Incentives
Encourage Workers to Improve Health
[Posted 11/09/07]
A
survey of 355 large companies by Watson Wyatt and
the National Business Group on Health found that
more employers are planning to provide financial
incentives to reward employees who follow a healthy
lifestyle and encourage others to adopt one.
Companies hope the incentives will make employees
more accountable for improving and maintaining their
own health, thereby lowering escalating healthcare
costs.
The
survey found that companies with highly effective
health and productivity programs
-
demonstrate cost increases
that are 3.5-5 times lower for sick leave,
long- and short-term disability, and general
health coverage;
-
achieve 20% more revenue
per employee;
-
have 16.1% higher market
value; and
-
deliver 57% higher
shareholder returns (2004 to 2006).
The
survey also found that 21.2% of payroll is spent on
programs for wellness, sick leave, and disability
and that lifestyle risks, physical conditions,
chronic conditions, and unscheduled absences are
among the leading health issues that affect
business performance.
In a
news release, Shelly Wolff, national practice
leader for health and productivity at Watson Wyatt,
said “Global competition and pressure for greater
efficiency are causing employers to seek new ways
to help manage benefit costs and increase worker
output. Increasingly, companies are looking at the
health of their workers as the new growth engine to
stave off healthcare inflation and keep employees
on the job and productive.”
Related Links:
Watson Wyatt
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