2. Sick Day Costs
• Cost of Absenteeism
To consider the benefits of such a program, consider the affect on the cost of absenteeism
for a company of 150 employees.
• A recent survey showed that the average rate of absenteeism on any given day is
approximately 2.5% i.e. approximately 4 employees absent out of 150 total employees
• The cost of a sick day is calculated as (salary + 30% employer costs) divided by 240 working
days
• Let's assume the average wage in our example is $40,000 per year.
• The employer's average cost of a sick day is calculated as: ($40,000 + $12,000) = $217 per
day divided by 240.
• Let's also assume there are 4 absences a day (per the aforementioned survey):
• $217 X 4 = $868 per day X 240 (working days) = approximately $208,000 per year or $1,387
per employee per year, based on 150 employees.
• The average cost of absenteeism is $1,387 per employee per year.
Based on other company's previous experience with the program the anticipated reduction
in absenteeism would be approximately 17.5%, amounting to savings of $243 per
employee

3. Canadian Examples
• Canada Life showed a ROI of $6.85 for each corporate dollar invested, through
• reduced turnover, productivity gains and decreased medical claims.
• The Canadian Life Assurance Company found that the turnover rate for wellness
• program participants was 32.4% lower than the average over a seven-year
• period.
• Dr. Roy Shephard, of the University of Toronto, found corporate wellness
• programs returned a cumulative economic benefit of $500 - $700 per worker per
• year.
• Municipal employees in Toronto missed 3.35 fewer days in the first six months of
• their "Metro Fit" fitness program than employees not enrolled in the program.
• BC Hydro employees who enrolled in a work-sponsored fitness program had a
• turnover rate of 3.5% compared with the company average of 10.3%.
• Toronto Life Assurance found that employee turnover for those enrolled in the
• company's fitness program was 1.5% versus 15% for non-participants.