The Truth About Corporate Wellness and Employee Health

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The terms wellness and well-being have been on everyone's lips in the business world for some time now – and for good reason. In 2022, the global market for corporate health management was estimated at 53 billion US dollars; by 2031, it is expected to grow to 78.56 billion US dollars.

The global market for corporate health management is lucrative because satisfied employees are good for business. According to Gallup, employees who believe their employer invests in their well-being are:

  • 69% less likely to look for a new job
  • three times more engage
  • five times more likely to recommend their employer as an attractive place to work.

Employees who feel comfortable are less likely to be absent from work. This means that employee well-being has a direct impact on absenteeism. The health and well-being of employees also affect productivity, workplace morale, turnover, and ultimately your business results.

But how can employee well-being be best promoted in your company? In this guide, we examine the constantly evolving offerings in corporate health management and introduce you to proven initiatives.

Workplace Health Programs: Key Insights

Keep your “why” in mind. Healthy employees—physically, mentally, and socially—are more engaged. And that has a positive impact on your company’s success.

Health is individual. Your company relies on the contributions of all employees, regardless of their personal health goals. Whether it’s mental health issues, chronic illnesses, social isolation, or ultramarathons (or all of the above)—it is crucial to understand that mental and physical differences do not mean “better” or “worse.” Diversity enriches your company.

Respect the privacy of your employees. No one knows all the strengths and weaknesses of their employees. That is why there are laws like HIPAA, the Americans with Disabilities Act (ADA), the Genetic Information Nondiscrimination Act (GINA), and Title IX, which protect employees from discrimination based on their medical history, gender, ethnicity, and other characteristics. You can encourage everyone to participate, but do not pressure anyone who declines.

Make sure everyone feels included. A successful health initiative is certainly possible, but it is important to approach the topic with sensitivity, inclusion, and openness. Appreciate the diversity of your workforce and ensure your programs are inclusive. By focusing on your "why"—namely, happy and healthy employees—you can align your initiatives with what truly matters: your employees.

Mental Health in the Workplace

One might think that corporate health promotion is limited to encouraging physical activity or setting specific, measurable health goals – but neglecting mental health would be a mistake.

According to SHRM, absenteeism due to mental health issues increased by 300% between 2017 and 2023, and by 33% in 2023 alone. Furthermore, our current report on compensation trends found that mental health problems were the main reason for many employees (35%) leaving their previous job.

The costs of mental illnesses and their consequences amount to over 280 billion US dollars annually, with companies bearing almost half of this burden. Since more than 20% of adults in the U.S. suffer from a mental illness, it is essential that you consider the mental and emotional well-being of your employees when planning your compensation strategies, employee retention programs, and employee motivation measures.

If you are planning to introduce a corporate health management program, make sure that it places a strong focus on mental health and well-being.

Do workplace health programs work?  

In short: It is controversial.  

Some providers claim that health programs save companies money, but the results are not clear, especially when it is claimed that promoting weight loss among employees reduces costs. Furthermore, poorly designed health programs are often criticized for discrimination, for example, because they shift costs onto certain employees or are inaccessible or not barrier-free for employees with disabilities.

How the Affordable Care Act (ACA) Made Workplace Health Programs More Accessible (and Controversial)

Thanks to the Affordable Care Act (ACA), employers can offer their employees discounts if they participate in workplace health programs and achieve certain goals. Sounds good, right? Unfortunately, this also encourages the potential for discrimination.

Before the ACA, the Health Insurance Portability and Accountability Act of 1996 (HIPAA) prohibited group health insurance plans and insurers from discriminating based on pre-existing conditions. This meant that everyone paid the same premiums regardless of their health status.

In 2013, HIPAA privacy rules were amended by the Affordable Care Act (ACA) to allow premium discounts, credits, or other rewards for participation in health promotion and disease prevention programs. The ACA distinguishes between two types of health programs:

  • Health-related programs: These programs are tied to a specific outcome, such as quitting smoking.
  • Participatory programs: These programs are not outcome-based. This means that either there is no reward, or the reward is not tied to achieving a specific outcome. For example, an employee might receive a discount on their monthly health insurance premium for participating in a smoking cessation program, even if they do not actually quit smoking.

