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The Employee Health Debate: Cost vs. People

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There is a big debate these days about how involved employers should be in their employees’  health.

Should employers be concerned about the cost impact of poor health?

You know the old saying, “A company’s employees are its greatest asset”?

Well, doesn’t it make sense that employers would invest in keeping their “greatest asset” healthy, happy and optimally productive? Take a look at these numbers…

  • Obesity costs on average $1,351 annually/employee
  • Diabetes costs on average $1,176 annually/employee
  • High cholesterol on average costs $892 annually/employee
  • High stress  on average costs $764 annually/employee

Source: 2011 SHRM Foundation’s Effective Practice Guidelines Series, Promoting Employee Wellbeing

Employers who invest in wellness programs typically receive increased employee retention, attendance, and productivity in addition to the obvious health improvements which occur when a person implements healthier lifestyle practices.

It has been shown that medical costs improve by an average of $3.27 and absenteeism costs improve by an average of $2.73 for every dollar spent on wellness.  Source 

The flip side of the argument is that employees have a valid concern about their health status becoming grounds for limited opportunity in hiring, promotion, or even termination. As employers become more involved in employee health, the fears grow among work populations.

As stated in the New England Journal of Medicine’s perspective on The Ethics of Not Hiring Smokers,  twenty-nine U.S. states have passed legislation prohibiting employers from refusing to hire job candidates because they smoke, but 21 states have no such restrictions. In addition, there is no federal law and only a handful of cities and one state (Michigan) law which protects obese individuals from discrimination. And even these apply to obese people in general, not necessarily related to employment. Citizens Medical Center in Victoria, Texas has instituted a policy which requires that all employees have a body mass index of less than 35 according to a story by CBS Houston.

Do people who are in less than optimal health have rights to gainful employment and opportunity? Of course they do!

Do employers have the right to staff their businesses with people who are full of vitality, energy and can ultimately contribute to the company mission and vision. Of course they do!

My personal take on the issue: employers need to be involved in employee health, but for the right reasons. Not because they need to control costs…or else. But rather to inspire their employees to be the best that they can be for themselves, their loved ones and their company.

Employee wellness can get buried under health mandates, insurance premiums and other things which scare employees into thinking that their jobs are at risk.

Or, wellness initiatives can be a wonderful way to support your team and inspire them towards new levels of productivity which will help your company thrive in ways that no ROI study could ever calculate.

When you make your wellness programming goal, that of helping your people, the real return on investment begins.

Jen headshot 2013Jennifer Oppelt is the President and Founder of Enliven Wellness Works, a company specializing in workplace wellness and personal wellness based in St. Petersburg/Tampa Bay FL. She is a licensed massage therapist in the state of FL (MA37357), a graduate of the Institute for Integrative Nutrition’s Health Coach program and a Certified Workplace Wellness Specialist and Program Manager through the National Wellness Institute . She is happily married and a mother to two children, Alchemy and Ashton. Jennifer loves spending time with family, cooking real food, fitness and is an advocate of sustainable living.

The post The Employee Health Debate: Cost vs. People appeared first on Enliven Wellness Works.


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