10 Feb 2025

Why Wellness Programs Fail: Solving the Last-Mile Access Problem

Joseph Karim, Product Marketing Manager at Profit

Companies are spending more than ever on employee wellness—$61 billion annually—yet engagement remains shockingly low. The issue isn’t a lack of investment, but a critical oversight: access. Even the most generous benefits fail when employees can’t easily use them. Let’s unpack why this happens and how to fix it.

The Wellness Paradox: More Spending, Less Engagement

While 91% of employers now offer wellness programs, only 23% of employees use mental health benefits, and 67% of wellness stipends go unused due to reimbursement friction. This disconnect costs companies $1,500 per employee annually in wasted benefits and lost productivity.

The problem isn’t indifference—it’s design. Traditional programs often ignore how employees actually live and spend.

The Three Barriers Killing Participation

The Reimbursement Trap

Employees face upfront costs, complex paperwork, and weeks-long waits for reimbursements. Result? 43% abandon wellness activities due to administrative friction.

The Cash Flow Challenge

Low-wage workers can’t front $100 for a therapy session, even with a stipend. This creates inequity: 58% of employees earning under $50k avoid using benefits due to cost concerns.

The Administrative Maze

HR teams waste 10+ hours monthly processing claims, while employees juggle multiple platforms. 34% don’t even know how to access their benefits.

Why Humans (and Wellness Programs) Hate Waiting

Behavioral science shows we prioritize immediate convenience over delayed rewards. A gym membership reimbursement might save $500 yearly, but the upfront cost and paperwork feel heavier than the future benefit.

The fix: Remove friction. Programs with instant access see 89% higher engagement than reimbursement models.

The Digital Solution: How Tech Bridges the Gap

Forward-thinking companies are solving access issues with Profit Cards:

1. Pre-Funded Wellness Cards

Employees instantly spend allocated funds on therapy, fitness apps, or gym memberships—no reimbursement is needed.
Platforms like Profit enable real-time spending, reducing administrative work by 50% while boosting utilization to 80%.

2. Unified Platforms

Single apps for benefits access, approvals, and tracking cut administrative work by 50%. Tools like Profit offer built-in analytics to monitor participation and track spending in real time.

3. Behavioral Nudges

Gamified challenges (e.g., step competitions) and wearable integrations drive 70% higher activity levels.

The ROI of Getting Access Right

For example:

companies using pre-funded cards report 89% stipend utilization.
digital-first programs see 70%+ participation rates.

The Bottom Line

Wellness programs don’t fail because employees don’t care—they fail because access is an afterthought. By replacing reimbursement models with instant, equitable solutions like Profit’s pre-funded wellness cards, companies unlock real ROI: healthier teams, lower costs, and a culture where benefits aren’t just offered, but used.

Ready to transform your wellness program?

👉 Book a Demo with Profit to see how pre-funded cards and real-time analytics can boost engagement and ROI. Don’t let friction undermine your wellness investments. See Profit in action—book a demo today.