Long‐term return on investment of an employee health enhancement program at a Midwest utility company from 1999 to 2007

Abstract

PurposeThe purpose of this paper is to document the total return on investment (ROI) of a comprehensive worksite health program from 1999 to 2007 through two different analytic approaches.Design/methodology/approachTwo analytical techniques were used: time period analysis and historical trend analysis of the entire study period. The time‐period analysis of ROI was performed among employees in four time periods: 1999‐2001; 2002‐2003, 2004‐2005; and 2006‐2007. The historical trend analysis on participation‐related savings was used to compare the financial trend differences between participants and non‐participants as well as the three different participation levels of continuous, sporadic, and non‐participants since the year 2000 among 2,753 employees who worked for and were covered by the company‐sponsored health plans for the entire study period.FindingsThe ROI from health care costs and time away from work ranged from 1.29 to 2.07 for the four time periods with a cumulative ROI of 1.66 over nine years. The historical trend analysis of 2,753 long‐term employees resulted in a 1.57 ROI for 2,036 program participants (t‐test: p<0.005) with statistically significant annual saving of $180 per participant per year.Originality/valueThe returns on comprehensive worksite health program were greater than the program investment as documented by both time‐period and historical trend analyses. Organizations seeking ways to manage the increases in health care and absenteeism costs of employees will be encouraged to see that positive returns can be generated by investments in employee health and wellness and steady or consistent participation is one key to generating success.