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Corporate Wellness Blog : Are Corporate Health Promotion Programs Cost-Effective?

Posted by Corporate Wellness | Posted in Corporate Wellness, Health Program Ideas, Health and Wellness | Posted on 20-06-2009

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Studies have repeatedly shown that inclusive Worksite Health Promotion Programs, or Worksite Health Promotion Programs, have the potential to reduce medical care and insurance costs, lower absenteeism, and better performance and productivity. Other benefits shown in studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public perception of the organization.

Healthcare and Insurance costs

A number of research studies support evidence of decreased medical and insurance costs for participants in Employee Wellness Programs, particularly wellness programs involving physical activity.

For $30 per person, the Bank of America implemented a Company Wellness 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 1-year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case.

Coca Cola stated a decline in health care|medical|medical care|healthcare} claims with an physical activity program alone, saving $500 per employee per year for the workers (60%) who joined their HealthWorks physical activity program. Prudential Insurance Company reports that the corporation’s major medical expenditures dropped from $574 to $312 for each participant in its wellness program.

Decreased Absenteeism

Absenteeism has been determined to be impacted by wellness programs. The evidence indicates a significant decrease in absenteeism and resultant dollars saved as a result of employee fitness programs.

Pacific Bell’s FitWorks program lowered 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 Employee Health Promotion Program efforts on high-risk employees can lead to better results. A national manufacturing corporation reports a reduction of 12.2% in illness days for these employees.

A two-year study by The DuPont Corporation of the effect of its comprehensive Worksite Wellness Program on absences among staff members reports that blue-collar staff members at intervention sites had a 14 percent decline in disability days vs. 5.8 percent decline for controls. There were a total of 11,726 fewer net disability days.

Enhanced Performance, Productivity and Morale

A number of employers with Worksite Wellness Programs report documented improvement in job attitude, work performance, energy level, and/or overall morale among program participants–all essential factors in enhancing productivity.

A Johnson & Johnson study observed that employee attitude changes were greater at Employee Health Promotion Program intervention sites with significant beneficial attitude changes noted in the categories of employer 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% increase in productivity after starting a employer fitness program, compared to the control group. Further, 47% of program participants reported that they felt more alert, had better rapport with their co-staff members, and generally enjoyed their work more.

Swedish investigators found that mental effectiveness was significantly better in physically fit staff members than in non-fit staff members. Fit staff members committed 27% fewer errors on tasks involving concentration and short-term memory, as compared with the effectiveness of non-fit staff members.

The Bottom Line

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

Corporation: 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 large portion of the billions of dollars currently invested by employers on health-related costs is avoidable by means of Worksite Wellness Programs. Well-planned, all-inclusive Worksite Wellness Programs (Worksite Wellness Programs and Worksite Wellness Programs) have been established to be cost-effective, especially when the Worksite Wellness Programs is matched to the health problems of the specific employee.

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