Posts from — July 2009

A key to a successful Employee Health Promotion Program requires management commitment and employee participation.

Worksite Wellness Program Step 2: Form a Worksite Wellness Program Committee

An active Corporate Health Promotion Program Committee sees to employee involvement, supplies buy-in, management reinforcement, and maintains a crew that is prepared to take action to launch wellness programs.

Corporate Health Promotion Program Step 3: Gather Data to Ascertain Key Needs and Expectations

The next critical component is to base the Workplace Wellness Program on the needs and interests of your organization and its staff members.

Employee Wellness Program Step 4: Establish Goals and Objectives

Goals and objectives are the road maps to guide you where your program needs to go.   These make up the foundation for planning and evaluating activities to ensure that your wellness program will meet your special needs.

Worksite Wellness Program Step 5: Establish a Detailed Action Plan

There is no such thing as over-planning!  The best of intentions can get lost, overstepped, or forgotten in the absence ofadequate planning, and then it would be all for naught.

Workplace Wellness Program Step 6: Choose and Start a Plan

Now that you have the needs assessment information, a Worksite Wellness Program Committee, objectives it’s now time to start your plan!

Company Health Promotion Program Step 7: Oversee and Evaluate Your Company Health Promotion Program

Assessment is a necessary step to keep a program focused, as well as to guarantee that the program is reaching its goals/objectives or achieving favorable outcome.

In Summary

These Seven Steps outline considerations for a accross the board approach to establishing an effective wellness program.  Would you be able to start components of wellness activities without referring to these steps?  Absolutely, but you may lack the sustainability or ability to see desired outcomes.  Following the Seven Steps does not have to be confusing or burdensome.  A very simple approach can achieve a successful wellness program!

Therefore, to ensure a efficacious wellness program refer to the key components as you plan your program or improve your current program:

• Senior Leadership Support & Employee Involvement
• Active Worksite Health Promotion Program Committee
• Corporate Health Promotion Program is Based on Employee Needs & Interests
• Workplace Wellness Program Goals and Objectives are Established
• Detailed Corporate Health Promotion Program Action Plan Based upon Resources & Budget
• Corporate Wellness Program Implementation & Internal Marketing
• Evaluation of Company Health Promotion Program Outcomes

The program design options depend on the objectives and desired outcomes of your program.  If your objective is to help employees make a change behavior, lower risk factors, or save medical care money then your wellness program would be designed to accomplish those outcomes and a budget would be helpful to support that design.  

Wellness program design options vary, depending on desired outcomes and budgets.  Each level has advantages and disadvantages.  The intentions or results are quite different, are not interchangeable in terms of obtaining similar results, and therefore ought not be confused.  By way of example, planning activities such as an employee health fair or lunchtime education sessions, or having brochures available do not usually result in behavior change, but may increase awareness on a topic.  If the objective is behavior change then a different design is required, such as Lifestyle/Behavior Change Programs and Corporation Support.  The outline below outlines the wellness design levels with a short explanation.

Awareness Programs:  At this level a company makes health information available and accessible to employees.  This type of program can include brochures on a variety of topics, wellness articles in newsletters, bulletin board displays, e-mail health messages, etc.   Also, most health & wellness fairs are designed as awareness programs with vendors providing information and providing wellness screenings to employees.  

Awareness programs are cheap and do not require extensive employee or employer time commitments.  Still, these programs do not usually yield behavior change.  Improving awareness isn’t usually sufficient to generate lifestyle changes for most individuals, unless used to innervate workers to register for a program being available at the employer or neighborhood on the topic.  An example of this would be offering information on the dangerous effects of smoking and inviting workers who use tobacco to register for a smoking cessation class.

Education Programs:  Educational programs frequently offer more information on a topic and usually also provide time for questions & answers, but are similar to awareness programs.  An example is lunch-n-learn sessions on a health related topic.  These cost the corporation a bit more than awareness programs; however, they are still inexpensive and do not require a great deal of time for planning or attending a session.  Again, expanding awareness and providing information may not yield the desired behavior change unless ongoing support or incentives/rewards are also planned.

