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"We are going to have to do more with less."
"We are going to have to tighten our belts this year."
"When the going gets tough, the tough get going."
"It’s time to put our nose to the grindstone."

Organizations are going to have to do more than make bold statements if they are going to weather the current economic downturn. At the same time they are aggressively cutting current costs, they must think through the long term impacts of their decisions to ensure they haven’t mortgaged the future of the company.

Expecting more out of less is futile without a comprehensive strategy. As employees fear for the future of their jobs, productivity is one of the first casualties. This fear is real according to the fourth quarter 2008 Principal Financial Well-Being Index which found 41 percent of employees are concerned their company will reduce the number of employees in the next year.

One of the best ways to increase productivity is to improve the health of the work force. Comprehensive wellness programs are more important than ever if companies are to survive, let alone thrive. Difficult economic times make investing in wellness a sound economic strategy.

In order to be successful, a comprehensive wellness program must have certain key elements.

• Give the grade — employers need a comprehensive, aggregate report of relevant data and measurable results. This information will help them tailor programs that address common health habits in their entire population.
• Make it work, at work — organizations need to have a culture of wellness starting with the management. Let employees know this is important to management by having them visible at wellness events. Make sure wellness is integrated into a variety of places. Consider changing the onsite cafeteria menu to serve healthier food options.
• Gather and evaluate — a comprehensive program needs to include self-reported health information, but also biometrics collected through a simple blood stick test. By adding these two together, the employee receives a more accurate picture of their current health status.
• Target it — those identified as “at risk” should be part of an individualized coaching program. They should receive ongoing communication and assistance in making lifestyle changes. By working with a coach, they are more accountable for implementing health improvement activities.
• Engage year round — wellness programs should not take place once each year; they should continue throughout the year. Employers need to continually educate employees on the importance of health improvement through programming, outreach and even through company-wide competitions such as a fitness challenge.
• Make it worth it — the program needs to encourage participation by all employees. One way to do this is by giving an incentive such a reduced health premium for those who participate or contributions to a health savings account.

Implementing a wellness program may seem like a tough decision in challenging financial times. Given the cost pressures employers are facing, they question why they would want to increase any expense at this time. However, the cost is only one part of the equation. Employers need to fully understand the benefits of the program. Wellness programs offer both proven clinical and financial improvements. Benefits come from multiple sources:

• Lower health care costs
• Increased productivity
• Reduced absenteeism
• Reduced presenteeism
• Fewer injuries
• Reduced workers’ compensation costs

Wellness programs also help improve employee morale. When employers are faced with the tough decision of cutting jobs, they often focus too much on those who are displaced rather than those who now have to carry a heavier load. An investment in their morale, one that communicates “we’re here to help”, will pay significant dividends.

Wellness programs can help reduce both the frequency and severity of medical conditions. This improves the group’s overall health, leading to fewer medical claims and lower renewal rates. The relationship makes expenditures on wellness an investment, not an expense.

Employees also believe wellness programs can be effective in reducing healthcare costs. The Principal Well Being Index found over half of the respondents believed wellness benefits offered by their employer can be successful in reducing healthcare costs. As a result, employees truly believe wellness is a valuable benefit.

Employers can pay a small amount now or a large amount later. Wellness programs are a proven, cost effective way to increase employee productivity and reduce operating costs. In addition, a comprehensive program can improve employee morale and position the health care benefits for renewal. Now more than ever, employers should explore adding wellness programs.

Jerry L. Ripperger is the national practice leader–consumer health Principal Financial Group.

For information about acac@work, please contact Leanne Knox, Corporate Wellness Director, at (434)951-2161 or click here.