The ROI Behind Virtual Wellness Programs
Combat rising healthcare costs, increase productivity and more
With rising health insurance costs cutting into employee take-home pay and premiums substantially squeezing employer pockets, it’s time for organizations to get creative with their benefits package.
Staying competitive in the marketplace isn’t just about offering benefits that attract and retain employees. It’s also about providing benefits that promote prevention and improve the wellness of your workforce, which is where virtual wellness programs come in.
Many employers don’t offer wellness benefits and the ones that do often have costly traditional programs. Virtual benefits are much more efficient and cost-effective, making them an attractive option for employers and employees. Below, we’ll explore the ROI employers can expect when implementing a remote wellness benefit.
Traditional wellness programs - right initiative, but wrong delivery
It’s no secret that wellness programs are a key factor in driving business success. That’s why 58% of all small and 83% of all large firms have offered a health-related program. In addition, the 2024 Fidelity Global Employer survey results illustrated that 76% of employers feel extremely or very responsible for their employee's physical and mental well-being.
Those statistics show that employers prioritize wellness. However, many organizational leaders are starting to question whether traditional wellness programs, in particular, are worth it. Implementing a workplace wellness benefit can be costly, and the return on investment isn’t always straightforward.
Virtual wellness benefits are the solution
Virtual wellness programs tend to give employers more bang for their buck because they don’t have the same factors that drive low participation rates as traditional ones. For instance, employees might not partake in conventional programs due to:
A lack of time
Feeling like the program isn’t conveniently located
Privacy concerns, such as fear that their employer will learn about their health information
Virtual programs can address these concerns and yield the excellent returns in the following ways.
1. Virtual care results can decrease healthcare costs
One of the top reasons employers offer wellness benefits is to decrease medical spending. Encouraging healthier lifestyles among staff is believed to alleviate injury and illness, as well as the onset or severity of chronic conditions. However, with growing medical expenses, employers are beginning to question whether traditional wellness plans will garner the ROI they desire.
According to the Society for Human Resource Management (SHRM), employer healthcare costs are slated to increase between 8% and 9% in 2025 if companies don’t find a way to reduce spending. A virtual wellness program is one way to help curb these expenses, improve efficiencies and attract more talent.
Virtual wellness programs maximize resources
Let’s say you want to add a weight management wellness program to your organization's benefits package. If you went the traditional route, you’d likely have to pay the salary for an on-site coordinator and find available office space. However, with a virtual program, you can bypass both. Working with a vendor like OpenLoop gives you access to complete operational support and 50-state clinical coverage.
Research also proves that virtual care can benefit those with chronic conditions like diabetes. For example, one study noted that patients saw improved glycemic outcomes, and another discovered that those who had 2+ telemedicine visits were significantly less likely to have uncontrolled diabetes. In short, better care management should lead to fewer emergency department visits.
This is helpful, as individuals with diabetes incur approximately $19,700 yearly in medical expenses, which is 2.6 times more than those without the condition. Virtual care, being as accessible as it is, can help employees manage their condition without utilizing more expensive resources. With a healthier workforce, companies should see fewer claims, leading to reduced healthcare premiums and out-of-pocket fees.
2. Employers can enjoy reduced turnover rates
It’s suggested that hiring a new employee costs three to four times the position's salary. Therefore, organizations are much better off trying to retain their current employees.
Recognize that employees don’t just stick around for the salary. In fact, a WebMD report shared that:
70% of employees think employers should provide a mental and emotional health program.
42% of workers believe that companies should offer at-home fitness benefits.
60% of employees state that well-being benefits will be a main priority when seeking their next job.
It’s also known that engaged employees are more satisfied with their jobs. 85% of employees state they intend to stay at their workplace if their employer is engaged in their wellness. The cost of a disengaged employee is too great to ignore: It costs employers the equivalent of 18% of their annual salary.
Virtual benefits increase employee engagement
Virtual wellness benefits are one way to boost engagement. There are fewer barriers to participation than traditional ones, and employees can get involved regardless of whether their workforce is remote, in-person or hybrid.
Plus, employees get all of the components presented in on-site programs, like fitness challenges, workshops and incentive programs, but with substantially lower operating costs for you.
In addition, technology allows companies to offer more customized wellness experiences relevant to the user. Companies can easily capture insights into what resources employees find valuable and which ones are rarely utilized. This information helps organizations offer programs that employees want to engage with, often leading to better outcomes.
3. Decrease rates of presenteeism and absenteeism
Presenteeism, which is when employees attend work even when they’re unwell, is a hidden cost for employers. The presence of medically impaired employees, whether a psychological or physiological ailment, results in reduced productivity and decreased quality of work. For example, one study observed that high psychological distress in men and women costs $6944 and $8432 per person, respectively.
There is also a risk of disease transmission if employees go to work while battling an acute illness, which can cause sickness, among others.
Absenteeism is also costly and more common among employees with a chronic condition. With long-term diseases on the rise, employers, especially small businesses, must find ways to encourage good health among their workforce.
According to Kaiser Permanente, employers who hope to minimize rates of presenteeism and absenteeism should incorporate the following:
Boost employee engagement
Aid with condition management
Promote prevention, such as screenings
Provide mental health support
Virtual wellness benefits are designed to address each of these issues. They’re flexible, convenient and discreet offerings that encourage participation and combat the indirect costs incurred by a lack of productivity.
The ROI of offering a virtual wellness program
As healthcare costs continue to rise and competition among employers grows, organizations must carefully assess the expected ROI for employee wellness initiatives. Virtual wellness benefits can reach employees that traditional ones cannot, resulting in significant savings across the board.
If you’re looking for a scalable virtual wellness program that boosts employee health and ROI, partner with OpenLoop. We offer best-in-class virtual wellness benefits like weight loss, hair loss, sexual health and more at no cost to your organization. Sounds too good to be true? Contact us today!
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