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Summary: Analyzing Employee Wellness Programs

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Analyzing Employee Wellness Programs
Employee wellness programs are an excellent benefit that employers can offer their employee, which result in many benefits for both employers and employees; however, there are limitations and ethical factors that employers should take into consideration in order to implement a successful employee wellness program.
What is wellness and why are we concerned with it?
It is no secret that Americans, in general, are in a very unhealthy state, especially older adults. Obesity rates are highest among people ages 40 to 59, and nearly two-thirds of those ages 45 to 64 suffer from at least one chronic disease (Walsh, 2015). The Centers for Disease Control and Prevention estimates that as much as 75% of US health …show more content…

Implementing and managing an employee wellness program does have costs involved, but the financial benefits for everyone involved outweigh the costs associated with continuing the program. Smaller businesses struggle more with the cost of implementing an employee wellness program, but the Patient Protections and Affordable Care Act has authorized $200 million for short-term grants to help employers offset the cost (Mukhopadhyay, 2013). Once the program is implemented, companies may questions whether the program is effective and if they should continue by renewing vendor contracts or soliciting bids from new vendors. When making this decision, many companies use the return on investment analysis to evaluate the effectiveness of their employee wellness programs. The author of the article, Evaluating an employee wellness program, argues that “because wellness programs requires short-term expenditures to support healthy behaviors such as screenings for cancers or chronic conditions, while the potential benefits of these investments may accrue over years—or decades” (Mukhopadhyay, 2013). Because of this, companies should focus on the success of recruiting participants and inducing behavior change, since these behavior changes are likely to produce long-term savings. Other ways to evaluate the program is to use a third-party tool, graph the participation rates in activities, an anonymous survey of participant satisfaction, or look at the …show more content…

There are many legal considerations when implementing and managing an Employee Wellness Program. Employers must be very careful and consider seeking legal counsel to ensure no discrimination laws or HIPAA laws are being broken. First, employers must consider that cash incentives offered may have tax implications for the employee, employer, or both (Guidance for a Reasonably Designed, Employer-Sponsored Wellness Program Using Outcomes-Based Incentives, 2012). Federal laws tell us that any information received from a personal health assessment (such as one completed for the employee wellness program) must be kept confidential and separate from the employee’s personnel file (Pomeranz, 2015). Employers should also be careful not to penalize employees for non-participation in the employee wellness program. Voluntary programs have far less legal implications than mandatory programs and are just as successful. Johnson and Johnson’s voluntary wellness program has successfully avoided $250 million in healthcare costs in the last decade (Stone, 2012). Among legal concerns, there are also ethical concerns with an employee wellness program. Employees may feel that their employer is being too intrusive into their personal lives and those employees who are obese or smoke, or have a chronic disease may feel penalized or discriminated against. Employees may also have the fear that their personal health information might be compromised, thus embarrassing

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