Worksite Wellness Programs

What if you could improve
the lives of your most valuable asset
while reducing your health care costs?
Current Trends in the
United States
Healthcare costs in U.S. account for 15.5% of GDP in 2005
• Up from 11.1% in 1990
Average increase in cost of
health insurance is 10-12%
per year for last 5 years
U.S. spends $2 trillion/year on health care but less than 1% on protecting health and preventing disease!
Source: Health Affairs, Health Spending JAMA, Protecting Health, Sept. 21, 2005
The Cost of Productivity Loss
Medium risk persons (3-4 risks)
had a 6.2% increase in work
loss time equal to $1,329 in
monetary loss per employee.
High risk persons (5+ risks) had
a 12.2% decrease in productivity
resulting in a monetary loss of $2592per employee.

Back injuries, common in overweight and unfit workers,
is a major cause of work loss time and disability
(very costly to a company).
Back injuries cost business $10-$14 billion in workers' compensation expenses and approximately 100 million work days each year, according to the National Institute for Occupational Safety and Health (2002).

Control Data Corporation estimates a savings of $1.8 million in reduced absenteeism due to their wellness program over a 6 year period.
A fitness program in a police force and a banking firm reduced sick leave by an average of 4.8 days per year.

Do You Have The Vision?
The Wellness Councils of America (WELCOA) awards companies of all types and sizes for creating and funding wellness programs. The winners are recognized not only for their effective health initiatives but also because they show themselves to be caring employers.
These companies have discovered the power behind a successful work environment is supporting the health and welfare of their employees. And rather than view the cost of wellness as a “sacrifice,” they see it as an investment in their primary asset – human beings.
WELCOA recognizes companies with measured improvements in their business related directly to participation in wellness. Peak performance by employees was seen as critical to the overall progress of each company. The 2001 winning programs (68 Bronze, 31 Silver, 44 Gold and 3 Platinum), diverse as they are, all shared some basic attitudes that brought them success.
Many people need that extra push to recognize and pursue their wellness goals. It takes an organization to initiate different educational channels to reach out to their diverse population of employees.
The Providence Everett Medical Center in Everett, WA provides cash rewards to encourage participation in their “Wellness Challenge” program. CEO Ray Crerand said, “I wanted a mechanism to target people who won’t, don’t or can’t find the time to be healthier.” As a result of the challenge, 52% of the hospital employees participated and Providence earned a 3.8:1.0 ROI during the previous nine years.
Seeing the potential benefit of wellness is essential to justifying and making the money available for successful initiatives. The healthiest companies share the vision and willingness to invest a portion of their budget to enhancing the well-being of their employees.
Platinum Award winner Pacific Railroad started with a modest program that has grown to $42.27 per eligible employee annually for health promotion. This multi-million dollar investment is justified, according to the organization’s vice president, because companies cannot accomplish something for nothing, and “without strategic investment, results were not going to happen.”
The type of work people perform may partially determine the most effective wellness approach. Consider the employees whose work is dependent upon intellectual skills rather than physical capability – they make up roughly 40% of the U.S. workforce; keeping them healthy and productive can save corporations millions annually. The wellness activities that motivate them can be different than those for, say, manual laborers, according to WELCOA.
An example is the Gallup Organization: In addition to traditional health management methods, including self-care literature and a 24-hour nurse line, the group also designed a unique way to reach their population of intellectual (“knowledge”) workers. They developed the StrengthFinder survey
– a personal assessment tool used to match talents to jobs. Gallup found that focusing on the individual development of employees produces a positive impact on personal health and enjoyment of work, Scott Publishing, Inc. • 2003 14 Cost/Benefit Analysis which in turn boosts productivity.
The concept of wellness in the workplace is good business. Improving the health, morale and productivity of the workforce positions the company at a financial advantage for the future. Seagate Technologies Program Manager Michael Olson says, “Companies that manage employee health and well-being are less susceptible to damage from the continuing health care cost explosion.”
Who would suggest that improving the health of employees and reducing their risk of illness and injury will contribute to future financial losses? Or that ignoring the need for stress relief or ergonomic awareness on the job will help a company’s success and continuity?
The added value of investing in wellness, and some say health care, should ultimately show up as assets, much like the value of new equipment. The tools and methods for maximizing that investment and properly assessing the outcomes have improved dramatically in recent years. Yet, even when the bottom-line results from wellness are not always visible or predictable, the ROI is perceived to be positive, whether proven or not. WELCOA award winners and other well companies see beyond the financial gains from health promotion.
Monongalia Health System CEO and Gold Well Workplace winner Robert Ritz says that encouraging employees to be “. . . healthy members of our organizations both mentally and physically . . . just makes good sense.”
Source: Archive,
America’s Healthiest Companies/Discover the Power of Wellness, by David Hunnicutt, PhD; Business & HealthMarch 2001
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