Lifestyle/Behavior Change Programs:  These programs are designed as 4 to 12 weekly sessions or workshops to offer wellbeing and health education, address barriers and offer opportunities to practice the desired skills.  Behavior change programs therefore require more corporation resources, cost more, and also require more employee commitment, time and effort.  The results are frequently the desired positive lifestyle change, which if sustained can lead to potential cost savings.  

Examples include smoking cessation classes, weight loss and weight management meetings, or an ongoing fitness program.

Environmental and Organization Support:  Environmental support is frequently considered the highest and most significant level to include when creating your wellness program in order to support and maintain healthy behaviors.  These types of design options include policy changes such as:

• Creating a smoke-free workplace
• Designating a walking path,
• Establishing worksite fitness centers,
• Ensuring healthy vending machines selections,
• Offering healthy diet choices in the cafeteria, and/or
• Creating flex-time policies.  

Other examples include subsidizing healthy vending machines or cafeteria choices; reimbursing gym or weight loss and weight management program memberships; or offering insurance incentives/rewards for healthy behaviors.

Ideally, the wellness program design would include some of each of these options.  The more comprehensive the approach, the more successful the outcome will be.  By way of example, a company can have tobacco cessation information available; can schedule a one hour awareness session on the harmful effects of smoking and how to quit; can start an worksite tobacco cessation program, supply self quit smoking kits, or support employees to catch a neighborhood program; and/or on an environmental reinforcement level can establish a tobacco-free workplace and grounds, offer decreased health insurance for non-smokers, or support pharmacological quit smoking aids for free.

Employee Wellness Program: Components for Success

There are many main parts that need to be considered to see to the performance of your Worksite Health Promotion Program or Worksite Health Promotion Program.  These include:  

• Upper Management Reinforcement & Employee Involvement
• Active Worksite Health Promotion Program Committee
• Program is Based on Employee Needs & Interests
• Goals and Objectives are Determined
• Detailed Action Plan Based on Resources & Budget
• Program Implementation & Internal Marketing
• Evaluation of Outcomes and Program

Major advantages of healthy employees include:

• Reduced Health Care expenditures
• Lowered Injuries
• Diminished Rates of Absenteeism
• Increased Morale and Loyalty
• Increased Productivity
• Reduced Use of Healthcare Benefits
• Lowered Workers’ Comp/Disability
• Positive Image in Community
• Diminished Turnover
• Better recruitment for competent workers

What is NOT Having a Workplace Wellness Program Costing Your Corporation?  

Consider the health risk factors that are contributing to chronic diseases for adults:

• 59% of Americans are overweight or obese
• Greater than 60% of American citizens do not exercise regularly
• More than 75% of adults do not consume the minimum recommendations for fruits and vegetables
• Heart disease is the leading common cause of death and the primary cause of death in smokers
• 26 percent of staff members stated they were often or very often burned out or stressed by their job  

Health Care expenses are Increasing:  Health Care expenditures are at a record figure of $1.7 trillion with no signs of leveling out, let alone going down.  The average cost of annual healthcare spending is over $5,000 per person and with dependents almost $10,000.  Recent data shows that healthcare related expenses now cost North Carolina businesses thousands of dollars per employee, per year.

Most Illnesses Can Be Prevented:  Although it sounds unbelievable, experts proclaim that preventable illness makes up 60% - 70% of the entire burden of illness in the U.S..   In North Carolina, it is estimated that more than 53% of all deaths are preventable, and that 2/3 of all preventable deaths are due to tobacco use, physical inactivity, and poor nutrition.

Stress Levels are Rising:  As company resources dwindle and corporations adopt leaner work practices, the effects of absenteeism and lost productivity have a greater influence.  In a new national poll, 78% of the population described their jobs as stressful, and the majority believe that stress levels have risen over The previous decade.  Moreover, high levels of company stress are able to adversely affect a company by growing injuries, absenteeism, and health care expenditures while decreasing productivity.  Simple solutions such as stress management education, flexible work schedules, quality social interaction, and increased participation in company decision-making are able to improve stress levels in the workplace.

What is the Initial Cost and Time Investment for a Employee Wellness Program?

