Posts from — December 2008

Why Complete a Company Wellness Program Environment Assessment?

The purpose of completing the assessment is to identify your worksite’s strengths and areas in need of improvement. The assessment will lead your workgroup to recommend actions for changes to make the worksite more supportive of healthy behaviors (i.e. healthy food choices in snack machines, policies to enforce no smoking on worksite grounds or encouraging walking during break times). You may find some of the actions for supporting healthy behaviors are easy to do and others may not be feasible or efficient in your worksite.  The assessment results can also be used as a baseline measure for evaluation.  The initial assessment can later be compared with a follow-up assessment several months later to note progress.

Who should do the Company Wellness Program Environment Assessment?

Identify a workgroup (at least 4-5 workers) who will be responsible for completing the assessment.  This may be a subset of your wellness workgroup.  Forming a diverse group from all areas and levels of your company is important for meaningful assessment and successful planning and implementation. Suggested participants include: human resources, workers from various departments, administrators, supervisors, worker or wellness staff.

When should the Company Wellness Program Environment Assessment be Done?

Use the assessment as a starting point for your wellness initiative. Once you have completed the assessment, determine which areas the workgroup will focus on (i.e. healthy eating, physical activity, general health, etc.). Begin a time for the workgroup to meet and monitor the progress. Also determine a schedule for annual assessments, so that the assessment can serve as a tool for continuous improvement and accountability over time.

Part 1 – Wellness Assessment Checklist

Complete a Worksite Wellness Assessment Checklist to determine what wellness components you currently have at your worksite.   This can be done with the full workgroup or you may want a few key personnel (such as the Human Resources lead, Wellness Coordinator or Workgroup Coordinator) to do a preliminary scan based on information they gather and then let the full workgroup react to their findings. Ask your broker for a sample wellness assessment checklist or create your own.

Completion of the checklist provides a reference point of the wellness functions that are currently in place or in process and it provides an overview of some of the items that should be considered for a comprehensive Company Wellness Program.

Checklist Components:

Categories.  There are six major categories (General, Physical Activity, Nutrition, Health Screening, Tobacco Use and Emergency Response Plan).  Each category has several questions that address what you currently have in place at your worksite.

Current Status.  Initially, list whether you have the component (Yes), are in the process of instituting the component or you are planning for the component (In Process) or don’t have the component at all (No).  At the end of each category, sub-total the number in each column and then total all of the categories at the end of the checklist to get an overview of where your worksite Company Wellness Program currently rates. You should also use this baseline measure as a benchmark for later evaluation.  By evaluating where your worksite is on each wellness component, you will be able to get a general idea of your status across each category and all 57 items.

Potential Priorities.  After you have completed the assessment and the employee interest survey, you can use the potential priority column to indicate what components you might want to focus on that are either currently in process or don’t exist.  This can serve as a first screening of possible areas to focus on as you develop your action plan.

Part 2: worker Input

Why would we want to do an employee survey?

You should conduct an employee survey to get a better understanding of your target audience (your company’s workers) and get an initial idea of their current health habits and interest areas.  The survey can be tailored to your worksite and can be done in paper form or through the use of survey instruments on the internet or that can be purchased.   You can create your own employee survey or ask your broker for a Workplace Wellness Needs and Interest Survey.

As was the case with the worksite environmental assessment, the employee survey results can also be used as a baseline measure for later evaluation.  The initial survey results can later be compared with a follow-up survey several months later to note progress.

You should also consider engaging workers in focus groups or informal interviews to gather information on their wants and needs.  This can be done either before or after the survey, or if you don’t have the resources to survey workers, you could use this method to gather information in place of the survey.

Whatever method you use to gather information, make it as easy as possible for workers to complete and submit the information so you get a high return rate.  Look at offering an incentive or prize for workers who complete the survey.

Once you start a program you will have a range of worker participants.  Some will already be very engaged in being active and eating well and your program will only reinforce and enhance their health.  On the other end of the spectrum will be workers who may not engage no matter what you do.  The remaining group is probably the largest group in most businesses: workers who are at various stages of readiness to improve their health given the right type of programming and motivation.   Summarized below are some tips you may want to employ once your program is up and running.

