What Winning at Wellness Looks Like

Curious to see what makes for a top-notch wellness program?

I’ll assume you said yes, which means you might want to take a peek at the new U.S. Chamber of Commerce Winning with Wellness report.

Released earlier this month, the new publication is designed to “demystify” health promotion initiatives, looking at some of the “fundamentals of workplace wellness programs,” including evidence-based critical components such as developing a plan and applying behavior change methodologies, for example.

The report also lays out “10 Essential Steps in Designing a Workplace Wellness Program,” urging employers to “rely on evidence-based best practice strategies and tailor interventions to their populations” when plotting out wellness initiatives.

To begin planning, for instance, the report suggests that employers assess the organization’s readiness to adopt a workplace wellness strategy, asking “crucial questions” such as: Are there business plans in place that support or impede behavior change? Is there a history of workplace wellness programs? If so, what are some lessons learned? Can the organization specify how health changes can improve the work environment?

In addition, the report cites case studies demonstrating “employee satisfaction and social or financial ROI” from wellness programs at companies such as PepsiCo Inc. and Johnson & Johnson.

An evaluation of PepsiCo’s Healthy Living wellness program, for example, studied the initiative over the course of seven years in an effort to determine the cost impact of its lifestyle and disease management programs.

As the Chamber report notes, the study revealed that Pepsi saw an average reduction of $30 in healthcare costs per member per month, after seven years of continuous participation in either the lifestyle or disease management program.

A 2011 evaluation of Johnson & Johnson, meanwhile, compared a matched cohort sample of its 31,823 employees to similar organizations with a comparable number of employees. According to the U.S. Chamber, the findings demonstrated that, from the years 2002 to 2008, “Johnson & Johnson experienced a 3.7 percent lower average annual growth in medical costs compared to the comparison group,” and J & J wellness programs produced an ROI of $3.92 for every dollar spent.

Finally, the Chamber points to a 2013 RAND Inc. report that determined “there is solid evidence to be optimistic” that healthier employee behavior will correlate directly to lower healthcare costs. More than 60 percent of respondents in that survey indicated that workplace wellness programs reduced their organizations’ healthcare costs, while also reporting an overall decrease in healthcare service utilization, which, in turn, reduced the healthcare cost burden.

While pointing out that each of these studies had limitations, “the majority show that well-designed wellness programs lead to an ROI ranging from $1.50 [for each dollar spent] to more than $3 invested over a timeframe of two to nine years,” the report notes.

Cost savings aside, the report’s authors tout the non-financial advantages of developing a winning wellness program.

“Even if one assumes for the sake of argument that any limitation of each particular study leads to an ROI of less than $1.50 to $3,” they write, “there are other benefits to these programs, such as increased job performance, overall well-being, and happy and thriving employees who contribute to business and community success.”