About Wellness Corporate Solutions

Monday, November 19, 2007

Study suggests that Performance Related Compensation could Result in Healthier Employees

Employers designing wellness programs, take note. In a 2007 study conducted by the Health as Human Capital Foundation, researchers found that employees who experienced and understood how their performance related to their bonus perceived that better health would result in more money. One of the issues the study addressed was the supposition that employees are in poor health because they do not bear the full burden of their health care costs. Employers almost always pay the lions share. The researchers suggest that incentives buy a specific behavior, but do not result in employees placing a greater value on their health.

There is a tremendous value in buying a specific behavior, particularly if it results in an employee that quits smoking, loses weight, or increases their physical activity. Multiple studies have shown an ROI on wellness programs in the range of $3 for every one dollar a company spends. For additional information visit the Wellness Councils of America website. However, the takeaway from this particular study is that a little more knowledge can take the employees even further along the road to good health. If companies could take the time to communicate to their employees the impact that poor health has on the bottom line in terms of increased health insurance costs, absenteeism, presenteeism and productivity, employees are more likely to avail themselves of the wellness programs, fitness rooms, etc. and work to improve their health as well as the health of their families.

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