Healthy Living

Monday, November 30, 2009

Fit Companies Are More Fiscally Fit

By Shirley Archer, A WeSeed Blogger

Companies with fit and healthy employees also enjoy a healthier bottom line, according to a growing body of research . In this challenged economy, check out companies that support employee wellness. These companies will have an extra human resource edge to cope with increased market stresses.

Corporate wellness programs save companies money by reducing both direct and indirect costs. Direct costs of an unwell work force are experienced through higher insurance premiums, workers compensation and disability. Indirect costs result from lost productivity either through absenteeism or job turnover from employees who are too sick to return to work.

People who have one or more chronic diseases spend up to five times more on medical care than people who are healthy. Chronic diseases include high blood pressure, heart disease, diabetes, asthma, depression, among others. Many of these conditions can either be prevented or more effectively managed through improved nutrition, regular exercise, better sleep, and effective stress management.

And, these costs are expensive. In 2006, U.S health care spending totaled $2.1 trillion. Employers paid more than one third of the total annual bill, the balance was paid out of Medicare, Medicaid, other government programs, individual insurance coverage and the pockets of patients.

A noted leader in corporate wellness programming is Johnson & Johnson ( JNJ ). Its smoking cessation and exercise program saved the company $1 million in five years. Prudential ( PRU ) saved 45 percent in health costs after implementing an employee fitness program. Florida Power & Light ( FPL ) noted that they reduced health care costs by 35 percent and worker compensation costs by 38 percent per claim.

Federally funded research is being conducted to determine what the best models for worksite health promotion are. As evidence-based programs are developed, employers are more likely to adopt programs. Watch for financial incentives such as tax credits to also incentivize effective corporate program development.

If you’re interested in learning more, Ron Goetzel’s, director of the Institute for Health and Productivity Studies, comments and study for a good overview of the topic.

Shirley Archer is the resident expert on wellness at WeSeed.com . Winner of the 2008 IDEA Fitness Instructor of the Year Award, Shirley has crunched bods for 20 years and authored 15 books that have sold more than 200,000 copies. Online expert for CNN.com, ABC.com, MSN.com, WebMD.com, WeightWatchers.com. Check out her mind and body workouts at www.shirleyarcher.com.

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