Both health-related and participatory health programs must meet certain requirements: They must not be excessively burdensome or costly, and appropriate alternatives must be available for employees with health limitations.

It is crucial that your program complies with laws protecting employees from discrimination. The easiest way to achieve this is by involving your employees, understanding their wishes and goals, and ensuring that everyone is included and has access to appropriate support options.

Workplace health initiatives that really work

Health is individual, and what is healthy for one person can be anything but good for another. Nuts and seeds, for example, are considered a good source of healthy fats and fiber—but can be life-threatening for people with a severe nut allergy. Health and well-being are, in fact, extremely complex and personal.

"Health is a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity."

                             World Health Organization

Successful workplace health initiatives engage employees as whole people. Above all, they are not coercive and do not punish employees who fail to meet certain health goals or who do not participate (especially those that are not accessible to everyone).

Instead of making blanket statements or applying assumptions about health to the entire workforce, you should consider holistic definitions of health and well-being. Below, we have compiled some workplace health initiatives that have proven effective in practice.

Employee Assistance Programs (EAPs)

Employee Assistance Programs (EAPs) are workplace offerings that provide employees with free and confidential counseling sessions, short-term counseling, referrals to specialized services, and follow-up support for various personal or work-related issues. These include, for example:

  • Workplace violence
  • Addiction problems (compulsive or regular)
  • Stress
  • Family problems
  • Psychological strain

EAPs offer employees individualized and meaningful support. And since they are usually managed by external service providers, you don’t have to take care of it yourself. A win-win situation!

Stress Management and Mindfulness Programs

Stress management and mindfulness programs in the workplace provide employees with tools to reduce stress and improve their quality of life. These can be implemented internally (e.g., through company initiatives such as reducing meetings or setting up a wellness retreat) or outsourced to a coaching or training company, as part of an employee assistance program (EAP).

Successful stress management and mindfulness programs typically include the following elements:

  • Employees are encouraged to take meaningful breaks and separate work and personal time.
  • Meditation is promoted through programs, training, or an app.
  • Screen-free time is rewarded.

Whether you work in a high-pressure industry, are exposed to job-related stress, or simply have a lot on your plate – everyone is susceptible to stress and burnout at work. A balanced work-life balance is ideal, but not always achievable, especially in hybrid or remote work models, where work and personal life often blend together.

Corporate wellness programs

After all, we have arrived at the classic approach to corporate health management. But don’t be mistaken – this is not the problematic employee wellness program of the past. To create a successful corporate health program, you need to empower your employees to take their health into their own hands.

Further Initiatives for Employee Well-Being

The ideas mentioned above are a good starting point. However, to sustainably promote the well-being of your employees, relevant cultural changes are necessary that allow them to take care of themselves as whole individuals.

Here are some additional ways companies can improve their employees' well-being by 2025:

  • Offer flexible work models and hours.
  • Ensure that your benefits actually benefit your employees.
  • Recognize mental health issues and burnout as real risks and address them.
  • Tailor wellness solutions individually – standardized programs are a thing of the past; individual health coaching is in demand!
  • Consider the reality of today's work-life balance; without balance, burnout is a risk.

By prioritizing employee input, their individual goals and needs, as well as a holistic understanding of health, you can create a comprehensive wellness program that meets the diverse needs of your team.

The truth about corporate wellness is that its success is found not in coercion or one-size-fits-all mandates, but in a holistic, inclusive approach that treats health as a state of complete physical, mental, and social well-being. With mental health challenges increasingly impacting absenteeism and turnover, providing accessible support like EAPs and flexible working is essential. IceHrm's platform plays a vital role in supporting the modern, flexible wellness approach. Its features allow HR to manage and track flexible work models and hours, ensuring employees can achieve a better work-life balance (addressing burnout risk). Furthermore, IceHrm's centralized communication features can be used to promote EAPs and mindfulness programs, fostering a culture where employee well-being is not just a program but an integrated, respected part of the daily operation.