The expenditure is dependent upon the type of Company Wellness Program implemented.  There are several options to encourage employee health with pros and cons of each.  The program design is dependent upon the goals/objectives of the wellness program, the business resources, and the community resources available.  

Improving dietary practices, increasing physical exercise levels, managing stress or approaching work life balance concerns, and reducing/eliminating tobacco use, are primary strategies for preventing many of the most common preventable chronic diseases. The possibilities of how your company deals with these concerns are endless and can range from increasing employee awareness, which may include purchasing a few brochures on a variety of topics, and quantifying walking distances around your facility, to instituting company support such as funding a full-time occupational health consultant or building an onsite fitness center.  

When well-planned and based on your goals and objectives, any of these programs can help you succeed.  Refer below to Employee Wellness Program Design Options for additional ideas.

A Company Wellness Program is a comprehensive program to assist and support workers in implementing healthier lifestyles.  This may include growing employee awareness on health issues, scheduling behavior modification programs, and/or implementing organization policies that support health-related objectives.  Programs and policies that reward increased physical movement, tobacco use prevention and cessation, and healthy food selections are a few examples.  

Dimensions of Wellness

Wellness is much more than fitness alone.  In addition to physical fitness, the ranges of optimal health include:

   • Spiritual Wellness,
   • Emotional Wellness,
   • Social Wellness,
   • Intellectual Wellness

These dimensions are often depicted as a “life wheel” with examples of health dimensions that include fitness, nutrition, purpose in life, monetary planning, social health & reinforcement systems, stress management, mind-body health, career planning and constant learning.   The key to individual health is keeping the “life wheel” in allignment.  A comprehensive workplace wellness program addresses most, if not all, of these dimensions.

Why Company Health Promotion Programs?

employees spend a great deal of time working, and the bottom line is that our traditional work-week is increasing.  In fact, the average American now is at work about 47 hours a week.  In addition, technologies such as modems, laptops, cell phones, voice and email have blurred the work-life boundary.  These realities cut down on the amount of time that the average individual is able to spend on health and wellness pursuits, and yet employees are predicted to be top of their game when at work.

A new study by the American Association of Occupational Health Nurses observed that workplace wellness or Corporate Wellness Programs are successful in assisting workers to make beneficial health changes due to several factors such as convenience, environmental reinforcement, and co-worker or social acceptance.  

What’s the Link between Wellness and the Workplace?

Programs and policies that reward healthy lifestyles are able to make a sizable difference on employee wellness AND effect the corporation’s bottom line.  Studies have found that for every dollar invested by employers in Worksite Health Promotion Programs/wellness programs, there were savings from $1.49 to $4.91 with a median savings of $3.14*.  In corporation jargon, that’s more than a 3:1 minimum return on investment - a number that is hard to overlook, and a best practice that must draw serious consideration from employers.  In fact, a Worksite Health Promotion Program literature review published in Health Promotion Practitioner Journal saw:

   • 19 different studies found a 28.3 percent reduction in sick time
   • 16 research studies demonstrated a 5.6:1 ROI
   • 23 showed a 26.1 percent reduction in medical expenditures
   • 4 observed a 30% decrease in direct health care and workers’ compensation claims

There is little doubt that a comprehensive wellness program created to meet an enterprise’s specific needs can save money by lowering absenteeism, decreasing health care expenditures, decreasing employee turnover, and increasing productiveness.

• The United States Department of Health & Human Services, 2003

After cost, poor employee engagement and inadequate communications and backing are listed as the greatest challenges for organizations administering any health benefi t program.22

By law, employers are required to explain any benefits or explicit conditions of employment to all staff members - this is called “due process,” and it usually takes the form of a packet of information that new staff members are asked to review and sign during orientation or, in the case of existing staff members, a brief communication during open enrollment periods.

Organizations that only engage in the minimally required due process communication of a Worksite Wellness Program, however, do a disservice to the program and the corporation.

Opinions about Medical Care in corporations represent one of the largest divides between management and staff members. In discussing the need for savings, most corporations (70 percent) believe their company effectively communicates about increasing Medical Care costs, while only 34 percent of staff members feel increasing Medical Care costs effect their business’ ability to succeed.23 When it comes to conduct, 74 percent of corporations believe their staff members must be held largely accountable for improving, managing and maintaining health, yet only 4 percent of corporations think that staff members take part in these activities.

