Company Health and Wellness : Are Workplace Wellness Programs Cost-Effective?

Research studies have repeatedly shown that accross the board Corporate Wellness Programs, or Corporate Wellness Programs, can reduce medical care and insurance expenditures, cut down on absenteeism, and improve success and work rate. Other benefits shown in research studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public conception of the organization.

Health Care and Insurance expenditures

A number of research studies offer evidence of reduced medical and insurance costs for participants in Workplace Health Promotion Programs, particularly wellness programs involving physical activity.

For $30 per person, the Bank of America implemented a Worksite 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 health care|medical|medical care|healthcare} claims with an exercise program alone, saving $500 per employee per year for the workers (60%) who joined their HealthWorks physical activity 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 determined to be impacted by wellness programs. The evidence indicates a significant reduction in absenteeism and resultant dollars saved as a result of employee exercise program.

Pacific Bell’s FitWorks program lowered absent days .8 percent to save $2 million in one year. FitWorks participants also spent 3.3 days less on short-term disability for an additional savings of $4.7 million.

Focusing Worksite Health Promotion Program efforts on high-risk employees has the potential to lead to better results. A national manufacturing business reports a decline of 12.2% in illness days for these employees.

A two-year study by The DuPont Corporation of the effect of its all-inclusive Company Health Promotion Program on absences among workers reports that blue-collar workers 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 Employee Health Promotion Programs report documented improvement in job attitude, work performance, energy level, and/or overall morale among program participants–all critical factors in enhancing work rate.

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

In a Canadian government study, the Canada Life Assurance Organization experimental group realized a 4 percent increase in productiveness after starting a employer 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-employees, and generally enjoyed their work more.

Swedish investigators observed that mental performance was significantly better in physically fit staff members than in non-fit staff members. Fit staff members committed 27% fewer errors on tasks involving concentration and short-term memory, as compared with the performance of non-fit staff members.

The Bottom Line

The following sample of Corporate 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 strong evidence that a sizable portion of the billions of dollars currently invested by employers on health-related costs is preventable by means of Workplace Wellness Programs. Well-planned, accross the board Workplace Wellness Programs (Workplace Wellness Programs and Workplace Wellness Programs) have been demonstrated to be cost-effective, particularly when the Workplace Wellness Programs is matched to the health issues of the specific employee.