Workplace Wellness Program : Are Company Wellness Programs Cost-Effective?

Research studies have repeatedly established that comprehensive Employee Health Promotion Programs, or Employee Health Promotion Programs, have the potential to lower healthcare and insurance expenditures, cut down on absenteeism, and improve effectiveness and productivity. Other advantages established in studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public perception of the company.

Healthcare and Insurance expenses

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

For $30 per person, the Bank of America implemented a Company 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 one-year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case.

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

Decreased Absenteeism

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

Pacific Bell’s FitWorks program diminished absent days .8 percent to save $2 million in one year. FitWorks members also invested 3.3 days less on STD for an additional savings of $4.7 million.

Focusing Employee Wellness Program efforts on elevated-risk staff members has the potential to lead a better outcome. A national manufacturing employer reports a decline of 12.2% in illness days for these staff members.

A 2-year study by The DuPont Corporation of the effect of its comprehensive Employee Health Promotion Program on absences among employees reports that blue-collar employees 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 Corporate Health Promotion Programs report documented improvement in job attitude, work effectiveness, energy level, and/or overall morale among program participants–all vital factors in enhancing work rate.

A Johnson & Johnson study observed that employee attitude changes were greater at Workplace Health Promotion Program intervention sites with significant positive attitude changes noted in the categories of corporation 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 growth in productiveness after starting a organization 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 observed that mental effectiveness was significantly better in physically fit workers than in non-fit workers. Fit workers committed 27% fewer errors on tasks involving concentration and short-term memory, as compared with the effectiveness of deconditioned workers.

The Bottom Line

The following sample of Worksite Health Promotion Programs wellness program results have been stated by individual employers:

Business: 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 compelling evidence that a large portion of the billions of dollars currently spent by employers on health-related costs is preventable by means of Corporate Wellness Programs. Well-planned, comprehensive Corporate Wellness Programs (Corporate Wellness Programs and Corporate Wellness Programs) have been shown to be cost-effective, particularly when the Corporate Wellness Programs is matched to the health problems of the specific employee.