Winston Salem Wellness : Are Corporate Wellness Programs Cost-Effective?

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Posted by Winston Salem | Posted in Wellness Tips, winston salem wellness | Posted on 17-08-2009

Studies have repeatedly determined that accross the board Worksite Wellness Programs, or Worksite Wellness Programs, can decrease medical and insurance expenditures, decrease absenteeism, and better performance and work rate. Other advantages determined in research studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public perception of the organization.

Healthcare and Insurance expenditures

A number of studies offer evidence of decreased medical and insurance costs for participants in Corporate Wellness Programs, especially wellness programs involving exercise.

For $30 per person, the Bank of America started a Workplace Health Promotion Program for retirees using a risk assessment questionnaire, self-care books and other mailed materials. Insurance claims were reduced an average of $164 per year in this group while they increased $15 for the control group. Since they were able to document significant changes in risk behavior, they anticipate greater savings in future years.

Pacific Bell’s FitWorks participants claim $300 less per case for a 1-year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case.

Coca Cola stated a decline in medical|medical|medical care|healthcare} claims with an exercise program alone, saving $500 per employee per year for the workers (60%) who joined their HealthWorks exercise program. Prudential Insurance Corporation reports that the company’s major medical costs dropped from $574 to $312 for each colleague in its wellness program.

Decreased Rates of Absenteeism

Absenteeism has been shown to be impacted by wellness programs. The evidence indicates a significant reduction in absenteeism and resultant dollars saved as a result of employee fitness programs.

Pacific Bell’s FitWorks program decreased absent days .8 percent to save $2 million in one year. FitWorks participants also spent 3.3 days less on STD for an additional savings of $4.7 million.

Focusing Corporate Wellness Program efforts on high-risk staff members has the potential to lead to better results. A national manufacturing organization reports a decrease of 12.2% in illness days for these staff members.

A two-year study by The DuPont Corporation of the significance of its comprehensive Worksite Wellness Program on absences among workers reports that blue-collar workers at intervention sites had a 14% decline in disability days vs. 5.8% decline for controls. There were a total of 11,726 fewer net disability days.

Enhanced Performance, Productivity and Morale

A number of employers with Employee Wellness Programs report documented improvement in job attitude, work success, energy level, and/or overall morale among program participants–all critical factors in enhancing productivity.

A Johnson & Johnson study observed that employee attitude changes were greater at Worksite Health Promotion Program intervention sites with significant positive attitude changes noted in the categories of business responsibility, supervision, on the job conditions, job competence/security, and pay/benefits.

In a Canadian government study, the Canada Life Assurance Employer experimental group realized a 4% growth in productiveness after starting a organization exercise program, compared to the control group. Further, 47% of program participants published that they felt more alert, had better rapport with their co-staff members, and generally enjoyed their work more.

Swedish investigators observed that mental effectiveness was significantly better in physically fit staff members than in non-fit staff members. Fit staff members committed 27% fewer errors on tasks involving concentration and short-term memory, as compared with the effectiveness of deconditioned staff members.

The Bottom Line

The following sample of Workplace Health Promotion Programs wellness program results have been reported by individual employers:

Company: Dollars Saved/Dollars Spent

• Bank of America (Fries): $5.96/$1
• PacBell: $3.10/$1
• Wisconsin School District Insurance Group: $4.47/$1
• Prudential Insurance: $2.90/$1
• Bank of America (Leigh): $4.73/$1
• General Mills: $3.50/$1

Summary

There is mounting evidence that a sizable portion of the billions of dollars currently spent by employers on health-related costs is avoidable by means of Corporate Health Promotion Programs. Well-planned, comprehensive Corporate Health Promotion Programs (Corporate Health Promotion Programs and Corporate Health Promotion Programs) have been shown to be cost-effective, especially when the Corporate Health Promotion Programs is matched to the health issues of the specific employee.

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