Employee wellbeing is the cornerstone of workplace wellness, sustainability, and overall business growth. Since the COVID-19 pandemic has started, employee wellbeing has gained considerable attention. Its impact on productivity, workplace culture, and quality of life has enforced employers to implement employee wellness programs to support and promote holistic wellbeing.
Unhealthy lifestyle behaviors are associated with the rising risks of chronic health disorders like hypertension, cardiovascular diseases, Type-2 Diabetes, obesity, and others. The rising incidence of these conditions has led to increased employer-sponsored healthcare expenses, impacting the company finances. Improving employee wellbeing by promoting healthy behaviors is an effective way to reduce health risks and healthcare expenses. And so, employers are adjusting their employee wellness programs to meet the current health and wellbeing trends. Many studies show these corporate health solutions have a positive impact on workplace wellbeing. No wonder, these corporate wellness plans have now become a top priority across the globe.
Global Corporate Wellness Industry Survey Outcomes
A Global Corporate Wellness study was conducted to understand the impact of the pandemic and its looming recession on the employee wellbeing market. Almost 152 top competitors in the corporate wellness market were selected for the survey to comprehend the evolving market conditions and executive opinions for the analysis years of 2020 – 2026. Here is a quick brief of the survey outcomes.
A Global Corporate Wellness Industry survey report showed that amidst the COVID-19 pandemic, the global corporate wellness market in 2020 was at an estimated US$56.7 billion. This number is expected to reach US$87.3 billion by 2026 at a 7.3% CAGR (compound annual growth rate).
Regional Corporate Wellbeing Trends
Representing a key segment of the Global Corporate Wellness Market, the US is projected to have a market size of US$20.4 Billion in 2021. China, the second-biggest economy in the world, is estimated at US$7.3 Billion by 2026 with an 8.6% CAGR in the analysis period. The other remarkable contributors to the global corporate wellness market include Canada, with a forecasted growth rate of 7%, followed by Germany with 6.8% CAGR and Japan at 6.4%.
The Affordable Care Act in the United States allows organizations to expand their financial benefits and incentives to ensure the completion of their employee wellness programs. Few recent rules also allow companies to penalize their non-participating or non-engaging employees by increasing their contribution to the cost of the premium plans by almost 30%.
Health Risk Assessment Trends
According to the study, Health Risk Assessments are recorded to grow at 6.2% CAGR and are presumed to touch the US$20.7 Billion mark by 2026. The pandemic-induced lifestyle changes and deferred healthcare have led to the rising susceptibility to chronic health conditions like type-2 diabetes, respiratory diseases, cancer, and cardiovascular disorders. These possibilities have shifted the focus on including health risk assessments in employee wellness programs to help the workforce identify their health status and potential risks. Health risk assessments that gather data by analyzing the medical history, lifestyle habits, and overall health status have become an integral part of the corporate health solutions to establish the right wellbeing goals.
Despite the economic crisis caused by the pandemic, the fitness segment is expected to have a revised 6.9% CAGR in the 7-year analysis period.
Smoking Cessation Program Trends
Despite the governments and organizations spreading awareness about the harm and risks of tobacco ad nicotine consumption, smoking has been rising. With behavioral health playing a huge role in employee wellbeing, many employers have started implementing specific behavior and disease management programs.
Smoking cessation is one of the most sought-after programs. According to the survey, the smoking cessation program is estimated to reach a market size of $13.5 Billion by 2026. With a CAGR of 6.4%, the combined regional smoking cessation markets of the USA, China, Japan, Canada, and Europe were US$7.4 Billion in 2020, estimated to reach US$11.5 Billion by 2026. Although China is the largest contributor in the regional markets, the Asia-Pacific market was led by India, Australia, and South Korea, to touch US$1.2 Billion by 2026.
The evolving corporate wellness trends have made it necessary for employers to align their employee wellness programs accordingly.
Be it the employee wellbeing requirements or workplace wellness software, employers must make sure their programs modules are flexible and scalable to accommodate the emerging trends to ensure maximum employee engagement and productivity.