Are Employee Wellness Cost-Effective?
Research studies have repeatedly determined that accross the board Employee Wellness , or Employee Wellness , have the potential to lower medical and insurance expenditures, cut down on absenteeism, and improve performance and work rate. Other advantages determined in research studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public image of the business.
Health Care and Insurance costs
A number of research studies support evidence of decreased medical and insurance expenditures for participants in Employee Wellness , particularly wellness programs involving exercise.
For $30 per person, the Bank of America healthcare claims with an exercise program alone, saving $500 per employee per year for the employees (60%) who joined their HealthWorks exercise program. Prudential Insurance Company reports that the business’s major medical expenditures dropped from $574 to $312 for each colleague 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 physical activity programs.
Pacific Bell’s FitWorks program diminished absent days .8 percent to save $2 million in one year. FitWorks members also invested 3.3 days less on STD for an additional savings of $4.7 million.
Focusing Employee Wellness efforts on high-risk employees is able to lead to better results. A national manufacturing business reports a decrease of 12.2 percent in illness days for these employees.
A 2-year study by The DuPont Corporation of the effect of its accross the board Employee Wellness on absences among employees reports that blue-collar employees 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 Employee Wellness report documented improvement in job attitude, work performance, energy level, and/or overall morale among program participants–all vital factors in enhancing work rate.
A Johnson & Johnson study observed that employee attitude changes were greater at Employee Wellness intervention sites with significant positive attitude changes noted in the categories of business commitment, supervision, on the job conditions, job competence/security, and pay/benefits.
In a Canadian government study, the Canada Life Assurance Company experimental group realized a 4 percent growth in work rate after starting a business exercise program, compared to the control group. Further, 47 percent of program participants stated that they felt more alert, had better rapport with their co-employees, and generally enjoyed their work more.
Swedish investigators saw that mental performance was significantly better in physically fit employees than in non-fit employees. Fit employees committed 27 percent fewer errors on tasks involving concentration and short-term memory, as compared with the performance of deconditioned employees.
The Bottom Line
The following sample of Employee Wellness wellness program results have been stated by individual employers:
Company: 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 strong evidence that a sizable portion of the billions of dollars now being invested by employers on health-related expenditures is avoidable by means of Employee Wellness . Well-planned, accross the board Employee Wellness (Employee Wellness and Employee Wellness ) have been determined to be cost-effective, particularly when the Employee Wellness is matched to the health concerns of the specific employee.
