Benefits of Employee Health and Wellness Programs

Sunday, November 16, 2008

Employer’s are learning that Employee Health and Wellness Programs is an effective way to increase productivity, improve worker health, decrease healthcare costs and reduce rates of absence.



A report published in 2003 by the United States Department of Health and Human Services (HHS) highlighted how important it is for employers to incorporate Employee Health and Wellness Programs as part of their corporate strategy. The report asserts that chronic diseases which are largely preventable place a heavy toll on company, including lower productivity and higher medical insurance costs.



The Department of Health and Human Services estimates that $1.66 trillion was spent on medical care in 2003 and it attributes a majority of those costs to chronic diseases and conditions such as heart disease, diabetes, obesity and asthma. Sadly, the money allocated for preventing or controlling these conditions is negligible.



In a recent article, American Cancer Society CEO John Seffrin reported two thirds of cancer deaths in the United States could be prevented through lifestyle changes in diet, exercise, cancer testing and “especially” tobacco use. A well-designed Employee Health and Wellness Programs initiative serves the best interests of staff members and employers alike.



Benefits of Wellness Progams: Return On Investment (ROI)


Ron Goetzel, a nationally recognized expert in the field of health management, information analysis and applied research, said in a recent interview that with an investment of $100 to $150 per worker per year in Employee Health and Wellness Programs, an employer can expect an average return on investment of approximately $3 for every $1

invested ($300 to $450 savings per worker per year). Goetzel says, however, that these returns are not typically realized until two to three years into the Employee Health and Wellness Program.



Benefits of Wellness Progams: Tax Breaks


Sen. Tom Harkin (D-Iowa) has been an outspoken proponent in seeking legislative solutions for a strained healthcare system.



“As a nation, we have a ‘sick care’ system that is focused on helping individuals after they get sick, rather than a ‘health care’ system which focuses on keeping healthy individuals healthy,” he says.



Harkin introduced the Healthy Lifestyle and Prevention (HeLP) America Act of 2004. One of the initiatives under Title II - Healthier Communities and Workplaces, provides tax credits to businesses that offer comprehensive programs to promote worker health and grants for small company.



Benefits of Wellness Progams: Getting Started


Implementing a Employee Health and Wellness Programs can be accomplished with simple, low-cost strategies.



Offer incentives for participation.
Create a wellness informational campaign.
Schedule wellness seminars on diabetes, nutrition, exercise and cholesterol.
Create initiatives such as fitness, sleep diary, smoking cessation and injury prevention.
Offer onsite chair massages or simple stretching exercises to do at the desk.
Change vending machine options to offer healthier, low-fat snacks and drinks.
Actively promote worker participation in all Employee Health and Wellness Programs.


A successful Employee Health and Wellness Program can boost company morale, enhance productivity, reduce organizational conflict, attract superior workers and decrease the rate of worker turnover. The case for establishing a Employee Health and Wellness Program is well worth the effort.