Six Benefits of Work Site Wellness It's no longer a matter of speculation. Consistent with the newly emerging work site wellness literature, there are a number of tangible benefits associated with work site wellness programs.
Benefit #1: Improved Morale
As the organizational culture begins to change as a result of your health promotion efforts, you and your employees may actually begin to see and feel a new level of energy within the organization. Ultimately, one of the most ambitious goals of any comprehensive health promotion program is to attempt to influence the attitudes and actions of the organization's most valuable resource -- its employees.
Benefit #2: Reduced Turnover
As we all know, employee replacement costs can be quite high for any kind of business. The effort and expense associated with running employment ads, reading applications, checking references, interviewing qualified candidates and hiring, and training a new employee can be a serious burden on any business. In light of the challenges that high employee turnover poses, many businesses are looking to health promotion programs as an additional perk that can help to prevent employees from jumping ship.
Benefit #3: Increased Recruitment Potential
In the midst of a very tight labor market, businesses are forced to pull out the stops in order to recruit new talent. In some instances, health promotion can prove to be a very valuable tool in sealing the deal.
Benefit #4: Reduced Absenteeism
When an employee misses work in a business setting, the entire organization is forced to absorb their responsibilities. Even in the event of the occasional absence caused by things like colds and the flu, work can back-up and tensions can build. Even worse is a long-term absence caused by a major health event that requires hospitalization and/or rehabilitation. By preventing certain types of illness caused by poor lifestyle habits, health promotion programs can play an important role in reducing absenteeism.
Benefit #5: Health Care Cost Containment
Most businesses don't start a health promotion program with cost containment in mind. However, cost containment for certain health problems should be considered a viable goal by many businesses. Benefit #6: Improved Employee Health Status
One of the greatest advantages of a well-designed health promotion initiative is the promise of improved health. While not conclusive, there is a growing body of evidence that suggests that well-designed health promotion initiatives can successfully impact such behaviors as smoking, high-risk alcohol use, exercise, nutritional habits, seat belt usage, and stress.
The Bottom Line
Corporate wellness makes a bottom-line difference. Today, more than 81% of America’s businesses with 50 or more employees have some form of health promotion program the most popular being exercise, stop-smoking classes, back care programs, and stress management. Most employers offer wellness programs simply because they think the benefit is worth the cost. Yet business leaders continue to ask themselves how to control huge annual increases in health insurance premiums and health care costs.
For many companies, medical costs can consume half of corporate profits or more. Some employers look to cost sharing, cost shifting, managed care plans, risk rating, and cash-based rebates or incentives. But these methods merely shift costs. Only work site health promotion stands out as the long-term answer for keeping employees well in the first place.
Work site wellness is health care reform that works. Results from America’s finest companies are reason enough to think about an investment in your most important asset- your employees and the impact this investment can have on your bottom line.
At DuPont, each dollar invested in work-place health promotion yielded $1.42 in lower absenteeism costs over a two-year period. (American Journal of Public Health)
Johnson and Johnson reduced their absenteeism by 15% within two years of introducing their wellness program. They also cut their hospital costs by 34% after three years. (Human Resourses Executive)
At Mesa Petroleum, wellness-program participants were absent 1.6 fewer days per year than non-participants. (The Benfield Group, St. Louis, Missouri)
Coors has saved more than $2.3 million in lost wages due to absenteeism and $1.9 million in rehabilitation costs and cost avoidance. (Business and Health)
Reduced Health-Care Claims
Sony Corp. of America analyzed claims data from 1988 to 1990 and found that 50% of its indemnity-plan costs were incurred by employees with medical conditions that were lifestyle related or that could be changed. (Employee Benefits Plan Review)
Honeywell Inc. as a result of a pilot program offered a $200 cash incentive based on participation in certain program areas. Program coordinators estimated a 70% to 150% return on investment from reduced medical claims alone. (Business and Health)
Sara Lee subsidiary, Superior Coffee and Foods, showed a 22% reduction in hospital admissions and 42% lower expenses per admission when compared to other divisions. Lone-term disability costs were reduced by 40%. (Wellness Councils of America 1992)
Increased Productivity
Union Pacific Railroad found that 80% of its workers believed the company’s exercise program helped to increase their productivity; 75% felt regular exercise was helping them to concentrate better at work. (Incentive, June 1995)
A NASA study reported a 12.5% increase in productivity in their fitness/wellness program participants versus non-participants. They also found participants were able to improve their work performance as well as enhance their concentration and decision-making powers. (Company Employee Fitness Programs, The Association of Fitness in Business)
A study by Saatchi & Saatchi Advertising revealed that 63% of the employees enrolled in the company’s fitness program believed it improved their productivity; 75% said it boosted their morale. (Good Health Good Business, Johnson & Johnson)
Reduced Turnover/Improved Recruitment
The annual turnover rate for wellness program participants of Canada Life Assurance Company of Toronto was 1.8%, compared to the company-wide average of 18%. (American Journal of Health Promotion)
British Columbia Hydroelectric’s wellness program participants had an annual turnover rate of 3.5% compared to a company-wide average of 10.3%. (Benefit of Employee Health Programs, Cigna)
A study at Tenneco found that employees who participated in the fitness program had a much higher probability of continued employment that non-participants.
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