Other benefits demonstrated in studies include improved ability to attract and retain key personnel, greater worker allegiance, and improved public image of the company.

Health Care and Insurance Costs

A number of studies provide evidence of lower medical and insurance costs for participants in health promotion programs, in particular health promotion programs involving exercise.

For $30 per person, the Bank of America conducted a wellness program for retirees using a risk assessment questionnaire, self-care books and other mailed materials. Insurance claims were lowered an average of $164 per year in this group while they increased $15 for the control group.

Since they were able to document significant changes in risk behavior, they anticipate greater savings in future years.

Pacific Bell’s FitWorks participants claim $300 less per case for a one-year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case.

Coca Cola stated a reduction in healthcare claims with an exercise programalone, saving $500 per worker per year for the staff members (60%) who joined their HealthWorks fitness program.

Prudential Insurance Corporation reports that the company’s major health costs dropped from $574 to $312 for each participant in its wellness program.

Lowered Absenteeism

Absenteeism has been shown to be impacted by employee health promotion and health promotion programs. the evidence indicates a meaningful reduction in absenteeism and resultant dollars saved thus of staff member exercise plans.

Pacific Bell’s FitWorks program lowered absent days .8% to save $2 million in one year. FitWorks members also spent 3.3 days less on short-term disability for an additional savings of $4.7 million.

Focusing wellness efforts on high-risk workers can lead to better results. A national manufacturing company reports a decrease of 12.2 percent in illness days for these workers.

A two-year study by the DuPont Business of the effect of its comprehensive health promotion program on absences among workers reports that blue-collar workers at intervention sites had a 14 percent decline in disability days vs. 5.8 percent decline for controls. There were a total of 11,726 fewer net disability days.

Enhanced Performance, Productivity and Morale

A number of companys with wellness programs report documented betterment in job attitude, work performance, energy level, and/or overall morale among program participants–all vital factors in enhancing productivity.

A Johnson and Johnson study found that staff member attitude changes were greater at wellness intervention sites with meaningful positive attitude changes noted in the categories of organizational commitment, supervision, working conditions, job competence/security, and pay/benefits.

In a Canadian government study, the Canada Life Assurance Company experimental group realized a 4 percent increase in productivity after starting an employee fitness program, compared to the control group.

Furthermore, 47% of program participants announced that they felt more alert, had better rapport with their coworkers, and normally enjoyed their work more.

Swedish investigators found that mental performance was significantly better in physically fit staff members than in non-fit staff members. Fit staff members committed 27 percent fewer errors on tasks involving concentration and short-term memory, as compared with the performance of non-fit staff members.

The Bottom Line

The following sample of corporate wellness wellness program results have been announced by individual corporations –

Company –  Dollars Saved/Dollars Spent

• Bank of America (Fries) –  $5.96/$1

• PacBell –  $3.10/$1

• Wisconsin School District Insurance Group –  $4.47/$1

• Prudential Insurance –  $2.90/$1

• Bank of America (Leigh) –  $4.73/$1

• General Mills –  $3.50/$1

Summary

There’s compelling evidence that a sizable portion of the billions of dollars currently spent by corporations on health-related costs is preventable by means of health promotion programming.

Well-planned, extensive wellness programs (wellness programs and worker wellness programs) have been proven to be cost-effective, particularly when the wellness programming is matched to the medical problems of the specific worker

Start a free wellness program or run a successful health management program in the office for little or no cost to your company. the benefits of corporate wellness and learning how to start a health management program at work are many.

The articles on health management have generated a selection of questions, primarily from wellness providers but also from organizations trying to start their own wellness workplace programs. There are a number of things to do to implement a successful health management program at work.

Suggestions for Starting a Free or Inexpensive Wellness Program

Before beginning a low cost or free wellness program for your corporation, learn more about what employees want. Survey employees to learn more about their wellness concerns.

Keep the survey confidential to protect employees’ identities. Generally the most well-liked employee wellness topics are tobacco use cessation, losing weight concerns and heart and cholesterol health.

Look for Company Health Promotion Freebies

Find out who will come in for free to speak to personnel and explore partnerships with outside agents related to employee wellness.

For example, consult a local branch of a well-known losing weight organization and ask when someone can come in and speak to staff members. Look for agencies that are willing to come in and talk about topics related to wellness at no cost to staff members, in exchange for something from you.

Find Employee Wellness Partnerships

Working with a weight loss corporation to set up a speaking engagement for workforce is the perfect opportunity to explore a potential wellness partnership.

The losing weight company may say that if 10 workers join the program, they’ll hold weekly meetings at company headquarters for the people  who joined. the losing weight group also may offer company workers a discount if a few people  join the program.

Nonprofits an Untapped Health Management Resource

There are also plenty of nonprofit agencies who’d be thrilled to visit a corporation to discuss health management. But it’s up to you to offer them something in return.

For example, when the MS Society came in and talked about the signs of MS, the organization could offer to organize an MS walk (in keeping with organization health management goals, right?), or an auction with staff member and company-donated items where the proceeds go to MS.

The individuals  at the nonprofit agencies would be happy to open a dialog with your company and to talk about what they’d want in return for a speaking engagement. In many cases, they will not need anything at all for a first meeting.

Accumulating Data and Investigating Health Promotion Program Results

Accumulating data and evaluating  results of a health promotion program may be tricky because of HIPPA laws. Nonetheless, if at least 10 employees joined the losing weight program, or 20 people  participate daily in the all-new “Let us Walk a Mile at Lunch” program, that sort of progress can speak strongly to senior-level management.

And, organization successes will potentially give management more incentive to provide money for additional health management and wellness programs in the future.

The beauty of it’s that you’re simply assisting workforce to make smart choices so the costs of beginning a health promotion program are minimal compared to the benefits.

Worker health is a major concern for small company owners. In a small shop, even several sick employees can disrupt the flow of the workplace and bring the operation to a standstill.

Instead of sitting back and hoping for the best, some owners are taking the matter of staff member health into their own hands by beginning staff member wellness programs. Here’s how they work . . .

