Is All the Chatter Mostly Missing the Point?
If you were only tuned in to daily media
during the last six months and had no experience with employee health
management programs, your view of these efforts that consumer media often refer
to as wellness programs, would likely be skewed. That’s because a few pundits
have emerged who in some cases seem hell-bent on discrediting the employee
health management industry.
At the same time, the Rand study on the
effectiveness of work site wellness programs was released, with the authors
reporting that there is a limited return on investment (ROI) in terms of
medical cost savings for employee health management programs. In spite of the
Rand study having many limitations that have now been well documented, the
press ran with a distorted view of the findings and the pundits jumped on the
bandwagon. Employee health management was even positioned as just another
problematic component of Obamacare, as if the passage of health reform in 2010
was the first time well-being initiatives at the work site ever existed.
One of the most ironic parts of all the
recent chatter is that what is being debated is only one small component of the
story. Even if the Rand researchers and the pundits were right, it would almost
be irrelevant. While there is plenty of data that suggests that well-designed
programs can impact the cost of health care to the extent that an ROI can be
achieved, health care savings is only one focal point of health management programs.
There are many other reasons employers provide employee health management programs,
all of which can deliver business value.
There is a reason most employers are
not changing course with respect to their wellness programs, in spite of all
the chatter by the pundits. It is because they see their employee health
management initiatives bringing value to their people and the performance of
their companies in a multitude of ways, many of which extend far beyond the
impact on reducing healthcare costs. Here are five reasons why employers are
ignoring the chatter:
- Higher employee well-being is correlated with better job performance, higher employee engagement, team effectiveness, leadership effectiveness and even better business unit financial performance. So, for many companies, having “well” employees is valued because of its impact on the top and bottom line, rather than solely on healthcare spending.
- Employees who are well drive workplace effectiveness by turning over less, being highly present while at work and serving customers more effectively. High performance equates to far greater economic value than healthcare cost reduction alone.
- Wellness initiatives help create a more productive culture, where people care about each other and do their best work.
- Employee health management is simply the right thing to do. Consider this: Why do companies pay for a majority of the healthcare cost for their people? Is it because of the stellar ROI they realize when an employee has bypass surgery? Hardly. A bypass surgery is pure cost, but because we value people, we give them opportunities to optimize their health, whether through medical treatment or wellness initiatives.
- There is an undeniable amount of data that demonstrates people who have healthy lifestyles are more likely to avoid or delay chronic illness. On average, healthy people are more productive and cost less to employ. So, even if it’s difficult to unequivocally demonstrate an ROI from reduction in healthcare spending, common sense suggests that employee health management is worth the effort.
With all of this said, we can learn
some things from the chatter. First, too many people both inside and outside
the wellness industry has emphasized the ROI of employee health management based
on health care cost savings. At the same time, we’ve under-emphasized the total
value employee health management generates. It’s time we focus on the bigger value
picture.
Second, there is a continual need to
produce high-quality research in our field that demonstrates the total value of
employee health management. Finally, employee health management may have
reached a level of maturity as an industry to benefit from a national public
relations effort.
We will be vulnerable to the pundits
and the press if we don’t get out front on effectively and appropriately communicating
our message that employee health management can bring incredible value to
employees and employers alike. This is a
case where the facts tell a powerful, positive story. At HERO, we are committed
to doing research and identifying best practices that will help employers in
their efforts to improve the health and well-being of their workforce.
John Harris Chairman, HERO Board of Directors |
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Jerry Noyce CEO, HERO |
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