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Employers told to measure wellness ROI

Companies that make the effort to find out what they are saving with their wellness programs are often pleasantly surprised, says a study by the International Foundation of Employee Benefit Plans. The IFEBP, a not-for-profit group that studies benefit plans, surveyed 447 member organizations, finding that about 1 in 5 analyzes ROI and of them, 4 in 5 achieve positive results. A significant number show a savings of $3 for every $1 spent.

“Attaching plan design incentives to participation was the most frequently cited reason” given by responding organizations for achieving positive ROI. The largest differences in participation rates between companies that offer program participation incentives and those that do not occur with health screenings (33 vs. 57 percent) and health risk assessments (33 vs. 55 percent).

Effect of incentives on average participation rate

Source: “A Closer Look: Wellness ROI,” International Foundation of Employee Benefit Plans

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