Overview of worker health promotion programs

Staff Member health promotion programs are programs initiated by the employer to enhance the overall health of their labor force and to help individual workers overcome specific health-related hurdles.

These programs may be offered in a selection of formats –  In mandatory staff training sessions, as voluntary seminars, or through a third-party provider offering a wide-range of staff member assistance programs.

In every case, notwithstanding, the corporation foots the bill for the programs because an investment in worker health is a corporation investment that directly impacts the corporation’s bottom line.

Why offer employee wellness programs?

Apart from the apparent concern for the health of your staff, there are several other reasons why worker health promotion programs make sense for small businesses. Right off the bat, your business will benefit from the reduced level of absenteeism that goes hand in hand with a healthy workforce.

Health promotion programs will also reduce the number of injuries that occur in the workplace, not just from accidents, but also from repetitive motion and other recurring sources.

Since even a minor blip in employee attendance can have a big impact on a small corporation, a more reliable workforce will inevitably translate into a smoother work cycle and a more extensive bottom line.

Health Promotion Program Features

Health promotion programs can cover a wide range of health-related topics. Based on your employees’ needs, it’s entirely up to you to determine the kind of programming you want to offer.

However, most staff member wellness programs offer some at least some programs in the following areas –

• Nutrition. Diet can significantly impact an employee’s ability to do their job effectively. Nutritional programs educate personnel about food choices and equip them to make healthy dietary choices.

• Fitness. In addition to diet, exercise is an important factor in a healthful lifestyle. Wellness programs frequently provide workforce with opportunities to incorporate exercise into their daily lives.

• Smoking Cessation. Statistics prove that smokers tend to fall ill more frequently than their non-use of tobacco colleagues. Since sick staff disrupt the workplace, use of tobacco cessation programs are a no-brainer for both corporations and staff.

• Physiological Testing. A lot of employers offer physiological as a regular part of their wellness programs. Cholesterol tests, blood pressure screenings, and other simple exams can provide early warning signs for additional serious problems.

• Stress Management. Stress itself takes a toll on staff members. Notwithstanding, stress is also linked to other health problems such as depression, cardiovascular illness, diabetes, and obesity. Wellness programs that help staff members deal with stress improve not only the psychological health of your staff members, but their physical health as well.

The benefits to starting a health promotion program are many.

Several company wellness tips to get personnel started on the path to a healthier lifestyle –

1. Look around, and determine when staff members lead a healthful lifestyle before beginning an worker health promotion program.

• How many employees dash outside at lunchtime for a smoke break?
• Would a smoking cessation program help?
• How often do the junk food-laden vending machines have to be replenished?
• Is anyone exercising or taking advantage of local walking trails as part of their healthful living goals?

The answers to these questions will give companies a better idea of the staff member wellness program that’s right for them.

2. Survey personnel to determine their healthful lifestyle habits.

• Are they exercising regularly?
• Eat three square meals a day?
Have regular physicals? Really? Then what planet are they on?

Because we would love to visit! A health promotion program benefits most organizations because workforce don’t have the time or energy to stay on top of wellness concerns at work or when they leave the office to go home.

3. Give health promotion programs a large kick-off with a healthy living “fair.” Offer workforce free flu shots, blood pressure checks, cholesterol screenings, body/fat ratio assessments, smoking cessation programs and free mammograms- and contact the local hospital, because there’s plenty more where this came from.

Organizations keep their staff hopping during the week. Give staff a chance to amp up their healthful lifestyle on the organization dime. A health promotion program is an added benefit that staff get for working for the company!

4. Incent to live- offer money for personnel to lose weight, commit to a use of tobacco cessation program and generally enjoy a healthier lifestyle.

Make certain to encourage humankind’s innate competitive nature by offering prizes for wellness staff member “winners.” And, encourage a healthier lifestyle by sponsoring staff members who want to enter a local 5K for charity race, run a marathon or play a sport.

The last ten years has brought major changes in business attitudes toward health promotion programs. Interest in self-help and self-care programs has increased as growth in health care costs have encroached substantially into profits.

Changes in the organizational structures of health care facilities, specifically the growth of the for-profit health care sector, and the need to contain costs are changing the ways in which purchasers of health care plans are viewing their own efforts toward provision of worksite health care programs and facilities.

Projections for the next decade indicate that worksite health programs will continue to become important factors in the provision of healthcare, including avoidance activities, for both government and private industry.

In businesses with existing health promotion programs, administrative rationale for sponsoring these activities ranged from bettering employee health (28%) to bettering employee morale (9.7%).

Programs include interventions associated with safety, health risk (assessment|appraisal}, smoking cessation, blood pressure control, nutrition programs and stress management. Benefits cited range from improved health and productivity to reducing health care costs.

Demographics of the United States  Workforce

• 110 million Americans were in the civilian labor force in 1981; by the year 2000 the civilian labor force is expected to be nearly 140 million.

• 44 percent of the 1984 labor force was female; 10 percent was Black.

• The median age of the workforce is 32 years and is expected to increase to 32 years by 2030.

• 57.9% of all staff work in companies with between 2 and 500 employees; 45% work in companies with fewer than 100 staff.  An additional 7.5 million Americans are self-employed and 3 million are farmers.

• 18% of all wage and salaried personnel in 1985 were union members.            

• 45% of all staff members are employed in offices.            

Prevalence of Company Wellness Activities            

Based on a 1985 survey, nearly 66% of worksites with 50 or more staff had company health promotion activities in 1985.  The frequency of worksite-based activities by selected categories in 1985 was –             

Health Promotion Program Activities            

Use of tobacco Control          35.60%   

Health Risk (Assessment|Appraisal}    29.50%         

Back Care             28.60%

Stress Management       26.60%      

Exercise             22.10%

Off the Job Accidents    19.80%         

Nutrition             16.80%

Blood Pressure Control    16.50%         

Weight Control          14.70%   

Worksite size is the strongest indicator of program prevalence.            

Most staff believe the benefits of their employee wellness activities outweigh the costs, even though few formal investigations exist.            

