In the current unstable economic climate, company perks and benefits are not as plentiful as they once were. However, one of the benefits that employers seem keen to invest in is that of employee wellness programs. The recent trend has been towards a healthier working environment, with the aim of boosting employee morale, health and overall work performance. Wellness programs provide education and facilities, and offer incentives for employees to adopt a healthier lifestyle. They can also reduce the incidence of chronic illnesses such as diabetes, asthma or heart disease. But do the benefits of providing fitness programs outweigh the costs?
Although most companies engage in at least one program focusing on the health of their employees, the idea of a comprehensive program has not been accepted universally. In a survey by WorldAtWork, 64% of the 1103 companies that participated said they have a wellness strategy. At the same time, around two thirds of companies that have such programs have not fully implemented them. The main reason given to pursue wellness programs is stress. This is particularly prevalent in industries that have borne the brunt of globalization and rapid technological progress, which can lead to increased job insecurity. The recent global economic downturn has only exacerbated this.
There are some case studies showing wellness programs can be a good investment. For example, since 1995, the percentage of employees at Johnson and Johnson who smoked has dropped by more than two thirds,thanks largely to a comprehensive investment in employees’ social, mental and physical wellbeing. The company estimates that wellness programs have saved it $250 million on health care costs over the past decade, with a return of $2.71 for every dollar spent between 2002 and 2008. Another study found that 57% of people with health problems reached low risk status by completing a worksite cardiac rehabilitation and exercise program.
Such programs take many forms. For example, a company can offer gym memberships, help with purchasing fitness equipment, or offer employee workout classes. Companies can also include nutrition education as part of their wellness programs, by way of counselling, group seminars, or even a healthy eating option in the workplace cafeteria. According to one study, the effectiveness of a wellness program depends on factors such as the engagement of senior staff, setting clear objectives, and having good communication and evaluation procedures.
The returns on investing in wellness programs will largely depend on which market you are operating in. North America will have a different corporate culture than that in Europe. Investing in such programs to reduce healthcare costs will obviously not have the same applicability in countries with universal healthcare. In many European countries,governments already impose a tight regulatory and legal framework, dictating how companies should provide wellness related programs. On the whole, having healthier and happier employees can only be a good thing.
Adam Watson
Sources:
• https://www.worldatwork.org/waw/adimLink?id=36309
• https://www.jnj.com/caring/patient-stories/healthy-employees
• https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/real-roi-wellness.aspx
• http://www.ejournals.eu/pliki/art/9348/
• https://www.ncbi.nlm.nih.gov/pubmed/1421833