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Workplace Wellness Programs to Improve Company Earnings

Reasons to Begin a Wellness Program in the Workplace

Workplace wellness programs appear to have impressive financial benefits, that many businesses are unaware of. Publicly traded companies that have award winning wellness programs out-perform the stock market by a huge margin. Three studies that are hot off the press demonstrate that publicly traded companies with best-in-class workplace wellness programs have better stock valuations than the Standard and Poor’s stock index. A portfolio comprised of award winning companies would be a dramatically better investment.  

Over a 15-year period, the index had an average return of about 11% per year. If, however, during that same time period, you had invested in companies who won the Koop Award for offering an outstanding workplace wellness program, you would have earned over 26% per year. In essence, your money would have doubled every 3 years. 

Explanation

Wellness benefits are based on this scientific evidence. It is well documented that workplace wellness programs impact employee productivity, morale, recruitment, retention, and other factors. But, prior to this landmark finding (HERO Portfolio Study, 2016), no evidence indicated that an excellent wellness program could actually predict corporate financial success.

Using three different research methodologies, these combined results show that publicly traded companies with excellent wellness programs outperform the S&P 500 by a large margin. Author of the HERO portfolio study, Jessica Gossmeier, put it this way:

Maybe it is a proxy measure of great management. That is good enough because great management is what makes companies perform and great management is what makes sophisticated investors invest.

Dr. Michael O’Donnell explains these results from a different perspective:

Employers who are sufficiently capable and determined enough to develop excellent wellness programs, evaluate those programs, seriously reflect on the quality of their program, and/or apply for and win awards also understand how to manage their core business in such a way that revenues and profits will grow . . . which in turn causes the stock value to outperform the market.

“Good health IS good business.”
Paul Drechsler, Chairman/CEO, Wates Group Limited

“If health is the essence of your brand, it all starts with taking the health of your workforce very seriously.”
Marnix Eikenboom, Managing Director, Danone

“The higher your energy level, the more efficient your body. The more efficient your body, the better you feel, and the more you will use your talent to produce outstanding results.”
Anthony Robbins

References: Journal of Occupational and Environmental MedicineJanuary 2016 – Volume 58 – Issue 1 – p 9–15

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dr. edward bauman

M.Ed., PhD., Founder & President Bauman Nutrition College

Dr. Edward Bauman M.Ed., Ph.D., is an internationally renowned Holistic Health and Nutrition pioneer. His field expertise in health education spans more than 40 years. He has been shaping and sharing the radical notion of the experience of wellness since 1969 with his “seed to cell to society” holistic nutrition innovations.