Benefits of Employee Wellness Initiatives

Introduction to Employee Wellness Initiatives

Risky health behaviors by employees cost a company. Changing those behaviors can save the employer money and increase the employee’s productivity.

Because work gives an employee a stable setting and support system, Employee Wellness Initiatives can have a great impact on reducing high-risk behaviors. This impact results in decrease health claims cost, less rates of absenteeism, and less short-term disability.

Employee Wellness Initiatives can include:

Awareness Rasing Activities: Health and wellness newsletters, health topics covered in payroll stuffers, healthy emails.

Health Risk Assessment: Employee health screenings, wellness fairs, health risk appraisals.

Educational Programs: Lunch & Learn wellness presentations, guest speakers at staff meetings.

Skill Building: Healthy cooking demostrations, activity challenges, CPR instruction opportunites, stress management classes, weight management classes.

Interventions: Massage, tobacco cessation, and skills to help you get the most out of your doctor visit.

Physical setting: Healthy items in the vending machines and cafeterias, clean air practices, ergonomics, bike racks, flex time, welllit stairways.

Evaluation: Employee needs assessment, baseline Company Health Promotion Initiative assessment measures, ongoing Company Health Promotion Initiative assessment of overall effectiveness.

Why Provide Employee Wellness Initiatives

The typical employer spends about $8,000 a year on an employee’s health care. This includes health insurance, disability and worker’s compensation. As these costs climb, health insurance is expected to rise at least 10 percent per year.

A 1999 study showed that companies using Employee Wellness Initiatives had a return on investment from $1.49 – $13 in benefits per dollar spent. The amount depended on the nature of the Employee Wellness Initiatives used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)

One study showed that a “stop smoking” element to Employee Wellness Initiatives can save between $404 -$40,829 per employee, depending on the age and sex of the employee.

The Employee Wellness Initiatives at Traveler’s Company included a self-care book, a newsletter, single-topic brochures, and videotapes. The Employee Wellness Initiatives saved the company $7.8 million in employee benefi t costs, decreased doctor visits, and it reduced rates of absenteeism by 1.2 days per employee per year. The estimated Employee Wellness Initiatives ROI was $3.40 per dollar spent.

In 1998, the Health Enhancement Research Organization (HERO) reported a study of 46,026 employees from six large employers for three years. Staff Members with an inactive lifestyle had 10 percent higher costs; employees with depression had 70 percent higher costs.

Benefits of Employee Wellness Initiatives

Raised Productivity – The Canada Life Assurance Company realized a 4 percent increase in productivity after creating an employee fitness program.

Raised Job Satisfaction – According to employee opinion surveys conducted by the Silverstone Group about thier Employee Wellness Programs, employees’ morale increased, which helped support a more creative work setting.

Improved Recruitment & Retention – In the midst of a tight labor market, Employee Wellness Initiatives could be a vital tool to draw new recruits.

Decreased Absenteeism – Canada Life Assurance Company’s rates of absenteeism dropped 42 percent among employees in the Employee Wellness Programs.

Decreased Workers Comp & Disability – In one year, Boeing Company’s number of back injuries decreased by 34 percent. Six million dollars was saved by tracking injuries as they occurred.

Managed Health Care Costs – Golden, Colorado Adolf Coors Company’s Employee Wellness Initiatives returned $6.19 for every dollar spent.