CEDR Two Minute Trainer: Employee Wellness Programs

Promoting Employee Health and Well-being in the Workplace

Having a healthy workforce is a good thing. Healthy employees tend to be more productive, take fewer sick days, and are less likely to get hurt on the job. Moreover, studies on the effectiveness of various employee incentive programs indicate that lifestyle-type benefits (e.g., paid sick leave, flexible scheduling, health insurance benefits, etc.) have a greater impact on long-term loyalty and productivity of employees than straight wage increases, which tend to have only a short term effect. This makes implementing a wellness program not only a good way to support healthy habits for your team, but also a good move for the financial health of your business. 

However, healthcare is a touchy personal subject, and in the workplace, it’s a protected one. How can your business promote the health and well-being of your employees without crossing the line?

A workplace health or wellness program is a health promotion activity or organization-wide policy designed to support healthy behaviors and improve health outcomes while at work. These programs typically consist of activities such as health education and coaching, weight management programs, medical screenings, on-site fitness programs, and more. Wellness incentives can range from formal programs offered in conjunction with a group insurance plan, to other more minor adjustments to your workplace policies, such as allowing time for exercise, providing on-site kitchens and eating areas, offering healthful food options in vending machines, or holding “walk and talk” meetings.

Formal large-scale wellness programs that work in conjunction with a comprehensive health insurance plan can be costly when run by third parties. Some insurance providers, such as Humana’s “Go365” program, offer wellness rewards programs for free with some of their plans. These typically provide premium reductions and other rewards for employee participation.

Cost savings can also be found through tax programs. As of 2017, workplace wellness programs are eligible for federal grant funding under the ACA (Affordable Care Act). Also, some states, like Maine and Massachusetts, provide a tax credit for wellness program costs. But even smaller-scale programs that won’t break your budget can generate quite a bit of excitement and positive discussion among your team.

Programs to Fit Your Office

It’s important to focus on the type of wellness initiatives that would most benefit your employees. A 2014 study by the CDC found that (only) 11.6% of healthcare employees were obese (as opposed to 24.6% for all industries). But everyone can benefit from encouragement to engage in more healthy habits. For example, to encourage your team to be more active, you could consider offering reimbursement for fitness center memberships, or partner with your local YMCA. Another fun idea is to start a walking program by mapping out routes in and around your worksite, and perhaps issuing pedometers or fitness trackers for participants, or as a reward after a period of time.

Another possible avenue is education. Bring in a speaker to train on stress management, meditation, nutrition, or healthy aging. Awareness about risk factors can be increased by scheduling voluntary health screenings that check blood pressure, cholesterol, or other health indicators. These may even be covered by your group health insurance plan. Offering smoking cessation programs is another option; however, financial rewards or reimbursement must be offered regardless of whether a person actually quits.

A wellness program may simply be about making your team aware that their health is important to you. Maybe you are already doing things to help your team be more health-conscious, such as having healthy snacks available, offering free or discounted in-house dental or medical treatments, or bringing in healthy lunches for the group from time to time. Simply reminding your team of these benefits can help boost morale and encourage healthy habits.

Keep it Legal

On the down side, some wellness plans can have a punitive impact on those who fail to participate or meet certain benchmarks. Financial incentives to get healthier can quickly become financial penalties for those who are not as fit. Some believe this can be a form of discrimination. To avoid any legal repercussions from wellness programs, keep the following tips in mind:

• Remember that any wellness incentive program needs to be purely voluntary, without any penalty for not participating.
• Programs need to be offered to all similarly-situated individuals – the whole team or department – and not just to certain people, or to those deemed “to need it most.”
• No employment decisions (changes in wages, schedule, benefits, or continued employment) should be made based on an employee’s participation or lack thereof.
• If you have employees with disabilities, you may need to make reasonable accommodations to make participation possible.
• While you can legally charge more for health insurance to smokers (up to 50%), this punitive approach is rarely effective to actually get a person to quit smoking, and there are legal requirements that must be met and risks to doing this properly. Check with an advisor before attempting this tactic.
• Be sure to keep any and all medical information strictly confidential and store it in a file separate from the employee’s personnel folder.
• Remember that any cash or cash equivalent rewards (i.e. gift cards) are considered taxable income, and must be included on an employee’s W-2.

Finally, a word on timing. Be sure to set a finite date for new programs, because very few initiatives stand the test of time. Try setting a three month goal, or scheduling a month-long weekly education program. This makes employees more likely to participate because they don’t have to make a long-term commitment, and helps management gauge interest and vary initiatives based on what works for your team.

Three Things You Can Take Away:

1. Wellness incentives can range from formal programs offered through a group insurance plan, to minor changes in your workplace, such as allowing time for exercise, providing on-site kitchens and eating areas, or offering healthy food options on site.
2. What really motivates and impacts the employees in one practice may not in another! Tailor your program to fit the wellness needs of the employees in your group.
3. Review the tips we shared above when developing a wellness program for your practice, and remember to set a reasonable date for your wellness goal.

Once your program is set up and running, have fun! And remember, members can call a Solution Center Advisor at 866-414-6056 or email solutioncenter@cedrsolutions.com with any questions.