Benefits of Company Wellness Programs

Introduction to Company Wellness Programs

Risky health behaviors by workers cost a company. Changing those behaviors can save the employer money and increase the worker’s productivity.

Because work gives an worker a stable setting and support system, Company Wellness Programs can have a great impact on reducing high-risk behaviors. This impact results in lower health claims cost, less rates of absenteeism, and less short-term disability.

Company Wellness Programs may include:

Awareness Rasing Programs: Health and wellness newsletters, health topics covered in payroll stuffers, healthy emails.

Health Risk Assessment: Employee health screenings, wellness fairs, health rist assessments.

Educational Programs: Lunchtime wellness presentations, guest speakers at staff meetings.

Skill Building: Healthy cooking demostrations, activity challenges, CPR instruction opportunites, stress management classes, weight management classes.

Interventions: Massage, smoking cessation, and skills to help you get the most out of your doctor visit.

Physical environment: Healthy items in the vending machines and cafeterias, clean air practices, ergonomics, bike racks, flex time, welllit stairways.

Evaluation: Employee needs assessment, baseline Company Wellness Program assessment measures, ongoing Company Wellness Program assessment of overall effectiveness.

Why Offer Company Wellness Programs

The typical employer spends about $8,000 a year on an employee’s healthcare. This includes medical insurance, disability and worker’s compensation. As these costs climb, medical insurance is expected to rise at least 10 percent per year.

A 1999 study showed that businesses using Company Wellness Programs had a return on investment from $1.49 – $13 in benefits per dollar spent. The amount depended on the nature of the Company Wellness Programs used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)

One study showed that a “stop smoking” component to Company Wellness Programs may save between $404 -$40,829 per employee, depending on the age and sex of the worker.

The Company Wellness Programs at Traveler’s Company included a self-care book, a newsletter, single-topic brochures, and videotapes. The Company Wellness Programs saved the company $7.8 million in employee benefi t costs, decreased doctor visits, and it reduced rates of absenteeism by 1.2 days per worker per year. The estimated Company Wellness Programs ROI was $3.40 per dollar spent.

In 1998, the Health Enhancement Research Organization (HERO) reported a study of 46,026 workers from six large corporations for three years. Staff Members with an inactive lifestyle had 10 percent higher costs; workers with depression had 70 percent higher costs.

Benefits of Company Wellness Programs

Increased Productivity - The Canada Life Assurance Company realized a 4 percent rise in productivity after starting an employee fitness program.

Increased Job Satisfaction - According to employee opinion surveys conducted by the Silverstone Group about thier Company Wellness Programs, workers’ morale increased, which helped support a more creative work setting.

Enhanced Recruitment & Retention - In the midst of a tight labor market, Company Wellness Programs could be a important tool to draw new recruits.

Decreased Absenteeism - Canada Life Assurance Company’s rates of absenteeism dropped 42 percent among workers in the Company Wellness Programs.

Decreased Workers Comp & Disability - In one year, Boeing Company’s number of back injuries decreased by 34 percent. Six million dollars was saved by tracking injuries as they occurred.

Managed Health Care Costs - Golden, Colorado Adolf Coors Company’s Company Wellness Programs returned $6.19 for every dollar spent.