Under the proposed rules, the four specifications to be a bona fide Workplace Health Promotion Program are:

- The total reward that may be given to an individual is limited. The departments invited comments on the appropriate level of the reward, suggesting that a limit of 10 percent to twenty percent of the total expense of employee-only coverage may be appropriate.
- The program must be reasonably designed to promote great health or prevent disease for individuals in the program.
- The reward must be available to all similarly situated people. More specifically, the program must allow any individual for whom it is unreasonably diffi cult due to a healthcare condition to meet the Company Health Promotion Program standard (or for whom it is medically inadvisable to attempt to meet the Company Health Promotion Program standard) an opportunity to satisfy a reasonable alternative standard.
- All plan materials describing the terms of the program must disclose the availability of a reasonable alternative standard.
Source: U.S. Department of Labor Employee Benefits Security Administration

As Northwestern Memorial’s Kathryn Krivy says, “The most fundamental failure in any Workplace Health Promotion Program is not communicating. You need to tell people what you’re doing and why you’re doing it. You have to get staff members engaged and inform them of what’s going on.”

A properly started Workplace Health Promotion Program is designed to save a corporation more money with better participation. Still, a corporation must match its focus on program design with an equally strategic investment in efforts to engage employees in the initiatives.

Lay out your case - Despite widespread recognition of increasing Medical Care costs, workers remain skeptical that the issue impacts employer operations. In fact, only 53 percent of workers even believe what their employer communicates about the subject.24 Businesses need to be more candid and forthcoming about the amount they spend on Medical Care and how that relates to larger budgetary constraints and potential investments.

Says Motorola’s Saenz: “We share with employees that we have been able to maintain Motorola’s Health Care spend trend below national average over the past decade due to their participation in our various Workplace Health Promotion Programs. This transparency is necessary to keep reminding people the reasons for our actions.”

An effective strategy is to focus on the cost savings and overall health benefi ts to the employee and not the business. By personalizing the information in this way, it establishes a win-win scenario instead of presenting the program as a sacrifi ce on the part of the employee. Information should be presented through multiple channels, constructed in a way that makes sense to all levels of staff members, and provided to staff members, dependents and retirees.

Make it your own - Every Corporate Health Promotion Program will be different, and must reflect the culture of a employer. While program areas will be determined by analyzing employee health risks, the actual offerings must be shaped by the nature of the employer. Younger, more active employee communities may be attracted by different programs than an older or technicaloriented employee. Additionally, a global employer with mobile employees will have different needs than a employer with one central location.

As noted earlier regarding PepsiCo’s HealthRoads, one strategy is for organizations to brand their Corporate Health Promotion Programs. Union Pacifi c Railroad (HealthTracks), General Motors (LifeSteps) and Caterpillar (Healthy Balance) all adopted this approach to help create recognition and a larger meaning around their efforts. Having a branded plan helps staff members and other stakeholders see the larger objectives of the Corporate Health Promotion Program, instead of focusing on isolated offerings.

Say it loud, say it proud - As a potential cost-saving initiative, Worksite Wellness Programs should be given the same executive substructure and internal commitment as any comparable business effort. Corporations should not approach wellness as simply a preventive, financially-motivated program, but rather as an opportunity for the business to distinguish itself and become more competitive.

Jeffrey Treem, analyst, Edelman Change and Employee Engagement Group, says that effective communication about Company Health Promotion Programs must be integrated into existing organization communication channels and vehicles. “This covers executive communication to external stakeholders,” he notes, “because this sends a powerful message back to workers about the importance of the programs. Company Health Promotion Programs must not be treated as merely an additional employee perk, but rather a progressive and strategic effort to cut costs and create a healthier work environment.” Talk among yourselves - The most powerful champions of any Company Health Promotion Program will be the participants.

Organizations should discover ways to facilitate discussions about the program among employees. This could take the form of support groups, interactive media and the sharing of success stories.

Nonetheless, since Corporate Wellness Programs touch on potentially private health issues, it is valuable communication remains positive and inclusive, while not pressuring staff members. Discussion of wellness issues must be voluntary, though businesses may consider providing incentives/rewards for those willing to contribute. Motivation and information from peers is likely to carry more credibility and significance than messages from management.

