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ROI? Well . . .
Crunching Numbers
You're thinking of implementing a wellness
program but you need to know the real return
on the investment you're about to make. The
first number you'll crunch will be the
program's ROI. ROI analysis deals with the
financial impact of the program, right? Well,
yes and no. You can determine the ROI based
on numbers alone. You can also see it in the
satisfaction, appreciation, loyalty and
changes in the health and wellness of your
employees.
Let's do the numbers first. Even small
improvements make a difference. We're going
to use big numbers here, since we can round
easily. Say you spend $100,000 on your
wellness program, but as a result of that
expense, your documented costs (insurance
premiums, reimbursements, other related
savings, dropped $325,000. Not unreasonable.
Read
"Proof That Wellness Programs Do Work"
Simply subtract the cost of the program from
the savings and divide the resulting answer
by the cost. Multiply the final answer by 100
to get a percentage.
An ROI of 225% means your organization is
getting back (not having to spend) an
estimated $2.25 over and above every dollar
it invests. But, as good as that sounds, it
doesn't count the benefits of better health,
productivity, reduced absenteeism, and
employee satisfaction.
Now, to put it in perspective, to implement
the LoneStart Wellness Initiative, using this
same formula, with 200 employees (as an
example), overweight and obesity is costing
you about $139,800 annually. We'll use the
high side here for cost to implement the
program: $14,500 total. Do the math, and
you'll see an ROI of 864%, or a return of an
estimated $8.64 for every dollar spent. (And
this doesn't factor in the potential for
reductions in insurance costs.) We're not
saying you will completely eliminate the
$139,800 figure, but even if you only
initially realize one-half of these savings,
you still have a return of $4.32 -- and
that's not a bad return.
To document, it's important to keep track of
costs and savings from the beginning. (And
while you will see results in the first year,
experts advise that it will take up to five
years to be able to document real savings.)
Savings derive primarily from health
insurance and cost reductions, as well as
indirect benefits:
These results come from well-structured and
well-run programs. The key words are: careful
planning, a workable structure, ongoing
attention, turnkey presentation and a fresh
approach. Beyond keywords, it comes down to
the value you place on your employees, their
loyalty, and the culture of wellness in your
organization you build together.
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LoneStart Wellness In Africa
LoneStart isn't actually going to Africa, but
a member of our Advisory Panel is. Becca
Gray, RD, LD, CNSD, husband Paul and 5 month
old son, Nathan, are traveling to Soddo,
Ethiopia to work at Soddo Christian Hospital.
Paul is a board certified general surgeon and
will work with African Christian surgery
residents through the Pan-African Academy of
Christian Surgeons (PAACS). Becca is a
registered dietitian and will be facing the
challenges of good nutritional practice in a
third world setting.
Soddo, Ethiopia is a town of about 70,000
people. Becca says about 50 percent of the
population is Muslim and the annual average
income is $120 U.S. dollars. Through Global
Outreach Missionaries, Becca and Paul will be
providing care to people in Africa who are in
desperate need of surgical care and sound
nutritional practices.
These are extraordinary people who believe in
their ability to improve both the physical
and spiritual lives of the people they serve.
We wish them the very best as they begin this
new and exciting chapter in their lives.
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Help us be sure this e-mail newsletter isn't filtered as spam. Please add our return address (information@lonestartnow.com) to your address book. That may 'whitelist' us with your filter-and ensure that future issues get through. Thanks! If your organization is ready to take responsibility for promoting healthy lifestyles and a healthy work environment, LoneStart is an effective, low-cost and easy-to-administer employee wellness program, which functions equally well as a stand-alone initiative or as a high-impact jump-start to existing or proposed employee wellness strategies. Contact us today to find out how the LoneStart Wellness Initiative will change your workplace. Please share Wellness in the Workplace with colleagues. Please forward this newsletter to friends and associates who will benefit from a workplace wellness strategy such as the LoneStart Wellness Initiative.
A Challenge. An Opportunity. A Solution.
The LoneStart Wellness Initiative
email:
information@lonestartnow.com
phone:
512.894.3440
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