Category — wellness programs

Dr. Moore of Nationwide maintains that immunization is the most cost-effective treatment in medicine. for example, vaccinating children against the influenza virus averages a savings (including health care costs, parents’ missed work, etc.) of up to $35 per vaccine recipient.

And professionals predict that estimate is low, because it does not take into account the rapid spread of the flu.

The American Association of Family Physicians’ Web site, www.aafp.org, offers a advised adult immunization schedule developed by the Advisory Committee on Immunization Practices.

This schedule, tiered by age and chances of exposure, recommends diphtheria, tetanus, influenza, pneumonococcal, hepatitis B, hepatitis C, measles, mumps and rubella, varicella and meningococcal vaccinations.

Ideas to incorporate avoidance and early detection -

o  Hold a health fair and invite companies that provide screening services for such conditions as blood pressure, blood iron, cholesterol, Body Mass Index (BMI)  and diabetes.

o  Give educational materials about well-baby care and immunizations.

o  Select health care coverage plans that include wellness check-ups and immunizations.

o  Provide onsite mammograms for workers.

o  Sponsor onsite flu shots to coincide with flu season.

Advantages of Stress Reduction Programs

While stress cannot be eliminated from life, or even from the workplace, coping skills can be created with relative ease. Stress management skills lead to decreased absenteeism and more effective, more productive workforce.

Because stress has been shown to contribute to such physical conditions as ulcers, high blood pressure (BP) and stroke, stress reduction has a direct impact on bettering physical health.

Studies have shown that heart patients who attend stress management programs have 42% lower health care costs. Other studies have documented a 50% reduction in medical services use when stress management programs are employed.

Further, Worker Assistance Program (EAP) experts estimate that 20 percent of any workforce is affected by personal problems that can influence work performance.

Stress reduction tactics to consider -

o  Give onsite yoga or meditation classes.

o  Organize support groups among employees.

o  Sponsor stress management classes during the workday.

o  Provide an employee assistance program that includes both counseling and referral.

o  Give onsite counseling for staff by a work-related trauma, like the death of a coworker.

Benefits of Prenatal Care and Breastfeeding

The old adage “an ounce of avoidance is worth a pound of cure” is especially relevant to when applied to preventive measures taken during pregnancy, when several extra ounces of birth weight can save a child’s life.

During pregnancy, simple precautions can help avoid catastrophic results; giving up use of tobacco, for instance, drastically lowers the risk of miscarriage and pre-term labor.

The March of Dimes reports that if all women took adequate folic acid before conception and during pregnancy, the number of babies born with a neural tube defect could drop by as much as 70 percent.

The physical and emotional benefits of proper prenatal care to a mother and child are underscored by a strong organization case for offering prenatal wellness benefits. Nationwide’s Chief Medical Director, Dr. Michael Moore, estimates costs to care for one baby delivered prematurely could approach $500,000.

First steps in fostering a prenatal program -

o  Invite the March of Dimes to present information about prenatal health at an staff member brownbag lunch or breakfast meeting.

o  Hold prenatal care information classes for interested workers at lunch.

o  Give educational materials about the effects of alcohol, drugs and smoking on an unborn child.

o  Give incentives for adopting healthy life choices during pregnancy.

o  Make available prenatal programs and education as part of the corporation health care package.

A Employee Wellness Program is an accross the board program to help and support employees in implementing healthier lifestyles.  This could possibly include rising employee awareness on health topics, scheduling behavior modification programs, and/or implementing employer policies that support health-related objectives.  Programs and policies that promote increased physical activity, tobacco use prevention and cessation, and healthy meal selections are a few examples.  

Dimensions of Wellness

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

   • Spiritual Wellness,
   • Emotional Dimension of Wellness,
   • Social Dimension of Wellness,
   • Intellectual Dimension of Wellness

These dimensions are frequently depicted as a “life wheel” with examples of health dimensions that include fitness, diet, purpose in life, financial planning, social connections & backing systems, stress management, mind-body health, career planning and continued learning.   The key behind individual health is keeping the “life wheel” in balance.  A accross the board workplace wellness program addresses most, if not all, of these dimensions.

