Blog

How Much Should a Corporate Wellness Programme Cost

Posted by Aaron Keeganon 19-Apr-2016 9:05:52


It can be very difficult to budget for the cost of a corporate wellness programme and how much an organisation should spend is the length of the proverbial piece of string.

Rather then focusing on the cost of the programme initially it may be better to concentrate on what you are looking to achieve from implementing a wellness strategy.

If you are looking to develop a culture of wellbeing, improve productivity and performance or even enhance morale a properly designed wellness programme can deliver a €3 to €6 return for every €1 spent. You need to ensure that the programme is designed to fit your needs and it is important to spend time with your service provider to ensure that they are delivering your requirements rather than a generic formula.

For the actual cost outlay the cost per participant can be anything from €0 to €300 or even higher.

Facilitator

Subsidised

Provided

Incentives

€0

€10 - €80

€35 - €120

€10 - €300

Yes, there maybe no cost for the company! This is in a scenario where the company will act as a facilitator only. They will develop a programme that is valuable for the employee and company, use their negotiation skills and economies of scale to agree a good price and offer it out to the staff. For any staff member that wishes to avail of the programme they will pay for it themselves. Many companies operate a salary deduction scheme to minimise the cash flow impact on staff.

So acting as a facilitator will keep the cost of a programme way down but as the employees will have to pay the full cost the uptake may be low. As a result the company will not maximize the benefits of the wellness programme through out their entire work group. Also those that are willing to pay may be the most health conscious and you might want to try and encourage the less healthy employees.

Another option for the employer is to subsidise the wellness programme. This will allow the employer to determine how much they want to spend and they will generate good will from staff by contributing. The more a company subsidises the more staff will avail of the offer. This will increase participation, which is what you are hoping for, but your own costs will also go up.

Don't forget a wellness programme is one of the few benefit in kind payments that are still tax exempt by Revenue.

A company can provide the full cost of the programme which can range in price from €35 to €120 depending on the type of programme. For a large company €35 will deliver an effective wellness programme excluding any biometric markers. The increase in cost to €120 will depend on the markers or tests that you wish to include in addition to the basic programme.

An important element to any corporate wellness programme will be the incentives that a company might decide to offer staff. These are generally determined after review of the executive summary report that outlines the health of the company on an aggregate basis. Based on this report a company may offer, for example, subsidised gym membership for staff who achieve agreed targets on exercise and weight management. These are specific and can be changed on an annual basis depending on company requirements and available funding.

Every organisation should have a corporate wellness programme. It can be easily set up and does not need to cost anything if the company wishes to facilitate only. You will be surprised at the benefits in improved productivity, performance and morale from taking this cost effective step.

So, have your staff healthier and happier while giving you more.

Unsure where to start?
Download our eBook on the 6 critical steps every successful Wellness Programme should have. Just click the image below.

Do you recognise Paula & Simon in your organisation?

Interested?

It doesn’t cost anything to learn a little more. Call us on +353 1 716 5442 to arrange a meeting.
Or email us at info@fusionhr.ie for more details.

We’ll be happy to show you how Fusion HR makes more productivity with the same payroll a very achievable goal.