Reduce Business Costs with Employee Wellness Programs

A recent study put the annual cost for obese workers at some $73.1 billion for employers. Considering that a Gallup poll found nearly 62.6 percent of Americans to be overweight (with 26 percent obese), that price tag has employers anxious for solutions.

Wellness programs are a proven way to bring down spiraling medical costs while creating a healthier, more productive workforce. While implementing these programs can require significant upfront costs, the savings over time typically make them a worthwhile investment. In fact, wellness programs generally show a return on investment of $4 to $5 for every dollar spent.

Employers can choose from a variety of programs and ways to implement them. To create a wellness program that’s right for your business, start with a plan that outlines your goals, budget, and operational constraints. Here are some elements to consider:

• Employee input: It’s critical to know your employees’ needs before designing your program. Talk to them about their fitness goals, interests, and concerns. Engaging your employees from the start will garner more support and participation in your programs. You can gather information through surveys, interviews, suggestion boxes, or roundtable meetings. Also, take note of existing activities, such as a group of employees that regularly takes walks at lunchtime. These informal activities can become building blocks for corporate programs.
• Your insurance partner: Your health care benefits provider is a good source of wellness program ideas. Many providers also offer wellness coordinators to help you with implementation. But programs offered through insurance companies, although convenient, tend to be generalized and may not be the most effective way of helping your employees reach their fitness goals. An insurance plan with a wellness component may have higher premiums, forcing some employees to switch to a lower-cost plan.
• Incentives: One of the biggest challenges companies face in creating wellness programs is employee motivation. Adding an incentive can increase participation dramatically, even raise it as high as 90 percent or more. Cash rewards, rebates, gift certificates, and time off are effective incentives, particularly if tied to reaching a fitness goal. Some businesses also offer reduced insurance premiums to employees for activities such as completing certain health screenings.
• Legal compliance: Importantly, business owners and benefits personnel need to become aware of the many legal issues relating to implementing employee wellness programs. Compliance with the Health Insurance Portability and Accountability Act, known as HIPAA, the Employee Retirement Income Security Act, and other applicable regulations will allow for a smooth and successful program launch.

Types of Programs

Employee wellness programs can be broadly defined and include a multitude of activities. Some of the more popular options offered by businesses include the following:

• Weight-loss programs, such as Weight Watchers
• Discounted gym memberships or onsite fitness centers
• Smoking cessation programs
• Discounts on massage, acupuncture, and relaxation services
• Health screenings for blood pressure, cholesterol, and osteoporosis
• Exercise programs, such as walking or onsite yoga or stretching classes
• Health, fitness, and nutrition presentations
• Online tools to manage and maintain optimal health

Implementation

Establishing your wellness program may require collaborating with benefits consultants or wellness specialists, negotiating with health plans or health clubs, scheduling wellness activities, and more. You might also create a point or credit system to reward employees for fitness activity pursued outside of work.

Upfront costs will vary significantly from program to program, so make sure you have done your homework. The programs likely to make the most difference to your employees will save you the most money down the road.