Why Workplace Wellness Programs?

staff members invest a whole lot of time on the job, and the bottom line is that our traditional work-week is increasing.  In fact, the typical American now labors about 47 hours every week.  Additionally, items such as modems, laptops, cell phones, voice and email have confused the line between life and work.  These realities diminish the amount of time that the average person is able to devote to health & wellness pursuits, and yet staff members are expected to be at top performance when at work.

A current study conducted by the American Association of Occupational Health Nurses found that workplace wellness or Employee Health Promotion Programs are efficacious in assisting employees to make positive health changes due to several factors such as convenience, environmental backing, and co-worker or social acceptance.  

What’s the Link between Wellness and the Workplace?

Programs and policies that reward healthy behaviors can make a big difference on employee wellness AND have an influence on the company’s bottom line.  Studies show that for each dollar invested by employers in Worksite Health Promotion Programs/wellness programs, there were savings between $1.49 to $4.91 with a average savings of $3.14*.  In company vocabulary, that’s more than a 3:1 minimum ROI – a number that is difficult to disregard, and a best practice that must warrant serious consideration from employers.  In fact, a Worksite Health Promotion Program literature review posted in Health Promotion Practitioner Journal observed:

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

There is little doubt that a all-inclusive wellness program targeted to meet an enterprise’s specific needs can save money by decreasing absenteeism, decreasing medical care expenditures, decreasing employee turnover, and expanding productiveness.

• The U.S. Department of Health & Human Services, 2003

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

By law, organizations 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.

Corporations that only engage in the minimally required due process communication of a Corporate Health Promotion Program, however, do a disservice to the program and the employer.

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

Under the proposed rules, the four specifications to be a bona fide Company 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 ten% to 20% of the total expense of employee-only coverage may be appropriate.
- The program must be reasonably designed to promote good 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 health care condition to meet the Employee Wellness Program standard (or for whom it is medically inadvisable to attempt to meet the Employee Wellness 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 Corporate 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 workers engaged and inform them of what’s going on.”

A properly implemented Worksite Wellness Program is designed to save a company more money with greater participation. However, a company 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, staff members remain skeptical that the concern affects corporation operations. In fact, only 53 percent of staff members even believe what their corporation communicates about the subject.24 Employers 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 workers that we have been able to maintain Motorola’s Health Care spend trend below national average over the past several years due to their participation in our various Corporate Wellness Programs. This transparency is necessary to keep reminding people the reasons for our behaviors.”

An effective strategy is to focus on the cost savings and overriding health benefi ts to the employee and not the employer. By personalizing the information in this way, it produces 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 given to staff members, dependents and retirees.

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

As noted earlier regarding PepsiCo’s HealthRoads, one strategy is for businesses to brand their Workplace Wellness 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 workers and other stakeholders see the larger goals/objectives of the Workplace Wellness Program, rather than focusing on isolated offerings.

Say it loud, say it proud – As a potential cost-saving program, Company Health Promotion Programs must be given the same executive substructure and internal commitment as any comparable corporation effort. Employers must not approach wellness as simply a preventive, financially-motivated program, but rather as an opportunity for the corporation to distinguish itself and become more competitive.

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

Employers ought to find ways to facilitate discussions about the program among staff members. This could take the form of support groups, interactive media and the sharing of success stories.

Nevertheless, since Employee Wellness Programs touch on potentially private health problems, it is valuable communication remains positive and inclusive, while not pressuring employees. Discussion of wellness problems should be voluntary, though companies 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.