Key Factors in Company Wellness Program

In today’s society there are many key factors that influence people’s health behaviors.  Look at the following list in maintaining participation in your program:

1.    TIME.  Employees are busy, so the more you can work activity and healthy eating into their existing schedules, the better your chances for success.  Example: A walk at lunch doesn’t take away from existing time, it just uses it differently.  Also look at the time of the day and length of any activity you might be promoting, since both time components may be factors.
2.    ACCESS.   How accessible is your Company Wellness Program.  Is it onsite or at a nearby site?  Do you offer access at breaks or outside of normal work hours?
3.    KNOWLEDGE.  Employees need to know “Why” they are taking part in (the benefits) and also will need information about the “How to” in areas that are not commonly known.
4.    COST.  Make sure that you can provide no cost or reduced cost Company Wellness Programs will help participation rates.  Coupled with incentives for participation, rates of participation will likely increase dramatically.
5.    INCENTIVES.  Some workers need incentives to get started in a Company Wellness Program.  A full list of Company Wellness Program incentive options can be on the website.

Key Time Periods in Company Wellness Program

Good habits are frequently difficult to develop.  There tends to be some critical times when workers drop out or fall off of a physical activity or diet program.   The first key time zone seems to be around 6 weeks.   If workers can start and stay consistent with a program through the first 6 weeks, they have made a fairly serious commitment to incorporate the habits into their lifestyle.  The second key time is at about 6 months.  Those who made it past 6 weeks may get bored and/or distracted from their program after several months.  If workers can get past 6 months and sustain behavior through a full set of weather seasons, they have a very good chance of making the changes permanent.

Look at these time periods and think about how you can “boost” your workers to get them past these critical time markers.  Promoting individual or group “challenges”, using incentives, or increased publicity/marketing are a few of the things you can do to help get your workers through these key time periods

Goal Setting for Company Wellness Program

Setting goals has been shown to lead to better participation and more workers making a strong commitment.  Whether it be a team goal of walking the equivalent of once around your state or an individual goal of so many miles or minutes of activity, the fact that there is something concrete to shoot for increases the likelihood workers will stick with the program.

Buddy Systems or Team Goals for Company Wellness Program

The social aspects of improving one’s health cannot be underestimated.  Many studies point to tight social groups being the backbone for a successful campaign because each individual has a commitment to something bigger than themselves and besides, it’s just more fun for most workers. Build your program around some type of teams or partners and see what happens.

Team “Campaigns” for Company Wellness Program

Some workers like competition and others don’t.  Nevertheless, a worksite wide campaign has the advantage of keeping the message more visible and alive.  Encourage campaign participation, but make it voluntary so that those who prefer that type of motivation can join while others can take part in their own way and at their own pace.  If the idea of a campaign seems like too much work, consider tapping into existing campaigns where someone else provides resources for you.

Incentives for Company Wellness Program

Incentives are frequently helpful in maintaining or raising interest.  Significant incentives such as cash or medical insurance rebates have proven to be very strong motivators for worker participation.  However, even smaller incentives can be beneficial.  Listed below are some sample incentives:
• Achievement awards. Verbal praise and a pat on the back are motivational to some, but a token of recognition of achievement may offer more. A colorful certificate to congratulate an worker for achieving a health-related goal is one example.
• Public recognition.  Announced recognition at campaign mid-point or wrap-up festivities.
• Food.  Include some healthy foods to kick-off, revitalize or wrap up a wellness campaign.
• Entertainment.  Events serve a purpose in jump-starting, reenergizing or wrapping up a campaign.  Having entertainment of any kind can boost morale.
• Merchandise.  There is a long list of merchandise incentives, including sports equipment and small gift certificates to use at local merchants.
• Monetary rewards.  Nothing says incentive better than cash.  Worksites that have used cash or rebates as an incentive have shown much higher participation rates.
• Time off.  Maybe the next best incentive to cash, or for some workers even better.  This type of incentive makes good business sense if the number of absences drops significantly and attendance is used as one of the criteria.

There are a number of reasons why Company Wellness Programs are beneficial.

