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Category — Worksite Wellness

Motorola: Worksite Wellness Case Study

What began more than a decade ago as a pilot program in two locations, has now developed into a global program for Motorola. The organization’s Worksite Wellness is run by the Global Rewards group consisting of more than 50 employees and funded by an annual grant. Programs are consistently evaluated on their ability to deliver a positive return on investment and profit the collective Motorola community. overall, the program reaches more than 30,000 employees, family members and retirees. Worksite Wellness Features:

  • The organization provides no cost membership for active employees to Wellness Centers located at 8 United States sites (retirees pay a small fee).
  • Staff Members at locations without a Wellness Center receive $240 to help cover the cost of a membership at a qualifying exercise facility.
  • In 2003, the organization provided flu immunizations to more than 11,000 employees, dependents and retirees at 70 on-Site locations.
  • Motorola holds hundreds of health education courses each year for employees.

Worksite Wellness Solutions:

  • Among employees who regularly used on-Site Motorola Wellness Centers or an alternate exercise facility the organization saved $3.93 for every $1 it invested, according to data from 2000.
  • Participating employees cost $6.5 million dollars less in lifestyle-related medical expenses than non-participants.
  • Worksite Wellness participants experienced annual Medical Care cost growths of 2.5 percent, compared to 18 percent growths for non-participants.

August 10, 2009   No Comments

Measuring the Problem

Obesity

Obesity, one of the fastest increasing epidemics in America, is the most prevalent health risk among employees. Obese people are at increased risk for several chronic diseases such as congestive heart failure, type 2 diabetes, stroke and hypertension. Facts:

  • The prevalence of overweight and obesity has doubled since 1980.
  • Two-thirds (66.3 percent) of the population is overweight or obese (using Body Mass Index as a measure); 32.3 percent are obese.
  • Obesity has roughly the same association with chronic health conditions as 20 years of aging.
  • Greater than 20 percent of very overweight employees have low morale, almost twice that of employees of healthy weights.
  • Overweight and Obesity medical claims cost around $92 billion in 2002, 9.1 percent of all United States Medical Care expenditures.

Mental Illness

Often ignored or misdiagnosed, mental illness is one of the most disruptive health problems in corporations. It is unique in that its indirect costs (especially presenteeism) are often higher than its direct medical costs. Facts:

  • Approximately 20 percent of the United States population is affected by mental illness during a given year, with the most common form being depression; yet in 1997, only 23 percent of American citizens diagnosed with depression received treatment.
  • In 2001 mental illness and substance abuse treatment cost more than $104 billion, comprising 7.6 percent of domestic Medical Care spending.
  • Around 217 million days of work are lost annually due to productivity decline from mental illness and substance abuse disorders, costing $17 billion each year.
  • Depression is one of the most costly workplace health problems, costing the United States $43.7 billion annually, including workplace costs for absenteeism and lost productivity.

Smoking

Though smoking rates have gone down slightly in America over the past 10 years, smokers still make up 21.1 percent of the population. For many corporations, bans on smoking in buildings means a greater loss of work rate during breaks, adding to the costs of the practice. Facts:

  • The United States Center for Disease Control and Prevention (CDC) puts a $3,391 price tag on each employee who smokes: $1,760 in lost work rate and $1,623 in excess medical expenditures.
  • Staff Members who use tobacco had about two times more lost production time (LPT) per week than employees who never smoked, a cost of $27 billion to corporations.
  • An economic assessment found that a Medical Care plan’s annual cost of covering treatment to help people quit smoking ranged from $0.89 to $4.92 per smoker, whereas the annual cost of treating smoking-related illness ranged from $6 to $33 per smoker.
  • The direct and indirect costs of smoking are estimated at $138 million per year.43 Finding Wealth Through Wellness 19 • Quitting smoking could decrease an individual’s Medical Care costs by $960 each year.
  • Secondhand smoke costs the United States economy roughly $ten billion a year: $5 billion in estimated medical costs associated with secondhand smoke exposure, and another $4.6 billion in lost wages.
  • From 1997-2001, tobacco use and exposure to tobacco smoke resulted in approximately 438,000 premature deaths in America, 5.5 million years of life lost, and 92 billion dollars in productivity losses annually.
  • Smokers, on average, miss 6.16 days of work per year due to sickness (including smoking related acute and chronic conditions), while nonsmokers miss 3.86 days of work per year.
  • Each smoker who successfully quits reduces the anticipated medical costs associated with heart attack and stroke by an estimated $47 in the first year and $853 during the following seven years.

