HCW Benefits Blog

Contributor:
Twyla Hutchins, RN, BSN, COHN-S, Medical Management Officer
Hill, Chesson & Woody

Attaining buy-in on wellness initiatives can be a difficult task for HR professionals. With so much emphasis placed on programs that can provide a measurable return on investment, wellness can be overlooked as a way to improve the bottom line. But, a recent study conducted by the Harvard Business Review detailed how one company saved an estimated quarter-billion dollars over 10 years through its wellness programs.

Why This is Important for Employers

Every employer knows that health care expenditures are difficult to control. Aside from asking employees to be more proactive in what they spend and offering suggestions as to how they can save, business owners and HR professionals can devise wellness programs that pay off. Just ask Johnson & Johnson, the company that saved that $250 million. According to their measurements, $2.71 was returned from every $1 they spent, using the following multi-step process:

1. Engagement of all levels of leadership
2. Alignment of the program to the company’s current culture
3. A broad vision for health promotion
4. Accessibility of the program
5. Creation of partnerships within and outside the organization
6. Strong and consistent communication

Recognizing that the purpose of health promotion and wellness programs is to shift your business culture from one of safety — to one of safety and overall worker health — could result in the lowering of health-care associated costs and an increase in the bottom line.

HCW Viewpoint

Paying for the health care cost of employees has been voluntary for years, but in 2014 it is slated to become mandatory. Employers who are effective at managing expenses revolving around health care costs and risks will remain competitive in the market.

Historically, employers have long focused their wellness efforts on the cost of work-related injuries and the fitness of employees to engage in their occupation. Health promotion is a natural extension of those types of programs due to the rising cost of employee health care. Effective engagement in a company-sponsored health promotion program yields itself to net positive returns over the base investment.

For more information on this topic, contact an HCW consultant or visit the following links:

• What’s the Hard Return on Employee Wellness Programs? 
• Using Return on Investment Analysis to Evaluate Health Promotion Programs: Challenges and Opportunities 
• Workers' Compensation History in the United States