Organizations are recognizing that improving the health culture within the workplace has a direct effect on productivity. Increased productivity leads to an improved bottom line and sustained competitive advantage. The R.O.I. on a well-crafted corporate wellness plan can surpass many I.R.A. yields to boot!
Successful outcomes-based wellness programs measure productivity in addition to focusing on medical cost savings. For example, an independent study found that participants of interactive health programs returned to work sooner than claimants who did not participate. The numbers speak for themselves...11 days sooner from worker’s compensation, and 17 days sooner from short-term disability.
The implication is simple: by taking a strategic approach to wellness, an organization develops a workforce that is healthier, more productive and more likely to drive value.
Putting Dr. Sam Graber in charge of your corporate wellness program is a great start to a solid workforce.
While companies certainly care about the well-being of their employees, benefits decision-makers admit that a primary reason their company maintains a wellness program is to help curb health care costs. A whopping 59 percent of companies agree that wellness programs can help reduce these costs.
Despite the benefits of wellness program, nearly a quarter (22 percent) of companies do not offer them for their workforce due to the difficulty in quantifying the return-on-investment (ROI).
However, a comprehensive analysis of 42 published studies of worksite health promotion programs showed that companies that implemented an effective wellness program realized significant cost reductions and financial gains, including:
• An average of 28 percent reduction in sick days
• An average of 26 percent reduction in health costs
• An average of 30 percent reduction in workers’ compensation and disability management claims
• An average $5.93 to $1 savings-to-cost ratio.
Rising Healthcare costs are unsustainable.
• In 2007, national health care expenditures in the United States totaled $2.2 trillion or 16% of its gross domestic product, a 14% increase from 2000 United States totaled $2.2 trillion or 16% of its gross domestic product, a 14% increase from 2000
• In 2007, private health insurance obtained through the workplace covered nearly 158 million people under the age of 65 years or 61.6% of the population
• Since 2000, health insurance premiums for a typical family of four have increased by 114%
Health’s impact on worker productivity
• Productivity losses related to personal and family health problems cost U.S. employers $1,685 per employee per year, or $225.8 billion annually
Workforce demographics are changing
• As of this year, nearly 24% of the total U.S. workforce will be age 55 or older compared to 18% in 2008.
Effective interventions exist but are underutilized
• In a 2004 survey of 730 worksites of varying sizes and industry, only 6.9% of worksites offered a comprehensive worksite health promotion program.
1. Trending In 2014: Making Wellness A Strategic Initiative
2. The Impact Of Wellness Programs On America’s Workforce
3. Workplace Health Promotion
4. The George Washington University School of Public Health and Health Services
5. National Worksite Health Promotion
6. Citibank Health Management Program
7. California Public Employees’ Retirement System
8. The Oregon Institute of Occupational Health and Sciences
9. University of Harvard
10. The Chapman Institute
11. The US National Library of Medicine
12. The National Institute of Health