Moore School Web Site | Division of Research | Division Publications | B&E Review | B&E Review, Volume 51 | Vol. 51, No. 1
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Jan Collins |
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Why more and more
U.S. companies are deciding that the workplace is an ideal setting to
address health and wellness issues. |
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Jan Collins
is Editor of the Business & Economic
Review.
Photographs in this article provided
by Colonial Life and Accident Insurance Company in Columbia,
S.C.
Sidebar: Tips for Starting a
Corporate Wellness Program
Sidebar: Energizing an
Anemic Wellness Program
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“There’s no question that workplace wellness is
worth it. The only question is whether you’re going to do it
today or tomorrow. If you keep saying you’re going to do it tomorrow,
you’ll never do it. You have to get on it today.”1 —Warren Buffett Chairman,
Berkshire Hathaway
Fact: It costs
U.S. employers billions of dollars annually to provide their workers with
health insurance, and the cost will continue to increase—by an estimated
12 to 14 percent each year.
Fact: Expenses
associated with medical claims, disability, lost productivity, and
unscheduled absences cost U.S. employers at least $13 billion a year.2
Fact: The
“desk-bound office lifestyle” can lead to obesity, heart disease,
diabetes, and other health problems.3
Fact: Obesity is
fast becoming the biggest health problem in America.
Fact: Stress,
whether generated at home or at work, can be a killer.
What are U.S. companies doing about these
interrelated issues? More and more are turning to corporate wellness
programs. Today, more than 81 percent of U.S. businesses with 50 or more
employees have some form of health promotion program, although their
breadth and formats vary widely.4
Healthy employees, says Don Montgomery, assistant
vice president and director of human resources for Colonial Life and
Accident Insurance Company in Columbia, South Carolina, “have lower levels
of stress; increased well-being, self-image and self-esteem; improved
physical fitness; better stamina; and potential weight reduction.”5
And, university studies show that for every $1
spent on wellness programs, employers can expect an average return of
about $3—the result of less worker absenteeism and fewer workers’
compensation and health care claims.
Because the majority of Americans “spend most of
their waking hours at work,” says Montgomery, “the worksite provides an
ideal setting to address health and well-being.”6 |
| History
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Employee wellness programs had their genesis in
the executive fitness programs begun in the 1970s to keep top management
teams fit. As the health and cost benefits of executive fitness programs
became clear, health promotion programs “expanded beyond top managers to
the entire workforce, and beyond fitness to wellness.”7
In the 1980s, interventions to treat “sick”
employees became interventions to prevent disease, while in the 1990s,
worksite health promotion programs expanded across the country at a fast
pace.8 The Year 2000
National Health Objectives for the Nation integrated “worksite-based
health promotion programs into the list of targeted objectives for
improving the nation’s health.” 9 |
| Colonial Life's
Program
University studies show that
for every $1 spent on wellness programs, employers can expect an average
return of about $3. . . . |
|
In the early 1980s, Gale Averyt, then chairman of
the board and president of Colonial Life and Accident Insurance Company
and himself a fitness buff, decided to implement a wide-ranging wellness
program at his firm. At that time, it was a new idea; in fact, Averyt and
Don Montgomery had to trek all the way to Colorado to find a corporate
fitness program they could model.

Aerobics classes are held on these
gleaming wood floors in a workout room at Colonial Life’s Columbia
facility.
Averyt, who is now retired, was “light-years ahead
[of most executives] in terms of how to integrate a wellness program into
the company,” says Montgomery. “He had this vision of a better quality of
life for his employees. He also believed that in tough times, a wellness
program would help us save money [because our employees would be
healthier]. And he was right.”
Colonial’s wellness program was launched in 1983.
Today, it features a 1,600-square-foot fitness facility called Wellpower,
located on the company’s campus. The facility houses men’s and women’s
locker rooms with showers, thereby allowing employees to work out, run, or
play basketball on their lunch hours or during work breaks.
The wide-ranging wellness program also provides a
raft of exercise machines and a variety of group fitness classes that
feature cardio step aerobics, kickboxing, strength training, cycling, body
sculpting, and yoga. Another popular offering is a 15-minute seated-chair
massage that can be scheduled during the workday. In addition, the company
offers flu shots for employees and their families, mammograms, health
screenings for prostate cancer, blood pressure checks, and
cholesterol/lipid screenings—all given on-site at little or no cost.
