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The basics:

• Health care premiums rose nearly 7% in 2024, pressuring employers
• Wellness programs can cut health costs by 25%, per Harvard Business Review
• Small businesses can start wellness initiatives at little to no cost

It’s no secret that New Jersey employers are feeling the squeeze. Between rising health care premiums – up nearly 7% in 2024, according to KFF – and mounting turnover, human resources leaders and small-business owners are hunting for levers they can pull now without blowing next year’s budget.

And yet, one of the most impactful solutions often remains misunderstood, underfunded, or ignored altogether: employee wellness.

Let’s be clear, wellness isn’t just about yoga at lunch or free fruit in the breakroom. Done right, it’s a strategy. And if you’re a growth-minded business in New Jersey, it’s one you can’t afford to sideline. Especially since your competition for talent is already doing this. In fact, according to HR.com’s Future of Employee Wellbeing report, nearly 50% of organizations now consider wellness a strategic priority. The question is — what side do you want to be on: the ones leading the charge, or the ones playing catch-up?

A Harvard Business Review analysis found that companies with effective wellness programs reported a 25% reduction in health care costs.

Yet most small to mid-sized employers still think wellness is something only large corporations can and should do. Meanwhile, their employees are burning out, benefits are going unused, and engagement is quietly eroding.

It’s time to shift the narrative.

Because the traditional benefits stack – 401(k), health insurance, PTO – remains important, but it’s no longer enough to attract or retain top talent, especially in competitive labor markets like N.J.’s.

Employees are asking deeper questions:

• Does my employer care about my mental health?
• Is flexibility built into our work culture, or is it performative?
• Will I burn out here like I did at my last job?

These are the questions smart companies are beginning to answer.

The budget myth

One of the biggest misconceptions is that wellness initiatives are expensive. But in reality, many of the highest-impact strategies are free or nearly so.

Entry-level programs may cost as little as $36 to $90 per employee per year covering digital platforms with risk assessments, online content and team challenges. Even more comprehensive solutions with health coaching and incentives tied to health outcomes typically range from $800 to $2,500 per employee per year. And here’s the kicker: you don’t have to start there.

One of the biggest misconceptions is that wellness initiatives are expensive. But in reality, many of the highest-impact strategies are free or nearly so.

We’ve spent the past decade helping organizations launch and manage wellness programs. What we’ve learned is this: success doesn’t hinge on how much you spend, but how committed and consistent your organization is. That said, budget is always a concern, which is why we created the Zero-Cost Wellness Program Toolkit. This program is a practical solution for companies looking to make an impact without breaking the bank.

What employers get right

A rising trend we’re seeing in New Jersey companies is leadership is starting to understand the difference between ROI (Return on Investment) and VOI (Value on Investment).

ROI looks at measurable cost savings like reduced claims, lower absenteeism, or fewer ER visits. But VOI captures broader impact, like increased productivity, stronger morale, higher retention and a healthier employer brand.

What also sets forward-thinking companies apart is intention. Some of the most effective programs we’ve seen involve:

• Weekly “pause breaks” built into the calendar
• Anonymous wellbeing check-ins to surface employee needs
• Team wellness goals tied to company-wide OKRs
• Access to coaching or content aligned with life stages

Pay now or pay later

The bottom line? You’re going to invest in employee health one way or another.

You can do it proactively through prevention, culture and consistency; or reactively through turnover, absenteeism and rising insurance costs.

For Garden State employers, now is the time to lean into wellness as a pillar of your business strategy.

Clark Lagemann is CEO for Cranford-based Avidon Health, a trusted provider of corporate wellness programs and employee wellness platforms.