Corporate Wellness Market – Incentives to Better Workplace Productivity Strengthens Growth
Although an established concept, corporate wellness has become popular than ever. . First recorded in 1979, the ground-breaking corporate worksite wellness program by a leading American pharmaceutical and cosmeceuticals company is often referred as a prototype. On-site tools for behavior modification via printed literature as well as expert counselling, educational programs for stress management and nutrition were the elements of corporate wellness programs then.
Following suit, initially introduced by large organizations as employee perks, such incentives were designed with a bend for physical health than mental health.
The practice has evolved by leaps now. Corporate wellness is in the scope as a full-fledged work exercise for large organizations. The exercise, is sometimes also considered for team building and pleasure when employees perform some elements of the entire program together. When performed correctly and in a stride, wellness programs give employees social support, tools, and strategies to adopt and maintain healthy behaviors.
With a bearing for human welfare, workplace wellness programs have aroused interest of businesses to gauge their significance for work productivity and business gains. Sensing close connection of corporate wellness programs with business, Transparency Market Research (TMR) has published a business intelligence publication on the corporate wellness market. Involving extensive primary and secondary research stages, publication helps companies understand nuances of the corporate wellness market. Critical statistics of growth projections in the overall market and each key segment are listed in this report. TMR forecasts global corporate wellness market to register a notable CAGR of 8.8% between 2018 and 2026.
Taking a cue from this, corporate wellness is now in the business scope of medium and small-sized businesses too.
So much so, wellness programs that most workplaces offer are effective for improved conduct of health. As a matter of fact, in the U.S., workplaces, both private and public, are considered as disease prevention centers.
Corporate Wellness Market –Key Trends
Business Gains from Reduced Employee Absenteeism
Thrust upon employers for employee welfare has led corporate wellness take a one hundred eighty degree leap today. In this context, a report sponsored by U.S., the Department of Health and Human Services and Department of Laborratifies more than 80% organizations with employee strength more than fifty offered some type of wellness. From in-house models, the exercise is now outsourced to businesses specializing in corporate wellness. By numbers, every dollar spent on employee wellness program results in medical savings worth US$3.27, for American companies. And savings of US$2.73 due to reduced employee absenteeism for each dollar spent on wellness program.
Corporate wellness programs are aimed at long-term health of individuals. For long part of the day close to nine hours each day spent at the workplace, the latter should be wholesome for employees this points at a clean, healthy, and spacious work environment that will help maintain/better physical and mental health of employees.
For employers, scope of wellness program can be added without incurring additional cost or effort. On the other hand, corporate wellness programs are emerging as victorious like never for two main reasons;
- Physical Health Investment –As rightly identified employers play a role to maintain physical well-being of their employees. Introducing wellness initiatives of various types such as a lunchtime or after-work exercise group are to name a few in this space. Availability of resources for health pursuits such as a sports club or gym membership is a gesture employers can extend for employees and their families. Seemingly recreational and a step forward for a balanced life, such initiatives create happy and strong relationships between employees and employers.
- Mental Health Investment –This requires resources more than employee wellness program in its traditional form. Mental health, which includes stress is significantly related not just with work performance but also with physical health. Employers investing in mental health resources and waiving off tasks of employees sometimes keeps minds healthy and bodies active. The component, apparently above and beyond standard wellness programs, is a way to maintain a healthy workforce.
Powered by the U.S., North America to Remain at the Fore
In the U.S., federal standards for corporate wellness compel employers to adhere to laid down guidelines. Legal implications under the purview health insurance, retirement income security, and disability needs to be taken into account while designing corporate wellness programs. Notable presence of corporate wellness service providers in the country also enables better penetration in the local market. This accounts for leading share of the U.S. in the North America corporate wellness market. Collectively, North America is predicted to hold 44.5% share of the overall market by 2026.
Factors such as significant corporate wellness expenditure within overall national employer healthcare budget, higher penetration of corporate wellness services, and high awareness account for high revenue of North America corporate wellness market. Worldwide, among key regions for corporate wellness, North America is poised to hold more than one-third and close to half share of the global market, finds the TMR report.
Asia Pacific is expected to display expanded share in the corporate wellness market between 2018 and 2026. By revenue, the region is poised to hold 14.7% of the overall corporate wellness market by 2026.
Corporate Wellness Market - Winning Imperatives
Scientific Basis and Technology to Comprehend Lifestyle Choices Underscores Growth
Corporate wellness covers a few areas for employee physical and mental health. Health risk assessment, fitness, smoking cessation, health screening, weight management, and nutrition are key areas under corporate wellness.
Health risk assessment program, which has scientific validation and is an engaging one is the foundation of a successful wellness program. For such bearing, health risk assessment is poised to account for significant share of the overall corporate wellness market in the forthcoming years, finds TMR.
Sound research of lifestyle habits, nutritional choices, and social factors, using technology helps deliver actionable data that health and wellness professionals can leverage to design better programs.
Control of Chronic Diseases Prompts Healthy Behavior and Vice-versa
Among a slew of factors, prevalence of chronic diseases is significant for adoption of corporate wellness programs by business organizations. In parts of Asia Pacific such as India and Malaysia, spurt in chronic diseases such as cardiovascular diseases and diabetes, have led business organizations employ wellness programs to reduce elevated risks for such individuals.
