Policy and Regulation News

Large Employers to Average $3.6M on Wellness Programs in 2019

Large employers will be investing more in wellness programs to improve the health of the nation’s workforce.

Large employers to average $3.6 million on wellness programs in 2019

Source: Thinkstock

By Jessica Kent

- Large employers across the country are expected to spend an average of $3.6 million on wellness programs in 2019 to support a healthier and more productive workforce, according to a survey from National Business Group on Health (NBGH) and Fidelity Investments.

Forty percent of these budgets will be applied to financial incentives that encourage employees and their spouses to participate in these programs, the survey revealed. Although the average per-employee incentive has decreased slightly, from $784 in 2018 to $762 in 2019, it is still nearly three times the average employee incentive of $260 reported in 2009.

The percentage of employers offering incentives to spouses has increased, jumping from 54 percent in 2018 to 58 percent in 2019. The average dollar amount of incentives for spouses increased as well, going from $596 in 2018 to $601 in 2019.

While 57 percent of employers offer financial incentives to employees by reducing their health plan premiums, more than a third offer incentives by funding an employee’s healthcare account, such as a health savings account.

The results indicate that financial incentives will continue to play a significant role in employee wellness programs, as 33 percent of employers said they plan to increase the amount of financial incentives for employees over the next three to five years.

While programs focused on physical health continue to be the most popular offering, employers have increasingly incorporated social and behavioral factors in their wellness platforms.

Ninety-two percent of employers will offer wellness programs focused on mental and emotional health, and 88 percent will offer programs that address financial health. Employers will also provide programs that aim to increase community involvement (69 percent), social connectedness (54 percent), and job satisfaction (43 percent).  

These findings are encouraging, as physical and mental health are inextricably linked. Recent research from Fidelity shows that employees who need help with their financial well-being are more likely to be physically unhealthy and are more likely to report feeling stressed or anxious.

This can impact job performance and productivity.  Employees experiencing these stressors miss an average of nine work days each year.

“More employers view their investments in health and well-being as integral to deploying the most engaged, productive and competitive workforce possible,” said Brian Marcotte, President and CEO, National Business Group on Health. 

“Their focus is holistic, with physical health being a component rather than the only priority. Employers recognize that their employees have different needs and want to engage in different ways. Financial and emotional stress, for example, are major detractors from work performance and employers are doubling down on these areas.”  

Employers with a multinational workforce are working to develop a consistent benefits program for their employees around the globe. Fifty-six percent of employers offer well-being programs to their global employees, up from 44 percent in 2018. Another 14 percent are planning to expand their wellness programs to workers in multiple geographies by next year.

However, just 34 percent of employers reported having a global strategy in place, and 50 percent let local markets focus on wellness as needed.

The results showed that the overall objectives of wellness programs continue to vary by region. In the US, two of the top objectives of wellness programs are managing healthcare costs, with 82 percent of employers naming this as their main goal, and improving employee productivity and reducing absenteeism, with 59 percent of employers saying this is their top priority.

Globally, the top objectives for wellness programs are improving employee engagement and performance, at 82 percent, and aligning employees with the corporate culture, at 72 percent.

Going forward, wellness programs will continue to be an important part of the corporate landscape. To ensure employees benefit from these programs, employers can target mental and emotional health in addition to physical well-being, and develop programs for a global workforce.

“As more employers recognize the relationship between employee well-being and productivity, well-being programs have taken on an increasingly meaningful role in employers’ business strategies. However, as the benefits landscape continues to evolve, employers need to ensure they are designing their programs to meet the changing needs of their workforce,” said Robert Kennedy, senior vice president, Fidelity Workplace Consulting.

“Implementing programs that take a total well-being approach, designing programs for a global workforce and aligning well-being programs with the company’s health care strategy are just a few of the steps employers can take to ensure their well-being program continues to deliver maximum benefit to their organization.”