Tyler EatonEmily HoldorfGabrielle RaymondMichelle SeegerBreeanna Verna

CORPORATEWELLNESSPROGRAMS

Corporate wellness programs have been implemented into corporations to increase employee health and decrease their chances of developing chronic diseases such as obesity, cardiovascular disease, and hypertension.

These issues increase the amount of absenteeism, disability, injuries and healthcare claims thus driving up the health care costs for employers and premium costs for employees.

These programs can include things such as access to a fi tness facility and its equipment, off ering healthier food choices in the corporation’s cafeteria, and health & wellness education from trained professionals. The implication of these health care programs can ultimately lead to a healthier environment and create happier more productive employees.

INTRODUCTION

Statistics show that in 2000, the health costs of overweight and obese individuals were estimated at $117 billion per year.

Being overweight has increased health care rates yearly by $125 per person.

Being obese increases costs by $395. In 2013 health care costs of overweight and obese

individuals sky rocketed to $254 billion per year and is estimated to reach $861-957 billion by 2030.

In 2012 91% of organizations had some type of health promotion program in place, versus 78% in 2002.

BACKGROUND

The Meredith Corporation is a national publishing corporation that opened a company fi tness center for their employees after experiencing an 18.5% increase in insurance premiums.

Meredith ultimately slashed their insurance costs to below a 2% annual rise representing $8-10 million in savings

The corporation spent just $2 million to run the entire wellness program in that same time frame.

Those participating in the wellness program saw a $500 annual reduction in their health insurance premiums

Other organizations including Pepsi Bottling Group, Toyota, and Sprint Nextel have used similar tactics to lower cost such as off ering onsite health clinics and providing advice and stop-smoking tips.

CURRENTLY HAPPENENING

Changes within job recruitment Where companies recruit The types of individuals they recruit The values and beliefs that establish the idea of the “ideal”

employeeMay eff ect the direction and image of the company

cultureMore and more organizations are leaning towards this

approach to benefits

IMPACT ON FUTURE ORGANIZATION MANAGEMENT/HR DECISIONS

The addition of fitness facilities as well as benefits based on gym memberships has become increasingly popular.

Companies believe that healthy employees lead to not only happy employees but also better productivity

Healthy employees often have better stress management, greater focus, think outside the box, and increased production.

On the opposing side; Some believe the cost of these programs are too high and the

savings may not be adequate to determine the program beneficial There is legal liability associated with the addition of on-site

fitness centers, injuries that occur could present both legal and financial strain for the company

POINTS OF VIEW/OPINIONS

There are an incredible amount of benefits of providing a wellness program for both companies and employees.

BENEFITS

• Happier, more productive employees• Better performance• Lower absenteeism• Lower health care costs• Higher retention rates • Higher morale

BENEFITS FOR EMPLOYERS

• An opportunity to get healthy• More energy and vigor• Reduced stress• Lower blood pressure or cholesterol• Lose weight• Sleep better• Build camaraderie with co-workers• Cash incentives• Lower health care premiums• Free or discounted gym membership

BENEFITS FOR EMPLOYEES

• Wellness programs can vary greatly in cost to the company• Ones that offer only information and education to

employees are cheaper• Programs that include healthy dining at work,

gym memberships or on-site fitness centers ect., are much more expensive

• Despite the amount of money spent, any type of wellness program has shown to be beneficial to both the company and employees

• Many companies have shown that the major benefits are higher productivity and decreased health insurance costs

EXPENDITURES

• Studies on wellness programs have shown a positive ROI (return on investment)

• Health care and absenteeism is shown to reduce by 25-30% within an average of 3.6 years

• Typical ROI for spending on worker’s health promotions is about 3:1 without considering employee retention

EXPENDITURES

They off ered:• An online program that sets goals and develops

plans for implementing physical activity and nutrition, limiting screen time, and “role modeling” (including the family)

• The company gives a $150 annual cash incentive for participation

Return on Investment:• High levels of employee satisfaction• A savings of $2.42 on every dollar spent on the

program• A total savings of $191 million from a $79 million

investment

IBM, ARMONK, NY399,400 EMPLOYEES (WORLDWIDE)

They off ered:• A 24-hour fi tness center• A dietitian, personal trainer, and wellness coach• A full body assessment• Weight Watchers classes and healthy eating workshops• A walking club and bike loan program• Weekly discount coupons for healthy cafeteria food • Stress reduction and smoking cessation classes

Return on Investment:• A savings of $2.43 on every dollar spent since 2003 (Study

was done in 2009)• 37% lower absentee rates since 2003• 24% net increase in health care costs in 2009 compared to

$49 projected increase

CAPITOL METROPOLITAN TRANSPORTATION, AUSTIN, TX

1,075 EMPLOYEES

They off ered:• Faci l i t ies went smoke free in 2002• Mandatory, quarterly health checks start ing in 2003• Wellness goal consultat ion fol lowing health check• Health objectives included in the company’s performance management

system• Weight Watchers @ Work• Smoking cessation classes• Nonsmokers received discounts or part ial reimbursement on gym

membership or any purchases of fi tness equipment• Stretching sessions before start ing each shift• Neuromuscular therapy avai lable on-site

Return on Investment:• Health care savings of $1 mil l ion • Worker’s compensation claims reduced from $510,000 in 2003 to $43,000

by 2009• Health care costs per person reduced to about 1/2 - less than 2/3 of the

industr ies average

LINCOLN INDUSTRIES, LINCOLN, NE400 EMPLOYEES

CORPORATE WELLNESS PROGRAMS