In 2016 the number of unhealthy workers reached over three billion across the globe, and this number continues to rise. Among these three billion workers is an alarming increase in older workers who are generally less healthy. Also, there is over two million work-related deaths and over 300 million work-related accidents each year. With the combined cost associated with these two factors reaching a staggering 500 billion dollars, many companies are beginning to take notice regarding the health of their employees (Newman, et al., 2015). Companies are making progress in trying to offset some of the health-related cost by adopting a wellness program and foster employee engagement monetary incentives. Gradually, employees continue to embrace the next incentivized tier of the company funded wellness program while companies are benefiting from a different perspective. As things stand, about thirty-nine percent of private sector employees and 63 percent of state and local government workers gain from such wellness programs in 2017 (Beaurea of labor statistics, 2018, p. 1). These benefits offer a plethora of options ranging from reduction in stress coaching, weight loss programs, smoking cessation programs, physical fitness challenges, emotional well-being support, financial advice and many others.
Reasons for Wellness Program
The primary contributing factor to the wellness programs is the rising cost of healthcare due to chronic health conditions. However, many of these wellness programs are designed to counterbalance the growing effects of workplace stress which is forcing employers to take measures geared towards offsetting organizational risk like escalating turnover rates, the higher company paid insurance premiums and increased sick days used. Companies want to instill the belief that the initiation of the programs is meant to encourage healthier behaviors and lifestyles (Aldana, 2018).
Company participation in these programs is on the rise as employers collaborate with vendors such as Virgin Pulse, Well Right, and Cigna’s Motivate me to provide a cafeteria style wellness program for their employees. These three “fitness” vendors, along with many others, offer a variety of platforms ranging from physical health to financial budgeting. Such offerings help reduce employee stress and increase overall employee health with a growing emphasis on workplace design. Besides, there has been growing attention on ergonomics as a strategy of preventing medical issues resulting from poor workplace work designs that cause huge losses on health care costs and reduced employee productivity (Nelson & Quick, 2017, p. 115). By so doing, the companies minimize expenses on health services while increasing productivity.
These programs not only help transport employees to have a healthier lifestyle but also assist in bring communities together through community volunteer programs. The initiatives provide essential wellness and productivity benefits to organizations/employees, charities as well as the societies. Moreover, over 75 percent of employees feel healthier and happier after volunteering for their communities, and over 95 percent believe volunteering improves their sense of purpose (Kelly, 2016).
Wellness Program Benefits
Despite the provision of the wellness programs by employers to workers, the initiatives are not specific but instead meant to benefit both the employees and employers equally. Some wellness program benefits include decreased healthcare care and claim costs, reduction in sick days and absenteeism and improved physical fitness (Wellness Quotes, 2018). Besides, the programs increase workplace morale and enhance one’s responsibility for both the workplace and one’s community. Consequently, less stress and healthier habits lead to an increase in company loyalty promoting employee retention (Health Fitness Revolution, 2016).
Employer Benefits. With a company spending millions of dollars on these programs, they are expecting to reap their types of rewards for this employee benefit. In a bid to improve employee health, many companies take advantage of wellness programs with the belief that some, or all, of the benefits listed above, will follow. Conventionally, all employers want a healthy workforce with lower health costs and high productivity to maximize production. Reduction in sick days significantly save the firms. For example, 2.3 sick days indicate a healthy worker while 5.6 days sick days indicate unhealthy (see Appendix A). Taking an example, a reduction of sick days from six to three gives a difference of 24 hours annually, per employee. Using this result in a firm with 5000 workers results in about 120,000 hours that could potentially be missed due to an unhealthy workforce. With an average hourly pay rate of 22.62 (Trading Economics, 2018), this comes to an astonishing cost of over 2.7 million dollars indicating potential significant save for the company.
However, besides the cost benefits of reduced sick days, a healthy workforce has a significant impact on employee turnover rates. Less stressed employees are happier and less likely to seek alternative employment opportunities. As a result, high employee retention saves the management from the stress and costs of replacing tenured, knowledgeable employees. It is twice costly to train a new employee to replace an outgoing, experienced one (Merhar, 2016). In sum, a stable workforce ensures there is smooth running of operations improving productivity.
Employee Benefits. On the other hand, employee benefits range from better health to monetary incentives. Statistics show that employees prefer more personalized wellness program, because what works for one employee may not work for another. With the cafeteria type plans, employees can engage in the aspects that are important to them and managers can hope to see more participation with more employ-specific programs on employee wellness. (Kohll, 2017). Also, there are numerous non-monetary incentives such as financial help, personal health coaches, social engagement as it pertains to team challenge competitions, and overall better health which is a result of participating in these wellness challenges. Furthermore, healthier and happier individuals are more engaged and are incredibly motivated because their sense of company loyalty is heightened which make to stay with the employers (Watson, 2017). Subsequently, employees gain a feeling of job security which improves their mental health because employees have more engagement and have a stronger sense of self-worth. On the other hand, even with employers and employees engaged, the programs are not as successful as one would like to think due to misconceptions.
