For employers, wellness programs are a question of carrot vs. stick

Posted: April 27, 2014 at 3:49 am


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They count steps and calories, offer nicotine patches and aerobics classes.

Employee wellness programs are becoming the norm in the American workplace, implemented in hopes of leveling health costs and improving overall employee health. Research shows the programs are popular with employers -- but largely unused, or at least under-utilized, by employees.

"Nine out of 10 people want to be healthier, but it has to be convenient and ideally on-site," said Aubrey Worek, owner of Wellness Solutions at Work, a corporate wellness company based in Pittsburgh. Ms. Worek and her team work with clients to implement programs and incentives.

Monetary benefits work, too. And a little praise can go a long way.

"People love recognition," she said. "To be member of the month, to be in the newsletter, you made their day."

Recognition for lost weight or improved blood-pressure levels come after the fact, though. The trick is getting employees to participate in wellness programs to begin with. While about 40 percent of small companies and more than 90 percent of large companies offer employee wellness guidance, certain types of programs perform better than others.

According to a 2013 Rand Corp. study, sponsored by the Department of Labor and the Department of Health and Human Services, participation rates for completion-based programs, such as clinical screenings or signing up for a health reimbursement account are much higher than intervention programs, which include lifestyle and disease management.

Around 50 percent of employees in the Rand survey completed wellness screenings, while lifestyle and disease management program participation hovered around 20 percent.

Cost- and health-effectiveness of those programs is mixed. Employees whose companies offered a wellness program lost only 1 pound per year on average, were not associated with significant reductions in total cholesterol level -- and the companies' financial savings were negligible. The Rand study found any benefits health or financial benefits "statistically insignificant," yet said employers with wellness programs overwhelmingly view them as positive.

So employers continue turning to incentives, and sometimes penalties, to motivate employers to complete assessments or reach lifestyle goals.

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For employers, wellness programs are a question of carrot vs. stick

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April 27th, 2014 at 3:49 am

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