The adoption of health programs for employees by businesses have grown. One reason is the rising cost to the company of health claims. Another reason is better human resource management outcomes in attracting job applicants and retaining employees. Last reason is the additional benefits to performance, at the individual and organizational level. Southern California Edison Co. thought of an employee health program after experiencing an increase in health claims by 71 percent in a year.
The company has a large pool of employees so a committee emerged with added funds to encourage employee participation and continuity of the program. The program included diagnosis for cardiovascular and smoking-related diseases for employees and their families as a means of developing health consciousness. Hershey Foods Corp. is another success story. The company’s fitness program involved diagnosis, health counseling, and exercise activities to target common health issues of smoking, heart problems, poor diet, and lack of exercise.
Both companies experienced declines in health costs as well as observed improvements in employee morale and performance. The employee health program for a small business selling outdoor sporting equipment emerged to fit the needs of employees by obtaining feedback from the employees themselves. Common sports interests led to the creation of group activities such as running, biking and skiing.
Activities reflecting common interests also emerged such as camping and mountain climbing that involved all employees. In addition, the company also implemented discounts for sporting equipment for employees to experience the products sold by the company. The introduction of flexi-time enabled employees to pursue their exercise regimes individually and as a group. The result is better physical health, higher employee morale, improved group work, and enhanced customer service. Key Learning Points
While employee health programs provide widespread and long-term benefits to business firms, the success of these programs depend on the fit between the core components or elements of the program developed by a firm and the needs of its employees. There are a number of points to consider in ensuring the alignment between the program and employee needs. First is the importance of employee feedback. Managers may have an idea about the problems faced by employees and their needs through interaction with employees in supervising work.
However, asking about employees directly about how they view and what they need from a health program would ensure a responsive health program accepted by employees. Obtaining feedback could be through interviews in small firms or surveys in large organizations. Second is strategic planning by transforming problems and needs into objectives that would comprise the targets for the employee health program. Third is the allocation of sufficient resources. Business firms should consider employee health programs as investments with long-term returns.
Small and large firms vary in the available capital for allocation to the program but the important consideration is optimizing available resources, both financial and non-financial, to support the program. Fourth is organization-wide support for the program from leaders and managers to policies that target culture change. This is necessary to ensure continuity and long-term benefits. Last is assessment of the impact of the program to determine measurable and immeasurable outcomes that justify the program and point to possible areas for improvement.