Benefits of Corporate Health and Wellness Programs

Introduction to Corporate Health and Wellness Programs

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

Because work gives an worker a stable environment and support system, Corporate Health and Wellness Programs can have a great impact on lowering high-risk behaviors. This impact results in reduce health claims cost, less rates of absenteeism, and less short-term disability.

Corporate Health and 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 fairs, health rist assessments.

Educational Programs: Lunch & Learn wellness seminars, guest speakers at staff meetings.

Skill Building: Healthy cooking demostrations, activity challenges, CPR instruction opportunites, stress management classes, weight management classes.

Interventions: Massage, smoking 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.

Assessment: Worker needs assessment, baseline Corporate Health and Wellness Program evaluation measures, ongoing Corporate Health and Wellness Program evaluation of overall effectiveness.

Why Provide Corporate Health and Wellness Programs

The typical employer spends about $8,000 a year on an employee’s medical 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 Health and Wellness Programs had a ROI from $1.49 – $13 in benefits per dollar spent. The amount depended on the nature of the Corporate Health and Wellness Programs used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)

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

The Corporate Health and Wellness Programs at Traveler’s Company included a self-care book, a newsletter, single-topic brochures, and videotapes. The Corporate Health and Wellness Programs saved the company $7.8 million in employee benefi t costs, decreased doctor visits, and it reduced rates of absenteeism by 1.2 days per worker per year. The estimated Corporate Health and Wellness Programs ROI was $3.40 per dollar spent.

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

Benefits of Corporate Health and Wellness Programs

Increased Productivity – The Canada Life Assurance Company realized a 4 percent increase in productivity after creating an employee fitness program.

Increased Job Satisfaction – According to employee opinion surveys conducted by the Silverstone Group about thier Corporate Health and Wellness Programs, workers’ morale increased, which helped support a more creative work environment.

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

Decreased Absenteeism – Canada Life Assurance Company’s rates of absenteeism dropped 42 percent among workers in the Corporate Health and 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 Health and Wellness Programs returned $6.19 for every dollar spent.