Why Corporate Wellness Programs are a Waste of Money

Well, they’re not, but there is a gap that most employers are missing.

You don’t need to go too far to find proof that a healthy body leads to a healthy mind and a healthy mind is great for productivity in the work place and despite the heading of this article, I am 100% behind that theory. Physical activity lowers your stress levels and stressed people in the workplace don’t get as much done. We agree on this. I’m going to deal out some stats now, and unlike the majority of stats (that I usually make up) these are backed by research and I’ll be sharing the research papers at the end.

On any given day, 10% – 20% of your employees are experiencing personal problems, so let’s use 10% to err on the side of caution.

An employee experiencing personal problems is 35% less productive.

75% of your employees problems can be solved with financial counselling.

So here’s the formula:

Number of employees x 10% x average salary x 35% x 75%.

So if you are a 100 employee company with an average salary of $50,000, you can be relatively confident that you are losing $131,250 each year because of your employee’s financial issues. What are you doing to address this?

As great as it is to buy a FitBit for all of your employees or pay for their gym membership, that’s not going to close the gap in the financial stress that your team are dealing with.

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Resources:

Financial Concerns And Productivity, Flora L. Williams,1 Purdue University, Virginia Haldeman,2 University of Nevada-Reno, Sheran Cramer,3 University of Nebraska-Omaha

The Negative Impact Of Employee Poor Personal Financial Behaviors On Employers E. Thomas Garman,1 Virginia Tech, Irene E. Leech,2 Virginia Tech, John E. Grable, 3 Virginia Tech

Financial Stress and Absenteeism: An Empirically Derived Research Model Jinhee Kim and E. Thomas Garman

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