The most frequently cited reason for beginning programs and perceived benefit from programs is improved worker health.

At most worksites with activities (85.4%), all employees are eligible to participate. 30 percent of worksites with activities offer them to employer dependents, and an equal percent offer them to retirees.

When worksites seek outside program assistance, they turn to voluntary, not-for-profit organizations (57.1%), private for-profit providers-consultants (50%), local hospitals (44%), and insurance organizations (43%).

Use of tobacco Cessation Programs

Use of tobacco related health problems cost USA  corporations $26 billion per year in lost productivity and $7 to $8 billion in tobacco use-related health costs.

Employees who smoke are 50% more likely to be hospitalized than nonsmokers, have 2 times as many job-related accidents as nonsmokers and have absenteeism rates approximately 50% higher than nonsmokers.

Individuals  who smoked an typical of one or more packs of cigarettes per day had 118% higher health expenditures than nonsmokers.

76 percent of current smokers and 80 percent of former smokers and nonsmokers feel that companies should restrict use of tobacco to certain areas.

In 1985, 65 percent of smokers, 85 percent of nonsmokers and 78 percent of former smokers, felt that smokers should refrain from smoking in the presence of nonsmokers.

In 1986, 17 states had laws regulating smoking in offices or workplaces either in government-controlled offices or offices of private employees.

Examples of smoking cessation intervention program used by businesses include –

• offering nonsmokers a discount of health and life insurance;

• compensating full or partial fees for tobacco use cessation programs;

• providing cessation programs on organization or shared time;

• offering cash payments to quitters after 6 of 12 smoke-free months;

• participating in national quit tobacco use days; and

• adopting a smoke free company policy and setting deadlines for beginning the policy.

Fitness Programs

An active 55-year-old man can lead as vigorous a lifestyle as a sedentary 35-year-old.

Differences in work-related activity has been proven to yield a two- to three-fold difference in cardiovascular deaths between active staff and their more sedentary counterparts.

In addition to bettering strength, balance, and flexibility, exercise programs could reduce  the probability of back injuries among certain occupational groups.

93 million workdays in the USA are lost each year as the result of back problems.

Research findings support the notion that worksite fitness plans improve fitness and help reduce other health risks, although results related to improved productivity are weak due to lack of methods for accurately measuring productivity.

A very small proportion of worksites have onsite fitness facilities.

The majority of personnel sponsored fitness programs involve skills training like aerobic dance, low impact aerobics, weight training, preand post-natal exercise classes, and walking/jogging groups.

Some organizations subsidize worker participation in community “Ys,” health clubs or other community programs when no onsite facilities are available.

Worksite physical fitness programs could reduce costs to corporations by lowering worker health care claims and expenditures.

People  whose weekly exercise was equivalent to climbing less than five flights of stairs or walking less than a half mile, spent 114 percent more on health claims than those who ascended at least 15 flights of stairs or walked 1 1/2 miles weekly.

Health care costs for obese people  are roughly 11% higher than those for thin people .

Nutrition and Weight Control

One-third of the United States  population is obese to the extent of lowering their life expectancy.

Improvements in consuming habits can reduce  the risk of serious health problems such as high blood pressure (BP) and cholesterol levels and is instrumental in the control of non-insulin-dependent diabetes.

The workplace offers several advantages for nutrition education; support and influence of coworkers and management, availability of a daily consuming situation, and opportunities for follow-up and monitoring.

Worksite nutrition programs could be grouped in 6 broad categories –

• cafeteria programs;

• multi-component programs;

• weight control programs;

• cholesterol reduction programs;

• programs for pregnant and lactating women; and

• other nutrition education topics.

Men are less likely to take part in weight-loss programs than are female staff.

Stress Management

Estimates suggest that 50% to 80% of doctor visits can be attributed to psychosomatic or stress-related origins.

Business pays many of the costs related to employee stress, both directly in the form of health care costs and in lower productivity.

Job factors which are associated with stress include –

• not permitting staff members to take part in decisions about the work process;

• positions which require more or less skill than the employee has;

• changes in work demands;

• lack of clarity about expectations and standards; and

• conflict with coworkers or supervisors.

Most worksite stress management programs are implemented thus of requests from workforce.

Stress management programs focus on three kinds of skills –  relaxation skills, coping skills, and interpersonal skills.

Worksite stress management programs are often delivered in one of three formats –

• seminars conducted by trained professionals;

• self-learning tools; and

• personal teaching to assist with self-assessment, planning for changes, learning new skills and responding to life crises.

The two major techniques used in worksite stress management programs are –

• teaching individuals  to reduce the negative physical effects of stress; and

• teaching people  to recognize and control sources of stress at work and in personal life.

Seat Belt Usage

Motor car accidents are the largest single cause of lost work time and on-the-job fatalities of U.S.  corporation.

Motor car accidents account for 27 percent of all work-related deaths and 45 million days of lost work yearly.

More than 36 percent of the 11,300 accidental work deaths in 1983 involved cars.

Employees who routinely fail to use seat belts may spend up to 54 percent more days in the hospital.

Traffic accidents caused about 3 times as many days of restricted activity as any other type of disability.

Motor automobile crashes cost $15.2 billion in lost productivity, 88 percent of which is attributed to losses from workforce activities and future earnings.

In corporate establishings where safety belt policies, requiring use of belts by whoever riding in a organization car or using a private car on organization organization, have been enforced, 60 percent to 90 percent use has been reported.

Incentive programs, accompanied by education and use requirement restrictions have resulted in 40% to 70% initial usage rates.

Factors influencing the sources of worksite safety belt programs include –

• active commitment by management;

• obviously defined and well enforced policy of required belt use on the job;

• positive incentives; and

• ongoing education and training programs.

Case Studies of Wellness Programs

Based on an comprehensive investigation of its comprehensive worker wellness program, LIVE FOR LIFE, Johnson and Johnson stated the break-even point for the program occurs in year 3 and by year 5 they have a net advantage of $316 per worker. Their year 9 projected benefit is $677 per worker.

