Corporate Wellness Plans – The Good and The Bad

Corporate Wellness Plans at the business level are beneficial, right? Wellness statistics clearly show that such Corporate Wellness Plans are not only cost-effective for the corporation but can assist the staff member in developing a healthier lifestyle. With the rising cost of medical, Corporate Wellness Plans simply make sense. So where does the problem come in? Let’s examine the topic from both perspectives.

Corporate Wellness Programs: The Good
• A sampling of ROI for Corporate Wellness Programs: Bank of America: 600%; General Motors:370%; Pepsico: 300%; Citibank: 465%; and the Washoe County School District leading the pack at a whopping 1,560%. (Campbell,J., Wellness Improvement Experts, www.wellnessimprovementexperts.com, Albuquerque, New Mexico.)
• Companies with Corporate Wellness Plans have realized a 28% reduction in sick leave, a 26% reduction in adjunctive medical costs and a 30% reduction in disability and workers compensation costs. (Health Affairs, Volume 21, No.2, March, 2002.)
• The Washoe county School District in Northern Nevada realized a $15.60 ROI for every dollar spent due to a 20% reduction in rates of absence. (Hardy,A. (2005). At the Top Of The Class. WELCOA’s Absolute Advantage Magazine, 5(1), 14-20.)
• Corporate Wellness Plans provide the structure, encouragement, incentives and ongoing support that many people need in order to make lifestyle changes.
• Employees also realize returns on their efforts. FiServ, a financial services technology corporation, gave workers who filled out a health risk assessment a significant discount on their medical insurance premium. (Holland, Kelley, The New York Times, July 22, 2007.)

Corporate Wellness Programs: The Bad
The flip side of the argument centers on basic human rights. Do we want/need our employer to tell us to eat our veggies or lose 30 pounds? Some employers are doing just that and at least one lawsuit has resulted because of it.
• Three hundred employers have requested assistance from a national employment and labor law firm to institute more aggressive Corporate Wellness Programs.(Cornwell, Lisa, Associated Press, Albuquerque Journal, September 10,2007.)
• Clarian Health, based in Indianapolis, Will start lowering staff member paychecks by $10.00 for every staff member who has a Body Mass Index (BMI) of greater than 29.9 because not enough workers were utilizing their wellness services.(Cornwell, Lisa, Associated Press, Albuquerque Journal, September 10,2007.)
• Scott Rodrigues filed a suit against his prospective employer, Scotts Miracle-Gro, because he believed the corporation’s antitobacco use policy violated his civil rights. The corporation has a policy against hiring workers who smoke and Mr. Rodrigues’drug screen was positive for nicotine.(Holland, Kelley, The New York Times,July 22,2007.)
• staff member advocates are concerned that health discrimination may not be covered under the Americans with Disabilities Act.(Cornwell, Lisa, Associated Press, Albuquerque Journal, September 10,2007.)

Penalizing workers by hitting them hardest where it hurts the most,their pocketbook, does not appear to be a a good approach to molding human behavior.
Such tactics may result in increased resentments and retaliation, primarily in the form of rates of absence and presenteeism (decreased productivity on the job.) Voluntary, incentive-based programs, such as the one in the Washoe County School District, can and do produce results. A positive attitude on the part of management along with an opportunity for workers to have a stake in the decision-making may yield the greatest dividends to both employer and staff member.The motivation and resolve needed to change unhealthy lifestyle habits can best be derived from the basic tenets of encouragement, respect and support.

This entry was posted on Saturday, January 24th, 2009 at 1:46 am and is filed under health promotion and wellness. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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