Employee benefits and in particular wellness programs, are the third and final trend I am following this year. For this blog post, I’ve decided to mix it up a bit. I’ve invited a colleague by the name of Dave Weller, owner of Valley Wellness (http://www.valley-wellness.com) to collaborate on this blog post. Dave is a subject matter expert in wellness and has many years of experience in this field. Just like Connect to HR, Valley Wellness is committed to keeping employees healthy!
I got the idea of highlighting wellness programs after reading a recent article written by Barbara J. Bowes for Nelson Staffing. Barbara stated, “employers this year will focus on cost containment of employee benefits.” The article goes on to highlight the impact of healthy employees on the bottom line. Below, Dave gives us a summary of the benefits of implementing a wellness program in small businesses.
Dave Weller’s summary: Employee Wellness Programs Work!
A recent article published in the Harvard Business Review (December, 2010) states employee wellness programs work, and the benefits extend to small and mid-sized businesses. According to the article, return-on-investment (ROI) on well-run wellness programs can be as high as 6 to 1 (six dollars returned for one dollar spent). Well-run wellness programs include six pillars:
1. Engaged leadership at all levels of the institution
2. Employee wellness as an important part of the business model {Encouraging employees with a “carrot,” instead of using a “stick.”}
3. A program that is comprehensive and of interest to individual employees
4. Ease of access to services
5. Relevant partnerships, internal and external to the institution
6. Comprehensive communication
The study examined a number of companies across the business spectrum, from hospitality to energy to retail. When it comes to saving money, companies can get very creative in encouraging participation in such programs. While saving money is the incentive for a business to establish a wellness program, it is after all, just money. When employees show up to work sick, that is the definition of presenteeism. Employees who aren’t at the top of their game aren’t as productive as when they are well. This is one toll of illness with which businesses must cope. Loss of productivity is a huge expense that wellness programs can help address. Employee morale is an important component of the success of a business. Wellness programs involve a partnership between employee and employer that can encourage the building of deep bonds. Thanks to the authors of this article (“What’s the Hard Return on Employee Wellness Programs?”), we now have more evidence that wellness programs save money while assisting businesses in other significant ways.
My Take
With the cost of health insurance premiums increasing, organizations will become more directly involved in helping employees manage their health through wellness programs, while at the same time seeking ways to contain health and benefit costs. Dave’s summary highlights the ROI of implementing these programs. Also, wellness programs aren’t just for big corporations! They are also beneficial even for small businesses. Speaking of healthcare premiums increasing, I am following the latest developments of Healthcare Reform and how it impacts businesses. I will provide an update later this spring on the latest changes and the timeline for when they are to be implemented.
Thank you for reading this three part series! This is a small sampling of the various trends impacting businesses today. Please visit my blog often to keep current on the topics I covered in this series and for other helpful information related to HR.