Colonial also pays a portion of the fee for employees who enroll in Weight
Watchers classes, which are offered on-site.
That’s not all. Health Promotion Coordinator Jada
L. Hubbard and her colleagues offer one-on-one fitness consultations and
evaluations for fitness facility members, who must pay $16 a month to use
the facility. (Nearly 50 percent of the company’s 1,000 employees are
members.) The fitness programs include custom-tailored, doctor-approved
rehabilitation sessions for employees who have suffered heart attacks or
other adverse medical events.
Hubbard and company also offer specialty classes
such as shag lessons and canoe/kayak trips. A new Walking Club is in the
works. “These activities are fun and they help people stay in shape,” says
Hubbard, who has a Master in Public Health degree from the University of
South Carolina. Colonial is always looking for ways to pump up their
employees’ interest in fitness, and in 2003, it hit upon the Army Fitness
Challenge, where employees volunteered to undergo a series of tough
fitness tests—the same ones given to the U.S. Army’s active-duty
personnel.
The Challenge involved a
two-mile run or a 2.5 mile walk, plus two minutes of both sit-ups and
push-ups. Hundreds of employees were on hand to cheer on the Army Fitness
Challenge participants, and all who participated
received prizes. “It was so much fun,” says Montgomery. “But it had a real
purpose to it.” The event was such a success that it was repeated in 2004,
and Montgomery and Hubbard expect it will become an annual
thing.
A number of Colonial employees, both male and female, are also members of the company’s track
team, a spin-off of the company’s wellness program. The Colonial team,
which competes nationally each year against other
major corporations, always sets the pace.

Colonial Life employees begin their two-mile run as part
of the Army Fitness Challenge. |
| Paying
Financial Dividends? |
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Is Colonial’s wellness program paying financial
dividends? It seems so. The firm’s parent company, UnumProvident, spends
$80 million a year on medical costs for its 13,000 employees nationwide.
But UnumProvident’s health care costs are not going up as fast as the
nation’s; Colonial officials point to the wellness program as one reason.
And, a company study done in 1995 reported savings of $2.81 for each $1
spent on health promotion.
“Our wellness program really adds something to the
company environment,” says Don Montgomery, “If you took it away, there
would be a major hole.” Colonial’s focus on fitness, in fact, is a
featured aspect of the company’s recruiting ads, and the focus helps
attract good employees. The fitness programs also help the company retain
employees. “We’ve got a lot of people who won’t leave here because they
like their jobs, but they love our wellness center,” says
Montgomery.
Pat Carson, a slender senior actuarial analyst and
18-year veteran of the company, is one of those employees. Indoor cycling,
body sculpting, and other classes that she attends at least four times a
week keep her physically in shape and are helping her build needed bone
mass. (She was diagnosed last year with osteopenia, decreased bone density
that puts a person more at risk for developing osteoporosis.) Carson says
her workouts also help her stay mentally in shape. “People don’t make me
mad if I’ve had my workout,” she says with a smile. She takes fewer sick
days, too, and when she does become ill, says Carson, “I don’t stay sick
as long.” She rarely takes a Friday off, because she’d miss one of her
workouts, and she frets about missing her workouts when she does take a
vacation.
Debby Jones, a fiftyish business analyst and
project manager, calls Colonial’s wellness program “just what the doctor
ordered for women my age.” In fact, one reason she accepted a full-time
job with Colonial last fall, after consulting for the company for a couple
of years, was the company’s wellness program. Jones, who attends a cardio
kickboxing class regularly and also uses the treadmill on her own, says
she feels great and is rarely ill. “I’ve lost some fat and gained some
muscle,” she says, “and my clothes are looser.” And, since she began
Colonial’s wellness program, she rarely needs to see a doctor.

The Army Fitness Challenge at Colonial Life
involved numerous sit-ups. |
| Doctor's Care
Doctors Care came up with
financial incentives to increase participation: teams were formed at each
center for the weight-loss challenge, and the contests became fiercely
competitive. |
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In early 2003, Dr. Michael Stout, president and
CEO of Doctors Care, a South Carolina-based network of medical offices
providing urgent patient care, implored his elder daughter to give up
smoking. She eventually did. Then Stout decided it was time to make his
medical centers, which employ more than 600 people at 41 locations,
smoke-free.