August 8, 2009   No Comments

Worksite Wellness and Protected Classes

Even in an at-will employment environment, people are still guarded from discrimination (including wrongful termination) by virtue of belonging to a protected class. Before implementing a Worksite Wellness , corporations need to be alert to the relevant legal restrictions and the potential affects these measures can have on benefi ts and employee behavior programs. Title VII of the Civil Rights Act of 1964 – Prohibits employment discrimination based on race, color, religion, sex or national origin. This means that standards and offerings need to be applied equally (or possibly proportionally) to all protected classes. In other words, if a organization is offering access to gyms, it must be sure that men and women have equal access to facilities. Employers must also consider whether individuals who may live in areas heavily populated by one race, religion or ethnicity also have access to facilities and programs. The easiest way to address this concern is to support on-Site Worksite Wellness whenever possible. This not only ensures equal access, but according to Northwestern Memorial’s Krivy, also boosts participation. Employers must also be aware that particular health problems may disproportionately affect protected classes. Health Risk Assessments and any incentives/rewards put in place may have to be personalized to account for non-lifestyle related differences. The Equal Pay Act of 1963 (EPA) – Protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination. Benefits, incentives/rewards and programs need to be applied equally to men and women. A organization can’t set a weight goal for men and not for women, although a organization can set health parameters by work function. The Age Discrimination in Employment Act of 1967 (ADEA) – Protects people who are 40 years of age or older from discrimination based on age. Policies not only need to be available to people of all ages, but program goals and objectives, restrictions and incentives/rewards need to be designed with age appropriateness. While older employees (or retirees and dependents) may inherently pose a higher health risk, their actions must be evaluated in terms of demographically appropriate measures. Title I and Title V of the Americans with Disabilities Act of 1990 (ADA) – Prohibits employment discrimination against qualified people with disabilities in the private sector, and in state and local governments. Similar to other workplace offerings, any Worksite Wellness , such as a fitness center or health clinic, would have to make reasonable accommodations for employees with disabilities. One area of uncertainty is whether obese employees qualify as disabled. The concern is complicated because weight is caused by several factors (genetics, environment, behavior), some of which may be out of the employee’s control. Generally, for employees to qualify for disability based on weight, the condition must signifi cantly impair their physical or mental ability to perform their job. This determination would need to be made by a qualifi ed physician. Although this label may affect the types of incentives/rewards and program requirements available, it likely would not affect the overall implementation of behavioral-focused initiatives. Civil Rights Act of 1991 – Provides monetary damages in cases of intentional employment discrimination. This legislation permits people to sue corporations for improper treatment. Compensation can be in the form of actual damages such as lost or expected wages, compensatory damages for a situation that causes public embarrassment, or even punitive damages meant to send a message to a organization for egregious or habitual violations. While these laws govern all organization activities, there are even more stringent restrictions with regard to Medical Care problems. Most policies, communications and data collection regarding employee health are governed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Under HIPAA corporations can’t deny eligibility for benefits or charge a higher premium on the basis of:

  • Health status
  • Health condition (including both physical and mental ailments)
  • Claims experience
  • Receipt of medical care
  • Health history
  • Genetic information
  • Evidence of insurability (includes activities such as riding a motorcycle, skiing, snowmobiling and other similar pursuits)
  • Disability

However, because wellness programs may not incorporate medical treatment or be insurance related, and may instead be confined to behavioral initiatives, HIPAA’s nondiscrimination provisions do not fully apply. To address this, in 2001 the United States Department of Labor, the Internal Revenue Service and the United States Department of Health and Human Services jointly issued a proposed regulation to help clarify the lawful provisions of a “bona fi de Wellness Program” in the context of HIPAA’s existing language (See Box p. 14). Although the regulation is not yet final, corporations that comply with the measure will be viewed by the government as making a good-faith effort to avoid discrimination in wellness programs. Comprehensive Worksite Wellness are still relatively new to corporate America and the legal implications of implementation and enforcement are not fully known. By their very nature, these programs potentially expose corporations to discrimination lawsuits, disengaged employees and detrimental public relations. However, corporations that make a good-faith effort to comply with current Medical Care-related laws, find ways to engage employees, and communicate strategically, will be able to minimize these risks while finding plenty of room to develop a creative and effective Worksite Wellness .