1. Improved Morale - When the organizational culture begins to change as a result of your health promotion efforts, you and your workers may actually begin to see and feel a new level of energy within the company.  Ultimately, one of the most ambitious goals of any comprehensive health promotion program is to attempt to influence the attitudes and actions of the organization’s most valuable resource — its workers.
2. Reduced Turnover - As we all know, worker replacement costs can be quite high for any kind of company.  The effort and expense associated with running employment ads, reading applications, checking references, interviewing qualified candidates, hiring and training a new worker can be a serious burden on any company.  In light of the challenges that high worker turnover pose, many businesses are looking to health promotion programs as an additional perk that can help to prevent workers from jumping ship.
3. Increased Recruitment Potential - In the midst of a very tight labor market, businesses are forced to pull out the stops in order to recruit new talent.  In some instances, health promotion can prove to be a very valuable tool in sealing the deal.
4. Reduced Absenteeism - When an worker misses work in a company setting, the entire organization is forced to absorb his/her responsibilities.  Even in the event of the occasional absence caused by things like colds and the flu, work can back-up and tensions can build.  Even worse is a long-term absence caused by a major health event that requires hospitalization and/or rehabilitation.  By preventing certain types of illness caused by poor lifestyle habits, health promotion programs can play an important role in reducing rates of absence.
5. Health Care Cost Containment - Most businesses don’t start a health promotion program with cost containment in mind.  However, cost containment for certain health problems should be considered a viable goal by many businesses.
6. Improved worker Health Status - One of the greatest advantages of a well-designed health promotion initiative is the promise of improved health.  There is a growing body of evidence that suggests well-designed health promotion initiatives can successfully impact such behaviors as smoking, high-risk alcohol use, and more.

1.    Have a current policy outlining the requirements and functions of a comprehensive Company Wellness Program.
2.    Have a wellness plan in place that addresses the purpose, nature, duration, resources required, participants in, and expected results of a Company Wellness Program.
3.    Orient workers to the Company Wellness Program and give them copies of the physical activity, nutrition, and tobacco use policies.
4.    Promote and encourage worker participation in the physical activity/fitness and nutrition education/weight management program.
5.    Provide health education information to workers.
6.    Have a committee that meets at least once a month to oversee the Company Wellness Program.
7.    Provide regular health education presentations on various physical activity, nutrition, and wellness-related topics. Ask voluntary health associations, healthcare providers, and/or public health agencies to offer onsite education classes.
8.    Host a Health and Wellness as a kick-off event or as a celebration for completion of a wellness campaign.
9.    Designate specific areas to support workers such as diabetics and nursing mothers.
10.    Conduct preventive wellness screenings for blood pressure, body composition, blood cholesterol, and diabetes.
11.    Provide confidential Health risk appraisals.
12.    Provide onsite weight management/maintenance initiatives for workers.
13.    Offer weight management/maintenance, nutrition, and physical activity counseling as a member benefit in medical insurance contracts.

Ten Steps Toward Strategic Company Wellness Programs

The Company Wellness Program management world is evolving rapidly. Each month, there are new research findings that support the premise that Company Wellness Programs and disease management have a long-term impact on healthcare costs. Many large businesses that started Company Wellness Programs three to five years ago are showing savings in health, disability, and workers compensation costs. Small to mid-size businesses are watching all this and wondering where to start with wellness.

Getting upper management support and budget approval is one of the challenges at the beginning of a Company Wellness Program. This is the case because Company Wellness Programs can be expensive, averaging $150-300 per worker per year in large businesses. Most of the savings are not realized for a number of years. This long-term investing is hard for businesses on the move.

The key to success for Company Wellness Programs is to take a strategic approach. Here are ten steps to consider when starting a Company Wellness Program.

