Worksite Wellness ProgramsWorksite Wellness Programs

For many businesses, a smoking ban would not even apply to all workers. That is because currently 30 states and the District of Columbia prevent businesses from banning off-duty smoking.21 Additionally, 13 states prevent businesses from banning alcohol use away from work. Only six states have broad statutes that prevent businesses from prohibiting any lawful behavior.

Michigan is the only state that expressly prohibits discrimination on the basis of weight, however the cities of San Francisco and Santa Cruz, Calif., also have this provision (San Francisco makes exceptions for police offi cers, fi refi ghters and the San Francisco 49ers football team). When beginning Worksite Wellness , businesses ought to keep in mind local statutes as well as established common law.

Savings of Voluntary Worksite Wellness Program = (number of participants x savings per participant) – (expense of program) Savings of Incentive-based Worksite Wellness Program = (number of participants x savings per participant) – (expense of program + expense of incentives) Savings of Mandatory Worksite Wellness Program = (number of participants x savings per participant) – (expense of program + expense of policy-related turnover + expense of limited talent pool) Constructing Worksite Wellness Program policies in a company that employs unionized workers can pose unique challenges.

Worksite Wellness may be perceived by some unions as a condition of employment and therefore would be subject to collective bargaining between the parties. Nevertheless this postion can represent an opportunity for both groups, as a policy agreed upon between union leadership and management is likely to be received more favorably by workers.

The United Auto Workers and General Motors worked together to create and position a joint Worksite Wellness Program which has successfully reached more than 800,000 participants. (See Case Studies, UAWGeneral Motors LifeSteps Worksite Wellness Program, p.21)

Worksite Wellness: Unless specifically stated otherwise, most company-employee relationships in the U.S. are governed by the principle of at-will employment. Under this system a company, or the employee, can terminate the relationship without any needed showing of cause.

This at-will standard gives private businesses large power in governing the behavior of workers. In this environment, businesses can Finding Wealth Through Wellness 10 creatively design Worksite Wellness based upon their specifiic corporate culture.

Worksite Wellness generally take three main forms: Voluntary Worksite Wellness – The most popular form of employee Worksite Wellness Program, in most cases they are made available to workers but participation (or lack thereof) is not linked to any type of consequence.

Due to ineffective communication, often workers are either unaware of these offerings or confuse them with insurance-based healthcare. Incentive-based – Worksite Wellness based on incentives reward workers for participation in Worksite Wellness Program activities.

Incentives generally include reduced Medical Care premiums, gym membership or personalized support offerings. In these programs, employees’ behavior can be linked to a particular reward. Mandatory Worksite Wellness – Some businesses require, or ban, certain health-related actions. These can take the form of mandatory Health Risk Assessments for workers and restrictions on smoking or alcohol use.

While mandating behavior is an effective method to eliminate high-risk behavior, the cost savings must be gauged against the potential message sent to existing and prospective workers. Given that workers are already under various levels of scrutiny in the workplace, individuals may resist attempts by businesses to regulate off-duty actions.

Additionally, some workers may fi nd it diffi cult to comply, forcing businesses into the uncomfortable position of punishing an otherwise productive employee. In the short-term a mandate-based Worksite Wellness Program can lead to an increase in turnover, as workers either choose to leave or are fi red for noncompliance.

In the long-term, the policy may prevent the company from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals thinking of the company. Limits in recruiting, for instance, led CNN to rescind a 13-year ban on hiring smokers.

Corporations need to make sure that Worksite Wellness are aligned with the values and culture that lead company operations. If a company emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a company that already heavily regulates company actions.

Moreover, a work environment with a sizable disengaged population will likely have poor participation in a voluntary-based program. When calculating cost savings, businesses need to take a wider view and consider the effects on long-term employee engagement.

In 2005, Michigan-based insurance benefits provider Weyco instituted a smoking ban for all of its nearly 200 workers. Workers are subject to random testing and if they fail a mandatory breathalyzer test, they will be fi red.

