Health Wellness ProgramHealth and Wellness Programs and Wellness Program Consulting

Following cost, poor employee engagement and inadequate communications and backing are listed as the greatest challenges for organizations administering any health benefi t program.22

By law, organizations are required to explain any benefits or explicit conditions of employment to all staff members – this is called “due process,” and it usually takes the form of a packet of information that new staff members are asked to review and sign during orientation or, in the case of existing staff members, a brief communication during open enrollment periods.

Businesses that only take part in the minimally needed due process communication of a Workplace Wellness Program, however, do a disservice to the plan and the organization.

Opinions about Healthcare in employers represent one of the largest divides between management and workers. In discussing the need for savings, most employers (70%) believe their corporation effectively communicates about increasing Healthcare costs, while only 34% of workers feel increasing Healthcare costs impact their business’ ability to succeed.23 When it comes to behaviors, 74% of employers believe their workers should be held largely accountable for improving, managing and maintaining health, yet only 4% of employers think that workers take part in these activities.

Under the proposed rules, the four specifications to be a bona fide Corporate Health Promotion Program are:

- The total reward that may be given to an individual is limited. The departments invited comments on the appropriate level of the reward, suggesting that a limit of ten percent to twenty percent of the total cost of employee-only coverage may be appropriate.
- The program must be reasonably designed to promote good health or prevent disease for individuals in the program.
- The reward must be available to all similarly situated people. More specifically, the program must allow any individual for whom it is unreasonably diffi cult due to a health care condition to meet the Workplace Health Promotion Program standard (or for whom it is medically inadvisable to attempt to meet the Workplace Health Promotion Program standard) an opportunity to satisfy a reasonable alternative standard.
- All plan materials describing the terms of the program must disclose the availability of a reasonable alternative standard.
Source: U.S. Department of Labor Employee Benefits Security Administration

As Northwestern Memorial’s Kathryn Krivy says, “The most fundamental failure in any Employee Wellness Program is not communicating. You need to tell people what you’re doing and why you’re doing it. You have to get workers engaged and educate them of what’s going on.”

A properly started Company Wellness Program is designed to save a corporation more money with improved participation. However, a corporation must match its focus on program design with an equally strategic investment in efforts to take part workers in the initiatives.

Lay out your case – Despite widespread recognition of increasing Healthcare costs, staff members remain skeptical that the issue affects employer operations. In fact, only 53 percent of staff members even believe what their employer communicates about the subject.24 Employers need to be more candid and forthcoming about the amount they spend on Healthcare and how that relates to larger budgetary constraints and potential investments.

Says Motorola’s Saenz: “We share with workers that we have been able to maintain Motorola’s Medical Care spend trend below national average over the past several years due to their participation in our various Employee Health Promotion Programs. This transparency is necessary to keep reminding people the reasons for our conduct.”

An effective strategy is to focus on the cost savings and central health benefi ts to the employee and not the business. By personalizing the information in this way, it produces a win-win scenario rather than presenting the program as a sacrifi ce on the part of the employee. Information should be presented through multiple channels, constructed in a way that makes sense to all levels of employees, and offered to employees, dependents and retirees.

Make it your own – Every Employee Health Promotion Program will be different, and must reflect the culture of a employer. While program areas will be determined by analyzing employee health risks, the actual offerings must be shaped by the nature of the employer. Younger, more active employee communities may be attracted by different programs than an older or technicaloriented employee. Additionally, a global employer with mobile workers will have different needs than a employer with one central location.

As noted earlier regarding PepsiCo’s HealthRoads, one strategy is for corporations to brand their Employee Health Promotion Programs. Union Pacifi c Railroad (HealthTracks), General Motors (LifeSteps) and Caterpillar (Healthy Balance) all adopted this approach to help create recognition and a larger meaning around their efforts. Having a branded initiative helps workers and other stakeholders see the larger goals/objectives of the Employee Health Promotion Program, rather than focusing on isolated offerings.

