Health benefits costs are always a concern for employers. But integrating a wellness program into the workplace can help reduce drug plan spending and keep employees healthy and engaged.
Wellness is a must as a recruitment/retention strategy, said Janet Young, vice-president with Buffett & Company, speaking at the first Canadian Pension & Benefits Institute Annual Benefits Outlook on Feb. 24 in Toronto. “Gen Xs and gen Ys will expect to see wellness on the table.”
The good news is, prevalence of workplace wellness programs has increased. In Buffett & Company’s first tri-annual national wellness survey in 1997, only 44% of respondents said they offered a wellness initiative. In 2009, 91% said they offered such an initiative.
But while more than one in 10 companies have wellness programs, only about four in 10 (38%) actually measure them. “Programs can’t be sustainable if they’re not measurable,” explained Young.
Technology and Trends
While measurement and evaluation are trends that will continue to grow, Young also indicated that wellness programs are becoming more strategic and more linked to business objectives. They’re not just seen as “nice to have” anymore, she explained.
Wellness apps for handheld technology will also emerge in the future. And with social networking sites such as Twitter and Facebook, companies may begin to “tweet” health tips, she noted.
Generational programming for different employees, and ways to communicate with them, will also be at the forefront. And employer recognition will also play a larger role regarding wellness programs. Roughly 80% to 90% of the organizations on top employer lists are likely doing something with wellness, Young remarked.
Case in Point
While a wellness program may look good on paper, its impact becomes clearer when an employer puts it into action. One example is the Town of Richmond Hill.
The Town of Richmond Hill started its wellness program in 1998. Back then, while 44% of employers said they had wellness initiatives in the private sector, that was unheard of in the public sector, said Debra Wight, manager, employee health, safety and benefits, with the Town of Richmond Hill.
The town moved to a flexible benefits plan, looked for ways to save money on benefits and helped employees become more aware of their health. Senior management got involved and the town partnered with Shoppers Drug Mart to get a blood pressure machine in the HR department. It enlisted the help of a consultant (Buffett & Company) and created an annual plan.
“We started using the resources we had and built on that over 12 years,” noted Wight. Richmond Hill’s wellness programs include hearing screening clinics, a quarterly wellness newsletter, a health fair, an annual fitness challenge and fitness membership subsidies.
And the proof is in the low-fat pudding. In 2001/02, Richmond Hill’s annual increase in prescription drug spending was 13.9%. By 2007/08, it was down to 3.5%. Similarly, the number of claims decreased by 3.9%. Wight attributes much of this to homeopathic treatments and a focus on prevention.
Wight adds that, under the town’s 2007 Healthy You Program, 26 employees improved their BMI, 31 improved their body fat percentage, 20 improved their cholesterol and 15 improved their blood pressure.
“We have an engaged workforce,” Wight stated, adding that she’s happy to report on the lack of strokes, cancer cases and heart attacks that are in her employee base.
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