“Smoking sets a bad tone, especially in a medical
facility,” says Stout, a medical doctor. “And it sends a bad message to
our patients.” So the word went out that as of Feb. 1, 2003, Doctors Care
would be a smoke-free company. But the company didn’t just issue the
directive. Stout announced that Doctors Care would reimburse employees who
were trying to kick the habit up to three months’ cost of over-the-counter
or prescription medications to help them quit.
The upshot was that 22 employees gave up
cigarettes. “If just one person had (stopped smoking), it was worth it,”
says Stout. But Doctors Care didn’t stop there. To further promote the
health and well-being of its employees, the company launched a fitness
program in collaboration with Specialized Fitness, a wellness center that
focuses on personal training and nutrition counseling.
Called the JumpStart Challenge, the program was a
specific exercise and weight-loss program for its employees. Workers were
able to use Specialized Fitness’ exercise equipment, free of charge.
Experts also provided nutrition counseling and personal training.
Doctors Care came up with financial incentives to
increase participation: teams were formed at each center for the
weight-loss challenge, and the contests became fiercely competitive. “One
office would send over donuts in the morning to tempt the workers,” says
Stout. “They would respond by sending candy back.”
In the end, 80 participants completed the 10-week
challenge, losing a total of 607 pounds. Cash prizes were given to the
winning teams. Now, similar programs are being planned at all Doctors Care
centers in the state. In addition, employees can continue their free use
of exercise equipment and are provided with monthly nutrition and healthy
lifestyle updates.
Stout is pleased with the results of the Doctors
Care health initiative. “People are happy, and our health care costs are
down,” he says—one reason being that employees are taking fewer sick days.
Workers are “very appreciative of the program,” agrees Jacqueline D.
McAllister, vice president of finance and corporate controller. She
herself is one of these grateful employees.
McAllister has lost 48 pounds in the past year and
is well on her way to her goal of losing 80 pounds. “I feel better,” she
says. Plus, now she takes just one blood pressure medication when she used
to take three. McAllister continues to work out three to five times a
week. So do Stout and Jerry F. Wells, Jr., the company’s chief financial
officer. “It’s important for our employees to see us participating, too,”
Stout says.
In the spring of 2004, Doctors Care won a Best
Practices Award in the category of Health and Safety from the South
Carolina Psychological Association for its smoking cessation and physical
fitness initiatives. |
| University of South Carolina
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At the University of South Carolina (USC), the
state’s largest university with its main campus in Columbia, faculty and
staff can participate in the Wellness Works program, introduced in
1996.
The program, run on a shoestring budget of about
$6,000 annually, is looked on “as a benefit to faculty and staff,” says
Michelle Murphy-Burcin, program director of Corporate Wellness at
USC.
Wellness Works has a variety of offerings:
comprehensive health screenings (including a cholesterol/lipid profile)
for just $15; bone density and PSA (to detect prostate cancer) screenings;
group walking programs; a weight maintenance program to help people
maintain their weight over the holidays; free blood pressure readings at
any time; Lunch-’N-Learn noontime programs that cover a variety of health
topics; and a video lending library that offers exercise videos and tapes
on yoga, dance, weight control, stress management, Pilates, meditation,
and so forth.
During the 2002-2003 academic year, 576 USC
workers took advantage of the health screening services, and nearly 500
participated in other programs.
In addition, more than 500 employees have signed
up for the Wellness Works list-serv, and receive regular e-mails about
program offerings, nutritious recipes, and the like. This past fall, more
than 200 University employees participated in Walking Works, a 6-week
walking program, organized by teams, that compete against one another.
“This is, by far, our most popular program,” says Melissa Hale, a former
graduate assistant with Wellness Works. |
| Other
Programs
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Wellness programs can now be found at U.S.
companies across the country. At Children’s Memorial Hospital in Chicago,
employees are offered points for participating in healthy activities, such
as attending a yoga class, exercising for 30 minutes at home, running a
marathon, or playing on a sports team. Points can then be cashed in for
gift certificates. “The highest gift—worth 250 points—is a paid day off,”
writes Carol Patton in the May 2004 issue of Human Resource Executive.
“Last year, 22 employees received this reward.”