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Even in an at-will employment environment, individuals are still guarded from discrimination (including wrongful termination) by virtue of belonging to a protected class. Before starting a Workplace Health Promotion Program, employers need to be cognizant of 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 employer is offering access to gyms, it must ensure that men and women have equal access to facilities. Employers must 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 support onsite Worksite Health Promotion Programs whenever possible. This not only ensures equal access, but according to Northwestern Memorial’s Krivy, also expands participation.

Companies must also be aware that particular health problems may disproportionately affect protected classes. Health Risk Assessments and any incentives and rewards put in place may have to be personalized 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, rewards and incentives and programs need to be applied equally to men and women. A corporation cannot set a weight goal for men and not for women, even though a corporation can set health parameters by work 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 people of all ages, but program objectives, restrictions and incentives and rewards need to be designed with age appropriateness. While older employees (or retirees and dependents) may inherently pose a higher health risk, their behaviors should be evaluated 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 individuals 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 staff members with disabilities.

One area of ambiguity is whether very overweight staff members qualify as disabled. The issue is complicated because obesity 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 obesity, 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 and rewards and program requirements provided, it likely would not affect the overriding 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 companies for improper treatment. Compensation can be in the form of actual damages such as lost or expected wages, compensatory damages for a postion that causes public embarrassment, or even punitive damages meant to send a message to a corporation for egregious or habitual violations.

While these laws govern all corporation activities, there are even more stringent restrictions with regard to Healthcare 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 companies can’t 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 medical care
• Medical history
• Genetic information
• Evidence of insurability (includes activities such as riding a motorcycle, skiing, snowmobiling and other similar pursuits)
• Disability

Still, because wellness programs may not incorporate medical 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, organizations that comply with the measure will be viewed by the government as making a good-faith effort to avoid discrimination in wellness programs.

Comprehensive Workplace Health Promotion Programs are still relatively new to corporate America and the legal implications of implementation and enforcement are not completely known. By their very nature, these programs potentially expose businesses to discrimination lawsuits, disengaged workers and detrimental public relations. However, businesses that make a good-faith effort to comply with current Healthcare-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 Health Promotion Program.

For many companies, a smoking ban would not even apply to all workers. That is because currently 30 states and the District of Columbia prevent companies from banning off-duty smoking.21 Additionally, 13 states prevent companies from banning alcohol use away from work. Only six states have broad statutes that prevent companies 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 creating Workplace Health Promotion Programs, companies ought to keep in mind local statutes as well as established common law.

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

Constructing Corporate Health Promotion Program policies in a business that employs unionized employees can pose unique challenges. Corporate Health Promotion Programs may be perceived by some unions as a condition of employment and therefore would be subject to collective bargaining between the parties. Still this postion 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 Workers and General Motors worked together to create and position a joint Corporate Health Promotion Program which has successfully reached more than 800,000 participants. (See Case Studies, UAWGeneral Motors LifeSteps Corporate Health Promotion Program, p.21).

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

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

Mandatory Employee Wellness Programs – Some corporations require, or ban, certain health-related conduct. These can take the form of mandatory Health Risk Assessments for employees and bans 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 corporations to regulate off-duty conduct. Additionally, some employees may fi nd it diffi cult to comply, forcing corporations into the uncomfortable circumstance of punishing an otherwise constructive employee.

In the short-term a mandate-based Employee Wellness Program can drive 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

Businesses need to make sure that Worksite Health Promotion Programs are aligned with the values and culture that drive company operations. If a company emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a company that already heavily regulates company conduct. Moreover, a work environment with a big 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 employees. 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 corporation to use testing to enforce a smoking ban – most companies ask employees to self-report behavior. Four employees (more than 2% of the total labor force) left Weyco as a result of the policy. A year prior to the ban the corporation implemented 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 reported that 20 employees 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 Employee Wellness Program, Weyco does offer $35 a month for employees who want to use a fi tness center and another $65 a month for employees who meet fitness goals.

