Some companies find that paid time off is even more of an incentive than premium reductions or cash rewards.
“This is particularly true for higher-ranking employees who are already well compensated,” said Tanya Lewis-Walls, senior director of UnitedHealth Group's Clinical Solutions wellness program.
Cathy Murphy, vice president of human resources for Blue Shield of California, strongly agreed. Under its new WellVolution program, the insurer offers its employees a day off just for completing an HRA and undergoing some basic biometric testing. Ms. Murphy said 52% of all company employees have now taken advantage of this and credited a 200% increase in participation largely to the day-off incentive.
All that paid leave is no small expenditure for a company the size of the California Blue. She estimated that it cost the company $2 million last year. “It's a big commitment, but it is very important,” she said.
Ms. Lewis-Walls of UnitedHealth Group said that employees who achieve healthy weight goals can save their companies as much as $2,500 per year, on average, in reduced medical cost, absences, and lost productivity. Workers who quit smoking can save their bosses up to $3,500.
Still, advocates for corporate wellness programs acknowledge that they can be a tough sell, especially in a down economy. No one would dispute the human benefit of improving worker health. But the hoped-for cost-savings are realized over the long term, and on an aggregate population, while the actual costs of implementing and incentivizing a wellness program are immediate, per-employee, and getting bigger by the year.