Benefits of Employee Wellness Programs

Introduction to Employee 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, Employee Wellness Programs can have a  great impact on reducing high-risk behaviors. This impact results in decrease health claims cost, less  absenteeism, and less short-term disability.

Employee Wellness Programs may include:

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

Health Risk Assessment: Employee health screenings, wellness fairs / health 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.

Assessment: Worker needs assessment, baseline Company Health and Wellness Program assessment measures,  ongoing Company Health and Wellness Program assessment of overall effectiveness.

Why Provide Employee Wellness Programs

The typical employer spends about $8,000 a year on an employee’s health care. 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 research study showed that companies using Employee Wellness Programs had a return on investment  from $1.49 – $13 in benefits per dollar spent. The amount depended on the nature of the Employee  Wellness Programs used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)

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

The Employee Wellness Programs at Traveler’s Company included a self-care book, a newsletter,  single-topic brochures, and videotapes. The Employee Wellness Programs saved the company $7.8 million  in employee benefi t costs, decreased doctor visits, and it reduced absenteeism by 1.2 days per worker  per year. The estimated Employee 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 companies for three years. Workers with an inactive lifestyle had 10 percent higher costs;  workers with depression had 70 percent higher costs.

Benefits of Employee Wellness Programs

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

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

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

Decreased Absenteeism – Canada Life Assurance Company’s absenteeism dropped 42 percent among workers in  the Employee 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 Medical Care Costs – Golden, Colorado Adolf Coors Company’s Employee Wellness Programs returned  $6.19 for every dollar spent.