It is believed that Weyco is the first company to use testing to enforce a smoking ban – most businesses ask workers to self-report behavior. Four workers (more than 2 percent of the total labor force) left Weyco as a result of the policy. A year prior to the ban the company started a $50 smoking fee, which would be waived if a employee passed a nicotine test or agreed to take a smokingcessation class.

Weyco’s president Howard Weyers reported that 20 workers quit smoking through this program.20 Workers were told they had one year before the total ban would go into effect. Under the new Worksite Wellness Program, Weyco does offer $35 a month for workers who want to use a fi tness center and another $65 a month for workers who meet fitness goals and objectives.

Steps to Developing a Worksite Wellness Program

1. Undertake a utilization assessment – While businesses can’t get health information on individual workers, insurance providers will supply businesses with reports that detail patterns and rates of employee use for things such as physician visits, hospital stays and prescription use. This information is vital for a company to set a benchmark of its current health risk status.Data from human resources(HR) can be integrated with benefits information to supply a complete picture of employees’ health-related costs. Then, businesses can determine the specific level of behavior transformation necessary to result in cost savings. The utilization assessment helps a company identify the areas in which it ought to focus its Worksite Wellness Program to reap the greatest benefits.
2. Build a company case – Once a utilization assessment is in place, businesses are able to quantify the Medical Care cost savings that will result from specific levels of lifestyle transformation and risk reduction. This can be done by setting goals and objectives in terms of reductions in identifi able insurance utilization, attendance or disability variables, or by aiming for reductions in health risks and projecting the associated cost savings.Effective estimates factor in the expense of the Worksite Wellness as well as the necessary internal marketing efforts that will surround the program. Says Betty-Jo Saenz, American Medical Care Strategy lead for Motorola, “When we started our programs, our focus was on the 20 percent of workers that made up 80 percent of the costs. We’ve discussed that, and now we’re paying attention to those who are active and Finding Wealth Through Wellness 8 keeping them healthy. Wherever you are on the continuum, there are opportunities.”
3. Develop a cross-functional wellness team – Corporations need to identify potential team members who can be champions of wellness within the company. It is important that the team is representative of the demographic and functional diversity of workers so that it can credibly address any specific needs groups may have.This team will serve as the voice and face for the Worksite Wellness Program within the company. Best practice businesses integrate members from human resources(HR), communications, company development and senior staff. Using the utilization analysis as a template, the wellness team ought to evaluate what programs would be most effective within each particular corporate culture, aligning health-risk priorities with initiatives that workers will be receptive to.
4. Build buy-in from senior staff – The most effective Worksite Wellness have backing from the highest levels of a company. Backing from management, both in words and in action, sends the message that Worksite Wellness are a priority for a company.The utilization analysis can be a powerful tool to build the company case for Worksite Wellness and convince executives that initiatives are worthy of investment and attention. Meaningful wellness-related messages are integrated into company communications and aligned with corporate objectives.
5. Develop a comprehensive Employee Program Engagement plan – The most brilliantly conceived Worksite Wellness Program is meaningless if no workers take part. Effective wellness communications emphasize both health and monetary benefits at the personal and company level.According to a 2004 survey by Towers Perrin, only 28 percent of workers say their company communicates about Medical Care problems other than cost. In addition, wellness-related information ought to be a part of existing company communications efforts and not coupled solely with benefits communications. This helps elevate the priority of Worksite Wellness and align initiatives with company objectives.

   Moreover, communications around Worksite Wellness can share personal success stories and supply company progress updates. Successful businesses not only use existing communications channels to generate discussion around activities, but also consider more interactive tools like message boards, forums, blogs and wikis. This helps personalize initiatives and allows for the sharing of best practices within the company. A lot businesses involve medical professionals to advise in the construction, communication and backing of the program.

