Turns out, there may be more tangible benefits to investing in employee wellness than simply their health, a new study has found.
In fact, investing in employee wellness can lead to a superior stock performance, according to a study published last month. The Health Enhancement Research Organization and Mercer found a correlation between companies that invest in wellness programs and company stocks that outperformed the S&P 500. The study followed the stocks of 49 public companies from 2009 to 2014. Here are the results:
- 235 percent appreciation, compared to 159 percent for the S&P 500
- Outperformed the S&P 500 in 16 of the 24 quarters during the study period
- Produced a comparable dividend yield of 1.97 percent by the end of the study period, compared to a 1.95 percent yield for the S&P 500
Researchers could not share the names or locations of the companies that participated in the study.
Locally, YMCA of Central Florida and Sodexo Inc. have teamed up to create a new employee wellness program that can be incorporated by other companies. It's called Communities for Health, and its goal is to create a clearer return on investment for employers who invest in wellness initiatives. U.S. employers spend $9 billion on employee wellness programs such as gym memberships, but only 4 percent of employees actually use them. The other 96 percent is the target for this initiative, according to project leaders.
Through health screenings, customized action plans, local support from the YMCA, electronic communications and support from peers, participants ultimately will see healthier lifestyles and employers will see reduced health care costs. That's because emergency doctor visits, often of which are the most expensive, will decline as individuals' health improves.
Communities for Health began in August, and is being tested by Sodexo employees at Disney, Rollins and Orlando Health, as well as YMCA corporate office employees, for three years. After the test period, it's expected to have widespread implementation.
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