1. CorporatEWELLNESSpROGRAMS Tyler Eaton Emily Holdorf Gabrielle Raymond Michelle Seeger Breeanna Verna

2. INTRODUCTION • Corporate wellness programs have been implemented into corporations to increase employee health and decrease their chances of developing chronic diseases such as obesity, cardiovascular disease, and hypertension. • These issues increase the amount of absenteeism, disability, injuries and healthcare claims thus driving up the health care costs for employers and premium costs for employees. • These programs can include things such as access to a fitness facility and its equipment, offering healthier food choices in the corporation’s cafeteria, and health & wellness education from trained professionals. The implication of these health care programs can ultimately lead to a healthier environment and create happier more productive employees.

3. Background • Statistics show that in 2000, the health costs of overweight and obese individuals were estimated at $117 billion per year. • Being overweight has increased health care rates yearly by $125 per person. • Being obese increases costs by $395. • In 2013 health care costs of overweight and obese individuals sky rocketed to $254 billion per year and is estimated to reach $861-957 billion by 2030. • In 2012 91% of organizations had some type of health promotion program in place, versus 78% in 2002.

4. CURRENTLY HAPPENENING • The Meredith Corporation is a national publishing corporation that opened a company fitness center for their employees after experiencing an 18.5% increase in insurance premiums. • Meredith ultimately slashed their insurance costs to below a 2% annual rise representing $8-10 million in savings • The corporation spent just $2 million to run the entire wellness program in that same time frame. • Those participating in the wellness program saw a $500 annual reduction in their health insurance premiums • Other organizations including Pepsi Bottling Group, Toyota, and Sprint Nextel have used similar tactics to lower cost such as offering onsite health clinics and providing advice and stop-smoking tips.

5. Impact on Future Organization management/HR Decisions • Changes within job recruitment • Where companies recruit • The types of individuals they recruit • The values and beliefs that establish the idea of the “ideal” employee • May effect the direction and image of the company culture • More and more organizations are leaning towards this approach to benefits

6. Points of view/opinions • The addition of fitness facilities as well as benefits based on gym memberships has become increasingly popular. • Companies believe that healthy employees lead to not only happy employees but also better productivity • Healthy employees often have better stress management, greater focus, think outside the box, and increased production. • On the opposing side; • Some believe the cost of these programs are too high and the savings may not be adequate to determine the program beneficial • There is legal liability associated with the addition of on-site fitness centers, injuries that occur could present both legal and financial strain for the company

7. Benefits • There are an incredible amount of benefits of providing a wellness program for both companies and employees.

8. Benefits for Employers • Happier, more productive employees • Better performance • Lower absenteeism • Lower health care costs • Higher retention rates • Higher morale

9. Benefits for Employees • An opportunity to get healthy • More energy and vigor • Reduced stress • Lower blood pressure or cholesterol • Lose weight • Sleep better • Build camaraderie with co-workers • Cash incentives • Lower health care premiums • Free or discounted gym membership

10. Expenditures • Wellness programs can vary greatly in cost to the company • Ones that offer only information and education to employees are cheaper • Programs that include healthy dining at work, gym memberships or on-site fitness centers ect., are much more expensive • Despite the amount of money spent, any type of wellness program has shown to be beneficial to both the company and employees • Many companies have shown that the major benefits are higher productivity and decreased health insurance costs

11. Expenditures • Studies on wellness programs have shown a positive ROI (return on investment) • Health care and absenteeism is shown to reduce by 25-30% within an average of 3.6 years • Typical ROI for spending on worker’s health promotions is about 3:1 without considering employee retention

12. IBM, Armonk, NY399,400 employees (worldwide) • They offered: • An online program that sets goals and develops plans for implementing physical activity and nutrition, limiting screen time, and “role modeling” (including the family) • The company gives a $150 annual cash incentive for participation • Return on Investment: • High levels of employee satisfaction • A savings of $2.42 on every dollar spent on the program • A total savings of $191 million from a $79 million investment

13. Capitol Metropolitan transportation, Austin, TX 1,075 employees • They offered: • A 24-hour fitness center • A dietitian, personal trainer, and wellness coach • A full body assessment • Weight Watchers classes and healthy eating workshops • A walking club and bike loan program • Weekly discount coupons for healthy cafeteria food • Stress reduction and smoking cessation classes • Return on Investment: • A savings of $2.43 on every dollar spent since 2003 (Study was done in 2009) • 37% lower absentee rates since 2003 • 24% net increase in health care costs in 2009 compared to $49 projected increase

14. Lincoln industries, Lincoln, NE400 employees • They offered: • Facilities went smoke free in 2002 • Mandatory, quarterly health checks starting in 2003 • Wellness goal consultation following health check • Health objectives included in the company’s performance management system • Weight Watchers @ Work • Smoking cessation classes • Nonsmokers received discounts or partial reimbursement on gym membership or any purchases of fitness equipment • Stretching sessions before starting each shift • Neuromuscular therapy available on-site • Return on Investment: • Health care savings of $1 million • Worker’s compensation claims reduced from $510,000 in 2003 to $43,000 by 2009 • Health care costs per person reduced to about 1/2 - less than 2/3 of the industries average

15. CORPORATE WELLNESS PROGRAMS