Comprehensive Employee Wellness Programming To Control Your Rising Health Care Costs

Employer sponsored health insurance premiums have risen 131% in the past ten years. What plans do you have in place to control the projected increases in the future? While decreasing overall benefits may be a short-term solution, it is clear that this strategy could severely undermine the long-term productivity, loyalty and retention of your workforce. There is little doubt that employee wellness programming is no longer a luxury or perk, but is quickly becoming a necessity. To control the spiraling, out-of-control costs associated with providing health care to employees, it is absolutely essential that organizations attract and retain healthy, fit employees and executives. As many organizations grapple with the different wellness programming options available, it is important to begin with the end in mind. To realize the best return on your wellness investment, it is necessary to shift the culture of your organization away from one of sickness and low productivity to one toward wellness and record breaking performance.

Fortunately, numerous studies indicate that comprehensive wellness programming has become the most critical strategy to insulate organizations from the escalating health care costs that affect your profitability. In fact, as a result of fewer medical, disability and workers' compensation claims, these studies show that for every $1 invested in a sound wellness program, organizations experience and average return-on-investment of $3.50 to $5.93. With the impending new rules surrounding the recent health care reform legislation, one thing is for sure – companies that fail to incorporate comprehensive employee wellness programming will face tremendous challenges to their profitability, productivity and workforce retention.

Getting the Bank for the Buck

Several factors need to be considered to get the greatest ROI from a comprehensive employee wellness initiative. First, even before starting a program, careful consideration needs to be taken in what programs your employees actually want. Starting a benefits focus group with representative employees from several departments will go a long way in employee participation in any program implemented. Studies show that the more employee contribution you get in the design of a program, the greater the acceptance you will ultimately experience. Second, the program needs to be strategically designed. One piece of the program should naturally progress to the next step, building momentum as you go. Scheduling a biometric screening should be done before a health risk assessment, simply because some of the questions on an HSA require blood pressure, cholesterol and blood glucose numbers. Holding a health fair before a biometric screening and the HSA makes no sense. If you have representatives from the local diabetes prevention program available, many employees may not even know they are at risk.

Next, it’s important to set up a sound incentive program that awards credits and or cash for participation in each component of the program. For example, cash can be earned by completing designed wellness activities. Those activities can include biking to work, participation with a community weight loss program, taking diabetes prevention classes, taking a health and fitness screening, nutritional classes, etc. Reward credits can be awarded to reduce an employee’s deductible, co-insurance or increase their health savings account. This can include completing a health risk assessment, receiving a preventative adult physical, annual preventative gynecological exam, routine eye exam or annual preventative dental exam.

As a result of the recent health care reform legislation, the Department of Health and Human Services is developing guidelines for comprehensive employee wellness programming. Although in the early stages, a “comprehensive” employee wellness program must include the following four components; health education that includes seminars and workshops as well as health fairs and screenings, employee engagement that encourages participation, support that includes on-site policies, incentives and employee input and behavioral change components that address tobacco use, obesity, diabetes, stress management, physical fitness, nutrition, substance abuse and depression.

Its one thing to implement all these programs, incentives and educational classes, but to generate the maximum ROI, there needs to be a shift in the entire culture of the organization. For anyone that has attempted to loose weight and start exercising, its very difficult when you come to work to have several of your co-workers eating doughnuts for breakfast and ordering pizza for lunch in the cubicle next to you. A solid corporate wide policy transition needs to take place that encourages healthier habits and makes these habits the norm rather than the exception. From the CEO to the secretarial pool to the maintenance staff, the communication and environment should reflect the goals of the company for their employees. If that goal is to be highly productive, healthy and full of energy and enthusiasm, then a paradigm shift needs to take place.

Despite the recent health care legislation, or possibly because of it, companies that invest in comprehensive employee wellness programming will not only save tremendous sums of money on health insurance premiums and disability and workers' compensation claims. But, at the same time, position them to attract the healthiest, fit and highly productive employees and executives.