August 7, 2009   No Comments

Engaging Staff Members in Worksite Wellness

Following cost, poor employee engagement and inadequate talks and backing are listed as the greatest challenges for corporations administering any health benefi t program.22 By law, corporations are required to explain any benefits or explicit conditions of employment to all employees – this is called “due process,” and it usually takes the form of a packet of information that new employees are asked to review and sign during orientation or, in the case of existing employees, a brief communication during open enrollment periods. Employers that only take part in the minimally necessitated due process communication of a Worksite Wellness , however, do a disservice to the program and the organization. Opinions about Medical Care in corporations represent one of the largest disconnects between management and employees. In discussing the need for savings, most corporations (70 percent) believe their organization effectively communicates about increasing Medical Care costs, while only 34 percent of employees feel increasing Medical Care costs impact their business’ ability to succeed.23 When it comes to actions, 74 percent of corporations believe their employees must be held largely accountable for improving, managing and maintaining health, yet only 4 percent of corporations think that employees take part in these activities. Under the proposed rules, the four specifications to be a bona fide Worksite Wellness are:

  • The total reward that may be given to an individual is limited. The departments invited comments on the appropriate level of the reward, suggesting that a limit of ten percent to twenty percent of the total cost of employee-only coverage may be appropriate.
  • The program must be reasonably designed to promote great health or prevent disease for people in the program.
  • The reward must be available to all similarly situated people. More specifically, the program must allow any individual for whom it is unreasonably diffi cult due to a medical condition to meet the Worksite Wellness standard (or for whom it is medically inadvisable to attempt to meet the Worksite Wellness standard) an opportunity to satisfy a reasonable alternative standard.
  • All plan materials describing the terms of the program must disclose the availability of a reasonable alternative standard.

Source: United States Department of Labor Employee Benefits Security Administration As Northwestern Memorial’s Kathryn Krivy says, “The most fundamental failure in any Worksite Wellness is not communicating. You need to tell people what you’re doing and why you’re doing it. You have to get employees engaged and inform them of what’s going on.” A properly createed Worksite Wellness is designed to save a organization more money with improved participation. However, a organization must match its focus on program design with an equally strategic investment in efforts to take part employees in the initiatives. Lay out your case – Despite widespread recognition of increasing Medical Care costs, employees remain skeptical that the concern affects organization operations. In fact, only 53 percent of employees even believe what their organization communicates about the subject.24 Employers need to be more candid and forthcoming about the amount they spend on Medical Care and how that relates to larger budgetary constraints and potential investments. Says Motorola’s Saenz: “We share with employees that we have been able to maintain Motorola’s Medical Care spend trend below national average over the past decade due to their participation in our various Worksite Wellness . This transparency is necessary to keep reminding people the reasons for our actions.” An effective strategy is to focus on the cost savings and overall health benefi ts to the employee and not the organization. By personalizing the information in this way, it creates a win-win scenario instead of presenting the program as a sacrifi ce on the part of the employee. Information must be presented through multiple channels, constructed in a way that makes sense to all levels of employees, and given to employees, dependents and retirees. Make it your own – Every Worksite Wellness will be different, and must reflect the culture of a organization. While program areas will be determined by analyzing employee health risks, the actual offerings must be shaped by the nature of the organization. Younger, more active employee communities may be attracted by different programs than an older or technicaloriented employee. In Addition, a global organization with mobile employees will have different needs than a organization with one central location. As noted earlier regarding PepsiCo’s HealthRoads, one strategy is for corporations to brand their Worksite Wellness . Union Pacifi c Railroad (HealthTracks), General Motors (LifeSteps) and Caterpillar (Healthy Balance) all adopted this approach to help create recognition and a larger meaning around their efforts. Having a branded program helps employees and other stakeholders see the larger goals and objectives of the Worksite Wellness , instead of focusing on isolated offerings. Say it loud, say it proud – As a potential cost-saving program, Worksite Wellness must be given the same executive backing and internal responsibility as any comparable organization effort. Employers must not approach wellness as simply a preventive, financially-motivated program, but rather as an opportunity for the organization to distinguish itself and become more competitive. Jeffrey Treem, analyst, Edelman Change and Employee Engagement Group, says that effective communication about Worksite Wellness must be integrated into existing organization communication channels and vehicles. “This includes executive communication to external stakeholders,” he notes, “because this sends a powerful message back to employees about the significance of the programs. Worksite Wellness must not be treated as merely an additional employee perk, but rather an innovative and strategic effort to decrease costs and create a healthier work environment.” Talk among yourselves – The most powerful champions of any Worksite Wellness will be the participants. Employers must find ways to facilitate discussions about the program among employees. This could take the form of support groups, interactive media and the sharing of success stories. However, since Worksite Wellness touch on potentially private health problems, it is important communication remains positive and inclusive, while not pressuring employees. Discussion of wellness problems must be voluntary, though corporations may consider providing incentives/rewards for those willing to contribute. Motivation and information from peers is likely to carry more credibility and significance than messages from management.