   The use of outside authorities such as these will increase the credibility of the Worksite Wellness as well as combat skepticism from workers who may view the company’s motives as merely self-serving. Another strategy available to businesses is to brand their Worksite Wellness Program. This move can increase the visibility and acceptance of the offering.

   Branded wellness programs are most common when businesses are also promoting an external campaign around Worksite Wellness . An example of this is PepsiCo, which launched its HealthRoads Worksite Wellness Program internally along with a consumer campaign, Smart Spot, that puts special labels on healthier food and drink options.

   These efforts are more effective when they are not owned solely by the internal communications department, but rather when managers serve as leaders of, as well as take part in, Worksite Wellness within businesses. This establishes more immediate accountability and motivation.

6. Measure constantly and consistently – At every step of implementation, a Worksite Wellness Program must be able to verify its value to a company. Worksite Wellness ought to be designed to allow businesses to set benchmarks and evaluate behavior transformation. Measurement ought to consider not only quantitative health measures, but also qualitative measures of stress and employee engagement. Less than 10 percent of businesses do extensive management of medical care expense, employee health risk status or employee satisfaction with benefit offerings, and less than half of businesses do any assessment in these areas at all.16

Measurement is only useful if a company explicitly specifies what data would constitute success. Potential measures of success include:

• • Participation rates
  • Better employee engagement
  • Reduction of risk status
  • Reduction of direct health costs
  • Decreased absenteeism
  • Less disability claims

Motorola’s Saenz advises administrators of Worksite Wellness to track as many measures as possible from the start, even if management only requires one, because it is very difficult to retrieve data later. She notes that even if leadership begins by looking at participation rates, they will eventually want to know about reductions in claims and costs. Frequent assessment is the only way to build backing among management and workers.

Nearly half of businesses feel a lack of useful data is a top barrier to their ability to manage employee health, and at least 20 percent of businesses don’t know how effective existing Worksite Wellness are regarding various outcomes. Corporations ought to conduct utilization analysis each year and reevaluate Worksite Wellness Program priorities based upon changes. Additionally, progress ought to be shared with the wider business community to build backing for initiatives.

Managers and executives throughout a company are likely to backing a program that can prove increased productivity among workers. Effective Worksite Wellness are designed to be fl exible so they can respond to changes in both company goals and objectives and larger health variations.

Worksite Wellness first became popular during the economic boom of the late 1980s and early 90s. Programs featured onsite gyms and massages, and were used as recruitment tools for young workers searching for nontraditional work environments.

Nevertheless, when the tech bubble burst, so too did the willingness to spend money on perceived perks, and businesses returned to a more old-school benefit structure focused on managed healthcare. In recent years, as Medical Care costs have spiraled out of control, businesses have explored the potential of Worksite Wellness as a cost-saving strategy.

Corporations such as Johnson and Johnson, General Motors, Motorola and Union Pacifi c Railroad have all seen a signifi cant return on investments in employee health (See Case Studies, p.20). Worksite Wellness can help lower the costs associated with:

Medical Care premiums – The expense a company pays for health insurance: According to a 2005 study by Hewitt, the Medical Care expense per employee in the American in 2006 will average $8,046, with businesses absorbing nearly two-thirds of that expense.

Pharmaceutical costs – The price of a prescription plan: According to a 2005 study by Mercer, the average annual prescription costs for sizable businesses grew 11.5 percent, making it nearly a decade straight of double-digit increases in cost.

Short-term disability (STD) – The cost of offering short-term disability insurance to workers: According to a 2004 study by insurance provider Cigna, the average short-term disability claim results in $13,094 in direct disability payments and medical costs. The report also found that 26 percent of claims related to medical events were a result of chronic conditions that could likely be mediated through Worksite Wellness , and that these cases amount for 56 percent of the STD-related medical costs.

Absenteeism — The cost of missed work: Absenteeism cost businesses $660 per employee in 2004, with nearly one-third of businesses characterizing the trend as a somber issue.

