Wellness Library

After cost, poor employee program engagement and inadequate talks and backing are listed as the greatest challenges for companies administering any health benefi t program.22

By law, employers are required to explain any benefits or explicit conditions of employment to all workers – this is called “due process,” and it usually takes the form of a packet of information that new workers are asked to review and sign during orientation or, in the case of existing workers, a brief communication during open enrollment periods.

Businesses that only engage in the minimally needed due process communication of a Company Health Promotion Program, however, do a disservice to the plan and the corporation.

Opinions about Medical Care in businesses represent one of the largest divides between management and staff members. In discussing the need for savings, most businesses (70 percent) believe their employer effectively communicates about increasing Medical Care costs, while only 34 percent of staff members feel increasing Medical Care costs effect their business’ ability to succeed.23 When it comes to behaviors, 74 percent of businesses believe their staff members should be held largely accountable for improving, managing and maintaining health, yet only 4 percent of businesses think that staff members take part in these activities.

Under the proposed rules, the four specifications to be a bona fide Company Health Promotion Program are:

- The total reward that may be given to an individual is limited. The departments invited comments on the appropriate level of the reward, suggesting that a limit of 10 percent to 20 percent of the total cost of employee-only coverage may be appropriate.
- The program must be reasonably designed to promote great health or prevent disease for individuals in the program.
- The reward must be available to all similarly situated individuals. More specifically, the program must allow any individual for whom it is unreasonably diffi cult due to a healthcare condition to meet the Company Health Promotion Program standard (or for whom it is medically inadvisable to attempt to meet the Company Health Promotion Program standard) an opportunity to satisfy a reasonable alternative standard.
- All plan materials describing the terms of the program must disclose the availability of a reasonable alternative standard.
Source: U.S. Department of Labor Employee Benefits Security Administration

As Northwestern Memorial’s Kathryn Krivy says, “The most fundamental failure in any Worksite Health Promotion Program is not communicating. You need to tell people what you’re doing and why you’re doing it. You have to get employees engaged and teach them of what’s going on.”

A properly implemented Company Health Promotion Program is designed to save a corporation more money with improved participation. Nonetheless, a corporation must match its focus on program design with an equally strategic investment in efforts to take part workers in the initiatives.

Lay out your case – Despite widespread recognition of increasing Health Care costs, employees remain skeptical that the problem affects company operations. In fact, only 53% of employees even believe what their company communicates about the subject.24 Employers need to be more candid and forthcoming about the amount they spend on Health Care and how that relates to larger budgetary constraints and potential investments.

Says Motorola’s Saenz: “We share with staff members that we have been able to maintain Motorola’s Health Care spend trend below national average over the past several years due to their participation in our various Corporate Wellness Programs. This transparency is necessary to keep reminding people the reasons for our behaviors.”

An effective strategy is to focus on the cost savings and central health benefi ts to the employee and not the organization. By personalizing the information in this way, it produces a win-win scenario instead of presenting the program as a sacrifi ce on the part of the employee. Information must be presented through multiple channels, constructed in a way that makes sense to all levels of staff members, and offered to staff members, dependents and retirees.

Make it your own – Every Corporate Health Promotion Program will be different, and should reflect the culture of a organization. While program areas will be determined by analyzing employee health risks, the actual offerings should be shaped by the nature of the organization. Younger, more active employee communities may be attracted by different programs than an older or technicaloriented employee. Additionally, a global organization with mobile employees will have different needs than a organization with one central location.

As noted earlier regarding PepsiCo’s HealthRoads, one strategy is for companies to brand their Employee Health Promotion Programs. Union Pacifi c Railroad (HealthTracks), General Motors (LifeSteps) and Caterpillar (Healthy Balance) all adopted this approach to help create recognition and a larger meaning around their efforts. Having a branded initiative helps workers and other stakeholders see the larger goals and objectives of the Employee Health Promotion Program, rather than focusing on isolated offerings.

