Wellness investment yields better than 1:1 return

For companies to commit financially to anything these days, executives first need to know that the return on investment (ROI) is worth getting involved. Even internal investments such as employee wellness programs, which have lacked hard ROI data in the past, must prove that they’re a sound investment.

If you’re one of those searching for wellness program ROI data, you’ll be happy to hear that recent research suggests companies that invest in employee wellness get their investment back, and then some.

A survey of 225 employers by Health2 Resources revealed that 73% of companies successfully measured the ROI of wellness programs. Of those that measured ROI, 83% said their programs had a return of better than 1:1 on their investment.

"Employers are becoming more sophisticated about measuring the return on investment from wellness and disease management programs, and today's economic outlook dictates that these programs bring a positive ROI," said Sean Sullivan, president and CEO of the Institute for Health and Productivity Management.

"No other kind of health management program has been given the same scrutiny as health and productivity management in measuring its effectiveness in reducing total health-related costs, including sick days, disability claims and impaired performance at work. Employees are too valuable a human capital investment for companies to take their health and productivity for granted."

The survey also found that most employers with and without wellness programs in place believe that paying employees to participate boosts program success and return value. An estimated two out of three U.S. companies offer programs dedicated to employee health, and 66% of those with programs also use incentives.

Other key findings:

• The most commonly used incentives are premium reductions followed by merchandise/tokens and gift cards.
• Smoking cessation programs are the most popular health and wellness program to offer, with weight management and physical activity programs a close second.
• Some organizations with as few as 210 employees are offering incentives valued at $1,450 per year to keep employees healthy.
• Diabetes programs are the most popular disease management program offered in 2009.

Does your company offer any health and wellness programs for employees? What kind of incentives, if any, are promoted to get employees involved? Have they seen a positive ROI?

Please leave a comment and let us know about your company’s experience with wellness programs.

Wellness investment yields better than 1:1 return

What if your employees were volunteers?

There are thousands of ideas out there on how to improve employee performance without having to spend a dime, but “sometimes incentive and motivation programs aren’t necessary.”

That’s the message from Paul Hebert at Incentive Intelligence, ironically a blog dedicated to aligning behaviors and goals through motivation, rewards and recognition.

Last week, Hebert proposed an experiment that any manager, supervisor and coworker can try, that simply involves asking yourself one question:

“What would you do different if everyone you relied on for your business success was a volunteer?”

Volunteers are tied to their work with passion, not pay. They’re able to walk out of an organization whenever they please because they’re working because they want to, not because they have to.

Looking at your employees as volunteers forces you to identify their passion and discover why they’re working at your organization. Whatever their passion or reason for working, managers should create a mission and set goals that are aligned with employees’ passion.

“Managing volunteers means valuing contribution and working to match desire to function within the team to achieve the stated mission. Managing volunteers isn't about directing effort as much as it is about allowing effort to find it's best path.”

Hebert suggests that every manager ask themselves - “What would I do different if all my staff could just walk out tomorrow?”

What if your employees were volunteers?

Wellness programs stay strong despite recession

Despite the recession, companies continue to add wellness and health-management programs to reduce costs while encouraging employees to improve their physical health.

The latest Watson Wyatt/National Business Group on Health survey discovered that companies are still adopting employee wellness programs. The survey results also revealed that many companies improved employee participation rates by offering workers financial incentives.

Survey results show how companies increased the availability of various wellness programs:

• 58% of companies offer lifestyle improvement programs, up from 43% in 2007
• 56% offer health coaches, up from 44% in 2007
• 52% offer weight-management programs, up from 42% in 2007
• 80% offer health-risk appraisals, up from 72% in 2007

Companies that encouraged employees to participate in wellness programs by offering financial incentives reported significantly higher participation rates, according to survey results. Only 40% of companies reported that less than 5% of their workforce participated in weight-management programs.

"Employers continue to see gains from promoting wellness and health management initiatives," said Scott Keyes, senior group and health-care consultant at Watson Wyatt. "Effective financial incentives are one of the keys to encouraging worker participation in these programs — an effort that not only improves the health of workers but also helps reduce costs."

The survey also found that motivating employees with financial incentives significantly increased participation rates. Currently, 61% of employers offer incentives for health-risk appraisals and many employers are also offering incentives for smoking cessation and weight management programs.

