The rising cost of health care is a major concern to workers and employers alike.  While the cost associated with getting well escalates, the cost of staying healthy by comparison is minimal.  Behavioral health and prevention programs have been found to be successful and effective strategies that can significantly reduce an individual's or organization's health care costs.  Especially when health care costs for standard employee benefits programs increase annually anywhere between 12-15%. 

When the recession started, there was concern that constricted corporate budgets would kill benefit department wellness initiatives.  Instead, employers are increasingly interested in using Health Risk Assessments and Wellness Programs to reduce all types of absences and maintain productivity as they operate with leaner staffs.  It is very gratifying to see some organizations thinking a little outside the box for ways to better manage both their health care and Workers Compensation costs.  So many organizations are so heavily siloed that they never even think of this.  Most employers that have introduced wellness and disease management measures, such as smoking-cessation and weight-loss programs, have done so to help prevent nonoccupational health care claims, not to help address existing occupational injury claims. A proper wellness program can, in fact, serve both purposes.

A big problem that many employers face is that it can take years to analyze the impact of these programs, and even then, the return on investment isn't always clear ( ROI examples will be highlighted in Part 2). Even with the challnages faced, its for good reason that political power players, benefits officers, and top health care academics aggressively tout workplace wellness as a way to boost productivity and reduce health care costs.

Recently, President Obama under pressure from industrial leaders hosted a wellness gathering at the White House with top company executives, as well as union and public health officials, to learn more about such initiatives. He deemed the confab the start of an "ongoing process," and his advisers have already had a follow-up meeting with corporate and academic experts on the topic.  Other governmental leaders also have latched onto the issue.  For instance, a bill making its way through the Senate would give tax credits to firms that offer wellness programs.  Even with all the high-profile attention, some companies have had to revamp those initiatives in the quest for healthier bottom lines.....an unfortunate reality of the economic uncertainty.

 

So, with courtesy to David Letterman.........Here goes........

Top 10 reasons why your company needs an Employee Wellness Program

The success of any company depends very heavily on the productivity and work performance of its human resources. The ability to function and consistently perform at a high level is greatly aided by wellness programs. The introduction of such programs has been successful in that the results are beneficial for both the employee and the company at large. Wellness Programs focus on the physical well being of employees, looking after medical requirements and ensuring personal health is a priority. Programs offer weight loss regimes, smoking cessation programs, stress management and exercise, diet and fitness advice.

Here are the top ten reasons why your company needs an Employee Wellness Program.

#1 Decreased Health Care and Workers Compensation Costs

The implementation of Wellness Programs has proven effective in reducing company health care costs. The concept of a Wellness Program was introduced initially for dual purposes. Rising health costs meant employers were looking for a way to minimize the expense whilst maintaining healthy human resources. The inception of Wellness Programs provided an effective solution. Wellness Programs significantly reduce the high company cost of employee health care. Evidence is now being drawn. It is a proven fact that employees who have good overall health have lower (accident) frequency for on the job injuries. NCCI claim data studies now show that obesity is one of the largest drivers in return to work initiatives and the overall costs of Workers Compensation claims.

#2 Work Place Morale

Wellness Programs cover a broad range of healthcare initiatives. From nutritional advice to exercise programs and medical coverage, these programs look after diverse employee needs. The effectiveness of a Wellness  Program in terms of the office environment is simple:  employees are healthy and therefore, on the whole a lot happier; this equates to maximized performance. They are also aware that the company is taking measures to ensure their health and wellbeing, which fosters loyalty and responsibility.

#3 Reduced Absenteeism

There are many factors that influence a person's health and well being. These could be minor afflictions such as a cold or flu, or major such as heart problems or obesity. Any of these could result in the employee taking time off from work. The benefit of a Wellness Program is that this time will be significantly reduced, if not avoided all together. There are many small changes in lifestyle that can influence overall health and wellbeing. A Wellness Program identifies these, educates employees, and implements the changes. Through education, training, and professional health care, Wellness Programs can greatly reduce absenteeism. For your company, this is the bottom line:  reduced absenteeism equals a reduction in costs and an increase in productivity.

#4 Reduced Overall Costs

Employee Wellness Programs have a range of benefits for employers -both quantifiable figures and intangible results. For the company as a whole one of the most significant benefits is the reduction in overall company costs. It is hard to quantify what you gain via increased morale, productivity, and work performance. However, the reduced sick leave and absenteeism, and lower health costs contribute to a sizable reduction in overall costs. 
 
#5 Increased Productivity

The main aim of an Employee Wellness Program is to encourage employees to lead healthier lifestyles. This is effected through education, incentives, and health care directed by the company and the Wellness Program. It is proven that when an employee is healthy he or she is more productive. Being healthy increases concentration, energy levels, and output. Good heath also ensures employees are able to consistently perform at the desired level. Increased productivity in the work place is a by-product of the success of Wellness Programs. 
 

#6 Increased Responsibility

An Employee Wellness Program indicates to employees that the company cares about their well being. While it is common knowledge that these programs benefit employers, the benefits are mutual. A well taken care of employee feels an affiliation with the company, they develop a level of responsibility associated with their work. This type of attitude within the work place is invaluable. An employee that feels like the company takes in interest in their wellbeing and health will take an interest in performing to the best of their ability.

#7 Increased Company Loyalty

Increased employee loyalty is another significant selling point for Employee Wellness Programs. This is one of those intangible benefits on which you really can't put a price. Company loyalty means reduced costs in terms of recruitment and turnover. It also makes for a more harmonious working environment.

#8 Reduced Sick Leave

Wellness Programs have had a lasting impact on the cost of sick leave. Through education, training regimes, and lifestyle management, these types of programs have considerably reduced the cost of sick leave.

#9 Improved Work Performance

Wellness programs cater to all manners of health and lifestyle problems. The aim is to promote healthy lifestyle choices that reduce the amount of medical attention required. Lower medical costs are just the tip of the iceberg - employees who participate in these programs have noted a substantial improvement in work performance.

#10 Decreased Health Insurance Costs

Health insurance premiums are rising exponentially every year. The cost is rapidly rising to the point where employers have to find new ways to reduce their health expenses. Wellness Programs have shown incredible returns and remarkable results. Health costs for those companies using Employee Wellness Programs are significantly reduced. 
 

Part 2 of this series will include: The Fundamentals of Employee Wellness Programs.  Stay tuned!