Why Small Businesses Should Offer Employee Wellness Programs
Wed, Sep 9, 2009
Employee Wellness, Employer Health Costs, Occupational Health
Running a small business isn’t easy.
Owners and managers must scramble each day to produce products, increase efficiency, and gain and keep customers. Focusing on anything other than ensuring the company’s long-term success is considered a waste of precious resources.
So, why would a small business consider offering an employee wellness program?
Wouldn’t sharply reducing employer healthcare costs help ensure the company’s success?
When it comes to starting a wellness program, small businesses have many advantages that big companies don’t have.
Since there is no large bureaucracy in place, decision-making is streamlined. A program can be developed and implemented quickly, accelerating its return on investment.
Plus, the employer healthcare cost savings are immediate and can be significant. By definition, these firms have a smaller employee populations through which risks are spread. Thus, their per employee insurance costs are higher.
Also, participation in a wellness program is easier to maximize. Small business managers and employees are usually on a first name-basis, and everyone considers themselves a member of the team. Thus, the program is promoted to stakeholders, which increases its utilization and effectiveness.
Plus, there are many wellness program options available, which can be implemented as management sees fit. The program can begin by simply educating employees on their health. Then, risk assessments and health screenings can be added, which identify specific employee health risks. Finally, hands on health management programs — customized to address those risks — can be offered.
Beyond the upside of these wellness programs, consider how vulnerable small businesses are when they don’t to do everything possible to improve the health of their employees.
Besides the direct cost of treating a major illness, there’s the cost of losing a key employee for an extended period of time. Reduced productivity and short-term staffing expenses can devastate a small firm.
Yes, running a small business is a never-ending challenge. Management must ignore unnecessary distractions, and concentrate on the things that help the company gain a competitive advantage.
Lowering employer healthcare costs through an employee wellness program is one of those things.
Scott is the VP, Sales and Marketing at Workplace Health Services. In this role Scott strives to integrate a complex group of service offerings into a simple to understand package for prospects and clients.
November 18th, 2009 at 6:29 pm
Great article, Scott! I am a fitness professional and I am boggled that more small business aren’t jumping on this. With all of the health care scares in the media, and real life, prevention must start TODAY. Employers tend to look at the money spent now and don’t have the patience to see the outcome of a small monetary investment turning into a HUGE investment in the long run. Thanks for this post!