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Employee Health Promotion Program Return On Investment (ROI)

Posted by Health Promotion | Posted in Employee Health Promotion | Posted on 27-11-2008

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For well over a decade, research has been showing the effectiveness of Employee Health Promotion Programs. For every dollar spent on Employee Health Promotion Programs, the returns have been cost savings of between $2.30 and $10.10 in the areas of decreased rates of absence, fewer sick days, decreased WSIB/WCB claims, lowered health and insurance costs, and improvements to worker performance and productivity.

Statistics do show that Employee Health Promotion Programs increase worker morale, improve the ability to attract and retain key workers, all while having more alert and productive workers. Some Employee Health Promotion Program return on investment statistics of note:

• Canada Life Insurance reported a return of $3.43 on Employee Health Promotion Program, and an overall Employee Health Promotion Program return on investment of $6.85 on each corporate dollar invested on decreased turnover (32.4% lower), productivity gains and decreased medical claims,
• DuPont’s Employee Health Promotion Program pilot sites saw a saving of 11,726 disability days and a return of U.S. $2.05 for every dollar invested by the end of the second year,
• The Canadian government’s Employee Health Promotion Program return on investment was $1.95-$3.75 per worker per dollar spent (as found by Dr. Roy Shephard),
• Municipal workers in Toronto, missed 3.35 fewer days in the first six months of their Employee Health Promotion Program than workers not enrolled in the program,
• British Columbia Hydro workers enrolled in a Employee Health Promotion Program had a turnover rate of just 3.5% compared with a Business average of 10.3%,
• Johnson & Johnson estimated an average saving of U.S. $224.66 per worker per year for the four years examined after the program introduction, with the bulk of the savings being in the third and fourth years,
• Pacific Bell found that overall rates of absence decreased after beginning a Employee Health Promotion Program,
• Coca Cola report saving $500 every year per worker after beginning a Employee Health Promotion Program, with only 60% of their workers taking part,
• Coors Brewing Co. found that for each dollar spent on their Employee Health Promotion Program they saw a $5.50 return, and the workers who participated decreased their absentee rate by 18%, and
• Prudential Insurance Company found that the benefits costs for workers taking part in their program were $312, as opposed to $574 for non-members

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