1. Begin with upper management. Without upper management support, a health promotion strategy can fall flat. Begin with the health of your executive team and discover your wellness champions at the top of the company.
2. Assess the problem. Look at your healthcare claims and analyze the trends. Which conditions are driving your medical, disability, and workers’ compensation claims and which are modifiable? What’s worked and what hasn’t thus far? What is the long-term impact of doing nothing?
3. Hold an initial wellness meeting. Invite your key stakeholders both outside and inside the company. Ask your broker to facilitate the meeting and invite key health vendors including health, disability, Employee Assistance Program (EAP), fitness, and occupational nursing. Review claims and utilization information and identify key areas of concern. Look at current offerings and see how they can be tailored to the needs of the population.
4. Look at both healthy and unhealthy workers. Since 85 percent of claims are usually attributed to 15 percent of claimants, it is essential to reach those with the most costly conditions while also reaching workers who are at risk for developing preventable diseases in the future. Voluntary Company Wellness Programs such as lunchtime wellness seminars miss many of the workers who need them most. Look at initiatives that are population-wide or target intact workgroups. Wellness incentives help but do not motivate everyone.
5. Establish short-term goals for the Company Wellness Programs. Establish some realistic short-term goals based on your key areas of concern. Are there any plan design changes that could have an immediate impact on spending? Are there some programmatic actions that could have immediate results?
6. Find out what workers are thinking. Hold some focus groups to determine where workers are with wellness. What’s working? What isn’t? How much interest do workers have in the Company Wellness Programs? What obstacles and barriers are workers experiencing when they try to change behavior?
7. Make sure you have a high-impact Employee Assistance Program (EAP). Your first wellness dollars should go into upgrading your Employee Assistance Program (EAP). A highly utilized Employee Assistance Program (EAP) can provide a foundation for all of your future wellness activities. A good Employee Assistance Program (EAP) is a trusted link to the hearts and minds of workers. At no additional cost, the Employee Assistance Program (EAP) can provide needed follow-up coaching and personal attention for workers who are working on modifiable health behaviors or involved in disease management initiatives. Nutritionists, fitness, pregnancy, and stress management specialists are all part of a high-value Employee Assistance Program (EAP).
8. Establish three to five year goals for healthcare savings and measure them. Get help from your broker and insurance carrier help you on long-term goals for your health, disability, and workers compensation plans. Begin program metrics that will help you to measure ROI. Go beyond participation rates, completion rates and program satisfaction. Measure changes in readiness, changes in behavior, and changes in risk factors. Begin rigorous methods to measure healthcare savings over the long term.
9. Establish goals for organizational health. Look at the more intangible benefits of a wellness initiative and quantify them whenever possible. Include worker turnover rates, cost of new hires, worker morale, benefit satisfaction information, and employer of choice issues in setting goals. Begin ways to measure success in these areas.
10. Add specifics to your short and long-term plan. Include a Company Wellness Program strategy, a communication strategy, and a Company Wellness Program incentive strategy that will fit with your corporate culture. Focus on integration of related components along a health continuum with communications that are focused, simple, and human. Begin a budget that includes key components such as consumer education, health promotion, health risk assessments, and regular biometric screens.

Company Wellness Programs are crucial to improving the health of our nations. Most adults spend more of their waking hours at work than anywhere else, making it a excellent venue for promoting healthful habits. The worksite organizational culture and environment are powerful influences on behavior and this needs to be put to use as a method of assisting workers to adopt a healthier lifestyle. Advantages to Company Wellness Programs include:
• Weight reduction
• Improved physical fitness
• Increased stamina
• Lower levels of stress
• Increased well-being, self-image and self-esteem

Employers can also benefit from Company Wellness Programs. According to recent research, employers’ benefits are:

• Enhanced recruitment and retention of healthy workers
• Reduced healthcare costs
• Decreased rates of illness and injuries
• Reduced worker rates of absence
• Improved worker relations and morale
• Increased productivity

A U.S. Department of Health and Human Services report revealed that at worksites with physical activity initiatives as components of their Company Wellness Programs have:

• Reduced healthcare costs by 20 to 55%
• Reduced short-term sick leave by six to 32%
• Increased productivity by two to 52%

Thanks to modern medicine, life expectancy for Americans has continually increased. How much we enjoy these additional years, however, depends greatly on how we have lived our lives. If our quality of life is to remain high so that we can fully enjoy these extra years, we must practice good eating habits, be active and refrain from using tobacco products.

Who needs Company Wellness Programs? If you work in an office or a jobsite or are a member of an company who spends a considerable amount of time at work, you will benefit from a well-designed worker Company Wellness Program. Employees spend a minimum of about 200 hours a month at work - a considerable amount of time.

Furthermore, stress, distractions and the pressures of the job can take its toll on the worker, which makes it important that a Company Wellness Program is implemented. Today, all across America, Canada, Europe and Asia, top Company Wellness Programs are being used to help improve worker conditions at work and reduce the cost of worker healthcare.