Using financial incentives between $51 and $100 have been successful in encouraging employees to participate in smoking cessation programs, weight-management programs, and encourage employees to receive biometric screenings, according to the results.

"The relationship between the amount of the incentive and the level of program participation among employees is strong," said Sherri Potter, senior group and health-care consultant at Watson Wyatt. "A properly structured incentive program does much more than protect investments in health management; it creates a healthier and more productive workforce."

For more information on employee wellness programs and employee health, read these past posts:

Obesity linked to more expensive workers’ comp claims

HR survey reveals top green business practices

New research suggests exercise makes you smarter

Economic stress impacts employee health, productivity

How to beat stress in the workplace

Wellness programs stay strong despite recession

HR survey reveals top green business practices

More than half of employers incorporate environmental management into their business operations, according to a new survey conducted by human resource consulting firm Buck Consultants.

“Many employers now recognize that green programs in the workplace can promote social responsibility among workers and help retain top talent,” said Don Sanford, managing director of Buck’s Communication practice who directed the survey. “More than 60% of survey respondents have made environmental responsibility part of their organization’s mission statement.”

The survey found that 54% of the 93% U.S. organizations surveyed actively incorporate “green” practices into their daily business operations.

According to the survey:

• 78% of respondents use Web or teleconferencing to reduce travel.
• 76% promote the reduction of paper use.
• 68% implement wellness programs to foster employee’s proper nutrition, fitness and healthy living.

One of the key findings of the survey revealed that when organizations appoint an individual to lead green efforts, employee involvement “dramatically” increases. Companies with at least three-quarters of their employees actively involved in green programs, 71% have appointed individual leaders. Only 29% did not appoint a green leader.

Some companies provide employees with incentives to encourage more green behavior around the office. The survey found that of companies that provide rewards, 77% provide special employee recognition, 36% give prize incentives and 14% offer monetary rewards.

“There is still much more that organizations can do,” Sanford said. “We expect to see future growth in green training programs, environmentally responsible investment options and recruiting employees with green skills.”

HR survey reveals top green business practices

Cash incentives help employees quit smoking

Smokers are more likely to quit if they are offered a cash incentive, according to a new study offering the strongest evidence tying monetary rewards to behavioral changes.

The study, led by a team from the University of Pennsylvania and published by the New England Journal of Medicine, is one of the largest of its kind.

Researchers tracked 878 General Electric Co. employees from across the U.S. for 18 months in 2005 and 2006. Each employee involved in the study smoked an average of one pack of cigarettes a day. They were divided into two groups and all received information regarding smoking-cessation programs.

Members of one group received cash incentives for completing each step of the program: $100 for finishing a smoking-cessation course, $250 if they quit smoking within six months, and $400 for continuing to not smoke for another six months.

Almost 15% of the group who were offered money to stop smoking had quit within the first year of the study, only 5% of the other group had done the same. At the end of the 18-month study, 9% of the paid group was still not smoking compared to only about 4% of the non-paid group.

From the Wall Street Journal article:

Loretta Massie-Eaton, a 53-year-old administrative assistant who works for GE in Atlanta, said encouragement from her 14-year-old son, Harrison, was the main reason she decided to participate. But money was also a motivation, she said. "It was the satisfaction of sticking to the commitment and getting reimbursed for doing it," said Ms. Massie-Eaton, who says she hasn't had a cigarette since taking part in the study more than two years ago.

Ric Barton, a GE lighting specialist from Cleveland, said he had been thinking about quitting before the study. A smoker for four decades, the 62-year-old said finding places to light up had become increasingly difficult and he was tired of rising cigarette prices. "It was icing for me to get a monetary reward for something I was already planning to do," Mr. Barton said.

Statistics show that helping employees quit smoking is worth the investment for companies. Smoking costs employers $3,400 per smoking employee per year in health-care bills, reduced productivity and absenteeism, according to the Centers for Disease Control and Prevention (CDC).

Researchers not involved in the study commented that the latest findings show that incentives work and give employers hard evidence that incentive programs can help companies save money on employee health-care costs.

“You’d prefer not to pay them, but it’s worth it,” said Helen Darling, president of the National Business Group on Health professional organization.


Related posts:

Help employees quit smoking, participate in the Great American Smokeout

Workplace smoking policies: When employees lie

Cash incentives help employees quit smoking