August 7, 2009   No Comments

Worksite Wellness Rules

Unless specifically stated otherwise, most organization-employee relationships in America are governed by the principle of at-will employment. Under this system a organization, or the employee, can terminate the relationship without any necessitated showing of cause. This at-will standard gives private corporations substantial power in governing the behavior of employees. In this environment, corporations can Finding Wealth Through Wellness 10 creatively design Worksite Wellness based upon their specifi c corporate culture. Worksite Wellness generally take three main forms: Voluntary Worksite Wellness – The most popular form of employee Worksite Wellness , in most cases they are made available to employees but participation (or lack thereof) is not linked to any type of consequence. Due to ineffective communication, often employees are either unaware of these offerings or confuse them with insurance-based healthcare. Incentive-based – Worksite Wellness based on incentives reward employees for participation in Worksite Wellness activities. Incentives frequently include decreased 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 corporations require, or ban, certain health-related actions. These can take the form of mandatory Health Risk Assessments for employees and bans on smoking or alcohol use. While mandating behavior is an effective method to eliminate high-risk behavior, the cost savings must be measured against the potential message sent to existing and prospective employees. Given that employees are already under various levels of scrutiny in the workplace, individuals may resist attempts by corporations to regulate off-duty actions. In Addition, some employees may fi nd it diffi cult to comply, forcing corporations into the uncomfortable situation of punishing an otherwise beneficial employee. In the short-term a mandate-based Worksite Wellness can guide to an increase in turnover, as employees either choose to leave or are fi red for noncompliance. In the long-term, the policy may prevent the organization from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals thinking of the organization. Limits in recruiting, for instance, led CNN to rescind a 13-year ban on hiring smokers.18 Employers need to make sure that Worksite Wellness are aligned with the values and culture that guide organization operations. If a organization emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a organization that already heavily regulates organization actions. Moreover, a work environment with a sizable disengaged population will likely have poor participation in a voluntarybased program. When calculating cost savings, corporations 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 employees. Staff Members 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 organization to use testing to enforce a smoking ban – most corporations ask employees to self-report behavior. Four employees (more than 2 percent of the total workforce) left Weyco as a result of the policy. A year prior to the ban the organization createed 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 published that 20 employees quit smoking through this program.20 Staff Members were told they had one year before the total ban would go into effect. Under the new Worksite Wellness , Weyco does offer $35 a month for employees who want to use a fi tness center and another $65 a month for employees who meet fitness goals and objectives.

August 6, 2009   No Comments

Worksite Wellness Local Considerations

For many corporations, a smoking ban would not even apply to all employees. That is because currently 30 states and the District of Columbia prevent corporations from banning off-duty smoking.21 In Addition, 13 states prevent corporations from banning alcohol use away from work. Only six states have broad statutes that prevent corporations 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 creating Worksite Wellness , corporations must keep in mind local statutes as well as established common law. Savings of Voluntary Worksite Wellness = (number of participants x savings per participant) – (cost of program) Savings of Incentive-based Worksite Wellness = (number of participants x savings per participant) – (cost of program + cost of incentives/rewards) Savings of Mandatory Worksite Wellness = (number of participants x savings per participant) – (cost of program + cost of policy-related turnover + cost of limited talent pool) Constructing Worksite Wellness policies in a organization that employs unionized employees 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. However this situation 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 employees. The United Auto Staff Members and General Motors worked together to create and position a joint Worksite Wellness which has successfully reached more than 800,000 participants. (See Case Studies, UAWGeneral Motors LifeSteps Worksite Wellness , p.21).

