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Introduction to Corporate Wellness Programs

Risky health behaviors by employees cost a company. Changing those behaviors can save the employer money and raise the employee’s productivity.

Because work gives an employee a stable setting and support system, Corporate Wellness Programs can have a great impact on reducing high-risk behaviors. This impact results in reduce health claims cost, less absenteeism, and less short-term disability.

Corporate Wellness Programs can include:

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

Health Risk Assessment: Employee health screenings, health and wellness fairs, health rist assessments.

Educational Programs: Lunch & Learn 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, tobacco 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.

Evaluation: Staff Member needs assessment, baseline Corporate Wellness Program evaluation measures, ongoing Corporate Wellness Program evaluation of overall effectiveness.

Why Offer Corporate 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 study showed that organizations using Corporate Wellness Programs had a ROI from $1.49 – $13 in benefits per dollar spent. The amount depended on the nature of the Corporate Wellness Programs used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)

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

The Corporate Wellness Programs at Traveler’s Company included a self-care book, a newsletter, single-topic brochures, and videotapes. The Corporate 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 employee per year. The estimated Corporate Wellness Programs ROI was $3.40 per dollar spent.

In 1998, the Health Enhancement Research Organization (HERO) reported a study of 46,026 employees from six large companies for three years. Employees with an inactive lifestyle had 10 percent higher costs; employees with depression had 70 percent higher costs.

Benefits of Corporate 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 Corporate Wellness Programs, employees’ morale increased, which helped support a more creative work setting.

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

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