Employee Wellness Programs – The Good and The Bad

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

Employee Wellness Programs: The Good
• A sampling of return on investment (ROI) for Employee 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 Employee Wellness Programs have realized a 28 percent reduction in sick leave, a 26  percent reduction in adjunctive health care 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 return on investment (ROI) for  every dollar spent due to a 20 percent reduction in absenteeism. (Hardy,A. (2005). At the Top Of The  Class. WELCOA’s Absolute Advantage Magazine, 5(1), 14-20.)
• Employee Wellness Programs provide the structure, encouragement, incentives and ongoing support that  many individuals need in order to make lifestyle changes.
• Employees also realize returns on their efforts. FiServ, a financial services technology employer,  gave employees who filled out a health risk assessment a significant discount on their medical  insurance premium. (Holland, Kelley, The New York Times, July 22, 2007.)

Employee 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 corporations are doing just that and at least one lawsuit has  resulted because of it.
• Three hundred corporations have requested assistance from a national employment and labor law firm to  institute more aggressive Employee Wellness Programs.(Cornwell, Lisa, Associated Press, Albuquerque  Journal, September 10,2007.)
• Clarian Health, based in Indianapolis, Will start reducing worker paychecks by $10.00 for every  worker who has a Body Mass Index (BMI) of greater than 29.9 because not enough employees 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 employer’s antitobacco use policy violated his civil rights. The employer has a policy  against hiring employees 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 employees by hitting them 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 absenteeism  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 employees 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.