Wellness Programs : Health Promotion Program Budgets.
Trying to do more with less money? Here are three proven ways to align the dollars and cents of a wellness program in your budget.
Common thread – the way you prepare – and control – your budget for a wellness program is critical to its success.
1. Top-down wellness budget
Depending on the size of your business and health promotion program, you might have full budget responsibility or may need to work with a C-level who has 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 worker incentives and future programs?
• Should we keep long-tenured health promotion programs that keep going up in price, and
• Does Benefits/HR have to deliver all education about the wellness 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 wellness programs/features you want and the cost of each. Best practices –
• Rank wellness programs by priority (health-risk assessments should be at or near the top)
• Indicate which costs 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
On average, wellness programs usually 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 wellness program design.
