Talk to any business professional, especially one who owns a business, and it likely won’t take long for two topics to come up: return on investment (ROI) and healthcare costs. As many company leaders are learning, there is now significant evidence that these two topics can be intricately intertwined. How? It’s all about company wellness programs.
According to a 2010 article published in the Harvard Business Review, employee wellness programs have been commonly seen as a nice workplace perk, but they are not necessarily viewed as a tactical imperative. However, a growing body of data suggests otherwise. The article demonstrated that the ROI on comprehensive well-run employee wellness programs can be as high as 6 to 1.1
For example, leaders at Johnson & Johnson, a large multinational company with employees scattered across the globe, estimate that ‘wellness programs have cumulatively saved the company around $250 million in healthcare costs throughout the past decade; from 2002 to 2008, the return was $2.71 for every dollar spent.’2
‘Employee health and satisfaction is a critical issue that is linked to a number of positive outcomes for employees and organizations including reduced healthcare costs, improved quality of life and higher employee morale,’ said Dr. Michael Hargis, dean of the UCA College of Business.
A recent RAND Corporation study found that 85% of U.S. companies that have at least 1,000 employs offer some variety of workplace wellness program.3 Clearly, large companies understand that having a healthy workforce not only contributes to a healthy outcome, but also to greater overall employee productivity and fewer missed workdays due to illness from employees, according to Gallup, Inc.4
‘Regardless of the size of the firm, companies need to proactively build programs that promote and encourage overall wellness,’ said Hargis. ‘When effectively managed, these programs can provide strong returns, but perhaps more importantly, workplace wellness programs demonstrate a commitment to building and sustaining a culture that recognizes the value of the people behind the business.’
At UCA, a wellness program has been offered to employees for more than a decade. ShapeUp UCA is designed to be simple, easy and fun. Participants engage in physical activity in their own time and attend one or two health-related lectures depending on which plan they choose. Monetary incentives are awarded to those who complete the wellness plan.
More than 40% of qualified, full-time employees participate in ShapeUp UCA, which is nearly double the national average for workplace wellness programs.5 ‘It keeps me accountable for what I need to be doing,’ said Linda Horton, an administrative assistant in the office of candidate services who has been in the program since 2006. ‘I really enjoy the 90 bucks! That’s helpful. But, I also know this is helping me in my physical and mental health. It just keeps me on track.’
‘One of the main reasons we offer this program is to educate our employees about creating and maintaining a healthy lifestyle,’ said Hargis. ‘Not only does this lead to a reduction in absenteeism, but more importantly, it helps create an environment of good health, which ultimately leads to lower healthcare costs.’
Horton said she even enjoys the mandatory classes, which can range in topic from ‘Fad Diets’ to ‘Neck, Back & Shoulder Problems From Sitting At Your Desk’ to ‘Migraines’. ‘[They] are very helpful. In fact, last semester I went to three,’ Horton said.
ShapeUp UCA is just one component to UCA’s holistic approach to wellness. Employees have access to a variety of services at free or discounted rates that encompass every aspect of the well-being model. Prevention is a big part of UCA’s promise to keep employees healthy, and by providing employees with access to free counseling, lecture series, HPER memberships and multiple volunteer opportunities to foster a healthy relationship with the Conway community, UCA has kept that promise.
THE FIVE ESSENTIAL ELEMENTS OF
WELLNESS
Gallup and Healthways have developed a comprehensive, definitive source of well-being measurement, the Gallup-Healthways Well-Being 5. This scientific survey instrument and reporting experience measures, tracks, and reports on the well-being of individuals and organizations.
1Baun, W. B., Berry, L. L., & Mirabito, A. M. (2010, December). What’s the hard return on employee wellness programs? Harvard Business Review. Retrieved from http://hbr.org 2Baun, W. B., Berry, L. L., & Mirabito, A. M. (2010, December). What’s the hard return on employee wellness programs? Harvard Business Review. Retrieved from http://hbr.org 3RAND Health. (2012) A review of the u.s. workplace wellness market. Retrieved from www.dol.gov/ebsa/pdf/workplacewellnessmarketreview2012.pdf 4Harter, J., & O’Boyle, E. (2014). Why your workplace wellness program isn’t working. Gallup. Retrieved from www.gallup.com/businessjournal/168995/why-workplace-wellness-program-isn-working.aspx 5RAND Health. (2012) Workplace wellness programs study. Retrieved from www.dol.gov/ebsa/pdf/workplacewelnessstudyfinal.pdf