The controversy continues unabated regarding the value of workplace wellness initiatives and it doesn’t appear that it will let up any time soon. The latest in a string of high-profile naysayers has come in response to a recent Health Affairs report [abstract available; subscription required for entire article] on the efficacy of PepsiCo’s corporate wellness program. It likely has left some asking the question: Is it true that a wellness program can be deployed but deliver little in terms of behavior change (and therefore little to no return on investment)? Yes, it is true. We see it sometimes with our own clients. You may then ask yourself why.
To quote one of the most successful and beloved coaches in sports history, John Wooden, “Don’t mistake activity for achievement.”
This is a mistake many companies make when they implement a wellness program. They offer health risk assessments, set up health fairs, organize lunch ‘n learn programs and wonder why employees don’t suddenly get healthy.
Information & Education = Only the Beginning…
Let’s face it: If access to information alone were enough to improve a person’s health, we wouldn’t have so much lifestyle-related illness. After all, most people already understand that smoking, alcohol consumption, obesity and sedentary lifestyles make us unhealthy. Despite the vast information available to people about how to be healthy, our nation is now at the pinnacle of a health epidemic due in large part to lifestyle choices.
If your company’s goal is to change behavior, thereby beginning to create a reduction in healthcare costs, it’s time to go beyond education. Companies who understand this take steps toward more stringent requirements. Many move next to creating incentives for program participation. From there, a next step may be to implement disease management programs that target specific individuals with certain chronic conditions, along with the establishment of incentives for health results (not just participation).
Wellness Works
Wellness programs can and do work but there’s no one-size-fits-all solution. There’s also no quick fix. Keep in mind that success is defined as the accomplishment of an aim or purpose. Employers may have multiple goals, planning wellness programs that can address any number of factors, including culture, productivity, employment brand and finances. As such, success must be measured in a variety of ways.
Coming back around to the PepsiCo wellness program, disease management was one component of the overarching health risk management strategy, along with lifestyle management. Despite the negative slant of overall publicity around the report, Pepsico’s disease management program was specifically cited for healthcare cost reduction and positive ROI ($3.78) in Health Affairs. This was due to a 29 percent reduction in hospital admissions, which yielded annual cost savings of about $1,632 for each participating member. The authors also pointed out that the subset of participants in both the disease management and lifestyle management components of the program demonstrated a cost savings of about $1,920. Both cost savings values were statistically significant in their study. At the same time, authors recommended caution on the part of employers to not assume the lifestyle management component of their wellness programs alone will drastically reduce costs
At Lockton, We Agree.
Our experience in working with clients is that a more well-rounded focus, along with a long-term investment, is required to begin working toward cost reduction.
To quote the Senior Vice President of Human Resources at a Lockton client organization that has evolved its program over time, “Despite the natural appeal of rewarding good behavior, we found that we weren’t getting results. When we began an outcomes-based program, linking incentives to health risk factors like cholesterol and blood pressure, we saw significant results, especially among our least healthy employees.”
Alignment Gets Results
The most effective efforts align company culture, desired outcomes and program intensity. Taking aim is key. An organization must measure its current health risks and develop targeted programs to begin reducing them. The wise will continue to regularly monitor outcomes and adjust programs as needed. In time they will begin to see improvements in employee health and a reduction in cost.
Learn more about outcomes-based health risk management by downloading our white paper.