Healthy Capitalist Systems

 

Sometimes, it seems the American workforce is literally in sick shape. Business health care costs are escalating at an annual rate of about 17% to 20%, making them the fastest-rising part of employee benefits. Instead of coughing up more health insurance, many companies are creating permanent, in-house exercise rooms, or simply paying employees to take better care of themselves

It used to be that only giant, paternalistic corporations, such as Mobil Corp. or Xerox Corp., built onsite exercise facilities for employees. As the national preoccupation with fitness continues, however, even smaller companies are constructing gymnasiums for their people to use year-round. Companies are adding exercise rooms to buildings already existing or on the drawing board. For example, last February, Heluva Good Cheese Inc., a $20-million cheesemaker, finished outfitting a 20' x 40' exercise room in its new plant in Sodus, N.Y.

The room, located off the employee lunchroom and wired with stereo, has men's and women's showers and locker rooms, mirrored walls, a Universal Gym Equipment weight machine, two stationary bicycles, a motorized treadmill, a punching bag, and a scale. The equipment is used by the plant's 50 employees before or after work shifts. Equipping the minigym cost about $10,000.

"It's difficult to measure these things, but we expect the exercise room to make a big dent in our health-care costs," says Stephen Beal, plant manager. "The greatest savings, though, are the indirect ones. Our workers were awestruck that we built it for them, and they seem more motivated now."

Even when it comes to self-improvement, however, one of the most effective incentives is still cold cash. Hospital Corp. of America, which owns and manages hospitals, rewards exercise with money and incentive gifts, such as T-shirts and running bags. The 250 participating employees at its Nashville headquarters are paid 24 cents per unit of aerobic exercise. Using criteria from health experts, the company defines a unit as one mile of running or walking: 1/4 mile of swimming; four miles of biking: 15 minutes of jazzercise or aerobic dance; or 30 minutes of racquetball. Employees can work out at two main exercise areas in the building, and at a near-by city park. Units are tallied on an erasable board in each exercise area, and individuals are reimbursed every six months with a check. Run on an honor system, the program cost about $15,000 in 1982.

"We set a minimum of 30 units per month, which is roughly the amount of aerobic exercising doctors recommend," says community development officer Anita Davis. "And we've had no problems with the honor system. Employees can monitor each other's progress every day. If someone claims he ran 40 miles a week, and then other runners see that he can barely make it around the park, everyone will catch on.

So far, Hospital Corp.'s capitalistic approach to physical fitness seems to have worked: A 1982 survey among participants showed that 86% believe the program has created "definite improvement" in workplace morale and camaraderie; 76% say their own productivity has increased. "It's a universal thing," says Davis. "Everyone relates to money."

Bonne Bell Inc., a cosmetics company in Lakewood Ohio, also provides monetary incentives to exercise. A well-known supporter of sporting events, Bonne Bell offers its 200 employees 50 cents for every mile they run and 25 cents for every mile they walk. The plan is effective December through March, and 10 or more miles a week are needed to qualify. Employees who stop smoking for six months are paid $250, but if they weaken and start again they have to pay $500 to the J. G. Bell Foundation, a charitable organization established by the company's founders. Also, employees are paid $5 for every pound they lose within a six-month period. The minimum is 10 pounds; the maximum, 50 pounds. In the following six months, they have to return $10 to the foundation for every pound they gain back. In all categories, participants record their weekly totals on forms that are verified by a witness. Employees are then reimbursed with a monthly check. Last year, the entire program cost about $3,800.

"The incentive plan not only helps employees become physically healthier, but mentally clearer as well," says Bonne Bell spokesperson Connie Schafer. "They're very enthusiastic about it."