Corporate Programs

National Wellness Survey Report 2000

The Second Tri-Annual Buffet Taylor National Wellness Survey shows that workplace wellness is becoming increasingly important to the Canadian Business community. Four hundred and twenty-two businesses representing 716,885 employees responded to the 1999 survey.

Results:

• 17.5% of companies are offering comprehensive worksite wellness programs

• 64% are offering some wellness initiatives

• The top four reasons why these companies offer worksite wellness programs:

1. 27.3% consider healthy employees a valuable asset

2. 25.6% want to promote a healthy lifestyle

3. 14.3% want to reduce absenteeism

4. 10.1% want to contain the costs of benefit programs

The Economic Burden of Illness in Canada, 1993

A 1993 report by Health Canada showed that the total cost of illness in Canada for 1993 was $156.9 billion. This is roughly equivalent to 22% of the Gross Domestic Product or $5,450 per capita.

This was broken down as follows:

• $71.7 billion in direct costs; and

• $85.1 billion in indirect costs.

All costs, except $27.6 billion in direct costs, were classifiable by diagnostic category. Those with the highest costs were:

• Cardiovascular disease -- $19.7 billion

• Musculoskeletal diseases -- $17.8 billion

• Injuries -- $14.3 billion

• Cancer -- $13.1 billion

These four categories represented 50.2% of the total cost of illness classifiable by diagnostic category.

Health Canada Economic Burden of Illness in Canada, 1993

Return on Investment

Evidence in Canada

• Canada Life in Toronto showed a return on investment of $3.40 on each corporate dollar invested on reduced turnover, productivity gains and decreased medical claims.

• Dr. Roy Shephard found corporate wellness programs returned a cumulative economic benefit of $500 - $700 per worker per year.

• Municipal employees in Toronto missed 3.35 fewer days in the first six months of their "Metro Fit" fitness programs than employees not enrolled in the program.

• BC Hydro employees enrolled in a work-sponsored fitness program had a turnover rate of 3.5% compared with the company average of 10.3%.

• The Canadian Life Assurance Company found that the turnover rate for fitness program participants was 32.4% lower than the average over a seven-year period.

• Toronto Life Assurance found that employee turnover for those enrolled in the company's fitness program was 1.5% versus 15% for non-participants.

Evidence in the U.S.

• Bank of America - $5.96/$1

• PacBell - $3.10/$1

• Wisconsin School District - $4.47/$1

• Prudential Insurance - $2.90/$1

• General Mills - $3.50/$1

Here are some examples in the U.S.

• For $30 per person, the Bank of America conducted a health promotion program for retirees. Insurance claims were reduced by an average of $164 per year while costs for the control group increased by $15.

• Coca Cola reported a reduction in health-care claims with an exercise program alone saving $500 per employee per year for the employees who joined their HealthWorks fitness program.

• Prudential Insurance reports that the company's major medical costs dropped from $574 to $312 for each participant in their wellness program.

Data from the Worksite Health Promotion Directory

The Impact of Active Living at Work Initiatives

More than 200 studies were reviewed

A significant amount of research on the impact of physical activity in the workplace environment has been undertaken.

A majority of these studies did not involve control groups and therefore the data can not be validated scientifically. However, the material can be used to guide decision-making and thinking.

The evidence does suggest that an organization may reap financial and other benefits from the introduction of workplace wellness programs that include a physical activity component.

Overall, most research involving health promotion and disease prevention in the worksite and other clinical sites indicates that such interventions do indeed improve health and are cost-effective.

A summary of the available research is available on this web site:. www.phac-aspc.gc.ca

Improved employee health with regular physical activity

Most studies suggest that participation in regular physical activity plays a positive role in improving employee health. The following results, linked to risk factors and risk precursors, have been documented:

Cardiovascular Health

• Prevention of coronary heart disease and stroke;

• Reduced risk of coronary heart disease mortality and fatal reinfarctions;

• Increased recovery capacity from a cardiac event;

• Reduced coronary atherosclerosis;

• Improved aerobic capacity;

• Lower resting heart rate;

• Decreased blood triglyceride levels; and

• Increased endurance time.

Hypertension

• Reduced likelihood of elevated blood pressure

Cholesterol

• Reduced total serum cholesterol;

• Increased level of protective high-density lipoproteins; and

• Generally speaking, the beneficial effects begin to occur within the first month of starting a physical activity program.

Reduced Risk of Cancer

• 70% of cancers are attributable to lifestyle or environmental exposures

Reduced Musculoskeletal Disorders

• Reduced injuries to the lower back;

• Faster recovery time when injuries occur;

• Fewer relapses;

• Increased joint flexibility and abdominal muscle strength (70% of low back pain is due to poor flexibility and abdominal muscle tone);

• Greater stamina, overall body strength, endurance, balance and coordination (important in occupational safety);

• Reduced chronic fatigue;

• Higher pain threshold and improved self-efficacy among persons with osteoarthritis (including increased gait velocity and increased range of motion); and

• Reduced risk of back injury.

