An organization’s capacity to succeed is largely dependent on the overall well-being of its people. Simply put, if employees are not healthy, organizations do not prosper. The widespread escalation of chronic disease, partnered with the rising cost of prescription medications and overall health benefits costs, makes this a challenging reality for Canadian employers. Adverse changes in the health profiles of working-age Canadians and the consequential cost makes proactive wellness programming a necessity in the workplace. But how does it all come to fruition, and how can you demonstrate a financial return to ensure ongoing support?
A long-term wellness strategy targeting common, modifiable risk factors and focusing on increased awareness can have significant effects on many areas: early detection and risk factor identification, the degree to which health benefits costs are contained, the impact of poor health on attendance and productivity, and the overall well-being and quality of life among employees. Putting this into practice in your organization takes vision and a solid commitment from everyone involved.
The success of any wellness strategy is dependent on a number of factors, as the degree to which an organization is able to demonstrate its benefits is contingent upon the activities performed prior to implementation. Let’s take a look at some of the most critical aspects of implementing a wellness initiative.
The main steps
Securing senior level support – The people at the top must be on board: this is the cardinal first step, whether you’re offering a one-time event or a comprehensive program. One common objective of any wellness strategy is to increase the competitive advantage of the business—something that senior leadership is highly involved in. Canadian organizations seem to be on the right track, as the results of Buffett & Company’s fifth National Wellness Survey indicate that this is the most completed activity among respondents (53.5%).
Formulating the vision – What are you looking to achieve? The anticipated outcomes of your strategy should be woven into your organization’s goals and objectives. From this, you can determine the success indicators and will be better able to design a solid measurement and evaluation approach to show conclusive outcomes. A total of 30.8% of the National Wellness Survey respondents indicated that they had completed this activity when implementing a corporate wellness strategy.
Engaging employees – A program for the people should involve the people. What wellness topics are of most interest? Will employees attend a one-hour educational session on their lunch break? What is the best method for distributing communications? These are the types of questions to ask the employee population—otherwise, it’s a guessing game and a poor use of resources.
Collecting data and assessing health risks – Knowing the health risks of your employee population is essential when devising an annual wellness operating plan. To maximize resources and budget, health risks should be assessed through the analysis of health benefits data, health risk assessments (HRAs) and, if available, biometric screening data. Then, appropriate initiatives can be implemented, developing a targeted approach to work-site wellness and organizational health that leads to improved employee health and enhanced outcomes.
Evaluating the results – It is staggering that only 38% of respondents to the survey continually evaluate and record the outcomes of their wellness initiatives. Effective evaluation plans are based on the objectives of the initiatives offered, allowing for adaptations of future programs and overall objectives, and promoting ongoing improvement of the wellness strategy.
The strategy
An effective wellness strategy links all existing internal and external health resources, maximizing the program’s potential and outcomes, and incorporating the existing benefits program into the approach.
Healthcare spending account (HCSA) credits – Incentives are an important tool in driving participation rates and engaging employees in the program. The type of incentives used depends on what employees value, what is appropriate and what is within the scope of the allocated budget. One of the more popular strategies has been to provide employees who participate in wellness initiatives with additional HCSA dollars or credits. For example, one Buffett & Company client recently saw a 72% increase in participation in its Fitness Challenge after implementing this incentive.
Extended benefits reimbursement – Providing coverage for pharmaceuticals and medical services that support individual behaviour change and risk reduction is also a popular strategy. For instance, some employers agree to cover the expense of smoking cessation aids for employees who complete a comprehensive smoking cessation behaviour modification program. Also, extended healthcare costs are growing as employees seek out alternatives to medicines as reactive approaches for treating health issues. For example, some organizations subsidize on-site massage therapy programs when they are paid by the employee. These options communicate to employees that the organization supports preventive modalities and is willing to help employees gain access to these services.
The return on investment
In recent years, there has been an increasing emphasis on the return on investment (ROI) associated with corporate wellness programs. Health promotion professionals are often expected to demonstrate a direct fiscal return from wellness programming, while health benefits plans that include expensive pharmaceuticals and procedures are offered based on no fiscal return data.
There seems to be a double standard around what is expected from whom. Health benefits cost reduction is often expected with the implementation of an employee wellness program. However, if this approach is taken with a short-term view, it can be a lofty and often unrealistic expectation.