Corporate Fitness

Studies have repeatedly demonstrated that comprehensive worksite health promotion programs can lower health care and insurance costs, decrease absenteeism, and improve performance and productivity. Of 24 studies published in peer-reviewed journals from 1991-1993, "all but one evidenced positive health outcomes. Of the studies which analyzed cost-effectiveness or cost benefits, every one indicated a positive return." 1

A 1996 review of 10 major studies reports cost/benefit ratios ranging from 1:2.05 to 1:5.96 with two very high return studies reporting ratios of 1:10.1 and 1:19.4. 2 Other benefits demonstrated in studies include improved ability to attract and retain key personnel, greater employee allegiance, and improved public image of the company.
Health Care and Insurance Costs
A number of studies provide evidence of lower medical and insurance costs for participants in health promotion programs, particularly programs involving exercise.
  • For $30 per person, the Bank of America conducted a health promotion program for retirees using a risk assessment questionnaire, self-care books and other mailed materials. Insurance claims were reduced an average of $164 per year in this group while they increased $15 for the control group. Since they were able to document significant changes in risk behavior, they anticipate greater savings in future years. 3
  • Pacific Bell’s FitWorks participants claim $300 less per case for a one year savings of $700,000. Savings for conditions related to a sedentary lifestyle are $722 per case. 4
  • Coca Cola reported a reduction in health care claims with an exercise program alone, saving $500 per employee per year for the employees (60%) who joined their HealthWorks fitness program. 5
  • Prudential Insurance Company reports that the company's major medical costs dropped from $574 to $312 for each participant in its wellness program.

Decreased Absenteeism
Absenteeism has been shown to be impacted by employer health promotion programs. The evidence indicates a significant reduction in absenteeism and resultant dollars saved as a result of employee fitness programs.
  • Pacific Bell’s FitWorks program decreased absent days .8 percent to save $2 million in one year. FitWorks members also spent 3.3 days less on short term disability for an additional savings of $4.7 million. 4
  • Focusing health promotion efforts on high risk employees can lead to better results. A national manufacturing company reports a decrease of 12.2% in illness days for these employees. 7
  • A 2 year study by The DuPont Corporation of the effect of its comprehensive health promotion program on absences among workers reports that blue collar employees at intervention sites had a 14% decline in disability days vs. 5.8% decline for controls. There were a total of 11,726 fewer net disability days. 8
Enhanced performance, Productivity and Morale
A number of employers with health promotion programs report documented improvement in job attitude, work performance, energy level, and/or overall morale among program participants--all critical factors in enhancing productivity.
  • A Johnson & Johnson study found that employee attitude changes were greater at health promotion intervention sites with significant positive attitude changes noted in the categories of organizational commitment, supervision, working conditions, job competence/security, and pay/benefits. 9
  • In a Canadian government study, the Canada Life Assurance Company experimental group realized a 4% increase in productivity after starting an employee fitness program, compared to the control group. Further, 47% of program participants reported that they felt more alert, had better rapport with their coworkers, and generally enjoyed their work more. 10
  • Swedish investigators found that mental performance was significantly better in physically fit workers than in non-fit workers. Fit workers committed 27% fewer errors on tasks involving concentration and short-term memory, as compared with the performance of non-fit workers. 11
The Bottom Line
The following sample of worksite health promotion program results have been reported by individual employers

There is compelling evidence that a sizable portion of the billions of dollars currently spent by employers on health-related costs, is preventable by means of health promotion programming. Well planned, comprehensive health promotion programs have been shown to be cost-effective, especially when the health promotion programming is matched to the health problems of the specific employee population.13

  Dollars Saved/Dollars Spent
Bank of America (Fries) 2 $5.96/$1
PacBell 4 $3.10/$1
Wisconsin School District
Insurance Group 12		 $4.47/$1
Prudential Insurance 2 $2.90/$1
Bank of America (Leigh) 2 $4.73/$1
General Mills 2 $3.50/$1



REFERENCES
  1. Pelletier, Kenneth, "A Review and Analysis of the Health and Cost-Effective Outcome Studies of Comprehensive Health Promotion and Disease Prevention Programs at the Worksite: 1991-1993 Update." American Journal of Health Promotion, September/October 1993: 50-62.
  2. Chapman, Larry, ìProof Positive: Analyses of the Cost Effectiveness of Worksite Wellness,î Summex Corporation, 1996.
  3. Fries, James, et.al., ìTwo-Year Results of a Randomized Controlled Trial of a Health Promotion Program in a Retiree Population,î American Journal of Medicine, May 1993: 455-462.
  4. Blair, Susan, ìThe FitWorks Savings Story,î Pacific Bell, 1996.
  5. Wellness Councils of America, "Corporate Leaders Laud Benefits of Wellness," Worksite Wellness Works, May 1995.
  6. Thompson, Dennis. "Wellness Works for Small Employers, Too." Personnel, March 1990: 26-28.
  7. Bertera, R. ìBehavioral Risk Factors and Illness Day Changes with Workplace Health Promotion,î American Journal of Health Promotion, May 1993: 365-373.
  8. Bertera, R. "The Effects of Workplace Health Promotion on Absenteeism and Employee Costs in a Large Industrial Population". American Journal of Public Health, September 1990: 1101-1105.
  9. Holzbach, R. et al. "Effect of a Comprehensive Health Promotion Program on Employee Attitudes". Journal of Occupational Medicine, 1993.
  10. Shephard, Roy. "Employee Health and Fitness: The State of the Art (The Canadian Employee Fitness and Lifestyle Project)". Preventive Medicine, 1983:12 644-653.
  11. Sjoberg, Hans. "Physical Fitness and Mental Performance During and After Work." Ergonomics, 1983:23 977-987.
  12. Wellness Councils of America, "Self Care Works: Medical Claims-Based Study Shows $4.75 Savings for Every $1," Worksite Wellness Works, May 1995.
  13. Patton James. "Work-Site Health Promotion: An Economic Model". Journal of Occupational Medicine, August 1991: 868-873.