Say it loud, say it proud – As a potential cost-saving plan, Worksite Wellness Programs should be given the same executive substructure and internal commitment as any comparable corporation effort. Organizations should not approach wellness as simply a preventive, financially-motivated program, but rather as an opportunity for the corporation to distinguish itself and become more competitive.

Jeffrey Treem, analyst, Edelman Change and Employee Program Engagement Group, says that effective communication about Worksite Health Promotion Programs should be integrated into existing employer communication channels and vehicles. “This includes executive communication to external stakeholders,” he notes, “because this sends a powerful message back to workers about the significance of the programs. Worksite Health Promotion Programs should not be treated as merely an additional employee perk, but rather a progressive and strategic effort to cut costs and create a healthier work environment.” Talk among yourselves – The most powerful champions of any Worksite Health Promotion Program will be the participants.

Corporations ought to discover ways to facilitate discussions about the program among staff members. This could take the form of support groups, interactive media and the sharing of success stories.

Nevertheless, since Worksite Wellness Programs touch on potentially private health issues, it is significant communication remains positive and inclusive, while not pressuring workers. Discussion of wellness issues ought to be voluntary, though employers may consider providing incentives and rewards for those willing to contribute. Motivation and information from peers is likely to carry more credibility and significance than messages from management.

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Even in an at-will employment environment, people are still guarded from discrimination (including wrongful termination) by virtue of belonging to a protected class. Before implementing a Corporate Wellness Program, organizations need to be alert to the relevant legal restrictions and the potential impacts these measures can have on benefi ts and employee behavior programs.

Title VII of the Civil Rights Act of 1964 – Prohibits employment discrimination based on race, color, religion, sex or national origin.

This means that standards and offerings need to be applied equally (or possibly proportionally) to all protected classes. In other words, if a business is offering access to gyms, it should make sure that men and women have equal access to facilities. Corporations should also consider whether a person who may live in areas heavily populated by one race, religion or ethnicity also have access to facilities and programs. The easiest way to address this concern is to provide onsite Corporate Wellness Programs whenever possible. This not only ensures equal access, but according to Northwestern Memorial’s Krivy, also enhances participation.

Corporations must also be aware that particular health issues may disproportionately affect protected classes. Health Risk Assessments and any incentives and rewards put in place may have to be customized to account for non-lifestyle related differences.

The Equal Pay Act of 1963 (EPA) – Protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination. Benefits, rewards and incentives and programs need to be applied equally to men and women. A company cannot set a weight goal for men and not for women, although a company can set health parameters by job function. The Age Discrimination in Employment Act of 1967 (ADEA) – Protects individuals who are 40 years of age or older from discrimination based on age.

Policies not only need to be available to people of all ages, but program objectives, restrictions and incentives and rewards need to be designed with age appropriateness. While older staff members (or retirees and dependents) may inherently pose a higher health risk, their actions must be assessed in terms of demographically appropriate measures.

Title I and Title V of the American citizens with Disabilities Act of 1990 (ADA) – Prohibits employment discrimination against qualified individuals with disabilities in the private sector, and in state and local governments. Similar to other workplace offerings, any Company Wellness Programs, such as a fitness center or health clinic, would have to make reasonable accommodations for staff members with disabilities.

One area of equivocation is whether corpulent staff members qualify as disabled. The issue is complicated because weight is caused by several factors (genetics, environment, behavior), some of which may be out of the employee’s control. Generally, for staff members to qualify for disability based on weight, the condition must signifi cantly impair their physical or mental ability to perform their job. This determination would need to be made by a qualifi ed physician. Although this label may affect the types of incentives and rewards and program requirements provided, it likely would not affect the overall implementation of behavioral-focused initiatives.

Civil Rights Act of 1991 – Provides monetary damages in cases of intentional employment discrimination.

This legislation authorizes individuals to sue companies for improper treatment. Compensation can be in the form of actual damages such as lost or expected wages, compensatory damages for a circumstance that causes public embarrassment, or even punitive damages meant to send a message to a corporation for egregious or habitual violations.

