Wellness Programs Healthy Despite Cutbacks

Work place health initiatives are one area where CEOs are not willing to make cuts.

Despite the struggle to contain costs, one human resources offering is proving resistant to cutbacks: company wellness programs.

Traditional health benefits cover employees who fall ill. But workplace wellness programs are aimed at preventative care—they encourage workers to adopt healthier behaviors so they don't get sick in the first place. Efforts typically focus on two areas: education, which can include classes or screenings and company support for better behaviors, such as smoking cessations programs, healthier cafeteria offerings, and bike racks.

A recent survey by New York-based human resources firm Buck Consulting found establishing a corporate culture promoting healthy lifestyle choices was a priority for 87 percent of respondents, and 65 percent reported they currently have moderate or extensive wellness programs.

Nineteen percent were expecting to increase their wellness budgets, while 59 percent predicted spending would stay the same. Among those bracing for company-wide cuts, 78 percent didn't think wellness would be harder hit than other departments.

"A lot of these programs in the past got cut, but now times have changed and companies are recognizing this is a longer-term investment," said Barry Hall, a Buck principal in the area of global wellness.

Dr. Terry Schaack, Medical Director of the California Health and Longevity Institute, which offers training for executives whose companies are developing wellness programs, agreed businesses have accepted these programs as important in recent years.

"Ten years ago, you had to do some convincing that this would save the corporation money overall, but you no longer have to do that—they know it's true," he said. "Now the real question is, can your program accomplish these transformations?"

As healthcare costs continue to skyrocket, these initiatives are looking increasingly attractive as a way to control long-term costs. Lifestyle changes can reduce the risk of diseases like diabetes and heart disease, and so companies are turning to wellness programs as a way to cut healthcare spending before it becomes necessary.

Companies are also interested in the programs as a way to boost productivity.

"If you feel better, you're more productive, and if you can get more productive days from people, it's better for the company," Dr. Schaack said.

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