Human Resources: Executive Summary: Health Promotion and Wellness

It's probably overstating the case to say that "a business is only as healthy as its employees," but not by much. After all, the wellness of workers has a big impact on everything from absenteeism rates to job performance to healthcare costs.

Personal illness, for example, was the most commonly cited reason for unplanned absences from the U.S. workplace in 2003 and 2004. And "presenteeism" - which occurs when workers report for work ill or with diminished capacity to perform on the job due to illness or chronic pain - diminishes worker productivity by about 2.5 billion days each year, according to one estimate.

Of course, the causes of health problems vary widely, from occupational hazards to disease to lifestyle-based concerns. Especially costly - and traditionally beyond the control of employers - are health issues such as obesity, heart disease, diabetes, chronic pain and depression.

In recent years, employers have become both more aware of the costs of health problems and more proactive in trying to reduce them. A growing percentage of businesses have invested in some type of employee health, fitness, wellness and/or disease management program, from smoking cessation to simple walking programs. The goals of such programs are not only to lower healthcare costs but to boost workplace morale, performance and attendance.

Health risk assessments (HRAs), for example, are tools that are being used in some workplaces to identify workers at risk for health problems. Participation in health programs is encouraged based on HRA results and sometimes required if employees wish to be covered by employer-provided health insurance.

To keep employees generally fit, some organizations go so far as to develop onsite workout facilities. But there are other cost-effective alternatives, such as offering employees discounted gym memberships at outside commercial facilities. Employer-sponsored walking programs that are team-oriented can be both beneficial and successful when competitive incentives are built into the programs. And various other examples of low-cost, no-frill programs are enthusiastically embraced by employees. Generally speaking, creativity in developing such programs and knowing the needs and interests of a particular employee group are key to a successful buy-in, and focusing on the successful outcomes of programs is helpful in generating interest in employee-sponsored wellness initiatives.

The good news is that health and wellness programs are beginning to show signs of paying off. A poll of 84 U.S. employers conducted by the National Business Group on Health, for example, found that over half of respondents reported that employee morale had increased as a result of company fitness programs, and 27% said that company healthcare costs had decreased.

The hard part is getting employees to participate. Just 2% of workers report that they have taken part in company-sponsored weight loss programs, according to a study conducted by the American Association of Occupational Health Nurses. Yet, 50% of those who've participated in such programs said they had reached their weight loss goals.

Employers are not the only ones investing in preventive disease management programs; the U.S. government is offering programs to patients receiving Medicaid benefits, and the programs are cutting Medicaid spending on chronic illnesses in some states. The programs - some provided by private companies - have been implemented in 24 U.S. states in an effort to curb spending on chronic conditions that add up to three-quarters of total Medicaid costs per year.

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The Institute for Corporate Productivity (i4cp, inc.) improves corporate productivity through a combination of research, community, tools and technology focused on the management of human capital. With more than 100 leading organizations as members, including many of the best-known companies in the world, i4cp draws upon one of the industry’s largest and most-experienced research teams and Executives-in-Residence to produce more than 10,000 pages annually of rapid, reliable and respected research and analysis surrounding all facets of the management of people in organizations. Additionally, i4cp identifies and analyzes the upcoming major issues and future trends that are expected to influence workforce productivity and provides member clients with tools and technology to execute leading-edge strategies and "next" practices on these issues and trends. i4cp is a for-profit company with offices in St. Petersburg, Florida.