While these laws govern all corporation activities, there are even more stringent restrictions with regard to Medical Care issues. Most policies, communications and data collection regarding employee health are governed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Under HIPAA businesses cannot deny eligibility for benefits or charge a higher premium on the basis of:

• Health status
• Health condition (including both physical and mental illnesses)
• Claims experience
• Receipt of health care
• Health history
• Genetic information
• Evidence of insurability (covers activities such as riding a motorcycle, skiing, snowmobiling and other similar pursuits)
• Disability

Nevertheless, because wellness programs may not incorporate health care treatment or be insurance related, and may instead be confined to behavioral initiatives, HIPAA’s nondiscrimination provisions do not fully apply. To address this, in 2001 the American Department of Labor, the Internal Revenue Service and the American Department of Health and Human Services jointly issued a proposed regulation to help clarify the lawful provisions of a “bona fi de Wellness Program” in the context of HIPAA’s existing language (See Box p. 14). Although the regulation is not yet final, corporations that comply with the measure will be viewed by the government as making a good-faith effort to avoid discrimination in wellness programs.

Complete Company Wellness Programs are still relatively new to corporate America and the legal implications of implementation and enforcement are not completely known. By their very nature, these programs potentially expose companies to discrimination lawsuits, disengaged workers and negative public relations. Nevertheless, companies that make a good-faith effort to comply with current Health Care-related laws, find ways to engage workers, and communicate strategically, will be able to minimize these risks while finding plenty of room to develop a creative and effective Company Wellness Program.

For many employers, a smoking ban would not even apply to all employees. That is because currently 30 states and the District of Columbia prevent employers from banning off-duty smoking.21 Additionally, 13 states prevent employers from banning alcohol use away from work. Only six states have broad statutes that prevent employers from prohibiting any lawful behavior. Michigan is the only state that expressly prohibits discrimination on the basis of weight, however the cities of San Francisco and Santa Cruz, Calif., also have this provision (San Francisco makes exceptions for police offi cers, fi refi ghters and the San Francisco 49ers football team). When starting Corporate Health Promotion Programs, employers ought to keep in mind local statutes as well as established common law.

Savings of Voluntary Workplace Health Promotion Program = (number of participants x savings per participant) – (expense of program)
Savings of Incentive-based Workplace Wellness Program = (number of participants x savings per participant) – (cost of program + cost of rewards and incentives)
Savings of Mandatory Workplace Health Promotion Program = (number of participants x savings per participant) – (expense of program + expense of policy-related turnover + expense of limited talent pool)

Constructing Worksite Health Promotion Program policies in a business that employs unionized employees can pose unique challenges. Worksite Health Promotion Programs may be perceived by some unions as a condition of employment and therefore would be subject to collective bargaining between the parties. However this postion can represent an opportunity for both groups, as a policy agreed upon between union leadership and management is likely to be received more favorably by employees. The United Auto Staff Members and General Motors worked together to create and position a joint Worksite Health Promotion Program which has successfully reached more than 800,000 participants. (See Case Studies, UAWGeneral Motors LifeSteps Worksite Health Promotion Program, p.21).

Unless specifically stated otherwise, most organization-employee relationships in America are governed by the principle of at-will employment. Under this system a organization, or the employee, can terminate the relationship without any necessitated showing of cause. This at-will standard gives private corporations large power in governing the behavior of staff members. In this environment, corporations can Finding Wealth Through Wellness 10 creatively design Workplace Health Promotion Programs based upon their specifi c corporate culture. Workplace Health Promotion Programs generally take three main forms:

Voluntary Worksite Health Promotion Programs – The most popular form of employee Worksite Health Promotion Program, in most cases they are made available to staff members but participation (or lack thereof) is not linked to any type of consequence. Due to ineffective communication, frequently staff members are either unaware of these offerings or confuse them with insurance-based medical care. Incentive-based – Worksite Health Promotion Programs based on incentives reward staff members for participation in Worksite Health Promotion Program activities. Incentives usually include decreased Healthcare premiums, fitness center membership or personalized support offerings. In these programs, employees’ behavior can be linked to a particular reward.

