WASHINGTON – A report released in early February reveals that roughly 2 percent of capital spent on the workforce is drained by disability, absenteeism and presenteeism.
As a result, companies are increasingly emphasizing health and disease prevention in the workplace.
“Working Toward Wellness,” prepared by PricewaterhouseCoopers Health Research Institute in conjunction with the World Economic Forum, noted that corporate wellness programs have been shown to provide a three-to-one return on investment.
IBM has had a wellness program in place for decades, said Joyce Young, director of IBM’s Wellbeing programs.
IBM also is working with the University of Michigan’s Health Management Research Center to conduct ROI studies and analyze the impact of its programs on the use and cost of healthcare services, Young said.
Approximately half of the global company’s U.S. workforce of 65,000 takes advantage of its healthy living rebate program. The company has invested more than $130 million in healthy living rebates, in which employees can get as much as $300 a year by choosing among three options, including quitting smoking.
The rate of smoking among IBM employees has declined to less than 10 percent, compared with national rates of slightly more than 25 percent and about 22 percent for men and women, respectively.
“Employee well-being is a fundamental line management and employee responsibility,” Young said.
Michael Dermer, CEO of IncentOne, a provider of incentive programs, said it is virtually impossible for large companies to compete globally because of runaway healthcare costs.
Tools and enhanced programs with incentives can help boost employee adoption, he said. He expects to see greater adoption at the government and large employer level, with greater flexibility on rewards and additional funding to employees to motivate healthy lifestyle changes.
Incentive-based programs are not a new trend, said Carl Doty, an analyst for Forrester Research. While wellness programs are a step in the right direction, the key is making incentives relevant and personalized.
The biggest hurdle remains getting people to change their lifestyle and behavior, he said.