To lower Workers’ Compensation Insurance costs for your business, you may want to consider a wellness program. Wellness programs offer many benefits and aren’t just for big companies. Statistics show that 58% of small to medium-sized businesses (3-199 employees) provide wellness programs. The return on investment (ROI) for employee wellness programs is $6 for every $1 spent.
What is a Wellness Program?
SHRM states, “Wellness programs are provided to employees as a preventive measure to help avoid illness while improving and maintaining the general health of the employees. This can be accomplished through education, communication, and a supportive work environment.”
Wellness programs may address physical health, mental health, substance abuse, or chronic pain. They may or may not include incentives - such as health insurance premium discounts, contributions to health savings accounts, cash or gift cards, etc. - to participate in the program. SHRM cautions, “Employers should make sure their wellness incentives are designed, so they do not inadvertently lead to unhealthy behaviors. For example, a per-pound weight loss incentive with no limits may encourage unhealthy weight loss practices. Or an incentive for attending a fitness center that expires after one year may result in employees ending their regimens.”
Wellness programs may include one or more of the following:
- Nutrition education
- Diabetes management programs
- Weight-loss programs
- Preventative health screening
- Health risk assessments
- smoking cessation programs
- Stress management programs
- Gym memberships
- Worksite exercise programs and activities
- Vaccination clinics
- Health fairs
- Wellness publications
- 24-hour nurse hotline
- CPR or first-aid training
- Massage therapy services
- Financial wellness
- Recreational programs, such as company-sponsored sports teams
What are the Benefits of a Wellness Program?
Employees spend a substantial amount of time at work, and unfortunately, workplaces often lead to ill health. For example, desk jobs can lead to inactivity and weight gain, and work stress has been shown to cause many health issues. So, it’s no surprise that wellness programs provide many benefits for employers and employees alike:
- Reduction in healthcare costs. In 2019, 72% of employers implementing a wellness program saw reduced healthcare costs.
- Reduction in absenteeism (14-19%).
- Increased productivity. 84% of employers reported higher productivity and performance from their employees due to wellness plans in 2019.
- Reduced injuries.
- Reduced Workers’ Compensation and disability-related costs.
- Increased employee morale. More than 80% of employees who work for an employer engaged in their wellness enjoy their work. On the other hand, of those whose employers aren’t engaged in their wellness, only about 40% say they enjoy work.
- Attract and retain employees. Research shows that 87% of employees consider if an employer offers any type of wellness program when choosing an employer. In addition, 85% of employees who work for an employer engaged in their wellness say they intend to stay at their jobs. On the other hand, of those whose employers aren’t engaged in their wellness, only 58% say they plan on staying with their current employer.
*Statistics from Zippia.
How is a Wellness Program Established and Designed?
SHRM suggests the following steps to establish and design a wellness program:
- Conduct assessments
- Obtain management support
- Establish a wellness committee
- Develop goals and objectives
- Establish a budget
- Design wellness program components
- Select wellness program incentives or rewards
- Communicate the wellness plan
- Evaluate the success of the program
Easy Workers’ Comp Insurance Savings
The independent agents at American Insuring Group will work hard to get you the best price on quality insurance to protect your employees and your business.
Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.