Health Handouts : Are Company Wellness Programs Cost-Effective?

Studies have repeatedly shown that accross the board Employee Health Promotion Programs, or Employee Health Promotion Programs, can lower healthcare and insurance expenditures, decrease absenteeism, and improve success and work rate. Other benefits shown in studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public conception of the business.

Healthcare and Insurance expenses

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

For $30 per person, the Bank of America started a Employee Health Promotion 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 physical activity program alone, saving $500 per employee per year for the employees (60%) who joined their HealthWorks physical activity program. Prudential Insurance Employer reports that the company’s major medical expenditures dropped from $574 to $312 for each participant in its wellness program.

Decreased Rates of Absenteeism

Rates of Absenteeism has been established to be impacted by wellness programs. The evidence indicates a significant decline in absenteeism and resultant dollars saved as a result of employee exercise program.

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

Focusing Company Health Promotion Program efforts on elevated-risk staff members has the potential to lead a better outcome. A national manufacturing organization reports a reduction of 12.2 percent in illness days for these staff members.

A two-year study by The DuPont Corporation of the effect of its comprehensive Company Wellness Program on absences among staff members reports that blue-collar staff members at intervention sites had a 14 percent decline in disability days vs. 5.8 percent decline for controls. There were a total of 11,726 fewer net disability days.

Enhanced Performance, Productivity and Morale

A number of employers with Employee Wellness Programs report documented improvement in job attitude, work performance, energy level, and/or overall morale among program participants–all essential factors in enhancing work rate.

A Johnson & Johnson study found that employee attitude changes were greater at Worksite Health Promotion Program intervention sites with significant beneficial attitude changes noted in the categories of company responsibility, supervision, on the job conditions, job competence/security, and pay/benefits.

In a Canadian government study, the Canada Life Assurance Business experimental group realized a 4% increase in work rate after starting a employer fitness program, compared to the control group. Further, 47% of program participants stated that they felt more alert, had better rapport with their co-employees, and generally enjoyed their work more.

Swedish investigators found that mental performance 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 performance of deconditioned workers.

The Bottom Line

The following sample of Company Wellness Programs wellness program results have been published by individual employers:

Corporation: 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 growing evidence that a sizable portion of the billions of dollars now being invested by employers on health-related costs is preventable by means of Workplace Health Promotion Programs. Well-planned, inclusive Workplace Health Promotion Programs (Workplace Health Promotion Programs and Workplace Health Promotion Programs) have been determined to be cost-effective, particularly when the Workplace Health Promotion Programs is matched to the health issues of the specific employee.