Presenteeism — The cost associated with workers who work at decreased productivity levels: Sixty percent of the total cost of employee illnesses come from presenteeism, according to a 2004 study by the Institute for Health and Productivity Studies at Cornell University.

The evidence is clear that strategically designed Worksite Wellness can lower both direct and indirect Medical Care costs. A 2004 review of Worksite Wellness revealed that, in total, an investment of $1 by a company in Wellness Programming returned a median cost savings of $2.05 to $4.64.

Employee Program Engagement is the level at which workers are aligned with and working toward company goals and objectives. Employee Program Engagement is persuaded by a wide range of factors that include internal communications, company structure, benefits and recognition.

Corporations that have high levels of employee engagement profit from improved productivity, retention and execution than peers with disengaged workers. Levels of engagement among workers in the U.S. have been declining over the past decade as individuals have become disillusioned with the treatment of workers by businesses.

The inability to involve workers is one of the reasons why, despite steady increases in hours worked, America lags behind several other nations in terms of employee productivity per hours worked. Worksite Wellness may increase employee engagement in several ways.

First, when communicated properly, they verify to workers that the company cares about their well-being. This can improve retention and turnover as well as supply more of a discretionary effort from workers. During a period of significant downsizing, Motorola found a greater interest in its Worksite Wellness as managers recognized the value of providing for the health and well-being of workers.

In addition, the health improvements will cut down on absenteeism and presenteeism (when workers continue to work despite decreased productivity), allowing for more time spent at full productivity.

Lastly, healthier workers are more likely to have increased morale, which translates into a more enjoyable and more effective work environment.

The President’s Council on Physical Fitness and Sports specifies wellness as “a multidimensional state of being describing the existence of positive health in an individual as exemplified by quality of life and a sense of well-being.” Wellness looks beyond the current template of treating disease and focuses on preventive actions and healthier lifestyles.

Worksite Health Promotion , also generally referred to as Worksite Wellness , serve as a complement to existing insurance-based health benefit programs and can take many forms and address a myriad different potential health conditions. They are a powerful strategy to promote positive lifestyle changes that can result in significant cost savings for businesses.

Examples of potential elements of a Worksite Wellness Program include:

Health Risk Assessments /Employee Wellness Screenings – Health Risk Assessments (aka Health Risk Appraisals), evaluate the most prevalent lifestyle-related risks of an individual. HRAs often include screenings for Blood Pressure, cholesterol, glucose levels and other health indicators. These analyses supply important benchmarking measures that ideally will allow workers to prevent or lower their risk of illnesses.

Finding Wealth Through Wellness, As noted by Kathryn Krivy, director of Northwestern Memorial Hospital’s Wellness Institute in Chicago, “Medically based Health Risk Assessments are a necessity because in order to affect transformation in your company, you need to know what the concerns are, and you just don’t know until you get the data.”

Physical Activity and Weight Management – One of the most popular Worksite Wellness is for businesses to supply access to a fitness center, often onsite. Other potential measures include offering healthier vending machines and cafeteria options, weight management support groups and fitness challenge programs. Some businesses, like hospital group Baptist Health South Florida, will even pay for workers to attend weight-loss seminars such as Weight Watchers.

Awareness and Education Programs – A lot businesses hold events addressing the benefits of nutrition, safety or physical fitness, among other subject matters. Other options are to host a wellness fair or conduct a disease-awareness campaign.

Behavior Modification – This covers issues like smoking, wearing seat belts, and alcohol use. While many businesses will supply assistance for workers looking to modify behavior, some businesses, like medical benefits administrator Weyco, Inc., mandate transformation, such as stopping smoking, as a condition of employment.

Alternative Treatments – Other Worksite Wellness can include absorbing some or all of the costs for massages, stress-reduction activities like yoga or even herbal medicines.

A more modern and systemic solution may incorporate businesses beginning Worksite Wellness , which allow businesses to be proactive in preventing disease and promoting healthier lifestyles for workers. When implemented effectively, this approach can lead to reduced direct costs from claims, a reduction in Medical Care premiums and increased employee productivity.