Seemingly unrealistic, wellness programs help improve health behaviors of individuals with chronic diseases. Comprising a combination of educational talk, motivational programs for enhancement of skill sets, and social support, wellness programs help individuals control chronic diseases as well as adopt and maintain healthy behaviors. With controlled state of chronic diseases, less employee absenteeism results in increased work productivity, and higher business gains.
Inadvertently, corporate wellness programs help reduce healthcare costs for individuals with pre-existing conditions, and help keep diseases at bay for healthy ones.
Incorporating Smoking Cessation to Make a Difference
In the entire corporate wellness space, innovative smoking cessation programs drive solid results for employee productivity. This is on grounds of long-established medical and financial consequences of tobacco use. For example, in the U.S., this continues despite ban on smoking in workplaces in more than half states.
Such numbers compelled employers to understand how smoking impacted well-being and productivity of their workforce. As healthcare costs continue to soar, top executives firmly adopt smoking cessation programs, as part of corporate wellness programs, which can help smokers quit the habit.
Smoking cessation programs are adopted for other reasons too. Smokers are more likely to suffer from chronic diseases such as atherosclerosis, a possible reason for further absenteeism. By number, smokers miss on average 6.16 work days each year due to sickness compared to 3.86 days missed by non-smokers. On the global level, smoking amounts to economic loss worth US$500 billion each year, estimates the World Health Organization.
Globally, the extent of growth of corporate wellness programs differs from region to region. Regulatory frameworks in developed countries that lay ground for regulations and standards for corporate wellness programs tightly control these programs.
Corporate Wellness Market –Competitive Landscape
At the competitive front, the global corporate wellness market is highly fragmented with presence of numerous small-sized, mid-sized, and large-sized companies providing corporate wellness programs. The extent of competition is moderate to high depending on concentration of corporate wellness providers in a region. For example, in the U.S., more than 75% of the corporate wellness market is held by small and mid-sized service providers. Whereas, top flour players hold a moderate close to 19 percent of the corporate wellness market in the U.S.
However, increasing foray of gyms and fitness clubs in the corporate wellness space is escalating competition, mainly in smaller markets. In such a scenario, wellness service providers are compelled to re-design their programs and make them more comprehensive.
Nevertheless, expertise and goodwill of established wellness providers, which are important for employees to be comfortable with to take charge of their physical and mental health mostly cements place of these companies.
Apart from this, integration of in-house corporate wellness programs with the ones provided with external service providers is changing competitive dynamics in the corporate wellness market.
Corporate Wellness Market – Overview
This report on the corporate wellness market studies the current as well as future prospects of the market globally. The stakeholders of this report include companies and intermediaries engaged in the wellness programs and services for corporate companies and new entrants planning to enter this market. This report comprises an elaborate executive summary along with a market snapshot providing overall information of various segments and sub-segments considered in the scope of the study. This section also provides overall information and data analysis of the global corporate wellness market regarding leading market segments based on service type and regions.
Based on service type, the corporate wellness market has been segmented into: health risk assessment, fitness, smoking cessation, health screening, weight management, nutrition, and others (stress management, disease management, and vaccination, among others). Each of the market segments have been extensively analyzed based on the market-related factors such as the number of white-collar employees, region-wise health awareness and government support/rules and regulations, and capital expenditure by the private sector by region. Moreover, historical year-on-year growth have been taken into consideration while estimating the market size. The market size and forecast in terms of US$ Mn for each segment has been provided for the period from 2016 to 2026. The report also provides the compound annual growth rate (CAGR %) for each market segment for the forecast period from 2017 to 2025, considering 2016 as the base year.
The overview section of the report explores drivers, restraints, and opportunities that currently impact the corporate wellness market and could influence the market in the near future. Market attractiveness analysis has been provided in the overview section to explain the intensity of competition in the market across different geographies. The competitive scenario among different key players has been evaluated through market share analysis in the competitive landscape section of the report. All these factors are projected to help market players to take strategic decisions to strengthen their positions and increase share in the global corporate wellness market.
The corporate wellness market has been segmented into five major regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market size and forecast for each of these regions has been provided for the period from 2016 to 2026, along with their respective CAGRs for the forecast period from 2018 to 2026, considering 2017 as the base year. The report provides market size and forecast for major countries in their respective regions. A detailed qualitative analysis of factors responsible for driving and restraining the market and future opportunities has been provided in the overview section. This section of the report also provides with market attractiveness analysis, regulatory scenario, and market share analysis by key players, thus presenting a thorough analysis of the overall competitive scenario in the global corporate wellness market.
The key players operating in the corporate wellness market are EXOS, ProvantHealth (Hooper Holmes, Inc.), Wellness Corporate Solutions, ComPsych Corporation, Optum, Inc. (United Health Group), Sodexo, BupaWellness Pty Ltd (BupaGroup), JLT Australia (RecovreGroup), Central Corporate Wellness, TruworthWellness, CXA Group Pte.Limited, and SOL Wellness.
The global corporate wellness market is segmented as follows:
Global Corporate Wellness Market, by Service Type
- Health Risk Assessment
- Smoking Cessation
- Health Screening
- Weight Management
- Others (Stress Management, Disease Management, Vaccination, etc.)
Global Corporate Wellness Market, by Region
- North America
- Rest of Europe
- Asia Pacific
- Hong Kong
- South Korea
- Rest of Asia Pacific
- Latin America (LATAM)
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa