Corporate wellness program cost: How much to spend?
Investing in an employee wellbeing program is becoming a major part of a company’s strategy to foster a healthier, more engaged workforce.
According to studies by Harvard Business Review, the ROI of wellness programmes conducted by top companies like Johnson & Johnson is usually upward of $2.71 for each dollar spent.
The programmes can help you significantly reduce healthcare costs and lower absenteeism. Wellness initiatives also make a big difference in building a supportive workplace culture that may increase productivity and morale.
You have many options to run wellness programmes for your employees—from simple step challenges to comprehensive health screenings. However, the cost of corporate wellness programs can vary.
This guide will help you budget for a successful program, considering the company’s size, program complexity and employees’ needs. With a thoughtful investment, you can help ensure your employees’ long-term health, improve your company’s brand, and reduce turnover.
What are corporate wellness program pricing models?
Understanding corporate wellness program costs can help HR and wellness managers select an approach that aligns with both their budget and goals.
However, program costs are heavily influenced by factors such as company size, level of customisation, and the chosen pricing model.
Let’s take a closer look at these pricing models.
Corporate wellness program costs by company size
Corporate wellness pricing models are typically scaled based on the number of employees, making company size a key factor in cost calculations. According to industry data, the estimated corporate wellness program cost per year can vary significantly:
- 100 Employees: £5,000 to £15,000 per year
- 1,000 Employees: £25,000 to £100,000 per year
- 10,000 Employees: £100,000 to £500,000 per year
The range of wellness services offered under these cost brackets typically includes fitness challenges, health screenings and mental health resources.
For example, a small company might concentrate on low-cost, high-impact activities, while a large enterprise may incorporate more complex choices that need more sophisticated infrastructure or technology.
The Society for Human Resource Management (SHRM) says small to medium-sized businesses can often get some real wellness benefits on a modest budget. In contrast, bigger companies may benefit from investing in more diverse offerings, such as personal health coaching or corporate fitness.
Choosing the right pricing model
Wellness program providers typically provide a range of pricing models that you can choose from.
Sustainability is key to your wellness strategy and ROI, so choosing the right model is essential.
Here are some common pricing models:
Usage-based model
The model is based on usage charges according to the number of participants or resources used. It includes pay-per-employee per month (PEPM) or pay-per-participant (PPP) models.
In a PEPM model, companies get billed a flat rate per employee per month. Companies with variable employee engagement tend to choose this model because it gives them flexibility depending on actual usage.
PEPM models are cost-effective for organisations where employees aren’t consistent in taking part. So, you can reduce your financial commitment when fewer employees are participating, saving you money in the long run.
Similarly, pay-per-participant models allow companies to fund wellness programs based solely on those who actively take part. It’s a great option for smaller companies looking to maximise value.
That said, larger corporations may find usage-based pricing less predictable, especially if employee engagement rates are consistently high.
A typical corporate wellness pricing plan might look like:
- Small Business (100 employees): Around £10–£15 per employee per month, or £12,000–£18,000 per year.
- Medium Business (1,000 employees): Around £8–£12 per employee per month, or around £96,000–£144,000 annually.
- Large Business (10,000 employees): Or £5–£10 per employee per month, or £600,000–£1,200,000 a year.
Companies with an active wellness culture will find usage-based models to be the most effective, as costs are directly tied to participation. But, if you are planning for a large organisation with bigger engagement numbers, this might not be an ideal model.
Program tier Model
Program tier pricing is structured around service levels, where companies can select from different tiers—typically basic, standard, or premium—depending on their budget and wellness goals.
For instance, a basic tier may only have general wellness challenges, whereas a premium tier may also include personalised coaching, full spectrum mental health support, and advanced data analytics.
The best thing about these corporate wellness pricing models is that you can pick services that are in sync with your organisation’s size and resources.
Tiered pricing allows you to provide more services when budgets grow or needs change, giving your programme flexibility. It’s great for any size company because it allows you to strategically allocate resources depending on your employees’ needs, company goals, and overall wellness vision.
Here is what typical tiered pricing for a well-being programme might look like:
- Basic tier: Digital fitness challenges and monthly webinars for £5–£10 per employee per month.
- Standard tier: Additional services such as virtual wellness coaching and health assessments are included, and the cost ranges from £10–£20 per employee per month.
- Premium tier: A comprehensive package with mental health support, nutrition counselling, and data-driven wellness tracking starting at £20 (plus) per monthly employee.
For companies that would like to offer multiple types of wellness experiences, program tier pricing is a flexible option that doesn’t increase costs across the board.
Budget-capped/ bundled model
The budget-capped or bundled model sets a fixed cost for a specified set of wellness services, making it easy to predict and manage expenses. This model is perfect if you are looking for simple budgeting with no surprise costs.
These packages are often limited in the number of services they provide. For example, a package may include quarterly health screenings, an annual wellness fair, and access to digital wellness resources.
Budget-capped models make sense for companies that want simplicity and clear cost boundaries. Bundled wellness packages are a good choice for companies that want minimal customisation to keep costs under budget while providing basic wellness benefits.
A typical structure for bundled package options might look something like:
- Small business (up to 100 employees): £5,000 – £15,000 annually for core wellness services such as physical activity challenges and quarterly health webinars.
