Are wellness programs on the rocks? According to a recent survey conducted by SHRM as reported in the Wall Street Journal (subscription required), companies are starting to question whether these wellness programs actually pay off and are worth the time and money spent.
Wellness programs, originally designed to promote healthier practices and reduce healthcare costs, seem to be declining with just 37% of companies offering health coaches, for example, compared with half last year. While it’s difficult to measure the return on investment, Rand estimates that companies lose $.50 on every dollar spent on wellness programs.
Other significant changes noted in the SHRM study on benefits and compensation included:
- Dramatic increase in telecommuting – 60% of companies allow it up from 20% in 1996.
- Half of the responding companies offer a HSA.
- Greater use of bonuses, sometimes spot bonuses, rather than salary increases.
Highlights of the SHRM survey conducted with almost 3500 HR professionals on retirement plans included:
- Auto enrollment is offered to new employees by 38% of employers but just 21% auto enroll current ones.
- Auto escalation is used by 19% which has remained steady since 2012.
- Decreases in companies allowing loans is down to 47% from 66% in 2012.
- Half the companies offer online advice and just slightly fewer offering one on one help.
- 51% offer Roth options up from 34% five years ago
Though companies offering retirement specific planning has increased from 39% to 45% since 2012 at the expense of online advice, if companies are cutting back on health related wellness programs concerned about the ROI, will that also affect financial wellness programs which have just started to take off? More service provider and larger advisory firms are touting wellness as a prime way to help improve retirement outcomes as well as distinguish themselves, but the industry has to make sure that the ROI is carefully calculated to avoid funding cuts.
