Benefits of Corporate Wellness Programs

Introduction to Corporate Wellness Programs

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

Because work gives an worker a stable setting and support system, Corporate Wellness Programs can have a great impact on decreasing high-risk behaviors. This impact results in lower health claims cost, less absenteeism, and less short-term disability.

Corporate Wellness Programs may include:

Awareness Rasing Activities: Health and wellness newsletters, health topics covered in payroll stuffers, healthy emails.

Health Risk Assessment: Employee health screenings, wellness fairs / health fairs, health rist assessments.

Educational Programs: Lunchtime wellness presentations, guest speakers at staff meetings.

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

Interventions: Massage, tobacco 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: Staff Member needs assessment, baseline Corporate Health Promotion Plan evaluation measures, ongoing Corporate Health Promotion Plan evaluation of overall effectiveness.

Why Make available Corporate Wellness Programs

The typical employer spends about $8,000 a year on an employee’s medical care. This includes health insurance, disability and worker’s compensation. As these costs climb, health insurance is expected to rise at least 10% per year.

A 1999 research study showed that corporations using Corporate Wellness Programs had a return on investment (ROI) from $1.49 – $13 in benefits per dollar spent. The amount depended on the nature of the Corporate Wellness Programs used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)

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

The Corporate Wellness Programs at Traveler’s Company included a self-care book, a newsletter, single-topic brochures, and videotapes. The Corporate Wellness Programs saved the company $7.8 million in employee benefi t costs, decreased doctor visits, and it lowered absenteeism by 1.2 days per worker per year. The estimated Corporate 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 employers for three years. Staff Members with an inactive lifestyle had 10% higher costs; workers with depression had 70% higher costs.

Benefits of Corporate Wellness Programs

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

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

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

Decreased Absenteeism – Canada Life Assurance Company’s absenteeism dropped 42% among workers in the Corporate Wellness Programs.

Decreased Workers Comp & Disability – In one year, Boeing Company’s number of back injuries decreased by 34%. Six million dollars was saved by tracking injuries as they occurred.

Managed Medical Care Costs – Golden, Colorado Adolf Coors Company’s Corporate Wellness Programs returned $6.19 for each dollar spent.