Wellness Program Misconceptions
There are numerous misconceptions surrounding wellness programs, and there are some that both the employer and employee have in common. The unfound beliefs include the perception that programs are way too expensive, will not be used, misused, no return on investment and even the mistaken belief that private and personal data will be abused.
Employer Misconceptions. One of the employer misconceptions is the organizations’ belief that workers want to be healthier with, or without a financial gain attached. Most managements believe that employees will take advantage of what is considered a great employee benefit, particularly when there is a monetary value attached. Appendix A shows that 45 percent of employees would be willing to participate in a wellness plan only if there was a financial incentive. (Willis Towers Watson, 2017). That number will undeniably go down in the absence of an incentive, making it obvious that health concerns likely take a backseat to financial incentives. This pessimism comes from employers’ belief money is the motivator for employee engagement in wellness programs (National Business Research Institute, 2018). The other misconception is that wellness programs consume much time, are expensive, are unsustainable, and therefore there are fewer companies can do to offset health cost. (Justice MA, 2015). Corporations want to believe that providing wellness programs to their employees will inspire workers to get fit and to live healthier lives, but the participation numbers do not back up that assumption.
Employee Misconceptions. Many employees believe that wellness programs are an infringement or violation of their constitutional rights concerning private health matters. With the requirement and documentation of biometric screening, this concern could be true going by a newly proposed House of Representative Bill, HR1313, which would permit companies to exchange incentives for genetic data (Sun, 2017). Because of personal fears, not all employees rejoice at the time of the wellness program annual enrollment. Studies reveal forty percent of employ engagement on wellness programs. The primary cause of the low number is because of workers’ misconceptions regarding companies having access to personal health diagnostic screening results.
The companies do not have any access to this data and further stated that it is held in strict confidence by the wellness program administrators and is never released to the company. Many employees are under the impression that companies receive discounted insurance premiums when a wellness program is in place, and some even believe that fitness devices could be used at tracking device infringing on their personal space (L. Dombroski, personal communication, July 12, 2018). However, Dombroski (2012) dismisses the misconceptions of employee tracking and monetary benefits when corporates use DexYP programs. Instead, the plans follow strict rules and only aim to reduce cost and insurance claims (L. Dombroski, personal communication, July 12, 2018).
Conclusion and Results
In summary, more companies are implementing wellness programs every year in a bid to reduce employee stress, improve employee health, reduce insurance claim cost, and increase employee retention rates. Realistically, few employees are taking advantage of these program benefits. Fears and concerns such as privacy invasion and job security counteract the advantages these programs offer. Regardless of whether it is mental health, physical health, or career development concerns, both employer and employee must put misconceptions aside and join forces to make these programs one-hundred percent successful and create a healthier workforce. Employees may see this benefit being offered by their next employers and by eliminating misconceptions, the employee may feel more security in knowing these records are kept confidential by program administrators. Last, but not least, by using these programs, employees will begin to feel healthier and happier which will ultimately benefit both the employee and the employer.
References
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Beaurea of labor statistics. (2018, January 03). Employee access to wellness programs in 2017. Retrieved from Beaurea of labor statistics: https://www.bls.gov/opub/ted/2018/employee-access-to-wellness-programs-in-2017.htm
Health Fitness Revolution. (2016, July 21). Top 10 benefits of A workplace wellness program. Retrieved from http://www.healthfitnessrevolution.com/top-10-benefits-of-a-workplace-wellness-program/
Justice MA, G. (2015). 9 Common corporate wellness myths. Retrieved July 30, 2018, from https://www.corporatewellnessmagazine.com/worksite-wellness/common-lies-myths/
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Nelson, D. L., & Quick, J. C. (2017). OrgB. Boston: 4LTR Press.
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Sun, L. H. (2017, March 11). Employees who decline genetic testing could face penalties under proposed bill. Retrieved from The Washington Post: https://www.washingtonpost.com/news/to-your-health/wp/2017/03/11/employees-who-decline-genetic-testing-could-face-penalities-under-proposed-bill/?noredirect=on&utm_term=.f3de359a037f
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Wellness Quotes. (2018). Top 10 reasons why your company needs an employee wellness program. Retrieved from http://www.wellnessquotes.com/top10-reasons-why-your-company-needs-an-employee-wellness-program.html
Willis Towers Watson. (2017, November 17). Health and well-being: 2017/2018 Global benefits attitudes survey. Retrieved from Willis Towers Watson: https://www.willistowerswatson.com/en/insights/2017/11/2017-global-benefits-attitudes-survey
Appendix A
Poor health is linked to more absences, lower engagement and higher stress levels.
Appendix B
Most employees would be willing to participate in health initiatives without a financial incentive