———-

Even in an at-will employment environment, individuals are still guarded from discrimination (including wrongful termination) by virtue of belonging to a protected class. Prior to starting a Company Health Promotion Program, employers need to be alert to the relevant legal restrictions and the potential impacts these measures can have on benefi ts and employee behavior programs.

Title VII of the Civil Rights Act of 1964 - Prohibits employment discrimination based on race, color, religion, sex or national origin.

This means that standards and offerings need to be applied equally (or possibly proportionally) to all protected classes. In other words, if a corporation is offering access to gyms, it ought to ensure that men and women have equal access to facilities. Employers ought to also consider whether individuals who may live in areas heavily populated by one race, religion or ethnicity also have access to facilities and programs. The easiest way to address this concern is to supply on-Site Workplace Wellness Programs whenever possible. This not only ensures equal access, but according to Northwestern Memorial’s Krivy, also stimulates participation.

Organizations must also be aware that particular health issues may disproportionately affect protected classes. Health Risk Assessments and any incentives and rewards put in place may must be customized to account for non-lifestyle related differences.

The Equal Pay Act of 1963 (EPA) - Protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination. Benefits, incentives and rewards and programs need to be applied equally to men and women. A business can’t set a weight goal for men and not for women, even though a business can set health parameters by job function. The Age Discrimination in Employment Act of 1967 (ADEA) - Protects people who are 40 years of age or older from discrimination based on age.

Policies not only need to be available to individuals of all ages, but program goals/objectives, restrictions and incentives and rewards need to be designed with age appropriateness. While older workers (or retirees and dependents) may inherently pose a higher health risk, their behaviors must be assessed in terms of demographically appropriate measures.

Title I and Title V of the American citizens with Disabilities Act of 1990 (ADA) - Prohibits employment discrimination against qualified people with disabilities in the private sector, and in state and local governments. Similar to other workplace offerings, any Company Wellness Programs, such as a fitness center or health clinic, would have to make reasonable accommodations for employees with disabilities.

One area of equivocation is whether corpulent staff members qualify as disabled. The problem is complicated because weight is caused by several factors (genetics, environment, behavior), some of which may be out of the employee’s control. Generally, for staff members to qualify for disability based on weight, the condition must signifi cantly impair their physical or mental ability to perform their job. This determination would need to be made by a qualifi ed physician. Although this label may affect the types of incentives/rewards and program requirements available, it likely would not affect the central implementation of behavioral-focused initiatives.

Civil Rights Act of 1991 - Provides monetary damages in cases of intentional employment discrimination.

This legislation allows individuals to sue businesses for improper treatment. Compensation can be in the form of actual damages such as lost or expected wages, compensatory damages for a circumstance that causes public embarrassment, or even punitive damages meant to send a message to a organization for egregious or habitual violations.

While these laws govern all business activities, there are even more stringent restrictions with regard to Health Care topics. Most policies, communications and data collection regarding employee health are governed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Under HIPAA corporations cannot deny eligibility for benefits or charge a higher premium on the basis of:

• Health status
• Medical condition (including both physical and mental sickness)
• Claims experience
• Receipt of health care
• Health history
• Genetic information
• Evidence of insurability (comprises activities such as riding a motorcycle, skiing, snowmobiling and other similar pursuits)
• Disability

Nonetheless, because wellness programs may not involve health care treatment or be insurance related, and may instead be confined to behavioral initiatives, HIPAA’s nondiscrimination provisions do not completely apply. To address this, in 2001 the United States Department of Labor, the Internal Revenue Service and the United States Department of Health and Human Services jointly issued a proposed regulation to help clarify the lawful provisions of a “bona fi de Wellness Program” in the context of HIPAA’s existing language (See Box p. 14). Although the regulation is not yet final, businesses that comply with the measure will be viewed by the government as making a good-faith effort to avert discrimination in wellness programs.

