Benefits of Corporate Health Promotion Programs

Introduction to Corporate Health Promotion Programs

Risky health behaviors by employees cost a company. Changing those behaviors can save the employer money and increase the employee’s productivity.

Because work gives an employee a stable environment and support system, Corporate Health Promotion Programs can have a great impact on reducing high-risk behaviors. This impact results in decrease health claims cost, less rates of absenteeism, and less short-term disability.

Corporate Health Promotion Programs can include:

Awareness Rasing Programs: Health and wellness newsletters, health topics covered in payroll stuffers, healthy emails.

Health Risk Assessment: Employee health screenings, health and wellness fairs, health rist assessments.

Educational Programs: Lunch and Learn wellness presentations, guest speakers at staff meetings.

Skill Building: Healthy cooking demostrations, activity challenges, CPR instruction opportunites, stress management classes, weight management classes.

Interventions: Massage, smoking cessation, and skills to help you get the most out of your doctor visit.

Physical environment: Healthy items in the vending machines and cafeterias, clean air practices, ergonomics, bike racks, flex time, welllit stairways.

Assessment: Worker needs assessment, baseline Wellness Program evaluation measures, ongoing Wellness Program evaluation of overall effectiveness.

Why Offer Corporate Health Promotion Programs

The typical employer spends about $8,000 a year on an employee’s health care. This includes medical insurance, disability and worker’s compensation. As these costs climb, medical insurance is expected to rise at least 10 percent per year.

A 1999 research study showed that corporations using Corporate Health Promotion Programs had a return on investment from $1.49 – $13 in benefits per dollar spent. The amount depended on the nature of the Corporate Health Promotion Programs used. (S. Aldana, American Journal of Wellness, 2001; 15:296-320)

One research study showed that a “stop smoking” element to Corporate Health Promotion Programs can save between $404 -$40,829 per employee, depending on the age and sex of the employee.

The Corporate Health Promotion Programs at Traveler’s Company included a self-care book, a newsletter, single-topic brochures, and videotapes. The Corporate Health Promotion Programs saved the company $7.8 million in employee benefi t costs, decreased doctor visits, and it lowered rates of absenteeism by 1.2 days per employee per year. The estimated Corporate Health Promotion Programs ROI was $3.40 per dollar spent.

In 1998, the Health Enhancement Research Organization (HERO) reported a study of 46,026 employees from six large corporations for three years. Workers with an inactive lifestyle had 10 percent higher costs; employees with depression had 70 percent higher costs.

Benefits of Corporate Health Promotion Programs

Increased Productivity - The Canada Life Assurance Company realized a 4 percent increase in productivity after establishing an employee fitness program.

Increased Job Satisfaction - According to employee opinion surveys conducted by the Silverstone Group about thier Corporate Health Promotion Programs, employees’ morale increased, which helped support a more creative work environment.

Enhanced Recruitment & Retention - In the midst of a tight labor market, Corporate Health Promotion Programs could be a vital tool to draw new recruits.

Decreased Absenteeism - Canada Life Assurance Company’s rates of absenteeism dropped 42 percent among employees in the Corporate Health Promotion Programs.

Decreased Workers Comp & Disability - In one year, Boeing Company’s number of back injuries decreased by 34 percent. Six million dollars was saved by tracking injuries as they occurred.

Managed Health Care Costs - Golden, Colorado Adolf Coors Company’s Corporate Health Promotion Programs returned $6.19 for every dollar spent.