Reduced Diabetes Risk

• Decreased risk of developing non-insulin-dependent diabetes mellitus

Reduced Risk of Osteoporosis

• Reduced bone loss or facilitation of some gain in bone mineral content in postmenopausal women

Improved Respiratory Function

• Improved aerobic capacity and increased maximum oxygen uptake

Reduced Incidence of Illness/Injury/Health Risk

• Reduced risk factors, occurrence and duration of illness and age-adjusted mortality rates

Reduced Obesity

• Decreased obesity;

• Improved quality of weight loss; and

• Influenced positive changes in dietary habits.

Reducing Smoking (and its related illnesses)

• Participants in active living programs are more likely to reduce or eliminate smoking from their lifestyle, especially if they are also registered in a smoking cessation program.

Increased Safety

• Reduced incidence and severity of workplace accidents; and

• Reduced mental fatigue.

Reduced Impact of Stress

• Reduced physiological and psychological consequences of stress; and

• Greater capacity for handling stress (resiliency).

Increased productivity and job satisfaction as a result of active living at work programs

Most organizations that have introduced physical activity programs or initiatives and have tracked the results report that participating employees are pleased with the results. Employer reports generally include reference to the following elements:

Increased Energy

Active employees report feeling:

• Less tired;

• More relaxed;

• More self-confident; and

• More productive.

Employee Satisfaction

• Active employees report higher job satisfaction than non-active employees

• Executives in one company stated that they believe that the fitness program at their company has had a positive impact on the company's ability to attract high-caliber employees

• A corporate commitment to employee fitness contributes to:

• a feeling of heightened energy and productivity; and

• a feeling that the company cares about its employees.

Improved Individual Performance

The ability of a physically active executive group to make complex decisions increased dramatically compared to non-exercisers;

Participants in physical activity programs report that:

• Exercise helps them to achieve higher mental concentration;

• They are more alert;

• They have better rapport with co-workers;

• They enjoy work more than non-participants;

• Physical activity improves personal productivity;

• Physical activity boosts morale;

• Physical activity improves stamina;

• Physical activity induces sounder sleep;

• Physical activity improves reaction time;

• Physical activity improves mental alertness; and

• Physical activity improves memory;

• Some studies report that employees involved in physical activity programs commit fewer errors on tasks involving concentration and short-term memory as compared to workers not involved in physical activity programs

• Studies suggest that when compared to the average office worker, whose efficiency decreases 50% for the final two hours of the working day, exercise adherents work at full efficiency all day, amounting to a 12.5% increase in personal productivity

In summary, studies show that individual work performance can be improved by a factor of 4-15% when people are engaged in regular physical activity.

Other organizational benefits from active living at work

Employee benefit cost control

1. Short-Term Disability - STD (Early Recovery from Illness)

Evidence suggests that active living programs reduce the costs of short-term disability programs because they reduce the number of claims/incidents and they reduce the duration of incidents.

Healthier employees use the 'system' less, as is illustrated below:

Regular participants in activity programs have:

• 22% fewer disability days, per person, per year; and

• incur 34% fewer costs.

A variance of 34% in STD usage has been observed between active participants in employee fitness programs compared to non-participants.

When fitness programs were introduced, sick days recorded for participants declined 22%.

2. Workers' Compensation (WCB/WSIB)

Physically fit workers have fewer injuries. When injuries do occur, they tend to be shorter in duration and therefore less costly.

For example:

• 14-25% fewer disability days have been reported for physically active employees;

• Physical activity programs can reduce the incidence of injury by 25%; and

• Per capita, workers' compensation costs can be reduced by 45% if employees are regularly active.

3. Improved Productivity and Reduced Absenteeism

Organizations have reported that physical activity programs reduce absenteeism up to 20%. That is up to as much as 1.6 days improvement in attendance per participant per year.

For example: In Canada, this varies from as little as 0.8 days at Canada Post, to 3.35 days at Metropolitan Toronto, and 6.5 days at Canada Safeway in Winnipeg.

Results from selected studies indicate that physically active employees take 27% fewer days of sick leave.

For example: BC Hydro estimates $1.2 million in reduced sick leave costs annually as a result of physical activity initiative.

4. Reduced Turnover

The turnover rate among fitness program participants is lower than for non-participants.

For example: This has amounted to 8.1% less turnover at Canada Life, 13% at Tenneco and 7% at BC Hydro.

Cost/benefit analysis

Twenty-four studies were published between 1980 and 1991 that evaluated the health benefits and, in some cases, the cost benefit of comprehensive health promotion and disease prevention programs in the workplace.

All 24 indicated positive health benefits and every study that analyzed for cost effects and/or cost benefit demonstrated a positive effect.

Between 1991 and the early part of 1993, a further 24 new studies were conducted. Of the studies that analyzed cost-effectiveness or cost benefits, every one indicated a positive return.

Although there are many uncertainties in cost/benefit calculations, there is sufficient evidence to show that investments in worksite wellness programs will generate sufficient returns to more than repay the cost of a modest wellness program.

Supporting research

Please refer to the Public Health Agency of Canada’s website: www.phac-aspc.gc.ca to access the supporting research for this section.