August 20, 2009

Wellness can pay off at work

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The Wichita Eagle
By Karen Shideler

The same economic pressures that are forcing cutbacks in wellness programs at some businesses are creating interest at others. “The interest has not gone away,” said Mim Wilkey, chairwoman of the Health and Wellness Coalition of Wichita. Its fifth annual Working Well Conference is Tuesday.

“Some companies have cut back, but the interest and the desire for workplace wellness has not decreased.”

Westar Energy, one of this year’s Working Well Award winners, had to pull back on some of its efforts at midyear after expanding in earlier years, according to Angie Taylor, manager of health and wellness programs.

But management continues to support the programs, she said, “because they know it’s the right thing to do.”

At Royal Caribbean Cruises, efforts have ramped up this year, said Gary Fink, facility manager. The company, also a Working Well Award winner, invested in a wellness campaign, eliminated the charge for an on-site fitness center and began subsidizing healthy snacks.

Royal Caribbean has just begun tracking results but knows that turnover has been reduced, said Lisa Barnes, senior human resources business partner.

Nationwide, 57 percent of businesses with 500 or more employees have a wellness program, up from 49 percent in 2006, according to MetLife’s sixth annual Employee Benefits Trends Study. For businesses with fewer than 500 employees, the number has held steady at 16 percent.

Among businesses with wellness programs, 94 percent said they are effective for reducing medical costs.

But wellness programs have more far-reaching effects, according to Wellness Councils of America, a national nonprofit based in Omaha.

It says the costs of absenteeism and presenteeism — employees who are physically present but not productive because of illness, sleep deprivation or other reasons — are double the costs of health care. Wellness programs can improve employee morale, it says, and reduce both absenteeism and presenteeism costs.

Carol Farrow, who heads the Greteman Group’s wellness program, doesn’t have hard numbers but said fewer employees seem to be calling in sick and all seem happier. Greteman Group is this year’s third Working Well Award winner.

Wellness Councils of America says return on investment for wellness programs is $3 or more for every $1 spent.

But others say the return varies widely — and experts agree that cost benefits don’t show up for at least two years, and usually longer.

Westar’s Taylor said, “I personally think a lot of emphasis is put on reducing health care costs, but not so much” on productivity. “We’re looking at both sides.”

Wellness Councils of America says the majority of businesses have “activity-centered” wellness programs.

Some of the best take a results-oriented approach, it says, focusing on how improved employee health and increased productivity affect the bottom line.

That requires the buy-in of the CEO, collecting data and evaluating outcomes, among other steps, it says.

Some steps will be outlined at the Working Well Conference, whose theme is “Steps to Worksite Wellness.” Speakers will include experts as well as last year’s winners. A “best practices” roundtable will focus on topics including benefit design, financial fitness, lifestyle coaching and what to look for in a health reimbursement account.

© The Wichita Eagle, 2009

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