Some of the top Company Wellness Programs currently in use today include:

Health Risk Assessments (HRAs)

Health Risk Assessment is a top Company Wellness Program currently in use globally. Organizations that implement it determine the safety and health concerns of workers by the assessment of appropriateness of the facilities and equipment against the needs of the workers.

It can, by way of example, guide the company into determining how much air quality within an office room affects the users and then help the assessment team to come up with the measures necessary to correct the problem. An HRA can also evaluate the level of exposure workers have to certain hazardous or dangerous materials and practices.

Immunizations

This isn’t always practiced in every country since there are regions where government sponsored immunization shots are available. However, it has also become an important component of the top Company Wellness Programs in many businesses in North America.

Immunization, flu shots, such as those used to combat flu, by way of example, are offered to workers for free.

Employee Assistance Programs (EAPs)

Employee Assistance Programs (EAPs) consist of a wide variety of services. It can range from providing educational resources to workers regarding health issues to sponsoring health services and medical care. In many businesses, medical and insurance have also become a staple part of their benefits system.

Weight Management Programs

This is another Company Wellness Program that businesses use, particularly those that offer in-house commissary or cafeteria services. Instead of serving richer, high-calorie fare, cafeterias offer options for a healthier diet, usually in the form of low-calorie foods and sugar substitutes.

Employee Wellness Newsletters - Health Education Programs

One of the top Company Wellness Programs that businesses can implement is a self-powered tool using a newsletter to promote wellness, coupled with a visible campaign. The campaign may be done periodically and focus on a specific topic, such as smoking hazards, cancer, stress, carpal tunnel syndrome, safety in the worksite, etc.

The newsletter in itself can be an effective method to deliver information to workers or members of an company but it is far from perfect. Some workers, by way of example, may not read the newsletter in its entirety or even pay attention to it. If the issues outlined in the newsletter are promoted through an active and highly visible campaign, it will be easier to maximize positive results.

Physical Fitness and Exercise Programs

Another top health promotion program for businesses is one that involves physical activities. Companies frequently sponsor physical fitness-related events such as marathons and company sports initiatives to encourage workers to remain fit or lose excess weight. In mid- to large-sized businesses, businesses may even pay for gym memberships or in-house physical fitness facilities.

Company Wellness Program Incentives

Some of the top Company Wellness Programs implemented by businesses involve incentive rewards. This involves company-sponsored initiatives that reward workers for achieving specific wellness goals. Participation in health campaigns and signing up for Company Wellness Programs are two of the most commonly rewarded schemes. Rewards can range from special recognitions to points (for bigger rewards) to specific gifts. In a few cases, cash may also be used.

However, incentive systems have had mixed reactions and levels of success. But it continues to be one of the top choices among businesses who are willing to modify it in order to fit their unique needs.

Group Activities

In many businesses, businesses take advantage of peer pressure in order to encourage workers to take part in Company Wellness Programs. This is currently one of the favorite worker Company Wellness Programs currently in use today and growing in popularity. Peer pressure is frequently leveraged to help promote competitions and to persuade workers to be active in company-sponsored health fairs.

Company Wellness Programs at the corporate level are beneficial, right? Wellness statistics clearly show that such Company Wellness Programs are not only cost-effective to the organization but can assist the worker in developing a healthier lifestyle. With the rising cost of healthcare, Company Wellness Programs simply make sense. So where does the problem come in? Let’s examine the topic from both perspectives.

Company Wellness Programs: The Good

• A sampling of ROI for Company Wellness Programs: Bank of America: 600%; General Motors:370%; Pepsico: 300%; Citibank: 465%; and the Washoe County School District leading the pack at a whopping 1,560%. (Campbell,J., Wellness Improvement Experts, www.wellnessimprovementexperts.com, Albuquerque, New Mexico.)
• Companies with Company Wellness Programs have realized a 28 percent reduction in sick leave, a 26 percent reduction in adjunctive healthcare costs and a 30 percent reduction in disability and workers compensation costs. (Health Affairs, Volume 21, No.2, March, 2002.)
• The Washoe county School District in Northern Nevada realized a $15.60 ROI for every dollar spent due to a 20 percent reduction in rates of absence. (Hardy,A. (2005). At the Top Of The Class. WELCOA’s Absolute Advantage Magazine, 5(1), 14-20.)
• Company Wellness Programs provide the structure, encouragement, incentives and ongoing support that many people need in order to make lifestyle changes.
• Employees also realize returns on their efforts. FiServ, a financial services technology company, gave workers who filled out a health risk assessment a significant discount on their medical insurance premium. (Holland, Kelley, The New York Times, July 22, 2007.)