Say it loud, say it proud – As a potential cost-saving initiative, Workplace Wellness Programs must be given the same executive backing and internal commitment as any comparable corporation effort. Employers must not approach wellness as simply a preventive, financially-motivated program, but rather as an opportunity for the corporation to distinguish itself and become more competitive.

Jeffrey Treem, analyst, Edelman Change and Employee Program Engagement Group, says that effective communication about Workplace Wellness Programs must be integrated into existing business communication channels and vehicles. “This includes executive communication to external stakeholders,” he notes, “because this sends a powerful message back to employees about the importance of the programs. Workplace Wellness Programs must not be treated as merely an additional employee perk, but rather an innovative and strategic effort to cut costs and create a healthier work environment.” Talk among yourselves – The most powerful champions of any Workplace Wellness Program will be the participants.

Corporations must find ways to facilitate discussions about the program among staff members. This could take the form of support groups, interactive media and the sharing of success stories.

Nonetheless, since Employee Wellness Programs touch on potentially private health topics, it is valuable communication remains positive and inclusive, while not pressuring staff members. Discussion of wellness topics must be voluntary, though corporations may consider providing rewards and incentives for those willing to contribute. Motivation and information from peers is likely to carry more credibility and significance than messages from management.

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Even in an at-will employment environment, individuals are still guarded from discrimination (including wrongful termination) by virtue of belonging to a protected class. Prior to beginning a Corporate Health Promotion Program, companies need to be knowledgeable about the relevant legal restrictions and the potential affects these measures can have on benefi ts and employee behavior programs.

Title VII of the Civil Rights Act of 1964 – Prohibits employment discrimination based on race, color, religion, sex or national origin.

This means that standards and offerings need to be applied equally (or possibly proportionally) to all protected classes. In other words, if a organization is offering access to gyms, it should make sure that men and women have equal access to facilities. Companies should also consider whether individuals who may live in areas heavily populated by one race, religion or ethnicity also have access to facilities and programs. The easiest way to address this concern is to provide on-Site Workplace Wellness Programs whenever possible. This not only ensures equal access, but according to Northwestern Memorial’s Krivy, also boosts participation.

Corporations must also be aware that particular health issues may disproportionately affect protected classes. Health Risk Assessments and any incentives and rewards put in place may really should be customized to account for non-lifestyle related differences.

The Equal Pay Act of 1963 (EPA) – Protects men and women who perform substantially equal work in the same establishment from sex-based wage discrimination. Benefits, incentives/rewards and programs need to be applied equally to men and women. A organization can’t set a weight goal for men and not for women, even though a organization can set health parameters by work function. The Age Discrimination in Employment Act of 1967 (ADEA) – Protects people who are 40 years of age or older from discrimination based on age.

Policies not only need to be available to people of all ages, but program goals and objectives, restrictions and incentives and rewards need to be designed with age appropriateness. While older employees (or retirees and dependents) may inherently pose a higher health risk, their actions must be judged in terms of demographically appropriate measures.

Title I and Title V of the Americans with Disabilities Act of 1990 (ADA) – Prohibits employment discrimination against qualified individuals with disabilities in the private sector, and in state and local governments. Similar to other workplace offerings, any Employee Health Promotion Programs, such as a fitness center or health clinic, would have to make reasonable accommodations for workers with disabilities.

One area of uncertainty is whether very overweight employees qualify as disabled. The issue is complicated because weight is caused by several factors (genetics, environment, behavior), some of which may be out of the employee’s control. Generally, for employees to qualify for disability based on weight, the condition must signifi cantly impair their physical or mental ability to perform their job. This determination would need to be made by a qualifi ed physician. Although this label may affect the types of rewards and incentives and program requirements provided, it likely would not affect the overriding implementation of behavioral-focused initiatives.

Civil Rights Act of 1991 – Provides monetary damages in cases of intentional employment discrimination.

This legislation allows individuals to sue corporations for improper treatment. Compensation can be in the form of actual damages such as lost or expected wages, compensatory damages for a situation that causes public embarrassment, or even punitive damages meant to send a message to a corporation for egregious or habitual violations.