Patton also tells of the Washoe County School
District in Reno, Nevada, whose wellness program for its nearly 7,000
teachers and staff is “focused on individual responsibility and
incentive-based activities.” Activities sponsored by the program include
cholesterol screenings, food-safety programs, and wellness adventures,
such as kayaking on nearby Lake Tahoe. A study to determine the short-term
impact on employee health-care costs and absenteeism rates during 2001 and
2002 in the Washoe School District found that absentee rates for program
participants dropped by 20 percent, saving local taxpayers $3
million. |
| Challenges Remain
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Enormous progress has been made in the past 30
years toward wellness in the workplace. But significant challenges
remain.
Not all worksites offer health promotion programs
to their employees. The smaller the workplace, the less likely it is to
offer health promotion programs.10 Moreover, certain industries, such as retail
sales, have been less likely to offer health promotion programs.11 And, low-wage,
blue-collar, and minority workers have less access to health promotion
programs at work, despite evidence that these very employees “suffer a
disproportionate share of diseases and health problems. . .”. 12
It’s clear that employers need to acknowledge the
role that work conditions play in their employees’ health and
productivity. It’s also clear that employers and employees must work
together to improve workers’ health. o |
| Endnotes
Click on note number to return
to body of text. |
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1 Homepage of the Wellness Councils of America,
downloaded at www.welcoa.org/presskit/experts.php 2 National Business
Group on Health, Washington, D.C. 3 Amy Joyce, “Workplace Wellness Programs Help
Keep Budget Healthy,” The Washington Post, May 20, 2003. 4 Don Montgomery,
HR.com, May 2004. 5 Ibid. 6 Ibid. 7 Laura Linnan, “The Future of Workplace Health
in America,” 2004 Wellness Councils of America, downloaded at www.welcoa.org. 8 Ibid. 9 Ibid. 10
Ibid. 11 Ibid. 12
Ibid. 13 Don Montgomery, op. cit. 14 Ibid. |
| Tips for Starting a Corporate Wellness Program13
return to
top |
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Secure senior management’s support. Senior Management must make
wellness a cornerstone to corporate culture. They must take an active
role with an open door to communications, funding, and
process.
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Do the homework. HR professionals should conduct their due
diligence before jumping in headfirst. Visit other corporate facilities
to quantify the type of programs that the company can afford (from both
a space and financial perspective) and that fit employees’
needs.
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Set a strategic course. A busy HR department doesn’t need another
hat to wear. Hire a program director and staff who are true
professionals and can help establish and maintain the program’s
direction. Look for professionals who are knowledgeable about national
health and fitness standards and are certified trainers.
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Balance the scales. Facilities and activities need to be inviting
to anyone who wants to improve their health. The key is to find the
right balance of programs that attract the A-Z employee—from the
marathon runner to the person whose only exercise is walking from the
parking lot.
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Create a supportive environment. A wellness program should be
fostered in a friendly, encouraging environment. Develop a tracking
system of “what works” and “what doesn’t.” This is not only helpful from
a programming standpoint, but also serves as a Return on Investment
measurement for budgetary reasons. |
| Energizing an Anemic Wellness Program14
return to
top |
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Re-evaluate your wellness program staff. Staff should not only
fill their fiduciary roles, but also should act as true, enthusiastic
ambassadors within the workplace. Instructors should combine the right
mix of encouragement, excitement, and follow-up with a true personal
touch to service.
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Initiate employee feedback. Solicit feedback from both active
employees and those who have disengaged from the program. Channels for
employee feedback should be established, whether it’s an employee
advisory committee that actively solicits feedback and aids in
communicating the program, or a suggestion box that’s more anonymous in
nature.
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Motivate, motivate, motivate. Wellness programs should
incorporate attainable goals and objectives for employees. Establish
programs with a progressive level of short-term goals under the umbrella
of an overarching, long-term objective. Rewards—from T-shirts to gift
certificates at local sporting-goods stores—help encourage employees to
stay on track.
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Update and upgrade program image. Evaluate facilities and
equipment for upgrades. A fresh coat of paint and a good deep cleaning
often work wonders. . . Staff should address current health issues,
capitalize on the latest exercise fads, and leverage annual health
observances. . .
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Tap low-cost resources. A myriad of low-cost resources are
available to beef up any wellness program, such as free health
screenings by local hospitals, health and fitness information available
on the Internet or from area physicians, and “Lunch-and-Learns” offered
by health-related
organizations. |
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