Company Wellness Programs: The Bad

The flip side of the argument centers on basic human rights. Do we want/need our employer to tell us to eat our veggies or lose 30 pounds? Some businesses are doing just that and at least one lawsuit has resulted because of it.
• Three hundred businesses have requested assistance from a national employment and labor law firm to institute more aggressive Company Wellness Programs.(Cornwell, Lisa, Associated Press, Albuquerque Journal, September 10,2007.)
• Clarian Health, based in Indianapolis, Will begin reducing worker paychecks by $10.00 for every worker who has a Body Mass Index (BMI) of greater than 29.9 because not enough workers were utilizing their wellness services.(Cornwell, Lisa, Associated Press, Albuquerque Journal, September 10,2007.)
• Scott Rodrigues filed a suit against his prospective employer, Scotts Miracle-Gro, because he believed the company’s antismoking policy violated his civil rights. The company has a policy against hiring workers who smoke and Mr. Rodrigues’drug screen was positive for nicotine.(Holland, Kelley, The New York Times,July 22,2007.)
• worker advocates are concerned that health discrimination may not be covered under the Americans with Disabilities Act.(Cornwell, Lisa, Associated Press, Albuquerque Journal, September 10,2007.)

Penalizing workers by hitting them hardest where it hurts the most,their pocketbook, does not appear to be a a good approach to molding human behavior.
Such tactics may result in increased resentments and retaliation, primarily in the form of rates of absence and presenteeism (decreased productivity on the job.) Voluntary, incentive-based initiatives, such as the one in the Washoe County School District, can and do produce results. A positive attitude on the part of management along with an opportunity for workers to have a stake in the decision-making may yield the greatest dividends to both employer and worker.The motivation and resolve needed to change unhealthy lifestyle habits can best be derived from the basic tenets of encouragement, respect and support.

Getting Started - Secure management support
• Justifications for having a Health and Wellness
• Health risk assessments
• Help for high-risk population: smokers, obese workers
• Early detection of diabetes, heart disease risk factors (high cholesterol, high blood pressure)

Health and Wellness Participation - Identify your audience
• Employees only, whole family, retirees?
• Community involvement? Theme?

Health and Wellness Time Line
• Establish a date and time Allow 4-6 months of planning time

Health and Wellness Planning
• Identify health-related screenings, tests, other activities you’ll offer Identify educational literature and other learning opportunities Health and Wellness will provide Include any “fun” activities, or food/beverage needs for the fair

Health and Wellness Location & Logistics
• Look at location big enough to accommodate the largest volume of workers at “peak time” periods
• Determine how booths/stations will be set up

Health and Wellness Vendors
• Target relevant health/safety-related community and corporate vendors to provide services, educational materials, incentives and giveaways

Health and Wellness Marketing
• Determine marketing tools to be used to inform workers/participants (posters, mailings, e-mail)
• Determine any incentives or giveaways that will be included in the fair or used to encourage participation in the fair

Health and Wellness Scheduling
• Coordinate timing and events with staff and/or volunteers

Health and Wellness Personnel
• Schedule appropriate experts Physician or similar healthcare personnel to provide patient consultation for review of blood draw lab results
• Nurse(s) to administer immunizations
• Administrative/all-purpose individual to facilitate paper work, finger sticks and to provide general assistance
• Pharmacist or pharmacist assistant if appropriate Dietitian for nutritional counseling suggested personnel designated for health fairs

Footnotes

1 The Robert Wood Johnson Foundation via Reuters Health E-Line.
2 Kaiser Daily Health Policy Report, (9/11/03)
3 www.cdc.gov/nccdphp/dnpa/press/archive/lower_cost.htm
4 “Is Stress Nibbling Away at Your Bottom Line?” By Stephen Alper, Nov. 15, 2002.
5 Health Promotion in the Workplace, Michael P. O’Donnell, page 415.
6 http://www.bmpcoe.org/bestpractices/internal/dayto/dayto_6.html

According to Gordian Health Solutions, the effectiveness of Company Wellness Programs in improving health and reducing healthcare costs is directly linked to incentives: the more substantial the incentives, the higher the success rate. Incentives can range from tokens of achievement, such as t-shirts, water bottles and sports equipment, to more substantial financial awards, such as cash incentives or copay vouchers for the successful completion of a program.

