Many employers implement workplace wellness programs that encourage employees to adopt healthy lifestyle habits. Such programs may include incentives for healthy behaviors like exercising or losing weight, and/or penalties for unhealthy behaviors such as smoking. The impact of wellness programs varies and can be difficult to measure, but a well-designed workplace wellness program can generate positive impacts for both employer and employee by lowering the employer's expenses and by improving the health of the employee.
Financial Impact on Employers
While the financial impact of employee wellness programs varies depending on the program's design and other factors, successful employee wellness programs generate cost savings for the employer in terms of both employee health care costs and expenses related to employee absenteeism. According to a metastudy on cost savings of worksite wellness programs published in "Health Affairs" in 2010, medical costs fall an average of $3.27 for every dollar spent on wellness programs, and absenteeism costs fall by about $2.73 for every dollar spent. However, according to Harvard School of Public Health, the cost-effectiveness of workplace wellness programs varies widely and it may take two to three years for an employer to see returns on its wellness program investments.
Employee Health Impact
The impact of workplace wellness programs on employee health also varies based on program design and employee participation rates, but an effective workplace wellness program may reduce incidence of employee health risks such as smoking and obesity. A study published in "American Journal of Cardiology" in 2009 found that, of individuals categorized as high-risk for heart disease at the start of a six-month worksite wellness intervention, 57 percent reduced their cardiac risk factors to the extent that they were "low-risk" by the end of the program. It may, however, be difficult to maintain the employee health benefits from workplace wellness programs in the long-term. A metastudy published in "Tobacco Control" in 2004 concluded that while worksite smoking cessation programs are often initially effective, the effect usually doesn't last beyond 12 months.
Impact Evaluations
Accurate evaluation of the fiscal impact of workplace wellness programs presents some challenges for employers, as there is no one industry standard for measuring the cost-effectiveness of wellness programs. Evaluation challenges include accounting for all cost inputs as well the difficulties of measuring the more subtle program outcomes such as employee job satisfaction. According to the CDC, corporate wellness programs should incorporate a system to track outcome measures such as worker productivity, health outcomes/care costs, and whether the program creates a "culture of health." Incorporation of biometric systems to track employees' health status and surveys to measure employee morale may help an employer effectively evaluate the multifaceted impact of its workplace wellness program.
Strategies for a Positive Impact
According to The National Institute for Health Care Reform, effective workplace wellness programs typically have the following components in common: mutual trust between employees and employers; effective communication and support from leadership; and a comprehensive design that promotes a culture of health. The American Council on Exercise also stresses the importance of leadership involvement in creating a successful wellness program. According to the ACE, in order for an employee wellness program to be successful, management must "walk the walk" by participating in the program themselves and communicate with health vendors to send a consistent corporate message.
References
- Harvard School of Public Health: Employer Health Incentives
- "Health Affairs"; Workplace Wellness Programs Can Generate Savings; Baicker, et al.; January 2010
- "American Journal of Cardiology"; Impact of Worksite Wellness Intervention on Cardiac Risk Factors and One-Year Health Care Costs; Milani, et al.; November 2009
- "Tobacco Control"; The Effectiveness of Workplace Smoking Cessation Programmes: A Meta-Analysis of Recent Studies; Smedslund, et al.; 2004
- National Institute for Health Care Reform: Employer Wellness Initiatives Grow, but Effectiveness Varies Widely
- Centers for Disease Control and Prevention: Workplace Health Promotion -- Evaluation
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