Wellness program means different things to different businesses. Effective wellness programs may be as simple as bringing bushel baskets of fresh fruit into break rooms to encourage better eating. They may be as extensive as building fitness facilities onsite or paying for obesity treatments.
A driving factor behind the push toward wellness spans organizations of all types, sizes and cultures – that is, health care expenses are spilling over the corporate belt buckle.
The annual cost of medical services in the USA is rising at seven times the rate of inflation. and the rise in healthcare costs is one boom pundits expect our economy to sustain.1
This trend makes it increasingly challenging for employers to maintain current levels of insurance coverage. In 2003, healthcare inflation forced 65% of corporations to raise employees’ share of healthcare costs.
Seventy-nine% of big firms said they will increase workers’ share of health costs in 2004.2 But with lost benefits and increased financial burdens come lost morale and productivity.
Employers are searching for another way. While businesses cannot control many of the supply-side elements contributing to rising health care costs-malpractice insurance rates, the nursing shortage-they can help curb demand. That’s why efforts are being redirected from disease to wellness.
The case for wellness is supported by an ever growing body of evidence demonstrating the high costs associated with controllable health risks –
• One study reports that obesity raises health care costs by 36% and medication costs by 77%.
• Michigan officials estimate lack of exercise cost the state almost $8.9 billion in 2002, a cost estimated to be largely borne by employers through insurance premiums and lost productivity.
• the not-for-profit National Committee for Quality Assurance reports that the estimated typical cost for postnatal care for women who did not receive prenatal care was $2,341 more than for women who had. and the indirect costs of unhealthy behavior may be just as high.
Data shows that healthier workers are more productive, spending more time at work and showing increased “presenteeism,” or productivity, while there. Further, healthier workers use fewer medical services.
The five leading causes of death in the United States – heart disease, cancer, stroke, chronic obstructive pulmonary disease and diabetes – are directly linked to unhealthful lifestyles. Obviously, encouraging healthful habits presents an opportunity to improve employees’ well being, reduce the need for health care services and help control costs.
Offering staff member wellness benefits – large or small – represents an intersection between corporate social responsibility and responsibility to stakeholders. Between staff member health and corporate health. It’s often the right thing to do for employees and companys.
Research by Traveler’s Corp. shows a $3.40 return for every dollar invested in Wellness Programs. for a lot of corporations, the option to offer worker wellness benefits is easy-one where conscience and pragmatism align.
The challenge arises in choosing the programs that’ll deliver the most impact based on trends in your employees’ health risks and medical claims costs.
From big companies to the corner deli, company owners welcome ways to increase productivity, reduce rates of absenteeism and cut costs. Likewise, wellness programs can range from modest to elaborate.
In deciding where to focus a corporation’s limited resources, looking at costs, benefits and best practices is a good beginning point. This section profiles six aspects of wellness and explores their benefits to workers and companys.