Mandatory Company Wellness Programs – Some employers require, or ban, certain health-related conduct. These can take the form of mandatory Health Risk Assessments for workers and limitations on smoking or alcohol use. While mandating behavior is an effective method to eliminate high-risk behavior, the cost savings must be measured against the potential message sent to existing and prospective workers. Given that workers are already under various levels of scrutiny in the workplace, individuals may resist attempts by employers to regulate off-duty conduct. In Addition, some workers may fi nd it diffi cult to comply, forcing employers into the uncomfortable situation of punishing an otherwise productive employee.

In the short-term a mandate-based Workplace Health Promotion Program can lead to an increase in turnover, as staff members either choose to leave or are fi red for noncompliance. In the long-term, the policy may prevent the business from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals thinking of the business. Limits in recruiting, for instance, led CNN to rescind a 13-year ban on hiring smokers.18

Corporations need to make sure that Workplace Wellness Programs are aligned with the values and culture that guide employer operations. If a employer emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a employer that already heavily regulates employer behaviors. Moreover, a work environment with a large disengaged population will likely have poor participation in a voluntarybased program. When calculating cost savings, companies need to take a wider view and consider the effects on long-term employee program engagement.

In 2005, Michigan-based insurance benefits provider Weyco instituted a smoking ban for all of its nearly 200 workers. Workers are subject to random testing and if they fail a mandatory breathalyzer test, they will be fi red. It is believed that Weyco is the first company to use testing to enforce a smoking ban – most corporations ask workers to self-report behavior. Four workers (more than 2 percent of the total crew) left Weyco as a result of the policy. A year prior to the ban the company implemented a $50 smoking fee, which would be waived if a employee passed a nicotine test or agreed to take a smokingcessation class. Weyco’s president Howard Weyers reported that 20 workers quit smoking through this program.20 Workers were told they had one year before the total ban would go into effect. Under the new Company Wellness Program, Weyco does offer $35 a month for workers who want to use a fi tness center and another $65 a month for workers who meet fitness objectives and goals.

1. Undertake a utilization assessment – While companies can’t get health information on individual staff members, insurance providers will supply companies with reports that detail patterns and rates of employee use for things such as physician visits, hospital stays and drug use. This information is vital for a company to set a benchmark of its current health risk status. Data from human resources(HR) can be integrated with benefits information to provide a complete picture of employees’ health-related costs. Then, companies can determine the specific level of behavior change necessary to result in cost savings. The utilization assessment helps a company identify the areas in which it ought to focus its Worksite Health Promotion Program to reap the greatest benefits.

2. Build a company case – Once a utilization assessment is in place, corporations are able to quantify the Healthcare cost savings that will result from specific levels of lifestyle modification and risk reduction. This can be done by setting goals/objectives in terms of reductions in identifi able insurance utilization, attendance or disability variables, or by aiming for reductions in health risks and projecting the associated cost savings. Effective estimates factor in the cost of the Corporate Health Promotion Programs as well as the necessary internal marketing efforts that will surround the program. Says Betty-Jo Saenz, American Healthcare Strategy lead for Motorola, “When we started our programs, our focus was on the 20 percent of workers that made up 80 percent of the costs. We’ve discussed that, and now we’re paying attention to those who are healthy and Finding Wealth Through Wellness 8 keeping them healthy. Wherever you are on the continuum, there are opportunities.”

3. Organize a cross-functional wellness group – Corporations need to identify potential group members who can be champions of wellness within the company. It is significant that the group is representative of the demographic and functional diversity of staff members so that it can credibly address any specific needs groups may have. This group will serve as the voice and face for the Worksite Health Promotion Program within the company. Best practice businesses integrate members from human resources(HR), communications, company development and upper management. Using the utilization analysis as a template, the wellness group must evaluate what programs would be most effective within each particular corporate culture, aligning health-risk priorities with initiatives that staff members will be receptive to.

