Wellness programs can have positive effects on corporate employees, which can lead to higher morale, increased loyalty and improved teamwork. For some managers, the justification for such programs is based solely on return on investment. Case studies of Fortune 500 companies and other businesses leave no doubt that wellness programs can save much more than they cost.
Reduced Health Care Costs
American businesses realize a return on investment from wellness programs by addressing the following, annual health care-related costs and problems: $1,300 in health care costs per employee who smokes; more than $100 billion in alcohol, tobacco and other drug-related problems; 40 percent of industrial fatalities related to alcohol; $200 billion to $300 billion in job stress-related costs, including 1 million employees absent daily; $121 billion in medical care, lost wages and productivity because of injuries sustained at work; 100 million workdays and $20 billion lost because of lower back pain; a workplace injury every five seconds; and permanent or temporary worker disability every 10 seconds.
Union Pacific Railroad
Union Pacific Railroad's self-care initiative program saved the company $1.26 million in health care costs, returning $2.77 for every dollar spent during the program's first year in 1990. The company offers a smoking cessation program, a fitness center at its headquarters, health awareness promotion and individual counseling. In five years, the company lowered its health care costs for its 57,000 employees by more than 17 percent. Union Pacific estimated the company saved three times that figure in improved productivity as employees reduced high blood pressure, high cholesterol, lost weight and quit smoking in significant numbers.
Lab Safety Supply
Lab Safety Supply realized a 97 percent decrease in lost workdays after instituting a wellness program that included fitness and self-education programs, health fairs and counseling, safety training, insurance liaison services and medical screenings.
Lincoln Plating Company
Lincoln Plating Company has spent $85,000 on employee wellness and estimates its return on investment at $800,000 stemming from a 50 percent decrease in injuries and related workers' compensation costs. The company attributes a significant decline in injuries to a pre-work stretching program. Lincoln estimates the company has reduced annual turnover by as much as 35 percent. These figures do not include decreased absenteeism and increased productivity.
Miami Valley Hospital
After instituting health and wellness programs, Miami Valley Hospital reduced lifestyle risk factors in employees in 11 of 14 categories such as cholesterol, coronary disease, weight and blood pressure.
DuPont Corporation
The DuPont Corporation conservatively estimated their annual cost for excess illness among employees at $70.8 million. After instituting a wellness program, the company reduced disability days by 14 percent among blue collar workers over a two-year period, resulting in an 11,726 decrease in disability days. The company's Tennessee plant reduced disability wages by $119,000 annually. The program focuses on weight control and fitness, reducing blood pressure and stress management, and smoking cessation.
Pacfic Bell
Pacific Bell saved $2 million in absenteeism costs in one year and $4.7 million on short-term disability leave with its FitWorks wellness program. The program offers cholesterol and blood pressure screenings, discounts on home exercise equipment, a video library, pregnancy and prenatal counseling, smoking cessation and coronary risk modification programs.
Member Comments