While these laws govern all business activities, there are even more stringent restrictions with regard to Health Care topics. Most policies, communications and data collection regarding employee health are governed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Under HIPAA employers can’t deny eligibility for benefits or charge a higher premium on the basis of:

• Health status
• Medical condition (including both physical and mental ailments)
• Claims experience
• Receipt of health care
• Medical history
• Genetic information
• Evidence of insurability (comprises activities such as riding a motorcycle, skiing, snowmobiling and other similar pursuits)
• Disability

Nevertheless, because wellness programs may not involve healthcare treatment or be insurance related, and may instead be confined to behavioral initiatives, HIPAA’s nondiscrimination provisions do not completely apply. To address this, in 2001 the United States Department of Labor, the Internal Revenue Service and the United States Department of Health and Human Services jointly issued a proposed regulation to help clarify the lawful provisions of a “bona fi de Wellness Program” in the context of HIPAA’s existing language (See Box p. 14). Although the regulation is not yet final, companies that comply with the measure will be viewed by the government as making a good-faith effort to avoid discrimination in wellness programs.

Comprehensive Corporate Health Promotion Programs are still relatively new to corporate America and the legal implications of implementation and enforcement are not fully known. By their very nature, these programs potentially expose corporations to discrimination lawsuits, disengaged workers and negative public relations. Nevertheless, corporations that make a good-faith effort to comply with current Medical Care-related laws, discover ways to involve workers, and communicate strategically, will be able to minimize these risks while finding plenty of room to develop a creative and effective Corporate Health Promotion Program.

For many corporations, a smoking ban would not even apply to all workers. That is because currently 30 states and the District of Columbia prevent corporations from banning off-duty smoking.21 In Addition, 13 states prevent corporations from banning alcohol use away from work. Only six states have broad statutes that prevent corporations from prohibiting any lawful behavior. Michigan is the only state that expressly prohibits discrimination on the basis of weight, however the cities of San Francisco and Santa Cruz, Calif., also have this provision (San Francisco makes exceptions for police offi cers, fi refi ghters and the San Francisco 49ers football team). When starting Corporate Wellness Programs, corporations ought to keep in mind local statutes as well as established common law.

Savings of Voluntary Company Wellness Program = (number of participants x savings per participant) – (cost of program)
Savings of Incentive-based Company Wellness Program = (number of participants x savings per participant) – (cost of program + cost of rewards and incentives)
Savings of Mandatory Worksite Wellness Program = (number of participants x savings per participant) – (cost of program + cost of policy-related turnover + cost of limited talent pool)

Constructing Corporate Wellness Program policies in a organization that employs unionized workers can pose unique challenges. Corporate Wellness Programs may be perceived by some unions as a condition of employment and therefore would be subject to collective bargaining between the parties. However this situation can represent an opportunity for both groups, as a policy agreed upon between union leadership and management is likely to be received more favorably by workers. The United Auto Employees and General Motors worked together to create and position a joint Corporate Wellness Program which has successfully reached more than 800,000 participants. (See Case Studies, UAWGeneral Motors LifeSteps Corporate Wellness Program, p.21).

Unless specifically stated otherwise, most corporation-employee relationships in America are governed by the principle of at-will employment. Under this system a corporation, or the employee, can terminate the relationship without any required showing of cause. This at-will standard gives private organizations substantial authority in governing the behavior of workers. In this environment, organizations can Finding Wealth Through Wellness 10 creatively design Worksite Wellness Programs based upon their specifi c corporate culture. Worksite Wellness Programs generally take three main forms:

Voluntary Worksite Wellness Programs – The most popular form of employee Worksite Wellness Program, in most cases they are made available to workers but participation (or lack thereof) is not linked to any type of consequence. Due to ineffective communication, frequently workers are either unaware of these offerings or confuse them with insurance-based healthcare. Incentive-based – Worksite Wellness Programs based on incentives reward workers for participation in Worksite Wellness Program activities. Incentives usually include decreased Health Care premiums, fitness center membership or personalized support offerings. In these programs, employees’ behavior can be linked to a particular reward.