Employees at four Johnson and Johnson organizations who were exposed to the wellness program increased their daily energy expenditure in vigorous activity by 104 percent compared to an increase of 33 percent among workers at organizations that were offered only an annual health screen.

Participants in the United Methodist Publishing House’s wellness program submitted more claims (1.14 per participating staff member and .82 for the control in 1984, 1.44 and 1.3 respectively in 1985), but the average cost per claim was less for participants ($316 for participants and $567 for control, in 1984, $262 and $602 respectively in 1985, $270 and $566 respectively in the first four months of 1986).

The United Methodist Publishing House attributes some of the lower than projected use in health care costs for 1985 ($902,116 projected with actual costs $142,884) to the health promotion program even though the results are not conclusive.

In 1985, the Adolph Coors Corporation conducted a telephone interview of a random sample of its 10,000 workers to determine changes in health practices since the introduction of an employee health promotion program 4 years earlier.

The sample of 495 staff members was stratified to match the business profile respecting age, sex and job description.

The survey reported that 65 percent of respondents began exercising in the last 4 years, 37 percent had improved their diets, 20 percent were regular users of the wellness center, 9 percent had stopped use of tobacco as the result of the company’s use of tobacco cessation program and regular participants of the wellness center miss an typical of 1.96 workdays each year because of disease or injury compared to 3.08 days for non-participating personnel.

The Coors Business also achieved a cost savings from a cardiac rehabilitation program that was implemented in 1981. In 1980 workforce were out of work 7.2 months after a heart attack or bypass operation.

In 1984, cardiac patients were out an typical 1.9 months saving $152,000 in lost work time and in 1985 cardiac patients missed an typical of 2.6 months, saving $125,000 that year.

Instituting a health promotion program improves the health of staff members, lowers employee absenteeism and saves the corporation money, too. Learn more about starting an employee health promotion program in the office.

Benefits of Wellness Programs

• A corporation investment of $100-$150 per worker each year to take part in an worker wellness program can save businesses $300 to $450 for each worker every year, as reported by Ron Goetzel, Director, Cornell University Institute for Health and Productivity Studies.

The savings can take a few years to actualize, says Goetzel, and are seen in reduced health expenditures.

• The Health Promotion Councils of America reported a $24 return for every $1 spent on a corporation wellness program for small companies.

• As reported by a 2005 survey by the Art of Wellness, corporations who instituted worker wellness programs realized a 30 percent reduction in medical and absenteeism costs in less than four years.

A successful health promotion program starts with organization leaders. Company owners ought to lead by example, taking part in their corporation’s corporate fitness program and working closely with a wellness coach.

Company leaders should make certain employees are well aware about their wellness efforts, posting weight reduction results or tobacco use cessation results on organization intranet or bulletin boards for everyone to see.

Employee Wellness Programs that Really Work

• Be sure to encourage staff members to kick begin their own health promotion programs by visiting their doctor. A complete physical should include information about blood sugar, cholesterol levels and general health.

• Target specific health-related concerns in a corporate fitness program. Information about how to fight obesity, tobacco use, alcoholism and drug abuse must be at the forefront of an worker wellness program, along with related conditions.

• Hire a wellness coach to instruct staff on how to lead a healthful lifestyle.

• Reward staff for participating in organization wellness programs. Let staff accrue wellness points that they can redeem for prizes.

Make the prizes healthy, too- a free massage, private training session with the organization’s wellness coach or health food gift certificate encourages even healthier lifestyle choices.

• Acknowledge worker wellness leaders in company newsletters, in posted bulletins and on the company intranet.

Company Wellness Programs Yield Big Results

For corporation owners who want to increase employee participation in a corporation wellness program, consider Johnson and Johnson’s approach.

Faced with only 26% of workers participating in their worker wellness program, Johnson and Johnson offered workers a $500 discount on health insurance costs if they completed a health risk profile.

The number of staff participating in the Johnson and Johnson corporate fitness program jumped after they offered the incentive — to more than 93%.

Ron Goetzel encourages those looking to pitch a corporate fitness program to corporation leaders to use basic facts about the benefits of worker wellness programs as part of their argument.

Keep it simple, and share results from other corporation’s worker health promotion program success stories.

1   The U.S. spends more dollars on health care than any other nation yet we aren’t the world’s healthiest

• Largely sedentary   

• Smoking is still popular   

• Stress is at epidemic levels (WHO)   

• Alcohol continues to take its toll on Americans   

2   Much of the illness in the USA is preventable

• Tobacco and alcohol are leading causes of death   

• as much as 70 percent of the cost of health care is driven by avoidable illness   

3   Health Care costs continue to rise

• Health Care premiums continue to rise and to be passed on to the employee   

• Health Care cost are generally the number one benefit cost to most corporations    

4   The worksite is an ideal establishing to address health and well being

• Most American Citizens work   

• Poor health habits take a toll on American business   

• Employers have a vested interest in health related issues.   

5   Research validates that health promotion programs can improve health, save money, and even produce a Return On Investment.

• Aldana,S.G. (1998). Financial impact of company wellness and methodological quality of the evidence. the Art of Wellness. Vol 2, Number 1.   

• Wilson, M.G. (1996). A comprehensive review of the effects of corporate wellness on health related outcomes –  an update. the American Journal of wellness. Vol 10, Number 6.   

• Wilson, M.G. (1996). A comprehensive review of the effects of company wellness on health related outcomes –  an update. the American Journal of wellness. Vol 11, Number 2.   

• Chapman, L.S. Proof Positive –  an analysis of the cost-effectiveness of company wellness. 3rd ed. Seattle –  Summex Company, 1996.   

• Pelletier, K.R. A review of the health and cost-effective outcomes studies of extensive wellness and disease avoidance programs at the worksite –  1993-1995 Update. the American Journal of Health and Promotion. Vol. 10, Number 5.   