4. Build buy-in from senior staff – The most effective Workplace Health Promotion Programs have backing from the highest levels of a employer. Backing from management, both in words and in action, sends the message that Workplace Health Promotion Programs are a priority for a employer. The utilization analysis can be a powerful tool to build the employer case for Workplace Health Promotion Programs and convince executives that initiatives are worthy of investment and attention. Meaningful wellness-related messages are integrated into employer communications and aligned with corporate objectives.

5. Design a comprehensive Employee Engagement plan – The most brilliantly conceived Workplace Health Promotion Program is meaningless if no staff members participate. Effective wellness communications emphasize both health and monetary benefits at the personal and organization level. According to a 2004 survey by Towers Perrin, only 28 percent of staff members say their organization communicates about Medical Care issues other than cost. In addition, wellness-related information ought to be a part of existing organization communications efforts and not coupled solely with benefits communications. This helps elevate the priority of Workplace Health Promotion Programs and align initiatives with organization objectives.

Additionally, communications around Employee Wellness Programs can share personal success stories and provide organization progress updates. Successful businesses not only use existing discussion channels to generate discussion around activities, but also consider more interactive tools like message boards, forums, blogs and wikis. This helps personalize initiatives and allows for the sharing of best practices within the organization.

A lot corporations engage health care professionals to advise in the construction, communication and substructure of the program. The use of outside authorities such as these will broaden the credibility of the Company Health Promotion Programs as well as combat skepticism from employees who may view the business’s motives as merely selfserving.

Another strategy available to corporations is to brand their Company Health Promotion Program. This move can expand the visibility and acceptance of the offering. Branded wellness programs are most common when corporations are also promoting an external campaign around Company Health Promotion Programs. An example of this is PepsiCo, which launched its HealthRoads Company Health Promotion Program internally along with a consumer campaign, Smart Spot, that puts special labels on healthier food and drink options.

These efforts are more effective when they are not owned solely by the internal communications department, but rather when managers serve as leaders of, as well as take part in, Company Wellness Programs within businesses. This creates more immediate accountability and motivation.

6. Measure constantly and consistently – At every step of implementation, a Workplace Health Promotion Program must be able to confirm its value to a organization. Workplace Health Promotion Programs ought to be designed to allow corporations to set benchmarks and evaluate behavior change. Measurement ought to consider not only quantitative health measures, but also qualitative measures of stress and employee program engagement. Less than 10% of corporations do extensive management of health care expense, employee health risk status or employee satisfaction with benefit offerings, and less than half of corporations do any assessment in these areas at all.16

Measurement is only useful if a corporation explicitly specifies what data would constitute success. Potential measures of success include:

• Participation rates
• Increased employee engagement
• Decrease of risk status
• Lowering of direct health costs
• Lowered absenteeism
• Reduced disability claims

Motorola’s Saenz advises administrators of Employee Wellness Programs to track as many measures as possible from the start, even if management only requires one, because it is very difficult to retrieve data later. She notes that even if leadership begins by looking at participation rates, they will eventually want to know about reductions in claims and costs.

Frequent assessment is the only way to build backing among management and staff members. Nearly half of organizations feel a lack of useful data is a top barrier to their ability to manage employee health, and at least 20 percent of organizations don’t know how effective existing Corporate Wellness Programs are regarding various outcomes. Businesses ought to conduct utilization analyses annually and reevaluate Corporate Wellness Program priorities based upon changes. In Addition, progress ought to be shared with the wider business community to build backing for initiatives. Managers and executives throughout a organization are likely to backing a program that can prove increased productivity among staff members. Effective Corporate Wellness Programs are designed to be fl exible so they can respond to changes in both organization objectives and goals and larger health variations.

Company Wellness Programs first became popular during the economic boom of the late 1980s and early 90s. Programs featured onsite fitness centers and massages, and were used as recruitment tools for young employees searching for nontraditional work environments. Still, when the tech bubble burst, so too did the willingness to spend money on perceived perks, and employers returned to a more traditional benefit structure focused on managed medical care.

