Operational impact of employee wellness programs: a business case study

Purpose – The purpose of this paper is to investigate the effectiveness of employee wellness programs on employee engagement and the reduction of employee health care costs. The intent of the analysis is to explain the typical costs associated with these programs and the potential benefits to the employer and employee. Design/methodology/approach – Due to the paucity of academic literature on the operational impact of employee wellness programs, a case study utilizing an internal company's resources and employee survey were also used to examine business questions related to the efficacy of such programs in businesses. Findings – The results of the employee survey showed that there is a correlation between eating a balanced diet and being more productive at work. Also, there is a link between being in good physical health, potentially because employees participate in the wellness program, and being productive at work. On the other hand, it was also found that employees who do not eat a very balanced diet, do not like the company's wellness plan and are not convinced that it would make employees more productive. Practical implications – For a company designing its wellness program, it should tap information through an employee survey on how many employees have each of the significant risk factors for using medical services and determine which risk factors to target in its wellness program. Originality/value – An operational framework is presented to determine when employer‐sponsored wellness programs are appropriate for employers to offer. Detailed discussion and analysis given on employee wellness programs from both the employer and employee perspective to determine if these programs can be justified and recommended to organizations who do not currently participate will help protect many vulnerable employees and improve organization productivity.