- Medium business (up to 1,000 employees): Annual cost of £25,000–£50,000, plus additional services like on-demand wellness resources, team building activities and mental health workshops.
- Large business (up to 10,000 employees): £100k–£300k per annum with full suite including health coaching, well-being analytics and engagement incentives.
The budget-capped or bundled model appeals to small business wellness programs looking for predictable costs or standardised wellness requirements.
The best corporate wellness pricing models to use depends on your company’s size, budget and objectives. If you want a healthy, engaged workforce without compromising your bottom line, you need a flexible, scalable model that balances the costs with benefits.
6 Pricing options for a corporate wellness program
The cost of employee wellness programs varies greatly depending on the options you choose.
Here’s a look at the six most popular corporate wellness program examples, including estimated costs per employee, to help you make the best choice.
1. Health & wellness challenges
Some of the most popular programmes involve customisable health and wellness challenges to increase morale and support employee wellbeing.
Teamupp can help you create customised programs that offer wellness benefits with excellent value for money.
Our App allows you to create a variety of wellness challenges, including fitness, mental health, and CSR challenges, all with different durations and themes.
It provides insight analytics on employee engagement, participation rate, and progress on wellness challenges. This data lets you see the impact of your programs.
You get customisable reports that give you a clear view of how employees feel and engage. This allows you to base data-driven decisions on future wellness initiatives.
For companies with remote teams, Teamupp’s app is particularly effective because it’s available in multiple languages and your teams can participate from literally anywhere.
Estimated Cost
The challenges start at approximately £0.5-£2 per employee per month, based on the scope and customisations of the challenges.
Teamupp’s pricing is also flexible and you can quickly scale programs according to your size and budget.
2. Wellbeing workshops
Fitness classes, meditation sessions, and mental health seminars can all improve the wellbeing of your employees. You can arrange these workshops in person or virtually which offers flexibility for your employees.
Yoga, mindfulness training, and nutritional seminars are also effective. You can customise them for your particular wellness requirements.
Regular health-oriented workshops can help reduce stress levels, increase job satisfaction, and ultimately lead to increased productivity and reduced burnout. Workshops also give employees tools to manage stress and achieve a healthier work-life balance.
Estimated cost
Generally, this corporate wellness program cost ranges from £10–£25 per employee per session, depending on the instructor’s expertise and the length of the session. If you host regular workshops or use subscription-based services, you might find discounted rates, making these sessions a valuable long-term investment.
3. Employee Benefits
These corporate wellness programmes provide access to wellness-related products and services at a reduced cost. This includes gym membership, wellness apps, or discounts on shopping. Many companies offer monthly or quarterly gift cards as rewards for completing wellness activities or simply as a token of appreciation.
Incentives like this show your staff that you care and it can go a long way. It may improve retention rates and overall job satisfaction among your teams.
Estimated cost
£5–£20 per employee per month, depending on the level of access and value of the benefits provided.
4. Employee Recognition Software
Employee recognition software is designed to celebrate and reward employee achievements for hitting performance goals or showing a commitment to company values.
These platforms enable peer-to-peer recognition, allowing employees to give shout-outs, badges, or points redeemable for prizes. Recognition software can encourage your employees to create a more supportive and inclusive workplace.
According to research by Quantum Workspace, employees who feel recognised are 2.7 times more likely to be engaged at work. Recognition software boosts morale and improves employee loyalty as they feel appreciated and valued.
Estimated cost
Most platforms operate on a per-employee, per-month basis. Typically, this corporate wellness program cost will be around £3–£10 per employee.
5. Employee Wellbeing Surveys
You can use employee wellbeing surveys to measure how satisfied your staff are and how effective your wellbeing programs are.
These surveys measure physical, mental and social health factors that offer insights into potential issues you can address. You can also use this feedback to cater wellness programs to your employees’ needs more closely. Surveys are also handy tools for tracking program ROI and engagement trends.
Estimated cost
Prices for a wellbeing survey are usually £2-£3 per employee per month. The costs can vary depending on the features of the platform.
6. Team building activities
Team building activities connect teams and can create a more collaborative work environment.
Online games and workshops are examples of virtual team-building activities for employees who work remotely. For in-person activities, you could host escape rooms or cooking classes for your teams.
These types of team-building events can create fun memories for your teams that bring them closer together, creating a true company culture.
Estimated Cost
Team-building activities can vary depending on what you choose, but they typically cost £15–£50 per employee.
What is the ROI of corporate wellness programs?
There are many benefits of wellness programs, including hard and soft ROIs.
Hard ROI
The hard ROI is often measured through direct healthcare savings. By promoting healthier lifestyles and preventive care, wellness programs can reduce medical costs and how often staff make healthcare claims.
For example, Johnson & Johnson saved an estimated $250 million on employee healthcare costs between 2002 and 2008 with their wellness programmes.
Soft ROI
Soft ROIs include benefits that are harder to quantify but equally valuable, such as improved employee productivity, reduced absenteeism, and boosted morale. Healthier employees are also more engaged at work and tend to stay with the company longer, reducing turnover and associated hiring costs.
These factors create a more motivated and cohesive workforce, making wellness programs a worthwhile investment for long-term success.
Looking to implement a corporate wellness program?
