How to Make Wellness Programs Work for Your Small Business

By Michael Tomlinson

With 2014 officially behind us, people across the country are moving forward, diligently working to accomplishing their New Year’s resolutions. It’s likely those resolutions are health related — according to a study by the University of Scranton, losing weight, staying fit, and quitting smoking were three of the top 10 resolutions people made in 2014. Employers can help their employees stick to their 2015 goals by implementing a wellness program for their small businesses.

Wellness programs are one way to address the impact of rising health-care costs. For many businesses, medical costs consume 50 percent or more of corporate profits. In addition, the indirect costs of workers’ poor health, such as absences and reduced productivity, can be two or three times the amount of direct medical costs.

However, the return on investment (ROI) can have a substantial impact on building a case for wellness programs. A study by Health Affairs found that medical costs fall by about $3.27 for every dollar spent on wellness programs and that absenteeism costs fall by about $2.73 for every dollar spent. Another study by Harvard Business Review showed that one company saw a return of $2.71 on every dollar spent on wellness.

You may be able to alleviate some of these expenses and have happier, healthier employees by building a wellness program around the needs of your small business employees. To begin, take into account the following five tips:

1. Promote a culture of wellness.

Companies with effective programs know that lasting wellness must be a lifestyle change. This means establishing a holistic approach that considers employees’ total health, including physical, financial, and social. To accomplish this, use a variety of benefits options such as flexible scheduling, paid time off, health programs and employee socials.

2. Harness effective communication.

It's hard to take advantage of a wellness program if you don’t know it exists. That is why successful programs need to include an effective communication component in order to spark employee engagement. Use promotional materials that are attractively displayed and straightforward so employees can quickly and easily learn about wellness opportunities.

3. Utilize multiple program components.

Wellness programs come in all shapes and sizes, depending on a company’s resources and the needs of its employees. Traditional options like lifestyle programs to help manage stress, weight, healthy sleeping, blood pressure, and tobacco use are great to explore. But pairing those with other nontraditional components such as self-help books, time off for annual wellness visits, group programs, and support through a nurse hotline, coaching, or social media will make any program more robust. This will also allow employees to choose the best components for them, which will raise engagement and the effectiveness of the initiatives you put in place.

4. Create measurable goals.

Developing tangible measurement and regular reporting are crucial to the outcome of a wellness program. Having measurable goals can assist with fine-tuning programs and communications as well as help you see the positive impact it has on your employees and business. Key aspects to measure include participation, workers’ compensation claims, employee absences, satisfaction, and engagement with benefits.

5. Leverage employee rewards.

Successful wellness programs will provide employees with a comprehensive health management and support system as well as enticing incentives. According to the 2014 Aflac WorkForces Report, the majority of employees (79 percent) at least somewhat agree they’d be willing to change their lifestyle habits if it meant lower insurance premiums, and 87 percent say it’s fair to reward employees with lower premiums or incentives to become healthier. With this in mind, consider offering lower premiums, gift certificates, extra days off and other prizes to motivate employees to get involved.

Well worth the investment

While most businesses say reducing health costs is their top reason for offering a wellness program, the associated costs are often a barrier for organizations of all sizes — especially smaller businesses. Keep the above tips in mind and know that wellness initiatives can work in your favor for your small business this year.