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Source: Harvard Business Review
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Critics:
Workplace wellness, also known as corporate wellbeing outside the United States, is a broad term used to describe activities, programs, and/or organizational policies designed to support healthy behavior in the workplace. This often involves health education, medical screenings, weight management programs, and onsite fitness programs or facilities.
It can also include flex-time for exercise, providing onsite kitchen and eating areas, offering healthy food options in vending machines, holding “walk and talk” meetings, and offering financial and other incentives for participation. Companies most commonly subsidize workplace wellness programs in the hope they will reduce costs on employee health benefits like health insurance in the long run.
Existing research has failed to establish a clinically significant difference in health outcomes, proof of a return on investment, or demonstration of causal effects of treatments. The largest benefits have been observed in groups that were already attempting to manage health concerns, which indicates a strong possibility of selection bias. Workplace wellness programs have been shown not to prevent the major shared health risk factors specifically for CVD and stroke.
While the stated goal of workplace wellness programs is to improve employee health, many US employers have turned to them to help alleviate the impact of enormous increases in health insurance premiums experienced over the last decade. Some employers have also begun varying the amount paid by their employees for health insurance based on participation in these programs.
Cost-shifting strategies alone, through high copayments or coinsurance may create barriers to participation in preventive health screenings or lower medication adherence and hypertension. While it was once believed that for every dollar spent on worksite wellness programs, medical costs fell by $3.27,that hypothesis was disproven by a subordinate of the author of the original study.
One of the reasons for the growth of healthcare costs to employers is the rise in obesity-related illnesses brought about by lack of physical activity, another is the effect of an ageing workforce and the associated increase in chronic health conditions driving higher health care utilization. In 2000 the health costs of overweight and obesity in the US were estimated at $117 billion.
Each year obesity contributes to an estimated 112,000 preventable deaths. An East Carolina University study of individuals aged 15 and older without physical limitations found that the average annual direct medical costs were $1,019 for those who are regularly physically active and $1,349 for those who reported being inactive. Being overweight increases yearly per person health care costs by $125, while obesity increases costs by $395.
A survey of North Carolina Department of Health and Human Services employees found that approximately 70 cents of every healthcare dollar was spent to treat employees who had one or more chronic conditions, two thirds of which can be attributed to three major lifestyle risk factors: physical inactivity, poor diet, and tobacco use. Obese employees spend 77 percent more on medications than non-obese employees and 72 percent of those medical claims are for conditions that are preventable.
According to Healthy Workforce 2010 and beyond, a joint effort of the US Partnership for Prevention and the US Chamber of Commerce, organizations need to view employee health in terms of productivity rather than as an exercise in health care cost management. The emerging discipline of Health and Productivity Management (HPM) has shown that health and productivity are “inextricably linked” and that a healthy workforce leads to a healthy bottom line.
There is now strong evidence that health status can impair day-to-day work performance (e.g., presenteeism) and have a negative effect on job output and quality. Current recommendations for employers are not only to help its unhealthy population become healthy but also to keep its healthy population from becoming sick. Employers are encouraged to implement population-based programs including health risk appraisals and health screenings in conjunction with targeted interventions.
However, a large and growing body of research shows that workplace wellness has far more deleterious effects on employee health than benefits, and that there are no savings whatsoever. Indeed, the most recent winner of the industry’s award for the best program admitted to violating clinical guidelines and fabricating outcomes improvement.
Investing in worksite wellness programs not only aims to improve organizational productivity and presenteeism, but also offers a variety of benefits associated with cost savings and resource availability. A study performed by Johnson & Johnson (J&J) indicated that wellness programs saved organizations an estimated $250 million on health care costs between 2002 and 2008.
Workplace wellness interventions performed on high-risk cardiovascular disease employees indicated that at the end of a six-month trial, 57% were reduced to a low-risk status. These individuals received not only cardiac rehabilitation health education but exercise training as well. Further, studies performed by the U.S. Department of Health and Human Services and J&J have revealed that organizations that incorporated exercise components into their wellness programs not only decreased healthcare costs by 30% but improved lost work days by 80%.
Thus, investing in preventative health practices has proven to not only be more cost effective in resource spending but in improving employee contributions towards high-cost health claims. Researchers from the Centers for Disease Control and Prevention studied strategies to prevent cardiovascular disease and found that over a two- to five-year period, companies with comprehensive workplace wellness programs and appropriate health plans in place can yield $3 to $6 for each dollar invested and reduced the likelihood of employee heart attacks and strokes.
Also, a 2011 report by Health Fairs Direct which analyzed over 50 studies related to corporate and employee wellness, showed that the return on investment (ROI) on specific wellness related programs ranged between $1.17 to $6.04. In general, it is estimated that worksite health promotion programs result in a benefit-to-cost ratio of $3.48 in reduced health care costs and $5.82 in lower absenteeism costs per dollar invested, according to the Missouri Department of Health & Senior Services.
Additionally, worksite health programs can improve productivity, increase employee satisfaction, demonstrate concern for employees, and improve morale in the workplace. Leadership involvement in wellness programs can additionally impact employee health outcomes just as well as the programs themselves.
A study performed by David Chenoweth indicated the managers who were passionate and committed about their wellness programs increased employee engagement by 60%, even if their wellness goals were not achieved. Leaders are not only tasked with creating the organizational culture but also in coaching and motivating employees to be engaged in that culture.
However, it turns out that employees generally detest these intrusive programs, and wellness’s “Net Promoter Score” of -52 places it last on the list of all industries in user satisfaction. The major barrier to further implementation of these programs is the increasing realization that they fail to produce benefits and may harm employees.
Savings are so elusive that a $3 million reward is offered for anyone who can find any. In 2018, the National Bureau of Economic Research (NBER) found no positive impact. Also in 2018, Medicare found no savings. Further, the NBER study concluded that the previous estimates of savings were largely invalid, due to a pervasive error in study design.
Low participation rates by employees could significantly limit the potential benefits of participating in workplace wellness programs, as could systematically differences between participants and non-participants. Research performed by Gallup indicated that out of the 60% of employees who were aware of their company offered a wellness program only 40% participated. Ongoing management support and accountability are critical to successful worksite health promotion programs.
Wellness and Health Promotion Programs Use Financial Incentives To Motivate Employees”.
Toward a critical theory of corporate wellness”.
What do Workplace Wellness Programs do? Evidence from the Illinois Workplace Wellness Study*”.
The Outcomes, Economics, and Ethics of the Workplace Wellness Industry”.
Employer Health Benefits Survey.
Employer Health Benefits Survey Exhibit 6.18
Time to Change Our Focus : Defining, Promoting, and Impacting Cardiovascular Population Health”
What Do Workplace Wellness Programs Do? Evidence from the Illinois Workplace Wellness Study”.
Wellness award goes to workplace where many measures got worse”.
Reducing the Risk of Heart Disease and Stroke,
Abenity – Corporate perks and discount programs for employee, member, and alumni groups”.
Health Promotion Worksite Initiative
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