Researchers have estimated that preventable illnesses make up approximately 70 percent of the burden of illness and associated costs. We spend more
annually on health care than any other
country and, for many companies, health
insurance is the second highest expense
following employees’ salaries.
“Employers continually ask what can be
done to control health care costs,” says
Amy Broadbent, a senior consultant with
JRG Advisors, the management company
for ChamberChoice. “One solution is work-place wellness programs.”
Smart Business talked with Broadbent
about this latest movement in employee
benefits programs.
What is a workplace wellness program?
A good wellness program ultimately creates a healthy employee culture while having fun in the process. Sharing information,
offering contest-oriented programs, implementing a wellness committee and senior
management participation are crucial components of a successful program.
Some examples of a healthy employee
environment include replacing the candy
dish with a fresh fruit bowl, starting a
lunch-time walking program, and covering
the cost of nicotine replacement therapies
for smoking cessation participants.
Offering a variety of programs means
there is likely to be something for everyone.
Can a wellness program
really make a difference?
The greater goal of any
wellness program is to educate and encourage
employees to obtain age-appropriate preventive
care. Most benefits plans
provide for this care, but
employees do not realize
what care should be
received and when. Some
employers offer paid time
off to encourage employees to have the appropriate physician’s visits. Catching a medical condition in the early stages is obviously good
for employee well-being, but it also
reduces significant health care liabilities
for the employer.
Is it difficult to get employees to participate
in wellness?
Wellness programs discourage behaviors
that are detrimental to good health.
Because lifestyle behaviors are deeply
engrained, making changes can be difficult.
Educating employees about the benefits of positive lifestyle changes is an important
first step. It often takes strong motivational forces to get employees to take action.
Incentives are widely used in health promotion programs because they increase
impact.
What kinds of incentives can be offered to
employees?
Typical incentive rewards are cash, vacation days, and prizes or reduced employee
contributions toward the company-sponsored health care program. An incentive
should be significant enough in value to
give participants a reason to change.
What ROI can employers expect from wellness programs?
Employers are likely to see real savings in
the form of improved employee health,
reduced absenteeism, and fewer disability
and workers’ compensation claims. But be
patient: most programs take several years
to develop a measurable ROI. Wellness
programs should be viewed as a long-term
commitment, with not only positive financial results but also marked improvement
in employee morale and productivity.
How many employers have caught the wellness wave?
Thirty percent of U.S. employers currently offer some type of wellness program that
promotes healthy lifestyles,
and another 30 percent plan
to offer this type of program
within the next three years.
Studies show that employers who have already introduced wellness programs
are reporting lower health
care costs, less employee
absenteeism and greater
employee job satisfaction.
THE COST OF “UN-WELLNESS”
Estimates show that unhealthy lifestyles lead to hundreds of billions of
dollars in expenses annually in the United States.
Source: Health Promotion Advocates, from statistics kept by the Centers for Disease
Control and Prevention, the National Institutes of Health, the National Institute of
Diabetes and Digestive and Kidney Diseases, and the Journal of Occupational Medicine.
AMY BROADBENT is a senior consultant with JRG Advisors, the management
company for ChamberChoice. Reach her
at [email protected] or
(412) 456-7250.