1. Undertake a utilization assessment – While corporations cannot get medical information on individual employees, insurance providers will supply corporations with reports that detail patterns and rates of employee use for things such as physician visits, hospital stays and drug use. This information is critical for a employer 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, corporations can determine the specific level of behavior modification necessary to result in cost savings. The utilization assessment helps a employer identify the areas in which it should focus its Worksite Wellness Program to reap the greatest benefits.

2. Build a company case – Once a utilization assessment is in place, employers are able to quantify the Medical Care cost savings that will result from specific levels of lifestyle change and risk reduction. This can be done by setting objectives 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 expense of the Workplace Health Promotion Programs as well as the necessary internal marketing efforts that will surround the program. Says Betty-Jo Saenz, American Medical Care Strategy lead for Motorola, “When we started our programs, our focus was on the 20 percent of staff members that made up 80 percent of the costs. We’ve addressed 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. Develop a cross-functional wellness group – Corporations need to identify potential group participants who can be champions of wellness within the company. It is significant that the group is representative of the demographic and functional diversity of employees so that it can credibly address any specific needs groups may have. This group will serve as the voice and face for the Employee Health Promotion Program within the company. Best practice businesses integrate participants from human resources(HR), communications, company development and management. Using the utilization analysis as a guide, the wellness group ought to evaluate what programs would be most effective within each particular corporate culture, aligning health-risk priorities with initiatives that employees will be receptive to.

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

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

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

Many businesses involve health care experts to advise in the construction, communication and support of the program. The use of outside authorities such as these will expand the credibility of the Worksite Health Promotion Programs as well as combat skepticism from staff members who may view the employer’s motives as merely selfserving.

Another strategy available to corporations is to brand their Workplace Wellness Program. This move can broaden the visibility and acceptance of the offering. Branded wellness programs are most common when corporations are also promoting an external campaign around Workplace Wellness Programs. An example of this is PepsiCo, which launched its HealthRoads Workplace 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 take part in, Employee Health Promotion Programs within corporations. This produces more immediate accountability and motivation.

6. Measure constantly and consistently – At every step of implementation, a Company Wellness Program must be able to demonstrate its value to a corporation. Company Wellness Programs should be designed to allow corporations to set benchmarks and evaluate behavior modification. Assessment ought to consider not only quantitative health measures, but also qualitative measures of stress and employee engagement. Less than 10 percent of corporations do extensive management of healthcare expense, employee health risk status or employee satisfaction with benefit offerings, and less than half of corporations 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 comprise:

• Participation rates
• Better employee program engagement
• Decrease of risk status
• Lowering of direct health costs
• Diminished absenteeism
• Less disability claims

Motorola’s Saenz advises administrators of Corporate Health Promotion Programs to track as many measures as possible from the start, even if management only needs 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 support among management and employees. 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 do not know how effective existing Worksite Health Promotion Programs are regarding various outcomes. Companies must conduct utilization analyses each year and reevaluate Worksite Health Promotion Program priorities based upon changes. Additionally, progress must be shared with the wider business community to build support for initiatives. Managers and executives throughout a corporation are likely to support a program that can prove increased productivity among employees. Effective Worksite Health Promotion Programs are designed to be fl exible so they can respond to changes in both corporation 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 employers returned to a more traditional benefit structure focused on managed medical care.

In recent years, as Health Care costs have spiraled out of control, businesses have explored the potential of Corporate Wellness Programs as a cost-saving strategy. Companies 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). Corporate Wellness Programs can help reduce the costs associated with:

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

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

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

Absenteeism – The price of missed work: Absenteeism cost corporations $660 per employee in 2004, with nearly one-third of corporations characterizing the trend as a somber problem.

Presenteeism – The price associated with employees who work at decreased productiveness levels: Sixty percent 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 Worksite Wellness Programs can lower both direct and indirect Health Care costs. A 2004 review of Worksite Wellness Programs revealed that, in total, an investment of $1 by a company in Wellness Programming returned a median cost savings of $2.05 to $4.64.