More employers are providing financial incentives designed to drive employee participation in wellness efforts, a survey shows.
In fact, nearly half—49%—of large employers surveyed currently offer such incentives to encourage workers to monitor and improve their health, and as many as 70% are expected to do so by 2009, according to the 2007/2008 Staying@Work survey.
A total of 255 large employers participated in the survey, which was conducted during the month of July over the phone and via the U.S. Mail by benefit consultant Watson Wyatt Worldwide and the National Business Group on Health.
Employers are finally warming up to idea of using wellness programs as a cost containment strategy because "there has been enough data and research from employers who have tried it and found that it works," observed Shelly Wolff, national practice leader for health and productivity at Watson Wyatt based in Stamford, Conn.
"Employers have run out of ideas. They can't continue to cost shift. So they have to focus on health," she added.
In fact, the survey found that employers with highly effective health and productivity management programs have cost increases that are five times lower for sick leave; four and one-half times lower for long-term disability; four times lower for short-term disability; and three and one-half times lower for general health care coverage.
The survey also found that employers with effective health and productivity management programs achieve 20% more revenue per employee and have, on average, a 16.1% higher market value and deliver 57% higher shareholder returns.
The next challenge confronting employers, based on the survey responses, is to manage the stress that goes along with this higher productivity, according to Ms. Wolff.
In fact, the survey found that although 48% of employers say that the stress created by long hours and doing more with less affects business performance to a great or very great extent, only 5% are taking considerable action to address these area.
"Employers are sitting on a lot of solutions they have in their benefit portfolios today. Most employers offer work/life benefits and EAP programs. All of these benefits can be repackaged in a way to address the other drivers of stress such as workdays being extended beyond the traditional eight hours. I think that is one of the things employers are trying to sort out," Ms. Wolff said.
More information on the 2007/2008 Staying@Work report, which is conducted biennially, can be found at www.watsonwyatt.com.
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