Mandatory Corporate Health Promotion Programs – Some companies require, or ban, certain health-related conduct. These can take the form of mandatory Health Risk Assessments for employees and restrictions on smoking or alcohol use. While mandating behavior is an effective method to eliminate high-risk behavior, the cost savings must be gauged against the potential message sent to existing and prospective employees. Given that employees are already under various levels of scrutiny in the workplace, individuals may resist attempts by companies to regulate off-duty conduct. Additionally, some employees may fi nd it diffi cult to comply, forcing companies into the uncomfortable circumstance of punishing an otherwise constructive employee.

In the short-term a mandate-based Company Health Promotion Program can guide to an increase in turnover, as staff members either choose to leave or are fi red for noncompliance. In the long-term, the policy may prevent the organization from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals thinking of the organization. Limits in recruiting, for instance, led CNN to rescind a 13-year ban on hiring smokers.18

Companies need to make sure that Worksite Health Promotion Programs are aligned with the values and culture that guide business operations. If a business emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a business that already heavily regulates business behaviors. Moreover, a work environment with a sizable disengaged population will likely have poor participation in a voluntarybased program. When calculating cost savings, businesses need to take a wider view and consider the effects on long-term employee engagement.

In 2005, Michigan-based insurance benefits provider Weyco instituted a smoking ban for all of its nearly 200 employees. Workers are subject to random testing and if they fail a mandatory breathalyzer test, they will be fi red. It is believed that Weyco is the first organization to use testing to enforce a smoking ban – most employers ask employees to self-report behavior. Four employees (more than 2 percent of the total labor force) left Weyco as a result of the policy. A year prior to the ban the organization started a $50 smoking fee, which would be waived if a employee passed a nicotine test or agreed to take a smokingcessation class. Weyco’s president Howard Weyers announced that 20 employees quit smoking through this program.20 Workers were told they had one year before the total ban would go into effect. Under the new Worksite Health Promotion Program, Weyco does offer $35 a month for employees who want to use a fi tness center and another $65 a month for employees who meet fitness objectives and goals.

1. Undertake a utilization assessment – While corporations can’t get medical information on individual staff members, insurance providers will supply corporations with reports that detail patterns and rates of employee use for things such as physician visits, hospital stays and prescription use. This information is essential for a corporation to set a benchmark of its current health risk status. Data from human resources(HR) can be integrated with benefits information to support a complete picture of employees’ health-related costs. Then, corporations can determine the specific level of behavior transformation necessary to result in cost savings. The utilization assessment helps a corporation identify the areas in which it ought to focus its Workplace Wellness Program to reap the greatest benefits.

2. Build a business case – Once a utilization assessment is in place, organizations are able to quantify the Health Care cost savings that will result from specific levels of lifestyle transformation and risk reduction. This can be done by setting goals/objectives in terms of reductions in identifi able insurance utilization, attendance or disability variables, or by aiming for reductions in health risks and projecting the associated cost savings. Effective estimates factor in the cost of the Worksite Health Promotion Programs as well as the necessary internal marketing efforts that will surround the program. Says Betty-Jo Saenz, American Health Care Strategy lead for Motorola, “When we started our programs, our focus was on the 20% of staff members that made up 80% of the costs. We’ve discussed that, and now we’re paying attention to those who are active and Finding Wealth Through Wellness 8 keeping them healthy. Wherever you are on the continuum, there are opportunities.”

3. Create a cross-functional wellness group – Corporations need to identify potential group participants who can be champions of wellness within the employer. It is significant that the group is representative of the demographic and functional diversity of workers so that it can credibly address any specific needs groups may have. This group will serve as the voice and face for the Company Health Promotion Program within the employer. Best practice companies integrate participants from human resources, communications, employer development and senior staff. Using the utilization analysis as a guide, the wellness group should evaluate what programs would be most effective within each particular corporate culture, aligning health-risk priorities with initiatives that workers will be receptive to.

