Wellness Programs for Employees

Getting your team healthy is good for the bottom line.

For owners of small businesses, the term “wellness program” may conjure up a lot of unhealthy associations—including big-company human resources departments wasting money on the latest touchy-feely fad.

If you can get past the jargon, however, you may find that your company can benefit from even modest efforts to promote healthier lifestyles among workers. The payoff can be counted in greater productivity from workers who take fewer sick days and make fewer visits to doctors--and in improved morale, too.

Corporate wellness has been all over the media lately, because of the state of the U.S. health insurance system: With premiums soaring in the last five years, companies are looking at anything to curb health costs, says Kathie Lingle, director of Alliance of Work-Life Progress, an organization for human-resources professionals. Wellness programs are often offered by insurers and—in some cases—can bring down premiums (or at least reduce the rate of increase).

It may take years of reduced claims to affect your premiums, but wellness efforts can produce immediate productivity returns. “When people are physically and mentally fit, they’re going to work and concentrate better and have less absenteeism,” Lingle notes.

Use what you’ve got
Howalt-McDonnell, an independent insurance agency with 80 employees in Sioux Falls, S.D., has good medical coverage that includes wellness components for its employees. “We had preventives built in, but a lot of people weren’t taking advantage of them, such as going for an annual physical,” says Lorna Williamson, Howalt’s human resources manager.

Howalt partnered with its health insurance provider to educate employees on how to use their health plan’s wellness offerings – such as smoking cessation and weight-loss programs, and blood pressure and cholesterol testing. The insurer also offered free flu shots on-site. A big benefit for Williamson was convincing employees to understand the importance of baseline screenings, “so they’d know what to concentrate on.”

TWO RULES FOR EMPLOYERS ON THE ROAD TO WELLNNESS

1. The program rewards participation, not results.  Employers cannot make a gym membership reimbursement contingent upon achieving a certain body fat percentage, for example.

2. The program must have alternatives available for individuals for whom it may be unreasonably difficult or medically inadvisable to attempt to meet the standard. For example, the employee may not be able to lower cholesterol or drop blood pressure because of dietary requirements or medication they must take to treat other conditions.

Howalt also created its own wellness initiative, including a subsidy for memberships in gyms and health clubs. Willliamson says that the health insurance provider also makes a wide variety of recommendations, many of which can be implemented for free. At the insurer’s suggestion, the company has paid to bring in ergonomic experts to assess and adjust work areas, and has sponsored talks by nutritionists and pharmacists.

Williamson says that since the beginning of 2004, employees have collectively lost 400 lbs. Even more impressive, the increase in the company’s health insurance premium fell by half. In two years, Howalt reduced its “loss ratio” (the ratio between the cost of the premiums paid and the cost of the claims) by 40%. “We wanted to get our claims down so we’re not paying double digit increases every year,” says Williamson.

Think outside the box
Christine Barney, CEO of RBB Public Relations in Miami, Fla., has 28 employees, more than half of them in their twenties and thirties. Many of them like to work out and stay fit and a great deal of camaraderie has formed around fitness efforts. But Barney learned through an informal employee survey that many workers were having trouble finding time for exercise.

Barney decided to sponsor some at-work activities, such as hiring a Pilates instructor and creating a “run-walk club.” Once a week, members walk or run a course around the office neighborhood. RBB also pays entrance fees for employees to participate in local running events.

Barney’s approach to wellness also involves stress reduction and mental health. RBB provides liberal policies regarding telecommuting, flex-time and casual dress. And the office includes a library where employees can grab a book for a few moments of relaxing downtime on their lunch breaks. Workers can borrow books to take home, too.

Lingle of the Alliance of Work-Life Progress says smaller companies may be able to do more with wellness than large corporations. “The line of sight between workers and leadership is very direct,” she explains. In her own company, which employs 135, management brings in a masseur once a month for employees who want to pay $10 for 15 minutes of massage. “It’s a great way to take a break in the middle of the work day,” says Lingle. “It’s what you do about the small things, like breaks and flexibility, and it doesn’t take much money. You need to ask yourself, ‘Are you recharged and managing your energy?’ ”

There are also limits on what you can and should do. “Employers must balance good intentions with the many laws that could apply,” says Brian Lerner, an attorney with Washington, D.C. law firm Hogan & Hartson. For example, be cautious about incentives, which should reward participation in wellness programs, not “results” such as losing a specified amount of weight or quitting smoking for good. “Rewarding results is a common pitfall with maintaining permissible wellness programs,” Lerner says. “In some states, it may be unlawful to offer a cash incentive to stop what some people might consider to be an unhealthy behavior that is nonetheless legal."