Health Handouts : Employee Wellness Program Rules

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Posted by Health Handouts | Posted in Health Handouts, Health Tips | Posted on 29-06-2009

Unless specifically stated otherwise, most corporation-employee relationships in the United States are governed by the principle of at-will employment. Under this system a corporation, or the employee, can terminate the relationship without any necessitated showing of cause. This at-will standard gives private companies substantial authority in governing the behavior of staff members. In this environment, companies can Finding Wealth Through Wellness 10 creatively design Employee Wellness Programs based upon their specifi c corporate culture. Employee Wellness Programs generally take three main forms:

Voluntary Employee Wellness Programs – The most popular form of employee Employee Wellness Program, in most cases they are made available to workers but participation (or lack thereof) is not linked to any type of consequence. Due to ineffective communication, frequently workers are either unaware of these offerings or confuse them with insurance-based healthcare. Incentive-based – Employee Wellness Programs based on incentives reward workers for participation in Employee Wellness Program activities. Incentives usually include lower Medical Care premiums, fitness center membership or customized support offerings. In these programs, employees’ behavior can be linked to a particular reward.

Mandatory Worksite Wellness Programs – Some companies require, or ban, certain health-related actions. These can take the form of mandatory Health Risk Assessments for workers and limitations on smoking or alcohol use. While mandating behavior is an effective method to eliminate high-risk behavior, the cost savings must be gauged against the potential message sent to existing and prospective workers. Given that workers are already under various levels of scrutiny in the workplace, individuals may resist attempts by companies to regulate off-duty actions. In Addition, some workers may fi nd it diffi cult to comply, forcing companies into the uncomfortable postion of punishing an otherwise advantageous employee.

In the short-term a mandate-based Worksite Wellness Program can guide to an increase in turnover, as workers either choose to leave or are fi red for noncompliance. In the long-term, the policy may prevent the employer from hiring an otherwise qualifi ed applicant, or may serve as a deterrent for individuals thinking of the employer. Limits in recruiting, for instance, led CNN to rescind a 13-year ban on hiring smokers.18

Corporations need to make sure that Worksite Wellness Programs are aligned with the values and culture that lead organization operations. If a organization emphasizes trust and individual responsibility, then a mandate-based program will likely cause more dissension than it would in a organization that already heavily regulates organization conduct. Moreover, a work environment with a sizable disengaged population will likely have poor participation in a voluntarybased program. When calculating cost savings, corporations need to take a wider view and consider the effects on long-term employee program engagement.

In 2005, Michigan-based insurance benefits provider Weyco instituted a smoking ban for all of its nearly 200 workers. Employees are subject to random testing and if they fail a mandatory breathalyzer test, they will be fi red. It is believed that Weyco is the first employer to use testing to enforce a smoking ban – most employers ask workers to self-report behavior. Four workers (more than 2 percent of the total workforce) left Weyco as a result of the policy. A year prior to the ban the employer createed a $50 smoking fee, which would be waived if a employee passed a nicotine test or agreed to take a smokingcessation class. Weyco’s president Howard Weyers published that 20 workers quit smoking through this program.20 Employees were told they had one year before the total ban would go into effect. Under the new Corporate Health Promotion Program, Weyco does offer $35 a month for workers who want to use a fi tness center and another $65 a month for workers who meet fitness goals/objectives.

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