Key Components of a Health Promotion Program   

Physical Wellness – Focuses on the development, maintenance, or improvement of one’s physical fitness   

Sample Physical Health Promotion Programs / Seminars

• Annual biometric testing

• Regular physical activity

• Good safety habits

Emotional Health Promotion – Focuses on all aspects of mental fitness

Sample Emotional Wellness Programs / Workshops

• Stress management workshops

• Dealing with aging

• Addictive behaviors

• Parenting

Financial Wellness – Focuses on improving the quality of life of employees by assisting families and individuals in becoming financially stable

Sample Financial Wellness Programs / Seminars

• Financial management

• Savings and Investing

• Credit and Purchasing

• Insurance and Estate Planning

Spiritual Wellness – Focuses on promoting a healthy inner self

Sample Spiritual Health Promotion Programs / Workshops

• Make sure to encourage daily devotional readings

• Provide regular service opportunities

• Provide a daily/weekly/monthly chapel (meditation) time during work hours

Nutritional Wellness – Will meet the needs of the employees through group and individual nutritional services

Sample Nutritional Wellness Programs / Workshops

• Individual nutritional Assessment

• Individual and group counseling

• Educational classes

• Weight loss programs

The purpose of this article is to consider whether such programs improve health. When so, do they in turn reduce utilization of healthcare services and reduce healthcare expenditures?

The popular media have done much to promote the concept of employee health promotion. Last year, In Business –  Madison1 magazine printed a story accompanied by a table reporting an impressive range of ROI –

Return on Investment (Per dollar ROI for lifestyle programs)

• Coors $6.15

• Kennecott $5.78

• Equitable Life $5.52

• Citibank $4.56

• General Mills $3.90

• Travelers $3.40

• Motorola $3.15

• PepsiCo $3.00

• Unum Life $1.81

Source –  2004 T.E. Brennan Corporation, as reported

Would these Return On Investments stand up to rigorous empirical analysis of the data? What factors produce such disparate returns among these programs? and does the published literature, subject to colleague review of scientific methods, support the Return On Investments stated here?

Health and Productivity Management

Illness and injury associated with an unhealthy lifestyle or modifiable risk factors is reported to account for at least 25 percent of employee healthcare expenditures.

The most significant of these risk factors are stress, tobacco use, overweight or obesity, physical inactivity, excessive alcohol use, and poor nutritional habits.

Over the past two decades, a variety of groups at the local, state, and national levels have promoted the concept that health risk reduction and care management programs can improve worker health, and that worksite health education, health risk management, and benefit counseling should complement standard health insurance benefits.

The intensity of health promotion programs range from bulletin board,  pamphlet or newsletter information to on-site fitness facilities, health risk reduction classes, and personal lifestyle change coaching.

Health promotion programs today often include a health risk (assessment|appraisal}  to evaluate each staff member’s modifiable risk factors of illness. Program coordinators then target interventions to those that are at increased risk through personal communications and individual follow-up.

Extensive wellness programs may include classes on health risk reduction and job safety, fitness and exercise activities, fitness center memberships, and reductions in co-payments or premiums for staff members who adhere to advised biometric screening guidelines.

Along with this, some companys are restructuring health benefits and encouraging employees’ cost-sensitivity when accessing healthcare.5 These changes are intended to reduce employees’ need for and utilization of healthcare, yielding decreased group medical care costs.

Demonstrated reductions in health care expenditures should then provide companys with a powerful bargaining chip in negotiating lower health insurance premiums during future terms.

Evidence basis –  A range of Return On Investment (ROI) estimates

The empirical research has produced results as varied as the popular media on Return On Investment. However, evidence continues to grow that well-designed and well-resourced wellness and disease avoidance programs provide multi-faceted payback on investment.

Coworker-reviewed investigations and meta analyses show that Return On Investment (ROI) is achieved through improved employee health, reduced benefit expense, and enhanced productivity.

• Goetzel and colleagues, in their meta-analysis of two dozen articles summarizing economic examinations of health and productivity management programs, found an typical return of $3.14 per $1 invested in traditional wellness programs. the ROI estimates for the individual programs ranged from $1.49 to $13.7,

• Aldana reviewed 72 articles and concluded that wellness programs achieve an typical Return On Investment (ROI) of $3.48 when considering health care costs alone, $5.82 per $1 when examining absenteeism, and $4.30 when both outcomes are considered.

• Ozminkowski and collagues conducted a 38 month case study of 23,000 participants in Citibank, N.A.’s health management program and announced that within a 2 year period, Citibank realized a Return On Investment between $4.56 and $4.73.10  

Follow-up studies found improvements in the risk profiles of participants, with the high-risk group improving more than the “usual care” group1 thus of more intensive programming.

• Chapman’s 2004 meta-evaluation of 42 studies, ranking overall validity of the studies, reports cost-benefit ratios from $2.05-$4.64.

In addition to immediately quantifiable cost reductions, researchers have stated a selection of spin-off benefits –  greater productivity, intellectual capacity, and reductions in disability12 and absenteeism.9,13,14,15

Such programs may also have positive effects on staff member perceptions of the organization and staff member morale, even among nonparticipants.  These outcomes go beyond savings in direct healthcare costs to provide non-health related ROI.

Tailoring program to maximize Return On Investment (ROI) Wellness programs aim to reduce the health risks of employees at high risk while maintaining the health status of those at low risk.

A variety of disease management interventions are available to fit the specific risk profiles of various worksites. Insurers and organizations now seek to calibrate their interventions in order to achieve optimal risk reduction and costeffectiveness.

In 2001, University of Michigan researchers stated on stable trends in health care costs for over 2 million current and former staff in an 18 year data set.

The mean cost increase per risk factor gained ($350) was found to be more than double the mean cost decrease per eliminated risk factor ($150).

In other words, increases in costs when groups of staff moved from low risk to high risk were much greater than the reduces in costs when groups moved from high risk to low risk. Their conclusion –  Programs designed to keep healthy individuals  healthy will likely provide the greatest return on investment.

On the other hand, Pelletier’s meta-analysis and other program examinations18 suggest that individualized risks reduction for high-risk workforce within the context of extensive programming is the critical element in achieving positive clinical and cost outcomes in worksite interventions.

Dose-Response?