Yet while Worksite Wellness potentially offer businesses large cost savings, the success of the program is dependent upon the ability to involve workers in them. Additionally, businesses must navigate the legal and cultural challenges posed by Worksite Wellness : Corporations really should be careful that initiatives respect protected classes and the privacy of workers.

Moreover, businesses must battle resistance from workers wary of their company regulating off-the-clock actions. Over the next 6-12 posts we’ll layout the case for Worksite Wellness in today’s employment environment, arguing that the cost savings and grown employee engagement outweigh potential restrictions.

We will analyze the considerations a company must make before beginning a Worksite Wellness Program and the communication necessary to create successful engagement from workers. Finally, we will discuss several successful Worksite Wellness and supply a list of resources that businesses can use for guidance.

Over the past decade health insurance costs have risen steadily. This is taking a toll on the bottom-line of businesses, cutting into earnings, limiting growth and forcing a reevaluation of a once sacred employee benefit system.

According to a projection by McKinsey & Co., at the present rate, by 2008 health benefits will eclipse earnings at the average Fortune 500 company. Corporations, through private health insurance businesses, are the leading provider of healthcare services in the U.S..

In 2004, 59.8 percent of Americans were covered by a company-based health insurance program, accounting for 88 percent of all private health insurance.

Yet the growing costs of Medical Care, ever-increasing prescription prices and a steady rise in chronic illnesses have brought the corporate world to a breaking point.

For many businesses the growing burden has become too difficult to bear. Over the past five years health insurance premiums have grown an average of 11.6 percent each year, more than four times the average rate of inflation and employee earnings over that time.  Not surprisingly, this exponential growth in costs has caused the number of businesses offering Medical Care services during that time to drop from 69 percent to 60 percent.

In addition, in 2005, health insurance premiums jumped 9.2 percent, more than three times the rate of inflation – and that was the lowest increase in the past five years. In this environment businesses need to discover innovative ways to stem the increasing costs of Medical Care coverage.

Seemingly, the easiest strategies to accomplish this goal would be to cut benefits coverage or pass on arising burden to workers and retirees. More than 80 percent of businesses have chosen one or both of these cost saving measures in the past few years and almost half of all sizable businesses are likely to increase the amount workers pay in 2007.

Nevertheless, these approaches do nothing to mitigate the primary causes of increasing costs, one of which is a population that requires increased healthcare. To make a lasting and substantial effect on costs and central health, businesses need to look beyond a old-school reactive-based approach.

Coordinating company fitness and Worksite Wellness is not about establishing a grand scheme that is so complicated it is underutilized. Worksite Wellness are about establishing an environment that encourages fitness and active living. The program ought to be accessible and make sense to the people it is directed at throughout the day. The results will be a plan that gives plenty of opportunity for exercise, teaches proper nutrition and stays current on health topics productive to the workers. The results will be a plan that gives plenty of opportunity for exercise, teaches proper nutrition and stays current on health topics productive to the workers.

Coordinating Corporation Fitness Programs and Worksite Wellness – Making a Proposition

Coordinating company fitness and Worksite Wellness means understanding there are many directions the program can take. For starters, it must be of interest to workers at all echelons. The company’s proposal to the employee is this: you take better care of yourselves and we will help you accomplish your objective. To be effective, the Worksite Wellness Program must be pervasive. In other words, it must address the needs of the top executives as well as the warehouse workers. The variety of jobs within a company usually indicate wide differences in stress and strain levels on the body and differences in mental and emotional stress. The program must also take into account employee habits at work and at home. A company with a company fitness and Worksite Wellness Program in place sends the message to its workers and customers is that the company takes health seriously. Coordinating company fitness and Worksite Wellness involves determining the types of exercises that will be most effective for the postion. Every company will need a different plan. A company fitness plan can include a lot more than just an physical activity program and dietary planning. It can offer real opportunity to improve the entire company environment. A Worksite Wellness Program can include the following:

• Health intervention for existing health ailments
• Recreational programs that engage workers and their families
• Ergonomics to lower work strain and resulting injuries
• Specialized programs that target workers with physical conditions interfering with work execution
• Discussing health and fitness topics related to an aging work force
• Beginning exercise programs specifically designed to increase employee job-specific strength

The advantages of carefully coordinating company fitness and Worksite Wellness are obvious. Workers get access to the physical activity program either onsite or through company membership at the gym. Coordinating company fitness and Worksite Wellness means including those components critical to good health.