Robust Workplace Wellness Programs are still relatively new to corporate America and the legal implications of implementation and enforcement are not totally known. By their very nature, these programs potentially expose employers to discrimination lawsuits, disengaged workers and negative public relations. Nevertheless, employers that make a good-faith effort to comply with current Health Care-related laws, discover ways to engage workers, and communicate strategically, will be able to minimize these risks while finding plenty of room to develop a creative and effective Workplace Wellness Program.

For many organizations, a smoking ban would not even apply to all workers. That is because currently 30 states and the District of Columbia prevent organizations from banning off-duty smoking.21 Additionally, 13 states prevent organizations from banning alcohol use away from work. Only six states have broad statutes that prevent organizations from prohibiting any lawful behavior. Michigan is the only state that expressly prohibits discrimination on the basis of weight, however the cities of San Francisco and Santa Cruz, Calif., also have this provision (San Francisco makes exceptions for police offi cers, fi refi ghters and the San Francisco 49ers football team). When designing Employee Health Promotion Programs, organizations must keep in mind local statutes as well as established common law.

Savings of Voluntary Company Wellness Program = (number of participants x savings per participant) - (expense of program)
Savings of Incentive-based Worksite Health Promotion Program = (number of participants x savings per participant) - (expense of program + expense of incentives)
Savings of Mandatory Company Health Promotion Program = (number of participants x savings per participant) - (expense of program + expense of policy-related turnover + expense of limited talent pool)

Constructing Workplace Wellness Program policies in a employer that employs unionized employees can pose unique challenges. Workplace Wellness Programs may be perceived by some unions as a condition of employment and therefore would be subject to collective bargaining between the parties. Nonetheless this situation can represent an opportunity for both groups, as a policy agreed upon between union leadership and management is likely to be received more favorably by employees. The United Auto Staff Members and General Motors worked together to create and position a joint Workplace Wellness Program which has successfully reached more than 800,000 participants. (See Case Studies, UAWGeneral Motors LifeSteps Workplace Wellness Program, p.21).

Unless specifically stated otherwise, most business-employee relationships in America are governed by the principle of at-will employment. Under this system a business, or the employee, can terminate the relationship without any needed showing of cause. This at-will standard gives private corporations large authority in governing the behavior of workers. In this environment, corporations can Finding Wealth Through Wellness 10 creatively design Corporate Wellness Programs based upon their specifi c corporate culture. Corporate Wellness Programs generally take three main forms:

Voluntary Worksite Health Promotion Programs - The most popular form of employee Worksite Health Promotion Program, in most cases they are made available to employees but participation (or lack thereof) is not linked to any type of consequence. Due to ineffective communication, frequently employees are either unaware of these offerings or confuse them with insurance-based medical care. Incentive-based - Worksite Health Promotion Programs based on incentives reward employees for participation in Worksite Health Promotion Program activities. Incentives commonly include lower Healthcare premiums, health club membership or personalized support offerings. In these programs, employees’ behavior can be linked to a particular reward.

Mandatory Worksite Health Promotion Programs - Some businesses require, or ban, certain health-related behaviors. These can take the form of mandatory Health Risk Assessments for employees and limitations on smoking or alcohol use. While mandating behavior is an effective method to eliminate high-risk behavior, the cost savings must be gauged against the potential message sent to existing and prospective employees. Given that employees are already under various levels of scrutiny in the workplace, individuals may resist attempts by businesses to regulate off-duty behaviors. In Addition, some employees may fi nd it diffi cult to comply, forcing businesses into the uncomfortable postion of punishing an otherwise beneficial employee.

In the short-term a mandate-based Corporate Wellness Program can lead to an increase in turnover, as employees either choose to leave or are fi red for noncompliance. In the long-term, the policy may prevent the corporation from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals considering the corporation. Limits in recruiting, for instance, led CNN to rescind a 13-year ban on hiring smokers.18

Organizations need to make sure that Employee Health Promotion Programs are aligned with the values and culture that guide business operations. If a business emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a business that already heavily regulates business conduct. Moreover, a work environment with a sizable disengaged population will likely have poor participation in a voluntarybased program. When calculating cost savings, employers need to take a wider view and consider the effects on long-term employee engagement.