August 6, 2009   No Comments

How to Organize a Worksite Wellness

  1. 1. Undertake a utilization assessment – While corporations can’t obtain medical information on individual employees, insurance providers will supply corporations with reports that detail patterns and rates of employee use for things such as physician visits, hospital stays and prescription use. This information is critical for a organization to set a benchmark of its current health risk status. Data from human resources(HR) can be integrated with benefits information to support a complete picture of employees’ health-related costs. Then, corporations can determine the specific level of behavior change necessary to result in cost savings. The utilization assessment helps a organization identify the areas in which it must focus its Worksite Wellness to reap the greatest benefits.
  2. 2. Build a organization case – Once a utilization assessment is in place, corporations are able to quantify the Medical Care cost savings that will result from specific levels of lifestyle change 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 cost of the Worksite Wellness as well as the necessary internal marketing efforts that will surround the program. Says Betty-Jo Saenz, United States Medical Care Strategy lead for Motorola, “When we started our programs, our focus was on the 20 percent of employees 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. 3. Organize a cross-functional wellness group – Employers need to identify potential group participants who can be champions of wellness within the organization. It is important that the group is representative of the demographic and functional diversity of employees so that it can credibly address any specific needs groups may have. This group will serve as the voice and face for the Worksite Wellness within the organization. Best practice corporations integrate participants from human resources(HR), communications, organization development and upper management. Using the utilization analysis as a guide, the wellness group must evaluate what programs would be most effective within each particular corporate culture, aligning health-risk priorities with initiatives that employees will be receptive to.
  4. 4. Build buy-in from upper management – The most effective Worksite Wellness have backing from the highest levels of a organization. Backing from management, both in words and in action, sends the message that Worksite Wellness are a priority for a organization. The utilization analysis can be a powerful tool to build the organization case for Worksite Wellness and convince executives that initiatives are worthy of investment and attention. Meaningful wellness-related messages are integrated into organization talks and aligned with corporate objectives.
  5. 5. Organize a all-inclusive Employee Engagement plan – The most brilliantly conceived Worksite Wellness is meaningless if no employees take part. Effective wellness talks emphasize both health and monetary benefits at the personal and organization level. According to a 2004 survey by Towers Perrin, only 28 percent of employees say their organization communicates about Medical Care problems other than cost. In addition, wellness-related information must be a part of existing organization talks efforts and not coupled solely with benefits talks. This helps elevate the significance of Worksite Wellness and align initiatives with organization objectives.
  6. Furthermore, talks around Worksite Wellness can share personal success stories and support organization progress updates. Successful corporations not only use existing talking channels to generate discussion around activities, but also consider more interactive tools like message boards, forums, blogs and wikis. This helps personalize initiatives and permits for the sharing of best practices within the organization. Many corporations engage medical professionals to advise in the construction, communication and backing of the program. The use of outside authorities such as these will broaden the credibility of the Worksite Wellness as well as combat skepticism from employees who may view the organization’s motives as merely selfserving. Another strategy available to corporations is to brand their Worksite Wellness . This move can broaden the visibility and acceptance of the offering. Branded wellness programs are most common when corporations are also promoting an external campaign around Worksite Wellness . An example of this is PepsiCo, which launched its HealthRoads Worksite Wellness 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 corporations. This creates more immediate accountability and motivation.

