Workplace Trends: Employee Wellness Programs

Over the past decade there has been an increase in organizations that have setup up wellness programs designed at reducing health care costs and raising morale. The increase in such programs has drawn a fair amount of both praise and criticism. Employers struggle with issues such as how to implement the programs, where the funding comes from, and how to judge the cost/benefit of having such a program.

Three traps exposed by HRTechNews:

1. The “one-size-fits-all” approach: For good reason, your organization doesn’t simply copy other firms’ 401(k) plans or compensation designs. Yet, all too often, firms adopt ill-fitting wellness programs based on things that have worked elsewhere.
2. Leaving the program on autopilot: Many wellness programs often get off to a good start and then fizzle out. Employers are left wondering what went wrong. Their mistake: They failed to revisit the program on an ongoing basis – at least every other year.
3. Unrealistic expectations: Generally, it takes at least a year and a half for employers to break even on the cost of a wellness program. As a rule of thumb, the average program cost per employee per month to the employer is about $3 to $5.

The previous traps show common ways that employers setup a system without being truly invested in it. Proper thought and planing must go into a wellness program or it will not meet expectations. It is important to design a program geared to address the concerns of your employees that act as cost-drivers for the company. This article has identified several key places to look when deciding what kind of program would fit your organization.

Key places to look:

• your organization’s medical-claims breakdown for the last three years
• prescription-drug claims
• employee absence information
• EAP use
• disability claims, and
• employee demographics (workers’ ethnic, gender, age and dependent coverage status points to greater – and lesser – health risks associated with each category).

For more resources on employee wellness programs visit the Wellness Council of America. To access an in-depth wellness program guide, activate your HRSentry account today.