4. Build buy-in from management – The most effective Company Health Promotion Programs have substructure from the highest levels of a company. Support from management, both in words and in action, sends the message that Company Health Promotion Programs are a priority for a company. The utilization analysis can be a powerful tool to build the company case for Company Health Promotion Programs and convince executives that initiatives are worthy of investment and attention. Meaningful wellness-related messages are integrated into company discussions and aligned with corporate objectives.

5. Organize a complete Employee Program Engagement plan – The most brilliantly conceived Employee Health Promotion Program is meaningless if no workers participate. Effective wellness communications emphasize both health and monetary benefits at the personal and employer level. According to a 2004 survey by Towers Perrin, only 28% of workers say their employer communicates about Medical Care problems other than cost. In addition, wellness-related information should be a part of existing employer communications efforts and not coupled solely with benefits communications. This helps elevate the significance of Employee Health Promotion Programs and align initiatives with employer objectives.

Moreover, discussions around Worksite Wellness Programs can share personal success stories and support company progress updates. Successful organizations not only use existing discussion channels to generate discussion around activities, but also consider more interactive tools like message boards, forums, blogs and wikis. This helps personalize initiatives and permits for the sharing of best practices within the company.

Many businesses engage medical experts to advise in the construction, communication and support of the program. The use of outside authorities such as these will increase the credibility of the Company Wellness Programs as well as combat skepticism from employees who may view the organization’s motives as merely selfserving.

Another strategy available to corporations is to brand their Company Health Promotion Program. This move can increase the visibility and acceptance of the offering. Branded wellness programs are most common when corporations are also promoting an external campaign around Company Health Promotion Programs. An example of this is PepsiCo, which launched its HealthRoads Company Health Promotion Program internally along with a consumer campaign, Smart Spot, that puts special labels on healthier food and drink options.

These efforts are more effective when they are not owned solely by the internal communications department, but rather when managers serve as leaders of, as well as participate in, Workplace Health Promotion Programs within corporations. This establishes more immediate accountability and motivation.

6. Measure constantly and consistently – At every step of implementation, a Employee Health Promotion Program must be able to verify its value to a business. Employee Health Promotion Programs ought to be designed to allow businesses to set benchmarks and evaluate behavior change. Assessment ought to consider not only quantitative health measures, but also qualitative measures of stress and employee engagement. Less than ten percent of businesses do extensive management of healthcare cost, employee health risk status or employee satisfaction with benefit offerings, and less than half of businesses do any measurement in these areas at all.16

Measurement is only useful if a corporation explicitly interprets what data would constitute success. Potential measures of success comprise:

• Participation rates
• Improved employee program engagement
• Decrease of risk status
• Lowering of direct health costs
• Diminished absenteeism
• Reduced disability claims

Motorola’s Saenz advises administrators of Worksite Wellness Programs to track as many measures as possible from the start, even if management only needs one, because it is very difficult to retrieve data later. She notes that even if leadership begins by looking at participation rates, they will eventually want to know about reductions in claims and costs.

Frequent measurement is the only way to build support among management and staff members. Nearly half of organizations feel a lack of useful data is a top barrier to their ability to manage employee health, and at least 20 percent of organizations do not know how effective existing Worksite Health Promotion Programs are regarding various outcomes. Businesses must administer utilization analyses each year and reevaluate Worksite Health Promotion Program priorities based upon changes. Additionally, progress must be shared with the wider business community to build support for initiatives. Managers and executives throughout a corporation are likely to support a program that can prove increased work rate among staff members. Effective Worksite Health Promotion Programs are designed to be fl exible so they can respond to changes in both corporation objectives and goals and larger health variations.

Employee Wellness Programs first became popular during the economic boom of the late 1980s and early 90s. Programs featured on-Site gyms and massages, and were used as recruitment tools for young staff members searching for nontraditional work environments. However, when the tech bubble burst, so too did the willingness to spend money on perceived perks, and businesses returned to a more old-school benefit structure focused on managed medical care.