The rewards for the company are endless.

• Savings on Medical Care costs
• Less employee sick days
• Workers with a sense of health fitness
• Reduceincidences of chronic illnesses
• Attracts new workers dedicated to fitness

Coordinating Corporation Fitness Programs and Worksite Wellness – Closing the Deal

Implementing and coordinating company fitness and Worksite Wellness nets big rewards for workers and the company. workers are happier, feel better, are more satisfied with their work, are healthier and have more vitality. Stress is lowerd which positively effects the attitudes of workers, lowers injuries and makes workers more productive. Closing the deal on a physical activity program means the company and workers sign on the dotted line of health. Do not let Medical Care care costs continue to rise. Start now coordinating company fitness and Worksite Wellness .

Worksite Wellness Program proposals must be designed so that they meet company objective. Worksite Wellness for workers are the newest attack on employee unhealthy lifestyles that are equating to high medical care expenses. Worksite Wellness Program Proposals for beginning a program must take into consideration the type of company, the budget and the makeup of the employee population. Worksite Wellness for office employee will be different than programs for construction workers The objective will be same, but the approach to reaching those objective will be different. For a program to be considered successful, results must be measurable.

• workers achieve better central conditioning
• Medical Care claims decrease
• Productivity rises
• workers experience less sick days
• Number of injuries declines
• Physical ailments like high Blood Pressure are lowerd

In general, Worksite Wellness Program proposals must target the fitness topics at the company and offer plans for improvement.

Worksite Wellness Program Proposals – Going the Distance

There are many different kinds of wellness proposals.

• One-one-one employee evaluations by a professional medical care provider
• Outside specialist assistance for program design and implementation only
• Ongoing program monitoring by a personal trainer
• In-house program design
• Health Center memberships
• Worksite Wellness
• Complete Worksite Wellness including nutrition and fitness
• Programs that address a specific topic like injury at the worksite

These are just a few forms Worksite Wellness Program proposals can take. A Wellness program can be very basic or elaborate depending on the company budget. A program can include up to 4 components.

• Education on health topics
• Screening programs with follow-up screening
• Corporation culture of health improvement
• Fitness and nutrition programs – supervised and unsupervised programs can include a myriad of health and fitness information and exercises. The rewards for beginning a Worksite Wellness Program are unlimited.

Worksite Wellness Program proposals offer a way for management to invest in their workers with a promise of returns in the form of productivity and cost savings.

Wellness Proposals – Healthy Alternatives

Worksite Wellness Program proposals offer workers alternatives to specific health ailments. Proposals can address particular topics in addition to central fitness. These topics include stopping smoking, more flexibility for job execution, preventing back injuries, preventing repetitive motion strain, improving loss of functionality due to age and prenatal programs. Worksite Wellness Program proposals ought to have objective that include improving employee morale, more productivity, reducing absenteeism, more employee vitality and netting Medical Care savings to the company. Worksite Wellness Program costs can significantly vary and many include cost sharing between the employee and the company to cover gym fees. The bottom line is that a company can design a Worksite Wellness Program proposal that suits the company budget, employee lifestyles, and employee and company objective. In any of the Worksite Wellness Program proposals, active alternatives to current company topics must be spelled out. Employee health is a top priority for any company that cares about its success. Research online the different Worksite Wellness Program proposals that are available for businesses. Then select the one that works as if your employees’ lives depended on it, because that very well may be the case.