Wellness Programs

The economics of biological assets — quantifying ROI from corporate health investment.

Employee health is not a cost center — it's a biological asset class with compounding returns. The research shows that the greatest savings come not from making the fit fitter, but from engaging the vulnerable. The question isn't whether wellness pays — it's which interventions pay the most.

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Our Wellness ROI Calculator implements the Baicker-RAND hybrid model with sleep/presenteeism coefficients. Input your workforce demographics and health profile to see multi-year savings projections.

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The Research at a Glance

3.27:1

Medical Cost ROI

For every $1 spent on wellness, medical costs fall by $3.27 (Baicker Meta-Analysis, Harvard).

$411B

Sleep Deficit Cost

Annual U.S. economic loss from insufficient sleep — equivalent to 2.28% of GDP (RAND Europe).

3.80:1

Disease Management ROI

The RAND study found Disease Management generates 3.80x return vs. 0.50x for Lifestyle programs.

$565

Per-Employee Savings

Johnson & Johnson saved $565 per employee annually over a decade-long longitudinal study.

Frequently Asked Questions

What is the average ROI of a corporate wellness program?

The Harvard meta-analysis (Baicker, 2010) found a combined ROI of approximately 6:1 — $3.27 per dollar on medical costs and $2.73 on absenteeism. However, the RAND study found a more nuanced picture: Disease Management programs return 3.80:1 while Lifestyle programs return only 0.50:1.

How long before a wellness program shows ROI?

Medical cost savings typically stabilize over a 3-year horizon. Absenteeism improvements can appear in 1-2 years. Year 1 often shows negative cash flow as implementation costs exceed early savings.

What is presenteeism and how does it affect the ROI calculation?

Presenteeism is working while impaired by health issues. It costs companies 2-10x more than absenteeism because it's invisible to standard accounting. Mental health conditions alone cost over $327,000 per 1,000 employees annually in presenteeism.

Does the Illinois Study disprove wellness ROI?

The Illinois Workplace Wellness RCT found zero significant causal effect on medical spending in 30 months. However, it revealed selection bias: participants were already healthier. The lesson is that ROI depends on engaging the unhealthy population, not just the "worried well."

How much does a corporate wellness program cost?

Digital apps cost $50-100 per employee/year. Health coaching runs $75-150 per session. Biometric screenings are $45-65 per person. Executive physicals can cost $3,000-5,000+. The right mix depends on your workforce demographics and health risk profile.