Health in the Workplace

The cost of unhealthy workers is taking its toll on the American workplace. Preventable illness accounts for 90% of all health care costs and is the cause of eight of the nine most common causes of death ("Worksite Wellness", 2000). Obese workers represent 29% of the American workforce and their health complications cost approximately $123 billion to their employers each year (Ketter, 2006). The costs of lost productivity are greater in this group than even those who use tobacco products. Between 1980 and 1993, the total amount employers paid for the health care of their employees increased from 3.7 to 6.6 percent of the total compensation ("Worksite Wellness", 2000). This trend does not appear to be abating. According to the CDC, in 2005 health expenditures were equal to 15.3% of the gross domestic product of the United States ("Fast stats A to Z", 2006). The concern for wellness among Americans has led the U.S. Department of Health and Human Services to issue the Healthy People 2010 goals. These goals include 467 initiatives to improve the health of the people of the United States.

With the cost of health insurance premiums escalating at dramatic rates, in direct correspondence to the decrease in health status of employees, many companies are looking to alternatives to reduce this overwhelming cost. At first, many companies focused on premium sharing or reducing benefits to offset the cost of the company. However, as employee health continued to deteriorate, the premiums continued to rise and further cuts were considered detrimental to the morale of the employees.

Many companies sought an effective solution that would both raise morale and reduce premiums. They further sought to reduce absenteeism and improve the health and well-being of their workers. In response to these needs, many have created wellness programs. According to the Wellness Councils of America, more than 81% of American businesses with 50 or more employees have some form of wellness program ("Worksite Wellness", 2000). These programs can include smoking cessation programs, back care, stress reduction and even weight control programs.

The concentration on the workplace as the location for the health education of employees is very practical. Of those 203 million Americans over the age of 16, nearly 67% are active in the workforce. Take into consideration that these people spend nearly 50 hours per week at their place of business and it becomes apparent that it is the most feasible way of distributing health information and administering disease prevention programs ("Why build a health workplace?", 2006).

All programs should include an initial assessment of employee needs that is comprehensive. An evaluation to determine the best programs to address those needs should be conducted within the company or by hiring a wellness company. Implementation of the program will be largely dependent upon this evaluation. Some programs will include group meetings and large program plans while others will be more self-directed. This is in direct relation to the desire for change exhibited by employees and the seriousness of the issue. Finally, once the program has been completed, an evaluation of effectiveness including costs should be conducted to determine the overall success of the program.

Health promotion programs need not be expensive and expansive undertakings. The Assessment should cost between $5 and $10 per employee. The program can cost between $0.20 and $3.00 per employee for awareness materials and between $2.00 and $50.00 per employee for self-administered programs. The cost of lifestyle change programs can be between $30.00 and $120.00 per participant. The variation in price can be related to the instructor of the programs as many programs, such as smoking cessation, are offered through local non-profit organizations (Powell, 1998).

Though benefits vary by company and employee action, studies have shown a conclusively positive effect on the economics of the workplace. In 1990, Johnson & Johnson, one of the first to offer workplace wellness programs, showed a reduction of over $1 million dollars over five years in inpatient healthcare alone. Blue Cross-Blue Shield, who implemented a comprehensive wellness education and health promotion program in 1985, found a 24% reduction in health insurance expenditures for those employees that participated. Their independent cost analysis determined a savings of $1.45 for each dollar invested into the program (Bertera, 1990). In a 1990 study by Robert L. Bertera, DrPH, he discovered that a well-run workplace health promotion program can save $1.45 in lower hospital costs in addition to $1.42 in lower disability wage costs for each dollar invested (1990). Northern Gas Company implemented an exercise program that reduced sick days by 80% compared to those employees that did not participate. Travelers Insurance reduced their sick days by 19% by using a comprehensive wellness program ("Worksite Wellness", 2000).

It is clear that current workplace wellness programs can consist of everything from self-care pamphlets and awareness posters to fully integrated health activities within a company. All programs show a significant positive outcome on the morale and health status of the employees, as well as the costs of the company. Very few company endeavors can return at nearly 150% of investment, yet wellness programs seem to do exactly this. These figures do not take into consideration the actual effect on the employees as well. When employees believe that their employers care about them and their health, they exhibit more loyalty and trust to the company. Finally, the employees' health status is directly related to their productivity. Sick workers simply can't do as much in a company. Therefore, increasing the health status of employees is good business production sense as well as the economic impact on the insurance premiums, disability and hospital payments. Good wellness programs simply make good business sense.

References

(2000). Worksite Wellness. Retrieved June 24, 2006, from Prevent Disease.com Web site: http://preventdisease.com/worksite_wellness/worksite_wellness.html

(2006). Why build a healthy workplace?. Retrieved June 25, 2006, from WELCOA: Wellness Councils of America Web site: http://www.welcoa.org/wellworkplace/index.php?cat=1&page=5

(2006, Feb 7). Fast stats A to Z. Retrieved June 21, 2006, from National Center for Health Statistics Web site: http://www.cdc.gov/nchs/fastats/hexpense.htm

Bertera, Robert L. (1990).The effects of workplace health promotion on absenteeism and employee costs in a large industrial population. American Journal of Public Health. [80(9)], 1101-1105.

Ketter, Paula (2006).Obesity affects workplace productivity. American Society of Training and Development. 60, 13-14.

Powell, Don R. (1998). A Recipe for Success in Worksite Wellness. American Institute for Preventive Medicine, Retrieved June 25, 2006, from http://www.healthylife.com/researchart/Success.htm

Costs of Unhealthy Employees vs. Costs of Wellness Programs

Average cost of $110.10 per employee

Assessment: $5.00 - $10.00 per employee

Awareness Materials: $0.20 - $3.00 per employee

Program (self-directed): $2.00 - $50.00 per employee

Program (lifestyle change): $30.00 - $120.00 per participant

Source: (2000). Worksite Wellness. Retrieved June 24, 2006, from Prevent Disease.com Web site: http://preventdisease.com/worksite_wellness/worksite_wellness.html

Cost Benefit of Wellness Program Investment

Since 1980 there have been over 50 studies of comprehensive worksite health promotion and disease prevention programs. Every study has indicated positive health outcomes. And of the more than 30 which were analyzed for cost outcomes, 29 proved to be cost effective.

Source: (2000). Worksite Wellness. Retrieved June 24, 2006, from Prevent Disease.com Web site: http://preventdisease.com/worksite_wellness/worksite_wellness.html