A few factors might affect the impact of various programs and the ultimate ROI, including cultural and environmental factors, workforce demographics, level of participation and longevity of the program.

Most cost-benefit studies have been conducted in large businesses with more than fifty staff members. But scientists have shown that similar results can be obtained by small businesses with as few as five staff members actively involved in a well-managed program.

Various studies also suggest that even relatively modest levels of participation can achieve substantial program impact. Contrary to reports by the well-liked media that such programs require more than 70% participation, published reports of at least one case showed positive Return On Investment (ROI) with 51% participation.

Length of intervention appears to be a more salient variable –  an impact on medical costs normally requires three-to five years of programming.

Future developments

Despite the abundance of positive program investigations, several caveats remain. Negative results are less likely to be stated or published, hence biasing the Return On Investment (ROI) upward.

Uncertainty persists regarding the specific impact of the various program components. But as these programs take hold, further research and investigation will enable fine-tuning of program investments.

Meanwhile, the preponderance of data and the strength of the published research stand for a positive ROI for health promotion programs.

In fact, the corporation case for such programs is now well enough defined that some insurance agents offer discounted rates to corporations that institute or subscribe to health promotion programs.

Future questions will focus on how to best to combine comprehensive and focused interventions, the intensity of elements, and how to calibrate the dose-response model to achieve a target Return On Investment.

Here, companys, workers, and scientists will need to collaborate to define mutual goals as for both clinical and cost outcomes.

Sources –

1. In Business –  Madison. Madison, WI –  September 2004. p. 39.

2. Anderson DR, Whitmer RW, Goetzel RZ, Ozminkowski RJ, Wasserman J, Serxner S. Health Enhancement Research Organization Committee. American Journal of Wellness 2000; 15(1) –  45-52.

3. Manning J. Wellness movement gains ground among businesses, health insurers. Milwaukee Journal Sentinel. August 19, 2004.

4. Chapman LS. Expert opinions on “best practices” in company health promotion (WHP). the Art of Health Promotion Newsletter, July/August 2004 – 1-6.

5. Fronstin, P, and Werntz, R. EBRI Issue Brief No. 267, March 2004. Washington, DC –  Staff Member Benefits Research Institute (EBRI).

6. Powell C. Specialists urge businesses to promote staff member wellness strategies. Akron Beacon Journal. October 25, 2004.

7. Goetzel RZ, Juday TR, Ozminkowski RJ. AWHP’s Worksite Health, Summer, 1999.

8. Goetzel, RZ. Absolute Advantage. Washington DC –  Health Promotion Councils of America. Vol 1(8); 2002.

9. Aldana SG. American Journal of Wellness 2001; 15(5) –  296-320.

10. Ozminkowski RJ, Dunn RL, Goetzel RZ, Cantor RI, Murnane J, Harrison M. American Journal of Health Promotion 1999; 14(1) –  31-43.

11. Ozminkowski RJ, Goetzel RZ, Smith MW, Cantor RI, Shaughnessy A, Harrison M. the impact of the Citibank, N.A. J Occup Environ Med. 2000; 42(5) –  502-511.

12. Serxner S, Gold D, Anderson D, Williams D. J Occup Environ Med. 2001; 43(1) –  25-29.

13. Riedel JE, Lynch W, Baase C, Hymel P, Peterson KW. American Journal of Wellness 2001; 15(3) –  167-191.

14. Edington MD, Karjalainen T, Hirschland D, Edington DW. AAOHN J. 2002 Jan; 50(1) –  26-31.

15. Aldana SG, Pronk NP. J Occup Environ Med. 2001 Jan; 43(1) –  36-46.

16. Pelletier KR. American Journal of Wellness. 2001; 16(2) –  107-16.

17. Edington DW. American Journal of Wellness 2001; 15(5) –  341-349.

18. Leatherman S, Berwick D, Iles D, Lewin LS, Davidoff F, Nolan T, Bisognano M. Health Affairs 2003; 22(2) –  17-30.

19. Erfurt JC, Holtyn K. J Occup Med 1991; 33(1) –  66-73.

20. Serxner S, Anderson DR, Gold D. American Journal of Wellness. 18(4) –  1-6, iii, 2004 Mar-Apr.

21. Serxner SA, Gold DB, Grossmeier JJ, Anderson DR.

The emerging corporate culture in the U.S.  is one which has an staff member population centered in health, safety and wellness.

Developing a corporate strategy for wellness and disability management makes good business sense. the following eight-step process ensures a strategic, integrated, needs-driven and results-oriented approach.

The following process works best in organizations with strong leadership and a long-term commitment to worker health.

1. Identify Your Program Champion

This individuals should be a leader in your organization and a strong advocate of health. Usually this is a personal who actively pursues his or her own personal quest for optimal health.

The program champion must’ve the resources and authority to drive the program forward. the program champion’s key role is to ensure the strategic plan for health is aligned with the organization’s organization goals, strategic focus and organizational values.

For example when the organization promotes that “our strength is our individuals ” the health promotion program must demonstrate how programs will nurture and protect that valuable resource.

2. Form Your Wellness Strategy Team

The Wellness Strategy Team should include decision makers and stakeholders from areas of the organization that can influence health and the corporation’s bottom line.

These areas may include; finance, human resources (HR), training and development, health services, compensation and benefits, staff member assistance services (EAP), advertising and marketing, facilities, health and safety, rehabilitation, cafeteria or food services and the union. A team of six to eight representatives is advised.

The role of the Strategy Team is to create and implement the strategic plan, look for opportunities to promote health, ensure the program is integrated into key areas of the organization, streamline efforts, maximize corporation resources and program analysis.

3. Complete an Organizational Health Audit

The purpose of an Organizational Health Audit is to evaluate your existing programs and services, physical environment and policies and procedures that support health.

It’s also important to look at your organizational culture or “how things are done” around the business.

Members of the Strategy Team complete the Audit independently and then meet to discuss their investigation. During the investigation process, health issues and opportunities are discussed in preparation for the development of the strategic plan.