Nationwide Insurance is seeing results from a small incentive program initiated by one of the company’s onsite nurses. To encourage lunchtime walking, the worker has informally launched a “shoelace program” modeled after the karate-belt color system. Employees progress through the color scale until they reach “black-lace” status. The reward system has resulted in more workers making commitments to walk during their lunch hour.

At the high end of the reward spectrum, some businesses pay cash to workers who meet wellness goals. LuK, Inc. offers workers $250 for kicking the tobacco habit and remaining smoke free for 12 months. For logging fitness points that add up to 10 miles a month, workers are eligible for health assessments, which can result in reward amounts of up to $225.

The most effective motivator, according to Gordian research, comes through linking participation in Company Wellness Programs directly to insurance premiums. Doing so clearly demonstrates to workers the positive effects of wellness on their own healthcare costs. frequently, the first step in linking wellness programming to insurance coverage is lowering deductibles for wellness care or eliminating deductibles altogether. By adding this benefit, businesses can encourage workers to undertake routine screenings and other procedures to respond to health problems before they become chronic. Early detection benefits both patient health and employer health costs.

Incentivizing Company Wellness Program participation with healthcare credits

More frequently, employers are going beyond increased wellness care coverage and looking to demonstrate the importance of wellness by linking participation to workers’ bottom lines. Worthington Industries has recently rolled out a program that allows workers to eliminate their portion of the insurance premium by enrolling in a Healthy Choices Company Wellness Program.

During the first year of the Healthy Choices program, workers and their spouses complete Individual Health Assessments and medical screenings to determine their levels of health risks. Nurses, dietitians and physical fitness specialists are available to help moderate- and high-risk participants develop individual action plans for improved health through the use of educational materials, behavior modification, telephone help from third-party program health coordinators, and formal health management initiatives. By completing the assessments, workers earn their full premium credit. Because some plans at Worthington require no worker contribution, a cash award takes the place of a credit in those cases.  During year two of the program, the wellness bar is raised slightly. To continue to receive the wellness credit, participants in the moderate- to high-risk category will be required to work at setting goals with third-party health coordinators.

Year three raises the bar again, requiring participants to show progress in meeting goals and to continue to work with health coordinators to reach goals.

After year three, Worthington Industries workers will be on the wellness track. The company believes that will mean a healthier workforce and cost savings for workers and the company. The well being of Worthington workers is the foundation of this program, and both workers and the company are expected to benefit from the long-term advantages of the Healthy Choices Company Wellness Program.

While Worthington has taken a broad approach to wellness, other businesses have found success in offering incentives in specific areas. Longaberger, for example, offers a discount on healthcare policies for workers who do not use tobacco. An individual worker who doesn’t use tobacco saves $7 per bi-weekly pay. For tobacco-free workers with family coverage whose families are also tobacco-free, the savings increases to $14 per pay.

The next step: Penalizing harmful behaviors

As it stands, healthcare is the only type of insurance that doesn’t focus on penalizing for behaviors that put the insured party at risk. With healthcare costs rising so dramatically, that could soon change. Just as an accident likely raises auto insurance premiums, increasing premiums for those who engage in unhealthy behaviors is a possible next step in employers’ attempts to manage healthcare costs.

Reports that workers would support this type of action are stacking up. One Ohio employer conducted an informal survey that indicated workers would consider it a morale boost if health-conscious workers were relieved of some of the burden of subsidizing care for workers who engage in behaviors that adversely affect their health. Whether or not this type of program gains popularity, one thing is sure: the need to control the rise in healthcare costs is becoming ever more pressing.

Take the first step

Whatever the strategy, from offering workers health resources to providing incentives for healthy behaviors, employers have a real opportunity to improve morale and productivity, reduce rates of absence and control healthcare costs through wellness. The first step is committing to taking one, no matter what size effort is appropriate for your organization.

Big strides start with small steps.