Benefits of Employee Wellness Plans
Introduction to Employee Wellness Plans
Risky health behaviors by staff members cost a company. Changing those behaviors can save the employer money and raise the staff member’s productivity.
Because work gives an staff member a stable environment and support system, Employee Wellness Plans 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.
Employee Wellness Plans can include:
Awareness Rasing Programs: Health and wellness newsletters, health topics covered in payroll stuffers, healthy emails.
Health Risk Assessment: Employee health screenings, wellness fairs, health risk appraisals.
Educational Programs: Lunch and Learn 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, smoking cessation, and skills to help you get the most out of your doctor visit.
Physical setting: Healthy items in the vending machines and cafeterias, clean air practices, ergonomics, bike racks, flex time, welllit stairways.
Evaluation: Staff Member needs assessment, baseline Company Health and Wellness Program evaluation measures, ongoing Company Health and Wellness Program evaluation of overall effectiveness.
Why Offer Employee Wellness Plans
The typical employer spends about $8,000 a year on an employee’s medical care. This includes medical insurance, disability and worker’s compensation. As these costs climb, medical insurance is expected to rise at least 10 percent per year.
A 1999 study showed that organizations using Employee Wellness Plans had a return on investment (ROI) from $1.49 – $13 in benefits per dollar spent. The amount depended on the nature of the Employee Wellness Plans used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)
One study showed that a “stop smoking” element to Employee Wellness Plans can save between $404 -$40,829 per employee, depending on the age and sex of the staff member.
The Employee Wellness Plans at Traveler’s Company included a self-care book, a newsletter, single-topic brochures, and videotapes. The Employee Wellness Plans saved the company $7.8 million in employee benefi t costs, decreased doctor visits, and it decreased absenteeism by 1.2 days per staff member per year. The estimated Employee Wellness Plans ROI was $3.40 per dollar spent.
In 1998, the Health Enhancement Research Organization (HERO) reported a study of 46,026 staff members from six large organizations for three years. Employees with an inactive lifestyle had 10 percent higher costs; staff members with depression had 70 percent higher costs.
Benefits of Employee Wellness Plans
Raised Productivity – The Canada Life Assurance Company realized a 4 percent rise in productivity after creating an employee fitness program.
Raised Job Satisfaction – According to employee opinion surveys conducted by the Silverstone Group about thier Employee Wellness Programs, staff members’ morale increased, which helped support a more creative work environment.
Improved Recruitment & Retention – In the midst of a tight labor market, Employee Wellness Plans could be a vital tool to draw new recruits.
Decreased Absenteeism – Canada Life Assurance Company’s absenteeism dropped 42 percent among staff members in the Employee Wellness Programs.
Decreased Workers Comp & Disability – In one year, Boeing Company’s number of back injuries decreased by 34 percent. Six million dollars was saved by tracking injuries as they occurred.
Managed Health Care Costs – Golden, Colorado Adolf Coors Company’s Employee Wellness Plans returned $6.19 for each dollar spent.