Companies continually evaluate ways to reign in the soaring costs of health care, while striving to provide solid and affordable benefits to employees. Since 1999, the cost of the average American family's insurance plan obtained through employers has doubled. However, personal incomes and company

The good news is there are ways for companies to reduce costs for themselves and their employees. One way is to implement a wellness program for employees. Wellness programs practice preventive care and help employees better manage their health. Wellness programs are being implemented across the country in large and small companies, and the results are positively impacting the bottom line.

A review of 42 published studies of worksite health programs showed a 28% reduction in sick time, a 26% reduction in health costs and a 30% reduction in workers' compensation and disability management claims. The same meta-evaluation found a $5.93 to $1 return on investment. (1)

Starting Point

Several key elements help develop a successful employee wellness program. First, research and evaluate a variety of wellness firms to check for a good fit. A program with coaches who are personable and flexible helps employees feel that the coaches have their best interest at heart. Successful coaches see clients one-on-one, creating relationships and building trust.

Second, get buy-in from senior management. During the evaluation phase, senior management must support the program as a long-term initiative because people's health habits do not change overnight. Companies with successful programs reap rewards in reduced sick time, increased productivity and improved employee morale. Make sure senior management understands that the program will pay for itself if successfully implemented and managed.

Employee buy-in is just as important. Enthusiasm is contagious, and people enjoy feeling connected. Company intranet and e-mail are two great tools for communicating information about the wellness program. Senior management and employees with access to company computers can get health-related information online quickly and easily. For employees who do not have access to e-mail or computers, mailing information to their homes is effective.

Overall acceptance is hard to gauge, even when people seem enthusiastic. Conduct a brief survey on the company intranet to find out how employees feel about the program.

Lessons Learned

Many companies reward employees for participating in Health Risk Assessments (HRA). According to successful coaches, this undermines the overall rewards of good health and taking control and responsibility for self well-being.

To increase employee participation, make the annual HRA meeting mandatory. This ensures employees receive all the necessary information and are given the option to voluntarily complete an HRA.

Finally, no employee wellness program is complete without a dedicated steering committee made of key staff members and management. Because supporting a wellness program can be an overwhelming job, the task should be built into job descriptions. This demonstrates the organization's commitment to the program--it's not just something committee members are expected to squeeze in to daily routines. Volunteer-based committees are limited in time and can reduce the program's effectiveness.

Case Study

An example of a thriving employee wellness program can be found at Victaulic Company, a producer of mechanical pipe joining systems, based in Easton, Pa.

In 2001, Victaulic implemented its first employee wellness program at its corporate headquarters to help combat the increase in health insurance costs. In January 2006, Victaulic began evaluating professional wellness firms and partnered with Wellness Coaches USA[TM], a national provider of workplace wellness coaching. In March 2006, Victaulic introduced two in-house, professional wellness coaches to its employee base.

The program recently eclipsed 98% participation among 1,200 employees. Since the program's inception, Victaulic reports that 2,971 blood pressures have been checked, 1,039 body compositions have been measured and more than 13,000 informational handouts have been distributed. The Victaulic Wellness Program has contributed to a 47% reduction in short-term disability hours for salaried employees.

Like Victaulic, companies can implement successful and cost-effective wellness programs by completing up-front research, obtaining commitment from management and employees, holding mandatory annual meetings and establishing a dedicated steering committee.

References

(1.) Chapman, L. 2003. "Meta-evaluation of worksite health promotion economic return studies." American Journal of Health Promotion 17(3):1-10.

Maryellin Treacy manages all compensation and benefit plans for the Victaulic Company in Easton, Pa.