In 2005, Michigan-based insurance benefits provider Weyco instituted a smoking ban for all of its nearly 200 workers. Staff Members are subject to random testing and if they fail a mandatory breathalyzer test, they will be fi red. It is believed that Weyco is the first organization to use testing to enforce a smoking ban - most companies ask workers to self-report behavior. Four workers (more than 2 percent of the total labor force) left Weyco as a result of the policy. A year prior to the ban the organization createed a $50 smoking fee, which would be waived if a employee passed a nicotine test or agreed to take a smokingcessation class. Weyco’s president Howard Weyers announced that 20 workers quit smoking through this program.20 Staff Members were told they had one year before the total ban would go into effect. Under the new Workplace Wellness Program, Weyco does offer $35 a month for workers who want to use a fi tness center and another $65 a month for workers who meet fitness goals and objectives.

1. Undertake a utilization assessment - While organizations can’t get health information on individual staff members, insurance providers will supply organizations with reports that detail patterns and rates of employee use for things such as physician visits, hospital stays and drug use. This information is vital for a corporation to set a benchmark of its current health risk status. Data from human resources can be integrated with benefits information to supply a complete picture of employees’ health-related costs. Then, organizations can determine the specific level of behavior change necessary to result in cost savings. The utilization assessment helps a corporation identify the areas in which it ought to focus its Corporate Wellness Program to reap the greatest benefits.

2. Build a employer case - Once a utilization assessment is in place, companies are able to quantify the Medical Care cost savings that will result from specific levels of lifestyle transformation and risk reduction. This can be done by setting goals in terms of reductions in identifi able insurance utilization, attendance or disability variables, or by aiming for reductions in health risks and projecting the associated cost savings. Effective estimates factor in the cost of the Company Health Promotion Programs as well as the necessary internal marketing efforts that will surround the program. Says Betty-Jo Saenz, United States Medical Care Strategy lead for Motorola, “When we started our programs, our focus was on the 20% of staff members that made up 80% of the costs. We’ve discussed that, and now we’re paying attention to those who are healthy and Finding Wealth Through Wellness 8 keeping them healthy. Wherever you are on the continuum, there are opportunities.”

3. Establish a cross-functional wellness team - Corporations need to identify potential team members who can be champions of wellness within the organization. It is important that the team is representative of the demographic and functional diversity of staff members so that it can credibly address any specific needs groups may have. This team will serve as the voice and face for the Workplace Health Promotion Program within the organization. Best practice organizations integrate members from human resources, communications, organization development and management. Using the utilization analysis as a model, the wellness team must evaluate what programs would be most effective within each particular corporate culture, aligning health-risk priorities with initiatives that staff members will be receptive to.

4. Build buy-in from upper management - The most effective Worksite Health Promotion Programs have substructure from the highest levels of a business. Substructure from management, both in words and in action, sends the message that Worksite Health Promotion Programs are a priority for a business. The utilization analysis can be a powerful tool to build the business case for Worksite Health Promotion Programs and convince executives that initiatives are worthy of investment and attention. Meaningful wellness-related messages are integrated into business discussions and aligned with corporate objectives.

5. Create a all-inclusive Employee Program Engagement plan - The most brilliantly conceived Company Health Promotion Program is meaningless if no workers participate. Effective wellness talks emphasize both health and monetary benefits at the personal and employer level. According to a 2004 survey by Towers Perrin, only 28% of workers say their employer communicates about Health Care issues other than cost. In addition, wellness-related information ought to be a part of existing employer talks efforts and not coupled solely with benefits talks. This helps elevate the importance of Company Health Promotion Programs and align initiatives with employer objectives.

Furthermore, discussions around Worksite Wellness Programs can share personal success stories and provide company progress updates. Successful organizations not only use existing discussion channels to generate discussion around activities, but also consider more interactive tools like message boards, forums, blogs and wikis. This helps personalize initiatives and allows for the sharing of best practices within the company.

A lot corporations involve healthcare professionals to advise in the construction, communication and backing of the program. The use of outside authorities such as these will increase the credibility of the Workplace Wellness Programs as well as combat skepticism from workers who may view the company’s motives as merely selfserving.