In recent years, as Healthcare costs have spiraled out of control, organizations have explored the potential of Worksite Wellness Programs as a cost-saving strategy. Businesses such as Johnson and Johnson, General Motors, Motorola and Union Pacifi c Railroad have all seen a signifi cant return on investments in employee health (See Case Studies, p.20). Worksite Wellness Programs can help lower the costs associated with:

Medical Care premiums – The expense a corporation pays for health insurance: According to a 2005 study by Hewitt, the Medical Care expense per employee in the United States in 2006 will average $8,046, with employers absorbing nearly two-thirds of that expense.

Prescription Drug costs – The price of a prescription plan: According to a 2005 study by Mercer, the average annual prescription costs for big employers grew 11.5%, making it nearly a decade straight of double-digit growths in cost.

Short-term disability (STD) – The cost of offering STD insurance to employees: According to a 2004 study by insurance provider Cigna, the average STD claim results in $13,094 in direct disability payments and health care costs. The report also found that 26% of claims related to healthcare events were a result of chronic conditions that could likely be mediated through Workplace Wellness Programs, and that these cases amount for 56% of the STD-related health care costs.

Absenteeism – The cost of missed work: Absenteeism cost employers $660 per employee in 2004, with nearly one-third of employers characterizing the trend as a weighty concern.

Presenteeism – The cost associated with workers who work at decreased productivity levels: Sixty% of the total cost of employee diseases come from presenteeism, according to a 2004 study by the Institute for Health and Productivity Studies at Cornell University.

The evidence is clear that strategically designed Worksite Health Promotion Programs can reduce both direct and indirect Medical Care costs. A 2004 review of Worksite Health Promotion Programs revealed that, in total, an investment of $1 by a corporation in Wellness Programming returned a median cost savings of $2.05 to $4.64.

Employee Program Engagement is the level at which employees are aligned with and working toward company goals/objectives. Employee Program Engagement is effected by a wide range of factors that cover internal talks, company structure, benefits and recognition.

Companies that have high levels of employee program engagement benefit from improved productivity, retention and performance than peers with disengaged staff members.  Levels of engagement among staff members in the United States have been declining over the past several years as individuals have become disillusioned with the treatment of staff members by employers. The inability to engage staff members is one of the reasons why, despite steady increases in hours worked, America lags behind several other nations in terms of employee productivity per hours worked.

Workplace Wellness Programs may increase employee program engagement in several ways. First, when communicated properly, they confirm to workers that the corporation cares about their wellbeing. This can improve retention and turnover as well as support increased discretionary effort from workers. During a period of significant downsizing, Motorola found increased interest in its Workplace Wellness Programs as managers recognized the value of providing for the health and wellbeing of workers.

In addition, the health improvements will lower presenteeism and absenteeism (when staff members continue to work despite decreased productiveness), allowing for more time invested at full productiveness. Lastly, healthier staff members are more likely to have increased morale, which translates into a more enjoyable and more effective work environment.

The President’s Council on Physical Fitness and Sports defines wellness as “a multidimensional state of being describing the existence of positive health in an individual as exemplified by quality of life and a sense of well-being.” Wellness looks beyond the current model of treating disease and focuses on preventive actions and healthier lifestyles. Corporate Health Promotion Programs, also generally referred to as Corporate Health Promotion Programs, serve as a complement to existing insurance-based health benefit programs and can take many forms and address a myriad different potential health conditions. They are a powerful strategy to promote positive lifestyle changes that can result in significant cost savings for organizations.

Examples of potential components of a Corporate Wellness Program comprise of:

Health Risk Assessments / Employee Wellness Screenings – Health Risk Assessments (aka Health Risk Appraisals), evaluate the most prevalent lifestyle-related risks of an individual. HRAs often comprise of screenings for Blood Pressure (BP), cholesterol, glucose levels and other health indicators. These analyses provide important benchmarking measures that ideally will allow employees to prevent or lower their risk of diseases. Finding Wealth Through Wellness, As noted by Kathryn Krivy, director of Northwestern Memorial Hospital’s Wellness Institute in Chicago, “Medically based Health Risk Assessments are a necessity because in order to affect modifications in your corporation, you need to know what the issues are, and you just do not know until you get the data.”

