Who Pays the Bill?

Benefits are defined my Merriam-Webster as “something that produces good or helpful results or effects or that promotes well-being.”

Having a corporate wellness program or workplace wellness program as part of your organization is a wonderful benefit for your employees…and also for your business. But who pays for it can often be the sticking point between beginning a program or not. There is a lot of data out there on the cost vs. the return of a wellness program for your employees, but can it really be measured? I’ve used some of those numbers myself when pitching these programs, but I also like to point out the savings you can’t see or measure. Some leaders may file these under “productivity” but even that seems like a far off metric compared to someone not having a heart attack, or not needing a knee replacement. Take the financials out of those events and think about the quality of life for your employee not undergoing something like that - priceless!

So how do you value a wellness program? Who do you want to pay for it?

There is no one, single solution that works for every organization. Your wellness program’s design and cost should match your goals. We offer three options for covering the cost of it. As much as we love to take the intimidation out of trying a new workout or a new recipe, we also love taking the intimidation out of trying a new wellness program. Read on to see if one of these might help you feel more comfortable starting a wellness program for your employees!

#1 Company Funded
With this structure, the company pays for 100% of the program no matter how many employees participate or not. Data is collected to see what employees want, a custom program is built, and it is promoted and evolves as the company grows and feedback is given.

Pros: Employees don’t have to pay a thing. It’s a great way to get those on all levels of the company access to a healthy toolbox and positive community. Even those who already have a program they enjoy will typically engage and try to get others to join them in one aspect or another.

Cons: Employees may feel they are being forced to exercise with co-workers or that they have to do things they don’t want to.

Takeaway: For this type of program, your message needs to be clear. Also, offering more than just fitness, helps take the intimidation out so people can get involved in things like nutrition or stress management. A wellness committee to help promote and spread the information is extremely helpful.

#2 Sharing the Cost
For us at NE360Fitness, this structure requires a base fee (billed each month) lower than a 100% company-funded program to cover the costs of the integrated online platforms, marketing of programs, and all that’s included while maintaining a private feel to the program. With this, the employees can pay a discounted rate per month themselves to participate if they choose.

Pros: This costs the company less money to offer the same program available to everyone. Employees can decide if they want to participate or not.

Cons: People don’t like to pay out of their own pockets. For those who already have programs, they will typically stick to that and not pay more for something they didn’t find on their own.

Takeaway: This type of structure can be a great introduction to having a wellness program that is still customized for your organization without extra costs you might not be ready to incur just yet.

#3 Participant Funded
This is typically structured as a recommendation or preferred vendor option. The organization believes in the company/person providing the wellness programming and is willing to connect employees to that as a resource, but without the private community feel customized for their business.

Pros: This doesn’t cost the company anything and shows that they are providing resources for employees to reach out without feeling forced into anything.

Cons: People don’t like to pay out of their own pockets. Even for those who have a life-changing event and need professional support, there can be hesitation that the company will know their issues and shy away from using a company-sponsored recommendation.

Takeaway: While this structure has shown us the least amount of participation in relation to options 1 and 2, this option still shows that you care about your employee’s health. This gives them the freedom to choose where they spend their time and money on health and wellness and might make finding a resource easier.

One of the biggest problems I hear from benefits directors and human resources leaders is that it’s always the same people participating in the wellness programs. And it’s so difficult to get others to engage. A sure way to increase participation is to cover the costs, but if you’re afraid you’ll just be paying for the same people to participate, fear not! When a wellness program includes more than just fitness, the many ways people can engage is limitless. For example, we’re excited to offer a recipe sharing community where people can post pictures of their food, share recipes, and ask for cooking tips from others. Our stress management program is only 20 days and has proven that employees want to be able to manage their stress in a positive way.

At NE360Fitness we have worked with companies at all three levels described above. From our experience, the most participation has come from the company funded strategy, but that doesn’t mean it’s the best choice for your organization. If you have a strict budget, and are looking to get something going, let’s discuss what options you have to get started! At the very least, a conversation costs nothing…. Let’s talk!