A healthy workforce is critical to an organization’s bottom line. But the escalating cost of providing coverage to workers has generated a bottom-line crisis for many employers.

In the absence of a widespread solution to rising costs, companies are attempting to ease the pain by instituting employee wellness programs – and, in many cases, they are finding success.

A survey published this year in the Journal of Occupational and Environmental Medicine found that, for every dollar invested in a workplace wellness program, even small employers saved up to $1.65 in health care costs. Larger companies are citing larger ROIs, and companies of all sizes report tangible health insurance savings.

While a well-designed wellness program provides employers with health care savings, it also offers several other beneficial side effects. In addition to curbing costs, it reduces absenteeism, decreases workplace injuries, increases productivity, and boosts retention, since healthier workers with a healthy benefits program are likely to stay with their companies longer. All are factors that directly contribute to a company’s bottom line.

Employees also benefit. Program participants generally want to improve their health and feel better about themselves when they do so, driving up morale. In turn, workers realize savings in their personal health care costs, too.

Healthy, wealthy, wise

Implementing a wellness program doesn’t have to be an elaborate production or a large investment. It can be a simple yet supportive plan that essentially helps employees make better health choices.

Creative program ideas abound and include educational seminars, online resources, fitness activities, team weight-loss contests, and more nutritious food choices in vending machines and cafeterias. A wellness committee comprised of employees from throughout an organization can help survey the workforce to determine its most relevant wellness issues and organize opportunities accordingly. 

While programs can cover a broad range of health-related issues, companies can get a faster return on their investments by targeting those health habits, diseases, and conditions that have the greatest impact on medical spending. These include smoking cessation, weight reduction and exercise, good prenatal programs, and addressing chronic disease management for individuals with diabetes and cardiovascular conditions.

To avoid legal difficulties, most companies make participation in their wellness programs voluntary. Likewise, if health-club memberships or onsite fitness programs are offered, organizations should ensure that everyone has an equal opportunity to participate in compliance with the Americans With Disabilities Act.

Additionally, companies often employ outside wellness program advisors as a way of heading off potential privacy and discrimination issues. The move further protects employee confidentiality and prevents health information from finding its way into personnel files.

Leadership by example

Persuading employees to take better care of themselves requires more than free health-club memberships, cash prizes, or discounted health insurance premiums (similar to a “good driver’s discount”). While many of these types of incentives are frequently used and do indeed work, effective wellness programs ultimately depend on leadership by example.

When employees exercise alongside management at the gym, or stand in line with one another at the annual health fair assessment, the expectations for better lifestyle choices are apparent and accepted as the organization’s norm.