Health and Wellness Leads : Are Workplace Wellness Programs Cost-Effective?

Research studies have repeatedly established that comprehensive Workplace Health Promotion Programs, or Workplace Health Promotion Programs, have the potential to lower healthcare and insurance costs, decrease absenteeism, and better performance and productivity. Other benefits established in research studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public perception of the corporation.

Medical Care and Insurance costs

A number of studies provide evidence of lower medical and insurance costs for participants in Workplace Health Promotion Programs, especially wellness programs involving physical activity.

For $30 per person, the Bank of America started a Workplace Health Promotion Program for retirees using a risk assessment questionnaire, self-care books and other mailed materials. Insurance claims were reduced an average of $164 per year in this group while they increased $15 for the control group. Since they were able to document significant changes in risk behavior, they anticipate greater savings in future years.

Pacific Bell’s FitWorks participants claim $300 less per case for a one-year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case.

Coca Cola stated a decrease in medical care|medical|medical care|healthcare} claims with an physical activity program alone, saving $500 per employee per year for the workers (60%) who joined their HealthWorks physical activity program. Prudential Insurance Business reports that the corporation’s major medical costs dropped from $574 to $312 for each colleague in its wellness program.

Decreased Rates of Absenteeism

Rates of Absenteeism has been demonstrated to be impacted by wellness programs. The evidence indicates a significant decrease in absenteeism and resultant dollars saved as a result of employee physical activity programs.

Pacific Bell’s FitWorks program diminished absent days .8 percent to save $2 million in one year. FitWorks participants also spent 3.3 days less on short-term disability for an additional savings of $4.7 million.

Focusing Worksite Wellness Program efforts on high-risk employees is able to lead to better results. A national manufacturing company reports a decrease of 12.2 percent in illness days for these employees.

A two-year study by The DuPont Corporation of the effect of its inclusive Corporate Wellness Program on absences among workers reports that blue-collar workers at intervention sites had a 14% decline in disability days vs. 5.8% decline for controls. There were a total of 11,726 fewer net disability days.

Enhanced Performance, Productivity and Morale

A number of employers with Corporate Health Promotion Programs report documented improvement in job attitude, work effectiveness, energy level, and/or overall morale among program participants–all essential factors in enhancing work rate.

A Johnson & Johnson study reported that employee attitude changes were greater at Employee Health Promotion Program intervention sites with significant positive attitude changes noted in the categories of organization commitment, supervision, on the job conditions, job competence/security, and pay/benefits.

In a Canadian government study, the Canada Life Assurance Business experimental group realized a 4 percent increase in productivity after starting a organization physical activity program, compared to the control group. Further, 47 percent of program participants reported that they felt more alert, had better rapport with their co-workers, and generally enjoyed their work more.

Swedish investigators saw that mental success was significantly better in physically fit staff members than in non-fit staff members. Fit staff members committed 27 percent fewer errors on tasks involving concentration and short-term memory, as compared with the success of deconditioned staff members.

The Bottom Line

The following sample of Corporate Health Promotion Programs wellness program results have been reported by individual employers:

Corporation: Dollars Saved/Dollars Spent

• Bank of America (Fries): $5.96/$1
• PacBell: $3.10/$1
• Wisconsin School District Insurance Group: $4.47/$1
• Prudential Insurance: $2.90/$1
• Bank of America (Leigh): $4.73/$1
• General Mills: $3.50/$1

Summary

There is growing evidence that a large portion of the billions of dollars currently spent by employers on health-related costs is preventable by means of Corporate Health Promotion Programs. Well-planned, all-inclusive Corporate Health Promotion Programs (Corporate Health Promotion Programs and Corporate Health Promotion Programs) have been determined to be cost-effective, particularly when the Corporate Health Promotion Programs is matched to the health issues of the specific employee.