Another strategy available to employers is to brand their Corporate Wellness Program. This move can increase the visibility and acceptance of the offering. Branded wellness programs are most common when employers are also promoting an external campaign around Corporate Wellness Programs. An example of this is PepsiCo, which launched its HealthRoads Corporate Wellness Program internally along with a consumer campaign, Smart Spot, that puts special labels on healthier food and drink options.

These efforts are more effective when they are not owned solely by the internal communications department, but rather when managers serve as leaders of, as well as participate in, Worksite Wellness Programs within corporations. This creates more immediate accountability and motivation.

6. Measure constantly and consistently - At every step of implementation, a Employee Wellness Program must be able to demonstrate its value to a organization. Employee Wellness Programs should be designed to allow companies to set benchmarks and evaluate behavior change. Measurement ought to consider not only quantitative health measures, but also qualitative measures of stress and employee engagement. Less than ten% of companies do extensive management of medical care expense, employee health risk status or employee satisfaction with benefit offerings, and less than half of companies do any measurement in these areas at all.16

Measurement is only useful if a business explicitly specifies what data would constitute success. Potential measures of success cover:

• Participation rates
• Increased employee engagement
• Reduction of risk status
• Reduction of direct health costs
• Decreased absenteeism
• Less disability claims

Motorola’s Saenz advises administrators of Corporate Wellness Programs to track as many measures as possible from the start, even if management only requires one, because it is very difficult to retrieve data later. She notes that even if leadership begins by looking at participation rates, they will eventually want to know about reductions in claims and costs.

Frequent measurement is the only way to build backing among management and staff members. Nearly half of organizations feel a lack of useful data is a top barrier to their ability to manage employee health, and at least 20 percent of organizations don’t know how effective existing Corporate Wellness Programs are regarding various outcomes. Employers should lead utilization analyses each year and reevaluate Corporate Wellness Program priorities based upon changes. In Addition, progress should be shared with the wider business community to build backing for initiatives. Managers and executives throughout a company are likely to backing a program that can prove increased productivity among staff members. Effective Corporate Wellness Programs are designed to be fl exible so they can respond to changes in both company goals/objectives and larger health variations.

Company Health Promotion Programs first became popular during the economic boom of the late 1980s and early 90s. Programs featured on-Site fitness centers and massages, and were used as recruitment tools for young staff members searching for nontraditional work environments. Still, when the tech bubble burst, so too did the willingness to spend money on perceived perks, and businesses returned to a more traditional benefit structure focused on managed medical care.

In recent years, as Health Care costs have spiraled out of control, organizations have explored the potential of Workplace Wellness Programs as a cost-saving strategy. Corporations such as Johnson and Johnson, General Motors, Motorola and Union Pacifi c Railroad have all seen a signifi cant return on investments in employee health (See Case Studies, p.20). Workplace Wellness Programs can help reduce the costs associated with:

Healthcare premiums - The expense a business pays for health insurance: According to a 2005 study by Hewitt, the Healthcare expense per employee in the American in 2006 will average $8,046, with organizations absorbing nearly two-thirds of that expense.

Prescription Drug costs - The price of a drug plan: According to a 2005 study by Mercer, the average annual drug costs for big organizations grew 11.5 percent, making it nearly a decade straight of double-digit increases in cost.

Short-term disability (STD) - The price of offering STD insurance to employees: According to a 2004 study by insurance provider Cigna, the average STD claim results in $13,094 in direct disability payments and medical costs. The report also found that 26 percent of claims related to healthcare events were a result of chronic conditions that could likely be mediated through Workplace Wellness Programs, and that these cases amount for 56 percent of the STD-related medical costs.

Absenteeism - The price of missed work: Absenteeism cost businesses $660 per employee in 2004, with nearly one-third of businesses characterizing the trend as a weighty issue.

Presenteeism - The price associated with employees who work at decreased productivity levels: Sixty% of the total cost of employee diseases come from presenteeism, according to a 2004 study by the Institute for Health and Productivity Studies at Cornell University.

The evidence is clear that strategically designed Employee Wellness Programs can reduce both direct and indirect Medical Care costs. A 2004 review of Employee Wellness Programs revealed that, in total, an investment of $1 by a employer in Wellness Programming returned a median cost savings of $2.05 to $4.64.