Wellness Programs A to Z

Trying to do more with less money? Here are three proven ways to align the dollars and cents of a health promotion program in your budget.

Common thread –  the way you prepare – and control – your budget for a health promotion program is critical to its success.

1. Top-down wellness budget

Depending on the size of your business and wellness program, you could have full budget responsibility or might need to work with a C-level who’s budgeting expertise.

Regardless of the arrangement, you’re likely to face one of two distinct challenges –  a top-down budget or a zero-based budget.

A top-down budget is when you’re given a finite dollar amount and told to run the health promotion program within the limit. When that’s the case, here are three vital questions to ask –

• Does this limit include money set aside for staff member incentives and future initiatives?

• Should we keep long-tenured wellness programs that keep going up in price, and

• Does Benefits/HR have to deliver all education about the health promotion program, or is there extra funding to hire staff?

2.  Zero-based health promotion budgeting

In zero-based funding, you submit to upper-level management an itemized list of the health promotion programs/features you want and the cost of each. Best practices –

• Rank health promotion programs by priority (health-risk assessments should be at or near the top)

• Indicate which expenditures are fixed and which are variable, and

• List ways to incorporate existing resources (like an EAP program) for a better return on investment.

3. Estimating wellness Return On Investment (ROI)

On average, health promotion programs generally take at least 18 months to break even. After three years, you ought to see savings.

When not, it’s time to take a fresh look at the health promotion program design.