|  | Public Health Safety | Public Health

Advantages & Disadvantages of Organization Wellness Programs

According to statistics reported in a March 2010 "New York Times" article, as much as 50 percent to 70 percent of health care costs come from preventable diseases and illnesses. Educating and supporting employees on proper nutrition and exercise methods through wellness programs may eliminate some or all of these costs, but there are social and economic considerations that are raised in implementing these programs.

  1. Lower Health Insurance Premiums

    • According to a study reported by the Center for Disease Control, after the Capital Metropolitan Transportation Authority of Austin, Texas, implemented a wellness program, it saw a 4 percent decrease in the total health care costs. Initially, at the onset of the program, the premiums did continue to rise, but the percentage of the increases slowed down. The costs decreased between 2006 and 2007, three years after the implementation of the program. The study concluded that between the years of 2004 and 2007, for every $1 that was spent on the wellness program, $2.43 was saved in health care costs and absenteeism savings.

    Increased Productivity

    • Wellness programs promote healthier lifestyles for employees, and that can lead to an increase in productivity for employers. A 2005 study of 210 workers conducted by the Leeds Metropolitan University reported that "workers' quality of work, mental performance and time management" were better on days they engaged in physical activity. Furthermore, the study reported that on the days that they participated in an on-site exercise program, employees indicated that they were able to manage their time better, able to get more work done, and able to interact better with fellow employees.

    Costs

    • These benefits do not come without their costs. The Wellness Council of America recommends spending $100 to $150 per employee for an effective wellness program. This cost rises if employers also implement monetary incentives and health coaching services. In down economic times or when a company is underpeforming, many executives cut these programs in an effort to immediately cut a significant amount of operating expenses.

    Intrusive

    • Many employees feel that wellness programs may be too intrusive into what they consider their personal lives and decisions they make about their own bodies. For example, according to "USA Today," the company Scotts Miracle Gro forced employees to quit smoking by firing those who did, even for smoking outside of work hours and off-work property, and then they refrained from hiring smokers. Many people feel that these measures are excessive or that an employer should not be able to mandate what their employees consume or how much they exercise.

Public Health - Related Articles