Article: Cost benefits of health and wellness programs

Employee Engagement

Cost benefits of health and wellness programs

By leveraging data-driven strategies, HR teams can assess the effectiveness of wellness programmes, leading to cost savings and a healthier workforce.
Cost benefits of health and wellness programs

In the wake of the COVID-19 pandemic, Indian companies have recognised the importance of prioritising employee health and wellness. Implementing corporate health and wellness programmes not only enhances employee engagement and productivity but also yields substantial cost benefits for organisations. 

In this article, we delve into the effective measurement of health and wellness programmes' outcomes by HR teams, examining the tangible benefits they bring to both employees and the organisation. 

Measuring the impact

Following measurement methods enable organisations to identify areas needing attention, implement targeted interventions, reduce costs, and enhance employee well-being:

Employee health assessments: Regular assessments track metrics such as BMI, blood pressure, cholesterol, and stress levels, enable HR teams to monitor improvements in employee health over time.

Absenteeism rates: Tracking absenteeism before and after program implementation helps measure its impact. Lower absenteeism signifies enhanced employee health, engagement, and productivity.

Employee satisfaction surveys: Including health and wellness-related questions in surveys provides valuable feedback on the program's effectiveness, impact on morale, productivity, and job satisfaction. This data aids in decision-making for program enhancements or new initiatives.

Fitness index comparisons: Comparing the overall fitness index with peers or industry benchmarks demonstrates the positive impact of initiatives. Setting realistic goals and continuous improvement ensure a competitive edge in the market.

Cost benefits 

Reduced healthcare costs: HR teams can track healthcare expenses, including medical claims, insurance premiums, and employee medical reimbursements, to measure cost savings resulting from improved employee health. 

Enhanced productivity: By measuring productivity metrics such as sales figures, project completion rates, and employee performance evaluations, HR teams can quantify the impact of health and wellness programmes on overall productivity.

Decreased attrition rates: Improved employee satisfaction and well-being contribute to lower turnover rates. HR teams can track employee retention and turnover rates over time to determine the cost benefits associated with reduced recruitment and training expenses.

Absenteeism reduction:  HR teams can calculate the cost savings resulting from decreased absenteeism by multiplying the average cost per absent employee (including salaries, benefits, and productivity loss) by the reduction in absent days. 

Investing in corporate health programmes benefits Indian companies and employees. HR teams measure outcomes through health assessments, absenteeism rates, surveys, fitness indices, and healthcare expenses. Reduced costs, increased productivity, lower turnover, and absenteeism show a positive impact of such programmes. Data-driven wellness programmes thus create a healthier, engaged workforce for a company's long-term success and growth.


How often should employee health assessments be conducted?
Employee health assessments should ideally be conducted annually to track changes in employees' health and well-being over time. However, depending on the organisation's resources and requirements, assessments can be conducted more frequently.

Can small organisations also implement health and wellness programmes?
Yes, health and wellness programmes can be tailored to fit the needs and resources of small organisations. Even small initiatives, such as promoting physical activity or organising health education workshops, can have a positive impact on employee health.

Are health and wellness programmes limited to physical health?
No, health and wellness programmes encompass various dimensions of well-being, including physical, mental, and emotional health. Programs that address stress management, work-life balance, and mental health support are also essential components of a comprehensive health and wellness strategy.

How can organisations encourage employee participation in these programmes?
Organisations can encourage employee participation by promoting the benefits of the programmes, providing incentives or rewards, fostering a supportive and inclusive culture, and actively involving employees in the decision-making process.

Are there any legal requirements or regulations related to health and wellness programmes in India?
While there are no specific laws mandating health and wellness programmes in India, organisations need to comply with general labour laws, provide a safe and healthy work environment, and ensure employee welfare as per the prevailing regulations.


Read full story

Topics: Employee Engagement, Employee Relations, #Wellbeing

Did you find this story helpful?



How do you envision AI transforming your work?