Studies have shown that for every dollar a CEO spends on employee wellness programs, the company receives $2 to $3 in return. Not only is the tangible
ROI favorable, but so are the intangible
benefits, and the average monthly cost can
range from zero to a minimal $2 to $4 per
employee. This is great news, considering
that group health insurance premiums
have been increasing an average of 15 percent per year and the work force is aging
and staying on the job much longer.
Employees who are healthy have better
attitudes and are more engaged in their
work — factors that most employment
experts say leads to greater productivity.
Today’s technology allows more employees to be reached by wellness programs,
and accompanying the increased reach is
program cost-effectiveness.
“There are three main factors that are driving the rise in health care costs: the aging
population, medical technology advances
and greater availability of prescription
drugs,” says Brenda Fagan Johnson, employee benefits specialist with Westland
Insurance Brokers. “One way that an
employer can impact the rising cost of health
insurance is by having healthier employees.”
Smart Business spoke with Johnson
about the evolution of employee wellness
programs and how CEOs can benefit from
initiating a program.
What types of employee wellness programs
are available?
Wellness programs are frequently available through your group health insurance
plans. They offer newsletters and on-site
health fairs, as well as brown bag lunch-and-learn sessions, for employees. Online
wellness programs offer educational tools
and health risk-assessment information.
They often include a 24-hour nurse hotline
offering advice in one-on-one sessions.
Coaching programs that assist employees
with goal-setting and then give them support as they work to achieve their goals are
available via telephone.
There’s also something for every company’s budget. CEOs can create low- and no-cost programs that can be an adjunct to an insurer’s employee wellness program or as
a standalone entity. Those options include
organizing wellness committees and participating in community-based walk/run
events. Many of the wellness materials are
free through your health plan or other government-sponsored programs. Your committee can help to secure and distribute
these materials and organize your events.
What are the benefits of an employee wellness program?
The definition of wellness is the condition of being healthy or sound as a result of
diet and exercise. The data on the impact
of employee wellness programs shows
reduced absenteeism; lower worker’s compensation costs; lower costs of health care
claims and disability claims; and improved
employee morale. All of these contribute to
a good working environment, low employee turnover and higher productivity.
Studies have shown that it takes about
$45,000 on average to hire and train a new
mid-level worker. Employee wellness programs help position companies as an
employer of choice, which will both attract
new workers and retain the ones you have.
About 65 percent of the American population
is overweight. Smoking contributes greatly to heart disease and cancer. Employee wellness
programs create a culture of ‘healthfulness’
and support from fellow employees for losing weight and quitting smoking.
Today’s work environment can be very
stressful, so addressing good mental health
as a component of a wellness plan is vital.
An Employee Assistance Plan (EAP) is
made up of short-term crisis counseling for
family issues, legal problems, debt resolution and a full array of resources for everyday challenges that can hinder employees
from focusing on work. The cost of an EAP
plan is about $2 per employee per month.
How can a CEO influence employee wellness?
Leading by example and executive sponsorship are the keys to any program’s success and an attitude shift among workers.
CEOs can emphasize the importance of
employee health by attending committee
meetings and events and even suggesting
healthy choices in the employee cafeteria or
a change to heart-healthy snacks in the
vending machine. CEOs can further demonstrate their support by offering incentives to
employees who set wellness goals for themselves and achieve them.
I had one client who installed an on-site
gym, but often the wellness committee can
organize lunchtime walks or perhaps negotiate a company discount at a local gym as
low-cost alternatives. In any case, it is important to stay with the program, because
the results are realized over time — as are
the long-term benefits for the employees
and the company.
What role can my insurance broker play?
Your broker will have a variety of plans
for you to choose from, including those
available through your health insurance
carrier or as standalone programs. It can
also provide you with information about
free sources of information about employee wellness.
BRENDA FAGAN JOHNSON is an employee benefits specialist
with Westland Insurance Brokers. Reach her at (619) 641-3234 or
[email protected].