4. Analyze Your Corporation’s Cost Pressures

Cost pressures are identified by analyzing  a number of areas including; benefit costs, Workplace Safety Insurance Board (WSIB) claims, drug usage, kind of paramedic claims, absenteeism data and employee assistance program (EAP) utilization.

This process helps to target areas that can be positively impacted by a wellness program and to provide a baseline for evaluating  change.

5. Conduct a Health Risk (Assessment|Appraisal} or Employee Needs and Interest Survey

The next step is to determine your staff member’s health risks, interests and readiness to change. A confidential health risk (assessment|appraisal} can accomplish many objectives.

It provides a baseline from which to measure personal lifestyle changes, provides workers with relevant medical information, excites workers to take charge of their health and helps in program planning.

Most health risk (assessment|appraisal}s provide individual reports and a corporate report identifying high-risk areas in the company.

Many organizations prefer to administer personalized needs and interest survey to evaluate employee needs. the benefit of this approach is that the organization can gather information on the employees’ perceived wellness needs and program interests.

This information may be incorporated into the strategic plan. Administering a recent survey also has the added benefit of fostering a sense of employee ownership to the program.

6. Develop Your Strategic Plan for Wellness

The strategic plan should incorporate information collected from the Organizational Health Audit, your corporation’s cost pressures, and health risk (assessment|appraisal} data or staff member survey results.

The strategic plan ought to include your program mission, three or four goals and several programs under each objective. the strategic plan provides a framework to encourage, support and evaluate “best health practices.”

It’s also important that the plan align itself with the vision, goals and goals of the organization.

The sample strategic plan that follows was developed for blue jeans maker Levi Strauss and Co. (Canada) Inc. Levi Strauss and Co.’s mission statement and aspirations (how staff members interact with each other in a corporation environment) guided the development of the plan.

Levi Strauss and Co.’s aspirations include the following statement –  Above all, we want satisfaction from accomplishments and friendships, balanced personal and specialist lives, and to have fun in our endeavors.

The health promotion program plan included a number of components to ensure that it embraced this statement including the following –

1. A vision statement, which tied in with the corporation’s aspirations.

2.  An incentive system to encourage and reward the accomplishment of healthy milestones.

3. A recognition system to applaud success.

4. Friendly competitions between Levi Strauss and Co. locations to ensure a fun environment.

5. Opportunities to participate in small group educational programs to foster team support.

6. Initiation of support groups for workforce completing wellness programs (i.e. smoking control support group).

7. Programs dealing with work and family balance.

Other information that was assessed and used to create the plan included –

1. Company demographics

2. Focus groups

3. Cultural audit

4. Top drug report

5. employee assistance program (EAP) utilization

6. Staff Member benefit services report

7. Health and dental claims

8. Operational performance summaries

9. Health risk (assessment|appraisal}s

7. Prepare a Company Case to Support Your Plan

Your corporation case for wellness provides the necessary details for approval at the  senior level management level. the corporation case includes –

1. the Strategic Plan for Health

2. A proposed program budget

3. Marketing strategies

4. Program leadership options

5.  An implementation plan

6. Investigation methodology.

In presenting the strategic plan it’s important to highlight how the plan aligns itself with the strategic direction of the organization.

The program budget should include educational resources, advertising costs, rewards and incentives, leadership costs and supplies.

Advertising and Marketing strategies should address how the program will be promoted and rolled out to various groups within the organization i.e. decentralized locations, high risk personnel, older personnel.

Program leadership should address how volunteers will be used, internal resources  and whether advisors have been proposed. All play an equally important role in the implementation of your wellness program.

The program implementation plan should incorporate the following kinds of programs that help develop awareness of positive health practices, assist personnel in making lifestyle changes and initiatives, which support long-term change.

Awareness programs develop an awareness of the importance of healthful lifestyle practices and motivate staff members to take the next step. Examples of awareness programs include posting educational posters, newsletter articles and lunch and learn seminars.

Lifestyle change programs are more robust and longer in duration. They are designed to assist workers in changing behavior. Examples of lifestyle change programs are nutrition education programs, stress management programs, back care classes and smoking control programs.

A supportive corporate environment encompasses everything from corporate policies and procedures, the physical environment and creating a corporate culture that supports good health practices. Follow-up sessions and support groups for staff members that have completed 6-10 week wellness programs also provide a supportive environment for long-term change.

Analyzing the effectiveness of wellness is ongoing. A formal examination ought to be conducted yearly and may include; re-administering steps three to five, program participation statistics and a year end survey to revisit “soft” issues like morale, program satisfaction and future program direction.

8. Solicit Input and Communicate Your Plan

Employee input is critical to the long-term success of your program.  An Employee Advisory Committee ought to be formed to roll out the plan. Another key responsibility of this team is to solicit feedback from all levels of the organization to ensure buy-in.

Front line Manager’s Information Sessions and focus groups are also important. This group needs to buy-in to the notion that they play a key role in supporting positive health practices.

Regular meetings are recommended with front line managers to receive ongoing input, address issues and orient new managers.

Conclusions

The World Health Corporation’s definition of health is “a state of complete physical, mental and social wellness and not merely the absence of illness and infirmity.”

In order for us to develop healthful workplaces, health promotion programs must have a program champion, have worker ownership, be management supported, results driven and strategically aligned with the overall company objectives of the organization.

Wellness program that embrace these qualities will have a positive impact on an company’s bottom line. Canadian research points to many case studies where on-site programs have resulted in reduced absenteeism, lower claims and increased productivity.

Organizations who’ve embraced wellness as part of “how they do business” have one thing in common. They demonstrate a commitment to their most valuable resource – their individuals .

They understand the increased pressures associated with downsized organizations, a rapidly changing workplace, an aging work force and the challenge of balancing work and family obligations.  And they share a common belief that healthful workforce are happier, absent less and more productive.

References –

Design of Health Promotion Programs by Michael P. O’Donnell. 1995. Published by the American Journal of Wellness.

Pro Fit-ability by Veronica Marsden. Group Health Care Management. May 1997.

