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Wellness Articles

Employee Wellness Program

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Employee Wellness Program


Employee wellness program implementation can yield huge returns short-term and long-term for corporations. Research presented by Cornell University at the 16th Annual Art and Science of Health Promotion Conference in Las Vegas, researchers showed that a reduction of 1% or less in risk factors can pay for the cost of program implementation.

Dr. Ron Goetzel of Cornell presented material from Dow Chemical, a world-renowned leader in employee wellness program implementation, showing that a .17% improvement in employee risk factors pays for the cost of their program. An improvement of 1% in employee risk factors would return a 300% return on investment of 3 dollars for every 1 dollar spent. For Dow Chemical, a 1% improvement for its 26,000 employees would save 10 million dollars a year in health care costs.

Dr. Goetzel also showed information for Union Pacific and Motorola showing that their break-even improvements were .49% and .67% respectively. He also defined six areas that companies should focus on with employee wellness program implementation in order to maximize success. These areas included: aim at the top, take programs to the people, budgets are required – but not enormous ones, if you leave things alone they are going to get worse, involve family, and bribery doesn’t really work.

Aim at the top refers to the principle of leading by example. Companies that have executive buy-in at the “C Level” are most likely to have a successful program. Even if companies spend massive amounts of money on employee health they are unlikely to be successful without support from upper-level management. The objective should always be to get high level support and commitment in order to change the current company culture.

Take programs to the people is all about having interventions that actually get down to the employee level. Health promotion material that is just taped to the wall or shown in a slide-show is unlikely to make a real difference in the lives of individual employees. Programs such as activity management that use pedometers or activity trackers are a great way to engage an entire employee population. Biometric testing and health risk appraisals can be taken for each employee at a low cost compared to the investment made.

Budgets are required – but not enormous ones is a statement that is as easy to implement as it is to understand. Dr. Goetzel stated emphatically that “you can get things done for $100 to $250 per employee, per year”. For people who usually refer to things on a per employee per year basis, this amounts to around $8 to $20 per covered life. Depending what interventions your company is already currently supporting, the investment can be under $5 per employee per year if the medical claims information for your company is properly analyzed and tailored interventions are implemented.

If you leave things along, they are going to get work is absolutely a fact. For the very reason that people go to the hospital when they have a fatal wound or injury, if you do not do something to change the status queue, things will worsen significantly. To do nothing is to admit failure. The burden is on each company and employee to improve their health status incrementally.

Involve family. Family support is one of the best ways to give encouragement and establish higher levels of engagement. It is easier to accomplish things when you have made the commitment to others that you know and love that you are willing to make a change in your life. Setting goals with a spouse can be a great way to get back on the road toward better health. Many companies offer benefits to spouses and dependents and therefore it is necessary not only for the family, but for the corporate family that spouses and dependents are involved at some level in the interventions.

Bribery doesn’t really work. Incentive programs are important, especially when a wellness program is first started. Over time, it becomes necessary for employees to learn and understand why employee health is so important. Once the internal goals and objectives are internalized for employees, there is no longer a strong need for employee incentives and fiscal rewards. Every company is different, but with time the value of living a longer, healthier life can be the greatest reward of all.

Today, according to the Kaiser Family Foundation (www.kff.org), 10.5% of the average payroll costs go toward health insurance. Most companies are experiencing double-digit increases in their health insurance premiums. Employees spend most of their waking hours at the office each day. This provides a unique opportunity for employers to make a significant difference in the health habits of its employees.

By implementing an employee wellness program, you can have an unimaginable impact upon the lives of your employees. Life expectancy will increase as will the happiness and well-being of each and every employee that participates. To learn more about Kersh Risk Management and our unique services, please fill out our hassle-free employee wellness program proposal form today!

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