By Jeannie Fanning, Part One of a five-part series on controlling the cost of employee benefits
August 6, 2012

Trimming costs from a city's benefits budget doesn't have to come from reducing benefits: savings can come from wellness initiatives. Mayors and cities are expanding and implementing wellness initiatives to do just that. In a recent survey of government finance officers, nearly 80 percent said they-ve added wellness initiatives to their benefits programs, and 90 percent of them would recommend this cost'savings strategy to others.1 With an estimated ROI of $6 for every dollar invested, wellness programs are a great way to save money long term while giving employees an additional benefit now.2

Wellness initiatives can take many forms and work for all sizes of cities. Benefits can range from on'site fitness centers to nutritional counseling to employer'subsidized gym memberships. Other wellness efforts can include health risk assessments such as lifestyle questionnaires, biometric evaluations, self-help educational materials, and behavior modification programs.

Regardless of the type, most wellness initiatives typically have one goal in common — weight loss, and for good reason. Nearly two-thirds of adults today are overweight, according to the U.S. Surgeon General. This health issue alone results in 36 percent higher spending on health care and 77 percent higher spending on medications than on employees with a healthy weight.3

Overweight, unhealthy workers tend to be absent more than their colleagues, too, according to a 2011 Gallup poll. Workers with above-normal weight who have three or more chronic health conditions report an average of 3.5 unhealthy days a month, translating into 42 days per year.4 Absenteeism among unhealthy workers costs our economy $153 billion annually.5 Coming to work while unwell also negatively affects employee productivity and morale.

Wellness initiatives work for cities, and the results can be measured through fewer sick days, reduced preventable chronic conditions, increased employee productivity, and a more positive work environment that leads to better morale and employee retention.6

The cost savings are also tangible. Lewiston (ME) offers a great example of how cities can benefit from wellness initiatives. Lewiston implemented a wellness program for its 443 employees in 2006. The city consequently reduced its health insurance costs by $980,000 through 2011.7

Employees gain indirect benefits from these initiatives as well. A survey of employees who work at small and mid'sized business gives good insight into the additional benefits realized by employees.8

Nearly half of employees (48 percent) in the survey agree that having an employer'sponsored wellness program would encourage them to stay in their current job.

Forty-three percent agree that wellness benefits encourage them to work harder and perform better.

Thirty-seven percent of employees agree they have more energy to be more productive at work by participating in a wellness program.

Make your program successful

The challenge for mayors and their leadership is to educate employees and increase both awareness and participation in wellness programs. In fact, 58 percent of employers report low engagement as the greatest obstacle to the success of their wellness initiatives.9 Targeting the specific health risks of a city's employees helps ensure the components of a wellness program are a good fit for employees, which increases participation. This targeting can be done through biometric evaluations, surveys, and analysis of health claims. A precise, tailored wellness initiative has a greater chance of success.

Communication is also important. Employees can't participate in wellness activities if there isn't the proper awareness. Internal communications efforts need to be frequent and effective. This can drive up participation rates and generate the enthusiasm needed for the program's success. Partnering with a workplace benefits provider that has experience in employee communications can help take some of this burden off of the city. Some companies offer these services at no charge as part of their enrollment process.

To enhance the value of a wellness program already provided, make sure communications are effective and consistent. For cities beginning a new wellness initiative, now is the time. Wellness activities offer a proven way to save money in a day and time when city governments need it most.

To learn more about expanding or implementing a wellness program in your city, please contact Jeannie Fanning with the Conference at 240-393-9672 or e-mail jfanning@usmayors.org.