Points Programs

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Wellness Programs: Improve Employee Health and Productivity, Reduce Health Insurance Premiums

Companies both large and small across the United States have began to turn to employee wellness programs as a way to reduce health insurance premiums and to increase overall worker productivity. Employees are showing a genuine interest in participating in these programs in an effort to adopt a healthy lifestyle and earn rewards for these efforts as well.

A Jackson Hewitt survey of over 450 leading companies in the US showed that 48% of these companies already offered or were planning to implement a wellness incentive program to employees who participated in wellness or heath related activities and achieved goals. Compared to 38% in 2006, it is plain to see that wellness incentives are gaining popularity.

There are many goals that an employee wellness program can include. Taking smoking cessation steps or not smoking cigarettes at all, receiving an annual physical at a doctor’s office, participating in company walks/runs, completing monthly wellness quizzes, agreeing to wear seatbelts, having blood pressure checked, having under a certain dollar amount of non-preventative care medical claims, participating in brown bag lunches, taking a health risk assessment survey and many other goals can be integrated into a wellness program to help give employees a push in the right direction.

The main guideline that I share with clients when setting up goals is that the program should only reward good behavior and never punish employees who choose not to participate. An adequately communicated and properly implemented wellness program will attract participation naturally. The Wall Street Journal cited that in one wellness program, 99% of eligible employees participated in the company wellness program.

When an employee is under the weather, there is a direct correlation to the employer’s health care, disability and other associated costs. In addition, absenteeism has a direct affect on overall productivity and employee morale and motivation. By establishing goals to target the areas in which your company would like to improve, these costs can be reduced. According to an article from HRM magazine, “Wellness programs in general have been found to generate a return on investment of $4 in health care costs and $5 in reduced absenteeism for every dollar invested within three to five years of the program launch.”

Whether you are thinking about implementing a wellness incentive program or striving to update a current wellness program, the results will make employees healthier and organizations more profitable. As recipients reach goals and earn rewards, a wellness program can make a noticeable impact on the company’s bottom line and truly help participants permanently adopt a healthy lifestyle.

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