The Proof is in the Data: Employee Wellness Pays Dividends
Investing in comprehensive employee wellness initiatives pays measurable dividends in performance, retention, healthcare costs, and absenteeism. Understanding the data on workplace wellness demonstrates why more companies make health and wellbeing core strategic priorities year after year.
In this evidence-based guide for business leaders and HR professionals, we’ll analyze the state of employee wellness programs through insightful market statistics.
You’ll discover the factors driving adoption, regional trends, industry differences, health impact for employers and staff, and future growth outlook. Let’s dive in.
52% of Companies Offer Wellness Incentives
Workplace wellness is now mainstream. Per 2022 estimates [1]:
- 52% of U.S. employers offer some form of wellness program
- 83% of large companies (>5000 workers) have programs
The most common components include [2]:
- Preventative health screenings
- Fitness incentive programs
- Healthy cafeteria food policies
- EAP – Employee Assistance Programs
- Stress management resources
- Health insurance premium discounts
Workplace Wellness Program Adoption
Company Size | Have Program |
---|---|
<50 Employees | 30% |
50-99 Employees | 31% |
100-499 Employees | 44% |
500-999 Employees | 63% |
1,000-4,999 Employees | 73% |
5,000+ Employees | 83% |
_*Source: RAND Employer Survey 2022_
There remains substantial room for small-medium businesses to catch up to large enterprise adoption. Expect workplace wellness to become increasingly ubiquitous across organizations of all sizes.
Global Corporate Wellness Market Size Hits $74 Billion by 2026
The corporate wellness industry is seeing rapid expansion around the world:
Global Workplace Wellness Market Size
Year | Market Value USD | Growth (%) |
---|---|---|
2021 | $58.77 Billion | |
2026 | $74.11 Billion* | 26% |
*Projected
Source: Verified Market Research 2022
Regionally, while North America holds the greatest market share, Asia-Pacific lands second and will see the fastest growth from 2022-2027 at 8.7% CAGR [3].
Health-focused perks transition from “nice-to-have” to fundamental expectations thanks to this growth.
Wellness Programs Boost Productivity by 65%
The #1 incentive employers cite for investing in wellness is maximizing workforce productivity [4]. The statistics validate these programs indeed deliver measurable business results:
- 84% of companies reported increased productivity after launching wellness programs in 2019 [5].
- Employees actively using wellness plans miss 65% fewer days than non-participants [6].
- Companies see 14-19% lower absenteeism thanks to wellness programs [7].
- General Electric decreased absenteeism by 45% through its employee wellness initiatives [8].
Additionally, participants show greater engagement and loyalty:
- Over 80% of employees in wellness programs say they feel happy and love their jobs [9]
- 92% believe it‘s important to work for an employer who cares about their mental health [10]
Bottom-Line Company Savings
Offering workplace wellness incentives also directly saves companies money through [11]:
- $3.27 less healthcare spending for every $1 companies invest in wellness
- $2-$4 saved in medical costs for every $1 spent on safety wellness initiatives
Let’s explore more examples of cost savings achieved through employee wellness programs.
Johnson & Johnson
J&J‘s wellness program saved the company $565 per employee in healthcare costs. Participants saw fewer hospital admissions across 20 health risks like diabetes, high blood pressure, and stroke risk factors.
Procter & Gamble
P&G wellness program participants had 5% fewer ER visits and shorter hospital stays. Seventy percent of asthma sufferers who did disease education no longer needed medications. Healthcare costs fell by $1,421 per employee over 10 years.
Citibank
Citi‘s holistic wellness program combining health education, incentives, and behavior change support decreased healthcare premium inflation by 2-4% annually. Wellness offerings saved $3.5 million over 2 years.
The data clearly shows implementing smart wellness plans tangibly reduces corporate health expenses and absentee days – all while increasing productivity and loyalty.
What Makes an Effective Wellness Program?
The most successful wellness initiatives share common attributes like [12]:
1. Holistic Offerings
Effective plans address physical, mental, financial, social, environmental, and emotional health through diverse offerings like:
- Health education resources
- Lifestyle habit challenges
- Preventative care incentives
- Onsite fitness options
- Healthy food policies
2. Executive-Level Support
Model healthy behavior and invest in program success. Don‘t view wellness as an addon or afterthought.
3. Incentives for Participation
Offer rewards like gift cards, reduced health insurance premiums, or PTO. Gamify programs to drive engagement.
4. Customization
Offer flexibility allowing employees to tailor offerings to individual needs and interests.
5. Continuous Evolution
Regularly evaluate what’s working through surveys and data to iterate on weaknesses.
Workplace Wellness Regional Trends
Asia-Pacific
Asia-Pacific takes 2nd place with 24% total corporate wellness market share thanks to large populations and growing economies in countries like China and India [13]. More multinational companies expand offerings as they enter Asia-Pacific markets.
Domestic companies also respond to retain talent. APAC lands forecast to be the global leader from 2022-2027 with 8.7% growth [14].
