Wellness Articles

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

Employee Health and Wellness Programs can include:

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

Health Risk Assessment: Employee health screenings, health and wellness fairs, health risk appraisals.

Educational Programs: Lunch & Learn wellness seminars, guest speakers at staff meetings.

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

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

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

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

Why Make available Employee Health and Wellness Programs

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

A 1999 study showed that corporations using Employee Health and 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 Health and Wellness Programs used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)

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

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

Benefits of Employee Health and Wellness Programs

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

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

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

Decreased Absenteeism - Canada Life Assurance Company’s absenteeism dropped 42 percent among workers in the Employee Health and 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 Health and Wellness Programs returned $6.19 for every dollar spent.