Employer Wellness : Are Worksite Wellness Programs Cost-Effective?

Research studies have repeatedly shown that inclusive Company Health Promotion Programs, or Company Health Promotion Programs, are able to cut medical care and insurance costs, lower absenteeism, and improve effectiveness and productiveness. Other advantages shown in research studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public image of the corporation.

Healthcare and Insurance expenses

A number of research studies offer evidence of decreased medical and insurance expenditures for participants in Corporate Health Promotion Programs, particularly wellness programs involving physical activity.

For $30 per person, the Bank of America started a Workplace Wellness Program for retirees using a risk assessment questionnaire, self-care books and other mailed materials. Insurance claims were reduced an average of $164 per year in this group while they increased $15 for the control group. Since they were able to document significant changes in risk behavior, they anticipate greater savings in future years.

Pacific Bell’s FitWorks participants claim $300 less per case for a 1-year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case.

Coca Cola published a decrease in healthcare|medical|medical care|healthcare} claims with an exercise program alone, saving $500 per employee per year for the employees (60%) who joined their HealthWorks physical activity program. Prudential Insurance Employer reports that the organization’s major medical expenditures dropped from $574 to $312 for each participant in its wellness program.

Decreased Absenteeism

Absenteeism has been shown to be impacted by wellness programs. The evidence indicates a significant decrease in absenteeism and resultant dollars saved as a result of employee fitness programs.

Pacific Bell’s FitWorks program decreased absent days .8 percent to save $2 million in one year. FitWorks members also spent 3.3 days less on short-term disability for an additional savings of $4.7 million.

Focusing Workplace Health Promotion Program efforts on elevated-risk staff members can lead to better results. A national manufacturing employer reports a reduction of 12.2 percent in illness days for these staff members.

A two-year study by The DuPont Corporation of the effect of its accross the board Employee Health Promotion Program on absences among staff members reports that blue-collar staff members at intervention sites had a 14% decline in disability days vs. 5.8% decline for controls. There were a total of 11,726 fewer net disability days.

Enhanced Performance, Productivity and Morale

A number of employers with Workplace Wellness Programs report documented improvement in job attitude, work performance, energy level, and/or overall morale among program participants–all critical factors in enhancing productivity.

A Johnson & Johnson study saw that employee attitude changes were greater at Workplace Health Promotion Program intervention sites with significant positive attitude changes noted in the categories of business commitment, supervision, working conditions, job competence/security, and pay/benefits.

In a Canadian government study, the Canada Life Assurance Employer experimental group realized a 4 percent increase in work rate after starting a company fitness program, compared to the control group. Further, 47 percent of program participants published that they felt more alert, had better rapport with their co-staff members, and generally enjoyed their work more.

Swedish investigators saw that mental performance was significantly better in physically fit staff members than in non-fit staff members. Fit staff members committed 27% fewer errors on tasks involving concentration and short-term memory, as compared with the performance of non-fit staff members.

The Bottom Line

The following sample of Corporate Wellness Programs wellness program results have been reported by individual employers:

Corporation: Dollars Saved/Dollars Spent

• Bank of America (Fries): $5.96/$1
• PacBell: $3.10/$1
• Wisconsin School District Insurance Group: $4.47/$1
• Prudential Insurance: $2.90/$1
• Bank of America (Leigh): $4.73/$1
• General Mills: $3.50/$1

Summary

There is growing evidence that a large portion of the billions of dollars now being spent by employers on health-related expenditures is preventable by means of Employee Wellness Programs. Well-planned, comprehensive Employee Wellness Programs (Employee Wellness Programs and Employee Wellness Programs) have been established to be cost-effective, particularly when the Employee Wellness Programs is matched to the health problems of the specific employee.

This entry was posted on Sunday, June 28th, 2009 at 10:02 am and is filed under Employer Wellness. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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