Corporate Wellness Programs – The Good and The Bad

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Posted by Corporate Wellness | Posted in Corporate Wellness | Posted on 17-12-2008

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

Corporate Wellness Programs: The Good

• A sampling of return on investment (ROI) for Corporate 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 Corporate Wellness Programs have found a 28 percent reduction in sick leave, a 26 percent reduction in adjunctive medical 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 found 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.)
• Corporate 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 corporation, 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.)

Corporate 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 businesses are doing just that and at least one lawsuit has resulted because of it.
• Three hundred businesses have requested assistance from a national employment and labor law firm to institute more aggressive Corporate Wellness Programs.(Cornwell, Lisa, Associated Press, Albuquerque Journal, September 10,2007.)
• Clarian Health, based in Indianapolis, Will begin 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 corporation’s antismoking policy violated his civil rights. The corporation 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, in 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.

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