In recent years, as Healthcare costs have spiraled out of control, organizations have explored the potential of Employee Wellness Programs as a cost-saving strategy. Businesses such as Johnson and Johnson, General Motors, Motorola and Union Pacifi c Railroad have all seen a signifi cant return on investments in employee health (See Case Studies, p.20). Employee Wellness Programs can help reduce the costs associated with:

Healthcare premiums – The cost a company pays for health care insurance: According to a 2005 study by Hewitt, the Healthcare cost per employee in the United States in 2006 will average $8,046, with employers absorbing nearly two-thirds of that cost.

Prescription costs – The price of a drug plan: According to a 2005 study by Mercer, the average annual drug costs for big organizations grew 11.5%, making it nearly a decade straight of double-digit increases in cost.

Short-term disability (STD) – The cost of offering STD insurance to staff members: According to a 2004 study by insurance provider Cigna, the average STD claim results in $13,094 in direct disability payments and healthcare costs. The report also found that 26% of claims related to healthcare events were a result of chronic conditions that could likely be mediated through Employee Health Promotion Programs, and that these cases amount for 56% of the STD-related healthcare costs.

Absenteeism – The cost of missed work: Absenteeism cost organizations $660 per employee in 2004, with nearly one-third of organizations characterizing the trend as a somber issue.

Presenteeism – The cost associated with employees who work at decreased productivity levels: Sixty percent of the total cost of employee illnesses come from presenteeism, according to a 2004 study by the Institute for Health and Productivity Studies at Cornell University.

The evidence is clear that strategically designed Workplace Health Promotion Programs can decrease both direct and indirect Medical Care costs. A 2004 review of Workplace Health Promotion Programs revealed that, in total, an investment of $1 by a organization in Wellness Programming returned a median cost savings of $2.05 to $4.64.

Employee Program Engagement is the level at which workers are aligned with and working toward organization goals and objectives. Employee Program Engagement is persuaded by a wide range of factors that comprise of internal talks, organization structure, benefits and recognition.

Employers that have high levels of employee engagement benefit from greater productivity, retention and achievement than peers with disengaged workers.  Levels of engagement among workers in the United States have been declining over the past several years as individuals have become disillusioned with the treatment of workers by employers. The inability to involve workers is one of the reasons why, despite steady rises in hours worked, America lags behind several other nations in terms of employee productivity per hours worked.

Workplace Wellness Programs may increase employee engagement in several ways. First, when communicated properly, they corroborate to employees that the corporation cares about their well-being. This can improve retention and turnover as well as support a greater discretionary effort from employees. During a period of significant downsizing, Motorola found increased interest in its Workplace Wellness Programs as managers recognized the value of providing for the health and well-being of employees.

In addition, the health improvements will lower absenteeism and presenteeism (when workers continue to work despite decreased productivity), allowing for more time spent at full productivity. Lastly, healthier workers are more likely to have increased morale, which translates into a more enjoyable and more effective work environment.

The President’s Council on Physical Fitness and Sports defines wellness as “a multidimensional state of being describing the existence of positive health in an individual as exemplified by quality of life and a sense of well-being.” Wellness looks beyond the current guide of treating disease and focuses on preventive actions and healthier lifestyles. Employee Wellness Programs, also commonly referred to as Employee Wellness Programs, serve as a complement to existing insurance-based health benefit programs and can take many forms and address a myriad different potential health conditions. They are a powerful strategy to promote positive lifestyle changes that can result in significant cost savings for businesses.

Examples of potential components of a Workplace Wellness Program cover:

Health Risk Assessments / Employee Health Screenings – Health Risk Assessments (aka Health Risk Appraisals), evaluate the most prevalent lifestyle-related risks of an individual. HRAs frequently cover screenings for Blood Pressure (BP), cholesterol, glucose levels and other health indicators. These analyses supply significant benchmarking measures that ideally will allow staff members to prevent or lower their risk of diseases. Finding Wealth Through Wellness, As noted by Kathryn Krivy, director of Northwestern Memorial Hospital’s Wellness Institute in Chicago, “Medically based Health Risk Assessments are a necessity because in order to affect transformation in your organization, you need to know what the issues are, and you just do not know until you get the data.”

