Are Worksite Wellness Programs Cost-Effective?

by Health Promotion on August 14, 2009

Research studies have repeatedly shown that accross the board Employee Health Promotion Programs, or Employee Health Promotion Programs, have the potential to lower health care and insurance expenditures, lower absenteeism, and improve performance and productivity. Other advantages shown in research studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public image of the employer.

Health Care and Insurance costs

A number of research studies provide evidence of decreased medical and insurance expenditures for participants in Employee Wellness Programs, especially wellness programs involving exercise.

For $30 per person, the Bank of America implemented a Company 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 published a decrease in health care|medical|medical care|healthcare} claims with an physical activity program alone, saving $500 per employee per year for the staff members (60%) who joined their HealthWorks fitness program. Prudential Insurance Company reports that the company’s major medical expenditures dropped from $574 to $312 for each attendant in its wellness program.

Decreased Rates of Absenteeism

Absenteeism has been demonstrated to be impacted by wellness programs. The evidence indicates a significant decline in absenteeism and resultant dollars saved as a result of employee exercise program.

Pacific Bell’s FitWorks program decreased absent days .8 percent to save $2 million in one year. FitWorks members also spent 3.3 days less on STD for an additional savings of $4.7 million.

Focusing Worksite Health Promotion Program efforts on elevated-risk employees can lead to better results. A national manufacturing organization reports a reduction of 12.2% in illness days for these employees.

A two-year study by The DuPont Corporation of the significance of its inclusive Employee Health Promotion Program on absences among staff members reports that blue-collar staff members 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 Company Wellness Programs report documented improvement in job attitude, work success, energy level, and/or overall morale among program participants–all essential factors in enhancing work rate.

A Johnson & Johnson study saw that employee attitude changes were greater at Employee Wellness Program intervention sites with significant beneficial attitude changes noted in the categories of corporation responsibility, supervision, on the job conditions, job competence/security, and pay/benefits.

In a Canadian government study, the Canada Life Assurance Organization experimental group realized a 4 percent growth in work rate after starting a organization fitness program, compared to the control group. Further, 47 percent of program participants stated that they felt more alert, had better rapport with their co-employees, and generally enjoyed their work more.

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

The Bottom Line

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

Organization: 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 compelling evidence that a sizable portion of the billions of dollars now being spent by employers on health-related costs is preventable by means of Workplace Health Promotion Programs. Well-planned, inclusive Workplace Health Promotion Programs (Workplace Health Promotion Programs and Workplace Health Promotion Programs) have been established to be cost-effective, especially when the Workplace Health Promotion Programs is matched to the health problems of the specific employee.

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