strategic choices” than a fixed plan.
As we investigate employee health and corporate wellness plans, those strategic choices make the difference between sound financial gain and dwindling fiscal returns. Program Management methodologies are a robust architecture upon and within which a wellness program can be treated like any other product launch and lifecycle. The end goal is a thriving company with happy shareholders, productive employees, increased market share, and positive cash flow. Why wouldn’t we want to apply the same principles to an employee wellness program?
Benefits are a big magnet for companies trying to attract top talent, but it goes much further than new hires and employee turnover. From a traditional perspective of Return On Investment (ROI), healthy employees may or may not make sense where the benchmark is tied to insurance premiums and the direct costs of medical treatment. In reality we are missing the lion’s share of modifiable costs associated with health care by focusing solely on direct costs. Indirect costs (Lost Productivity and/or ‘Soft’ costs) exceed direct costs by as much as 939%!
Cost of Illness (COI) metrics are another way to measure outcomes of a wellness program. Although COI is a distinct set of metrics, it can and should be included in the measure and evaluation of ROI. COI data applied to your biometric and survey data can provide insights where claims data is not available. Combined with Outcome Goals and a clearly defined wellness program, cost justification for a corporate wellness program takes on a new character that promises ROI for companies of all sizes.
FitNut builds employee wellness programs focused on the strategy and business principles associated with success. Program Management principles, top-down/bottom-up analysis, internal facilitation, and progressive measurement allow us to develop and implement a program that is clearly defined through each phase. We specialize in reaching ‘at risk’ populations so your programs will benefit from maximum participation. At FitNut, we fill the gaps that other wellness programs overlook.
Not sure where to start? We can help with that too. FitNut assessments and consultation services can help you identify the best strategy around building a budget for a wellness program, or selling corporate wellness to your highest decision makers.
The statistics are indisputable. Having healthy employees means a healthy bottom line for your company. Let us show you how.