@Risk

Are companies today eliminating wellness programs in hopes of cutting costs?

That’s a good question, considering the current health care debate, apprehensions about employee absenteeism during the upcoming flu season, and the general push these days to improve risk management strategies.

Interestingly, preliminary results from a new survey of more than 400 employers indicate that less than 5% are planning to reduce or eliminate health and productivity programs, despite the downturn in the economy.

The survey, sponsored by the non-profit Integrated Benefits Institute (IBI), found that employers are much more likely to expand, rather than cut, the resources they commit to an existing HPM (health and productivity management) program. For 12 of the 26 programs surveyed, more than 30% of employers with a program plan to increase resources in the next two years.

The IBI survey revealed a wide variety of employer HPM programs that are likely to see increased support. The list includes:

• participation incentives
• nutritious meals/snacks
• chronic disease management
• weight management
• nutrition education
• fitness programs
• value-based benefits
• health risk assessments
• stress reduction

“We view our HPM programs as critical to improving the health and productivity of our employees,” says David Kasper, vice president, Employee Benefits, Waste Management. “By aligning incentives to encourage our employees to complete health assessments and also rewarding certain behaviors, we are able to see benefits resulting from healthier employees and family members as well as improved productivity. This helps to improve our competitive position in the market, enables us to further invest in the health of our employees and our business and deliver improved shareholder returns.”

Waste Management seems to have it right. According to a study last year, the average yearly direct and indirect costs for major absences add up to about 36% of base payroll –and of course, that statistic doesn’t include the impact of the H1N1 pandemic. Clearly, investing in HPM programs helps employees stay healthier, and that in turn, has a positive impact on productivity, morale, and the bottom line.