Organizations of all sizes and in all industries are exploring options to save money in health care, disability, sick time, recruitment and retention costs. These rising costs are a problem that will not go away unless organizations proactively address them. One way that to combat rising costs is through the implementation and utilization of wellness programs and Initiatives.
The Problem with the Status Quo
With the costs of health care expenditures increasing at rates from 8 to 14 percent annually, it threatens the profitability, and survival in some cases, of many companies. Only one in 20 adults consistently engage in the five most important health behaviors: regular exercise, healthy levels and types of fats, at least 5 servings daily of fruits and/or vegetables, moderate alcohol for those that choose to drink and abstaining from tobacco, especially cigarette-smoking. More than two-thirds of adults in the United States are either over-weight or clinically obese, which equals more than 90 million individuals. Extra weight and obesity are major risk factors for: diabetes, coronary heart disease, high blood cholesterol (LDL), stroke, hypertension, gallbladder disease, osteoarthritis, sleep apnea and other breathing problems and many common forms of cancer.
An "Return-on-Investment" Based Solution
The foundational tenet of a wellness program is that it is better to prevent health problems than to treat them later on. Statistically the results of a well-managed wellness program are notable including, but not limited to: reduction of health care costs by 20 to 55 percent, decrease in short-term sick leave by as much as 32 percent, a savings of between $3 and $6 for every $1 invested in wellness. They also decrease workers compensation and disability claims by as much as 30 percent, as well as enhance recruitment and retention across the board.
Components to Encourage Participation
Components to encourage a wellness program include online/web-hosted wellness assessments, seminars and lessons, regular email ideas and support, weight loss/maintenance program, discounted memberships through local and/or national fitness centers, online exercise classes available at individuals' convenience, individual wellness coaching via email or phone, smoking cessation program and incentives, web based wellness forum/support group and an incentive program.
Financial Implications
Companies must evaluate the costs to determine if there is enough cost savings to consider implementing a wellness program. Groups can hire an individual to develop a specific program, or may outsource to other companies that specialize in off-site wellness programs.
Summary
A growing number of employers are taking a new proactive and preventative approach to rising costs by developing and utilizing wellness programs as a standard adaptation to their suite of benefits. Research shows that by encouraging healthy behaviors and choices, these organizations are reaping the rewards of decreased sick time, disability and health care costs, as well as savings in workers' compensation claims and costs. Further analysis shows that these measurable items are only a portion of the cost savings, and don't include savings associated with recruitment and retention of employees, reputation and employee engagement or productivity.
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