  7. 6. Measure constantly and consistently – At every step of implementation, a Worksite Wellness must be able to show its value to a organization. Worksite Wellness must be designed to allow corporations to set benchmarks and evaluate behavior change. Assessment ought to consider not only quantitative health measures, but also qualitative measures of stress and employee engagement. Less than ten percent of corporations do extensive management of healthcare cost, employee health risk status or employee satisfaction with benefit offerings, and less than half of corporations do any measurement in these areas at all.16
  8. Assessment is only useful if a organization explicitly defines what data would constitute success. Potential measures of success include:

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

Motorola’s Saenz advises administrators of Worksite Wellness to track as many measures as possible from the start, even if management only needs 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 measurement is the only way to build backing among management and employees. Nearly half of corporations feel a lack of useful data is a top barrier to their ability to manage employee health, and at least 20 percent of corporations don’t know how effective existing Worksite Wellness are regarding various outcomes. Employers must lead utilization analyses annually and reevaluate Worksite Wellness priorities based upon changes. In Addition, progress must be shared with the wider business community to build backing for initiatives. Managers and executives throughout a organization are likely to backing a program that can prove increased work rate among employees. Effective Worksite Wellness are designed to be fl exible so they can respond to changes in both organization goals and objectives and larger health variations.

August 5, 2009   No Comments

The Case for Worksite Wellness

Worksite Wellness first became popular during the economic boom of the late 1980s and early 90s. Programs featured on-Site gyms and massages, and were used as recruitment tools for young employees searching for nontraditional work environments. However, when the tech bubble burst, so too did the willingness to spend money on perceived perks, and corporations returned to a more old-school benefit structure focused on managed healthcare. In recent years, as Medical Care costs have spiraled out of control, corporations have explored the potential of Worksite Wellness as a cost-saving strategy. Employers 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 cost a organization pays for health care insurance: According to a 2005 study by Hewitt, the Medical Care cost per employee in the United States in 2006 will average $8,046, with corporations absorbing nearly two-thirds of that cost. Pharmaceutical costs – The price of a prescription plan: According to a 2005 study by Mercer, the average annual prescription costs for sizable corporations grew 11.5 percent, making it nearly a decade straight of double-digit growths in cost. Short-term disability (STD) – The cost of offering STD insurance to employees: According to a 2004 study by insurance provider Cigna, the average STD 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 corporations $660 per employee in 2004, with nearly one-third of corporations characterizing the trend as a genuine concern. Presenteeism — The cost associated with employees who work at decreased work rate 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 organization in Wellness Programming returned a median cost savings of $2.05 to $4.64.

August 5, 2009   No Comments

Employee Engagement

Employee Engagement is the level at which employees are aligned with and working toward organization goals and objectives. Employee Engagement is persuaded by a wide range of factors that include internal talks, organization structure, benefits and recognition. Employers that have high levels of employee engagement profit from improved work rate, retention and achievement than peers with disengaged employees. Levels of engagement among employees in America have been declining over the past decade as individuals have become disillusioned with the treatment of employees by corporations. The inability to engage employees is one of the reasons why, despite steady growths 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 show to employees that the organization cares about their wellbeing. This can improve retention and turnover as well as support increased discretionary effort from employees. 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 wellbeing of employees. In addition, the health improvements will cut down on absenteeism and presenteeism (when employees continue to work despite decreased work rate), allowing for more time invested at full work rate. Lastly, healthier employees are more likely to have increased morale, which translates into a more enjoyable and more effective work environment.

August 4, 2009   No Comments

What are Worksite Wellness ?

The President’s Council on Physical Fitness and Sports defines 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 wellbeing.” Wellness looks beyond the current guide of treating disease and focuses on preventive actions and healthier lifestyles. Worksite Wellness , also frequently 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 corporations. Examples of potential elements of a Worksite Wellness include: Health Risk Assessments / Employee Health 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 (BP), cholesterol, glucose levels and other health indicators. These analyses support important benchmarking measures that ideally will allow employees to prevent or decrease 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 change in your organization, you need to know what the problems 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 corporations to support access to a exercise facility, often on-Site. Other potential measures include offering healthier snack machines and cafeteria options, weight management support groups and fitness challenge programs. Some corporations, like hospital group Baptist Health South Florida, will even pay for employees to attend weight-loss courses such as Weight Watchers. Awareness and Education Programs – Many corporations hold events approaching the benefits of nutrition, safety or physical fitness, among other topics. Other options are to host a wellness fair or lead a disease-awareness campaign. Behavior Modification – This covers issues like smoking, wearing seat belts, and alcohol use. While many corporations will support assistance for employees looking to modify behavior, some corporations, 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.

August 4, 2009   No Comments