Physical Activity and Weight Management – One of the most popular Employee Wellness Programs is for organizations to supply access to a fitness center, frequently on-Site. Other potential measures include offering healthier vending machines and cafeteria options, weight management support groups and fitness challenge programs. Some organizations, like hospital group Baptist Health South Florida, will even pay for workers to attend weight-loss seminars such as Weight Watchers.

Awareness and Education Programs – Many  companies hold events discussing the benefits of nutrition, safety or physical fitness, among other topics. Other options are to host a wellness fair or lead a disease-awareness campaign.

Behavior Modification – This covers issues like smoking, wearing seat belts, and alcohol use. While many companies will supply assistance for staff members looking to change behavior, some companies, like healthcare benefits administrator Weyco, Inc., mandate changes, such as stopping smoking, as a condition of employment.

Alternative Treatments – Other Worksite Health Promotion Programs can comprise of absorbing some or all of the costs for massages, stress-reduction activities like yoga or even herbal medicines.

A more progressive and systemic solution may incorporate businesses starting Workplace Health Promotion Programs, which allow businesses to be proactive in preventing disease and promoting healthier lifestyles for employees. When implemented effectively, this approach can guide to reduced direct costs from claims, a reduction in Healthcare premiums and increased employee productivity.

Yet while Workplace Health Promotion Programs potentially offer companies substantial cost savings, the success of the programming is dependent upon the ability to involve workers in them. Additionally, companies must navigate the legal and cultural challenges posed by Workplace Health Promotion Programs: Companies really should be careful that initiatives respect protected classes and the privacy of workers. Moreover, companies must battle resistance from workers wary of their employer regulating off-the-clock actions.

Over the next 6-12 posts we’ll layout the case for Workplace Health Promotion Programs in today’s employment environment, arguing that the cost savings and increased employee engagement outweigh potential restrictions. We will examine the considerations a corporation must make before beginning a Workplace Health Promotion Program and the communication necessary to create successful engagement from workers. Finally, we will discuss several successful Workplace Health Promotion Programs and provide a list of resources that corporations can use for guidance.

During the past decade healthcare insurance premiums have climbed steadily. This is taking a toll on the bottom-line of employers, cutting into earnings, limiting growth and forcing a reevaluation of a once sacred employee benefit system. According to a projection by McKinsey & Co., at the present rate, by 2008 health benefits will eclipse earnings at the average Fortune 500 organization.

Businesses, through private healthcare insurance employers, are the leading provider of healthcare services in America. In 2004, 59.8% of American citizens were covered by a company-based healthcare insurance program, accounting for 88% of all private healthcare insurance. Yet the growing costs of Healthcare, ever-rising drug prices and a steady rise in chronic illnesses have brought the corporate world to a breaking point.

For many companies the increasing burden has become too difficult to carry. During the past five years healthcare insurance premiums have grown an average of 11.6% annually, more than four times the average rate of inflation and employee earnings over that time.3 Not surprisingly, this growth in costs has caused the number of companies offering Health Care services during that time to drop from 69% to 60%.4 In addition, in 2005,  healthcare insurance premiums jumped 9.2%, more than three times the rate of inflation – and that was the lowest increase in the past five years.

In this environment corporations need to find progressive ways to mitigate the rising costs of Medical Care coverage. Seemingly, the easiest strategies to accomplish this goal would be to cut benefits coverage or pass on agrowing burden to workers and retirees. More than 80% of corporations have chosen one or both of these options in the past few years and almost half of all sizable corporations are likely to increase the amount workers pay in 2007.5

However, these methods do nothing to address the fundamental causes of increasing costs, one of which is a population that needs increased medical. To make a lasting and substantial influence on costs and overriding health, companies need to look beyond a antiquated reactive-based approach.