North America
North America holds the greatest slice of total employee wellness industry value at over 40% as of 2022 [15]. The United States and Canada lead adoption. This region also sees the most holistic program design and executive buy-in treating wellness as a productivity/retention differentiator [16].
Europe
Europe takes third place with a 23% corporate wellness market share as of 2022 [17]. Countries like the UK, Germany, France, and Spain lead adoption. However, smaller European countries have substantial room for continued expansion.
Latin America
Latin America significantly lags North American/European adoption with just a 6% total market share currently [18]. Brazil leads while other nations have ample space for expanding existing wellness regulations and employer offerings [19]. Expanding tech sector companies like Intel can accelerate culture shifts through leading comprehensive program implementation.
Middle East & Africa
The Middle East & Africa demonstrate the smallest corporate wellness market share globally at just 2.5% [20]. Low awareness among business leaders of wellness benefits hampers adoption currently. However, multinationals entering markets can increase visibility of advantages, driving culture change.
Industry Differences: Who Offers the Most Wellness Plans?
Which sectors lead implementing employee wellness incentives?
Healthcare
Ironically, the healthcare sector trails in offering comprehensive wellness plans with just 34% of healthcare companies maintaining programs as of 2021 [21]. Difficulty practicing what they preach? There’s substantial room to improve.
Tech & Finance
Tech companies lead adoption with 44% offering some wellness benefits followed closely by finance at 43% [22]. Facing fierce competition attracting skilled talent, these sectors utilize polished wellness packages to stand out.
Manufacturing/Construction
Lagging behind, just 28% of manufacturing and 35% of construction companies provided wellness incentives last year [23]. Budgetary restrictions likely hamper adoption, but even modest programs demonstrate ROI through performance gains.
Government
Like manufacturing, governments have historically invested minimally in employee health. However, President Biden’s 2021 executive order pressing agencies to prioritize worker wellbeing through new workplace policies aims to accelerate public sector adoption [24].
Executives Commit More to Employee Wellbeing
Today’s leaders recognize workplace health directly impacts their ability to execute strategies.
- 85% of executives intend to take greater responsibility for employee wellbeing in 2024 [25].
- 55% aim to further invest in building a "thriving workforce."
- 78% of CEOs globally named employee burnout as a top concern last year [26].
Forward-looking companies now tie executive compensation to worker satisfaction/engagement metrics. They also increasingly appoint Chief Wellness Officers (CWOs) to drive cultural adoption from the top-down [27].
Employees Demand Further Wellbeing Support
While we’ve made substantial progress expanding wellness benefits, significant gaps remain in supporting employee mental health and reducing burnout risk, despite intense demand.
Over 3⁄4 of employees still report frequent work-related stress and anxiety [28]. Just 58% say their companies provide adequate mental health resources—an alarming statistic [29].
Employees want more from leadership:
- 74% would work more overtime with an empathetic, understanding manager [30]
- 94% believe management should take active responsibility for employee wellbeing [31]
Amidst tight labor markets, organizations failing to support emotional health risk losing top talent to competitors with stronger wellbeing infrastructure.
Current Employee Mental Health Landscape
Statistic | Ratio |
---|---|
Report work-related stress in 2022 | 77% |
Satisfied with mental health support offered | 58% |
Believe management should support wellbeing | 94% |
Would work more OT with empathetic leadership | 74% |
_*Source: Gallup State of the Global Workplace 2022_
Looking Ahead: Bright Outlook for Workplace Wellness
While adoption gaps remain regionally among smaller businesses, positive momentum points toward a future where workplace wellness is the rule rather than the exception.
Recognizing the irrefutable link to productivity and retention, expect more companies to make employee health central to business operations rather than an ancillary additive.
Global wellness industry size hitting nearly $75 billion this decade spotlights the growing strategic priority of human capital for every employer.
The data doesn’t lie—workplace wellness delivers ROI. People-first programs represent the future of high performance.
Sources
- 2022 RAND Employer Well Being Study
- Integrated Benefits Institute
- Verified Market Research
- 2021 State of Workplace Wellness Survey
- Zippia
- CBIA 2022 Workplace Wellness Study
- Kaiser Family Foundation
- Harvard Business Review
- EnterpriseAppsToday
- American Psychological Association
- Deloitte Global Human Capital Trends
- IBI Workplace Wellness Best Practices
- Verified Market Research
- GlobeNewswire
- Verified Market Research
- Washington Post Study
- Verified Market Research
- 2022 State of Workplace Wellness Survey
- BenefitsPro Global Wellness Checkup 2022
- Verified Market Research
- Kaiser Family Foundation Study
- Unum 2021 Workplace Wellbeing Survey
- Unum 2021 Workplace Wellbeing Survey
- WhiteHouse.gov
- Deloitte Global Human Capital Trends
- Gallup CEO Panel Survey
- Business News Daily
- Gallup State of the Global Workplace 2021
- SHRM Mental Health Resources Survey 2021
- EnterpriseAppsToday
- American Psychological Association