Physical Activity and Weight Management – One of the most popular Workplace Health Promotion Programs is for companies to provide access to a health and wellness center, frequently onsite. Other potential measures include offering healthier vending machines and cafeteria options, weight management support groups and fitness challenge programs. Some companies, like hospital group Baptist Health South Florida, will even pay for staff members to go to weight-loss courses such as Weight Watchers.

Awareness and Education Programs – Many  companies hold events discussing the benefits of nutrition, safety or physical fitness, among other issues. Other options are to host a health & wellness fair or administer a disease-awareness campaign.

Behavior Modification – This covers issues like smoking, wearing seat belts, and alcohol use. While many employers will provide assistance for workers looking to modify behavior, some employers, like healthcare benefits administrator Weyco, Inc., mandate modifications, such as quitting smoking, as a condition of employment.

Alternative Treatments – Other Corporate Wellness Programs can cover absorbing some or all of the costs for massages, stress-reduction activities like yoga or even herbal medicines.

A more modern and systemic solution may incorporate businesses beginning Workplace Health Promotion Programs, which allow businesses to be proactive in preventing illness and promoting healthier lifestyles for workers. When implemented effectively, this approach can drive to decreased direct costs from claims, a reduction in Medical Care premiums and increased employee productivity.

Yet while Company Wellness Programs potentially offer organizations large cost savings, the success of the programming is dependent upon the ability to engage staff members in them. In Addition, organizations must navigate the legal and cultural challenges posed by Company Wellness Programs: Companies must be careful that initiatives respect protected classes and the privacy of staff members. Moreover, organizations must battle resistance from staff members wary of their organization regulating off-the-clock behaviors.

Over the next 6-12 posts we’ll layout the case for Company Wellness Programs in today’s employment environment, arguing that the cost savings and grown employee engagement outweigh potential restrictions. We will analyze the considerations a business must make before starting a Company Wellness Program and the communication necessary to create successful engagement from staff members. Finally, we will discuss several successful Company Wellness Programs and support a list of resources that organizations can use for guidance.

During the past several years healthcare insurance costs have risen steadily. This is taking a toll on the bottom-line of organizations, cutting into earnings, limiting growth and forcing a reevaluation of a once sacred employee benefit system. According to a projection by McKinsey & Co., at the present rate, by 2008 health benefits will eclipse earnings at the average Fortune 500 corporation.

Organizations, through private healthcare insurance businesses, are the leading provider of healthcare services in America. In 2004, 59.8% of American citizens were covered by a organization-based healthcare insurance program, accounting for 88% of all private healthcare insurance. Yet the escalating costs of Health Care, ever-increasing drug prices and a steady rise in chronic diseases have brought the corporate society to a breaking point.

For many businesses the increasing burden has become too difficult to bear. Over the past five years healthcare insurance premiums have increased an average of 11.6% each year, more than four times the average rate of inflation and employee earnings over that time.3 Not surprisingly, this exponential growth in premiums has caused the number of businesses offering Medical Care services during that time to drop from 69% to 60%.4 In addition, in 2005,  healthcare insurance premiums jumped 9.2%, more than three times the rate of inflation – and that was the lowest increase in the past five years.

In this environment companies need to discover innovative ways to mitigate the rising costs of Healthcare coverage. Seemingly, the easiest strategies to accomplish this goal would be to reduce benefits coverage or pass on arising burden to workers and retirees. Greater than 80% of companies have chosen one or both of these cost saving measures in the past several years and almost half of all sizable companies are likely to increase the amount workers pay in 2007.5

Nevertheless, these options do nothing to address the primary causes of rising premiums, one of which is a population that requires increased health care. To make a long-term and meaningful influence on premiums and overriding health, corporations need to look beyond a antiquated reactive-based approach.