Why do companies adopt workforce well-being programs?*

Abstract

Economic evaluations of workforce well-being programs (WWPs) typically focus on return on investment (ROI) analyses to demonstrate that WWPs generate financial savings through reduced health care costs or improved labor productivity. Although the outcomes considered by WWP evaluations should be linked to businesses’ strategies to provide policy-relevant evidence, there are not empirical studies linking companies’ stated reasons for adopting WWPs to their choice of specific programming. This study used a large convenience sample of employer survey data to empirically link companies’ stated reasons for adopting WWPs to specific program implementation choices. In so doing, it analyzed the assumption that financial savings drive the adoption of WWPs and provides evidence of the extent to which ROI expectations drive WWP adoption. Our findings provide evidence that ROI is not necessarily the main objective of companies implementing WWPs and the current state of the literature does not align the evaluation metric with true company values, strategic objectives, and characteristics.