There is growing evidence that an unhealthy workforce increases the chance for frequency and severity in workers compensation claims. Employees who, smoke, abuse alcohol, overdose on prescriptions, use recreational drugs, have weight issues, live sedentary life styles, are stressed, and have unregulated underlying pathologies like diabetes and heart conditions, are more likely to have injuries on the job.
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Further, these unhealthy conditions delay recovery, add to medical treatment cost, and may subject the employer to exposures over and beyond the workers compensation injury.
Wellness programs are being recognized as a tool to reduce these workers compensation costs. An added benefit is that a healthy work force also reduces accident and health insurance cost and exposures.
Establishing a Wellness Program
When establishing a wellness program many factors need consideration. The size and needs of the employee population that will use the program is paramount. The need and use of fitness gyms and equipment is a major consideration.
Communicate Program with Articles & Posters
There will be need for communicative articles and posters stressing healthy life styles. Seminar meetings with employees discussing lifestyle changes, dieting, home exercises, and underlying pathology control should be conducted.
Training on the use of physical fitness gym equipment may require professional trainer intervention in order to prevent accidental injury by the employee’s misuse. Such an injury would probably be compensable due to the employer providing the service.
Pre-Program Physical
A pre-program physical examination to determine the employee’s fitness and capacity to participate in a physical fitness exercise program is recommended. The doctor and the employee should develop goals and objectives based on the examination results. If underlying pathologies are detected during this examination, the doctor and employee will need to set an effective control program. It is suggested the employer be involved for collaborative discussion and monitoring of the employee’s progress.
Time and place for participation by employees will be amongst the hardest issues to address. Cost and reimbursement will require resolution if there is need for off-site travel to a fitness center by the employee.
While the program needs to be accessible and easy for employee participation, there needs to be as little impact on production and job duty as possible. Off duty programs may require incentives for employee participation. Allowance for on duty participation will have to weigh the cost of lost production vs the benefit being derived.
Such a measurement may not be possible in a tangible manner other than to measure the number of workers compensation and employee benefits both before and after instituting the program. Studies have shown the return on wellness programs to be as high as 4 to 1.
Determine the Location of Program
Naturally the program will have to be free for the employee’s use. It can be advertised as any other employment benefit. Determining the need for a fitness gym to be on or off the employer premises depends on the organization’s size and accessibility to local gyms. If the organization is large enough, an onsite gym can be cost effective for equipment and trainer rather than paying membership and trainer fees.
Sometimes local school districts may be able to accommodate employees in using their gyms after school hours. Their fees might be more reasonable than a commercial gym. It may be necessary to pay the school gym teacher as a trainer. Be aware this may require separate insurance and hold harmless clause issues in a contract.
Measuring the Effectiveness
As already mentioned, the measurement of the program benefits can be seen most easily in medical costs from both workers compensation and employee benefits.
Some other areas that might lead to measurable difference are as follows: Has morale improved? Do employees seem more active and physically alert? Has there been any increase in ideas by the employees for doing their jobs? Are the employees thinking about new products or services to supply? Has absenteeism, dropped? Is there a greater team spirit? Are the employees more attentive to their job duties and responsibilities? Are the employees applying more attention to safety and job environmental conditions? Are employees making any suggestions to improve safety and environment? Has employee interaction improved? Are the employees more receptive to change, new ideas, new programs, new production changes and other job facets? Are employees more alert and attentive to their jobs?
Affordable Health Care Act Implications
The Affordable Health Care Act has set criteria for all wellness programs. If any of these criteria impact on workers compensation, such as the duty to provide a safe work place, they need to be incorporated in the program.
Summary:
Wellness programs are a proven way to have many positive effects on a workforce. Establishing a program will greatly reduce the cost of medical care and claim costs in both workers compensation and employee benefits. Healthier employees with underlying pathologies under control should also lead to higher production and service standards.
Author Michael B. Stack, CPA, Principal, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com. Contact: mstack@reduceyourworkerscomp.com.
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