Meeting Expectations by Laura Mensch. Employee Health and Productivity. August 1999

7 Steps to Health Promotion by Daphne Woolf and Veronica Marsden. Group Healthcare Management. February 1996.

Published in the Journal of Health Promotion for Northern Ireland, Issue 9, March 2000

The list below provides “best practices’ that can help meet any health promotion program budget! the Health Promotion Program ideas are divided into topic areas.

General Wellness Progam Ideas

• Policy – Conduct an Worker Needs and Interest Survey

• Policy – Develop a management/employee Wellness Committee

• Policy – Choose health plans that cover costs for weight management and tobacco use cessation

• Policy – Waive co-pay or reimburse for preventive health care visits

• Program – Display  brochures on a selection of wellness topics for workers to take

• Program – Establish a wellness resource center or library with videos, books, magazines, DVD’s on a variety of topics of interest to employees

• Program – Identify workforce who are mentors or champions for healthy activities and ask them to present or to list as a contact for other employees

• Program – Plan and promote periodic or regular educational sessions.

• Program – Plan monthly educational sessions on the national health observance topic

• Program – Post a Wellness Bulletin Board and update it monthly

• Program – Promote messages from national health observances during the month

• Program – Publish and/or post healthy tips in newsletters, paycheck stuffers, bulletin boards, etc.

• Program – Sponsor a benefits fair

• Program – Sponsor corporation fitness and healthful consuming challenges

• Program – Sponsor business wellness fairs or other on-site events

Nutrition Programs

• Policy – Offer free, healthful snacks for personnel (fruit, nuts, popcorn)

• Policy – Give healthful meal choices in cafeterias and at business events

• Policy – Provide information to employees about the nutritional content of food served in the cafeteria

• Policy – Begin a fresh fruit “snack basket” in the breakroom or cafeteria

• Policy – Stock vending machines with healthier choices

• Policy – Subsidize healthful foods in the cafeteria or vending machines (10¡ apples could  be more appealing than $1.00 candy bars)

• Program – Coordinate a weekly or monthly healthy lunch club

• Program – Have  pamphlets available on a selection of healthful consuming topics

• Program – Include nutrition articles in corporation newsletters

• Program – Schedule a healthful food tasting contest Free

• Program – Schedule educational sessions at lunch-time on a selection of nutrition topics of interest

• Program – Sponsor an staff member healthful food cookbook. Either sell the cookbook and use profits for programs, or purchase a cookbook for all employees

Weight Loss Programs / Weight Management Programs

• Policy – Consider flexible work schedules so that employees can participate in weight-loss programs

• Policy – Subsidize registration costs for weight-management programs

• Program – Form a support group to help personnel who are trying to lose weight

• Program – Locate registered dieticians near your worksite as a resource for workforce who want information on healthy consuming, meal planning or weight control

• Program – Offer individual counseling for staff members attempting to lose weight

• Program – Offer onsite fitness and weight-management programs through your local hospital, Weight Watchers, TOPS or local, registered dietician

• Program – Schedule an educational session on diet myths and healthful eating

Exercise Programs

• Policy – Allow flexible work schedules to encourage exercise

• Policy – Create a fitness space with aerobic equipment, and weights

• Policy – Create accessible walking paths, trails, and/or bicycle routes

• Policy – Make sure to encourage workers to walk more by parking farther away from the entrance

• Policy – Establish a fitness club with aerobic equipment, weights, group fitness classes, fitness specialists

• Policy – Hold walking meetings

• Policy – Make the stairwells more appealing (carpet, fresh paint, artwork, posters)

• Policy – Offer reduced fitness center membership fees to all workers

• Policy – Give facilities for staff members to secure bicycles

• Policy – Schedule 5 – 10 minute stretch breaks during the day

• Policy – Subsidize gym membership for staff members who participate a minimal number of days per week (ex., 3 days per week)

• Policy – Support lunchtime walking/running clubs or company sports team

• Program – Be certain to encourage stairwell use and incentives

• Program – Install a basketball hoop outside

• Program – Promote and support community walks or fitness events

• Program – Promote walking during breaks and other off-time periods

• Program – Give periodic fitness incentive programs to encourage exercise

• Program – Schedule educational sessions on fitness activities

Tobacco use Cessation Programs / Tobacco Cessation Programs

• Policy – Develop a smoke-free grounds

• Policy – Create a tobacco-free workplace

• Policy – Make certain to encourage the use of 1-800-QUIT-NOW, North Carolina’s free Tobacco Use Quitline. Or check www.QuitlineNC.com

• Policy – Reimburse for tobacco replacement products

• Policy – Subsidize the cost of smoking cessation workshops

• Program – Give  flyers and information on health effects from smoking and tobacco cessation

• Program – Schedule awareness sessions to motivate staff members to try to quit tobacco use

• Program – Schedule on-site use of tobacco cessation workshops

Worker Medical Screening

• Policy – Discount medical insurance premiums or reduce co-payments for staff members who take part in screenings and who take part in managing their risk factors

• Policy – Install blood pressure (BP) monitoring equipment

• Program – Offer flu shots for employees and family members

• Program – Offer Health Risk (Assessment|Appraisal}s to all staff members, including counseling and follow-up

• Program – Offer periodic blood pressure (BP) screenings and follow-up

• Program – Offer periodic screenings for cholesterol, blood sugar, body composition, etc.

Stress Management Programs / Be certain to work Life Balance Programs

• Program – Allow flexible schedules for family/work life balance

• Program – Offer and promote an staff member assistance program

• Program – Provide information on substance abuse prevention

• Program – Provide  brochures and information on stress management and psychological health

• Program – Provide  brochures and information on work life balance, such as financial planning, childcare, parenting, elder care, etc.

• Program – Provide supervisor and manager training on communication, relationship building, organizational stressors, etc.

• Program – Review corporation policies and work schedules to identify organizational stressors

• Program – Review the staff member assistance program to ensure it is meeting the needs of the employees and company

• Program – Schedule educational sessions on stress management and work life balance

• Program – Schedule workshops on relaxation, stress management, and work life balance topics