In-House Wellness Program

In-House Wellness Program

Executive Summary

            The recent years have seen increased health care costs. Organizations are experiencing low profits as a result of the high health care costs. Wellness programs are used by businesses to ensure healthy work environments free from perils. Such programs have proved reliable in reducing health care costs incurred by businesses. They also enhance the level of motivation among employees. Absenteeism cases reduce as fewer people get sick or ill with the program in place. Equally, productivity and employee efficiency are of the essence. People develop a health consciousness culture. With this being the case, they avoid behaviors that jeopardize their health or wellbeing. 

Introduction

Rising health care costs have become a nationwide concern. Graph 1 in the appendix shows changes in healthcare costs from 2005 to 2014. Many companies and organizations are affected by the increased costs (Gantner, 2012). GM is an example of companies that have suffered increased costs as a result of the rising health care costs. In-house wellness programs are becoming widespread across the country. Companies are implementing such programs to reduce injuries, long-term disability, and healthcare costs. The programs range from offering employees information to subsidized healthy lunches, a company gym, and fitness education. GM has a wellness program. However, it is yet to implement a more comprehensive program that will enable it enjoy all the benefits associated with the same (Gatchel & Schultz, 2012). This paper intends to examine the value of an in-house wellness program.

Value of an In-House Wellness Program

As mentioned in the introduction, the popularity of in-house wellness programs has been increasing with more and more companies implementing it to address the issue of rising healthcare costs. Companies such as Google and Draper, Inc. have implemented comprehensive wellness programs to ensure healthy employees and increased productivity. Generally, there are various benefits linked with in-house wellness programs. For one, such programs help in cutting healthcare costs (Cummings & Worley, 2015). Research has shown that GM’s health and insurance costs have been on the rise. This affects its profitability and its ability to expand. Medical costs can easily consume half a company’s profits if not managed in the right manner. In the absence of a good wellness program, employees are susceptible to accidents, hence increased health issues. GM can avoid such challenges through the implementation of a comprehensive program that will eliminate work related perils.  In the same way, the management will be in a position to eliminate behaviors that increase the chances of employees facing health issues, for example, smoking or drinking (Gatchel & Schultz, 2012).

The implementation of a comprehensive wellness program also increases employee morale. For one, putting such a program in place communicates the message that the employer cares about employees. Consequently, employees are more than willing to do all it takes to ensure their company achieves its goals and objectives. Unhealthy employees tend to show low levels of motivation (Gatchel & Schultz, 2012). The fact that they are unhealthy means that they may not execute their roles and duties in the desired manner. As a result, they are frustrated and stressed. Improved employee morale leads to high productivity and performances. One of the main reasons that enables Google to maintain a highly motivated workforce is its wellness program. Employees find their work stress free. They also engage in activities that relax their mind and give them a sense of control over their lives. The move to implement an all-inclusive wellness program will enable GM improve its competitiveness in the market. Highly motivated employees ensure the production and delivery of quality products and services (Gantner, 2012).

In-house wellness programs also improve a company’s ability to retain its best people. Health issues and problems can result into a company reporting high employee turnover. GM has over the years experienced similar challenges (Gantner, 2012). High labor turnover worsens the situation as the company is already dealing with high health care costs. Basically, the company is forced to recruit new employees to fill vacant positions created by exiting employees. This leads to increased recruitment and selection costs. Equally, failure to ensure loyalty increases the risk of a company losing its best talent to the competition. Specifically, an employee can easily decide to seek employment with a competing company committed to the wellness of its workers. GM faces stiff competition in the market (Burke & Richardsen, 2014). It requires the best people to develop strong strategies that will aid it earn an edge in the industry. An in-house wellness program leads to company employees developing an emotional attachment to their current employer. As such, they do not develop the desire to leave or seek employment elsewhere. The program will also enhance the company’s capability to attract the best talent. In general, people are attracted to employers who are concerned about their wellbeing (Cummings & Worley, 2015).

GM’s work environment is very risky considering the nature of business activities the company is involved in (Steers & Nardon, 2014). Employees deal with heavy metals and toxic chemicals. This means that they can easily injure themselves if they are not very careful. Various strategies are employed to reduce work-related injuries including stress management lectures, back care programs, smoking cessation courses, and exercise classes. Employees are also provided with safety garments to protect themselves when working in dangerous areas. Reduced injuries means low health care costs. Insurance costs are also reduced. The number of employees falling sick or being injured in the workplace reduces significantly (Cummings & Worley, 2015). GM needs to improve on its internal policies to ensure they prohibit or hinder unhealthy behaviors. Teaching employees on how to avoid injury also helps in boosting morale and improving loyalty. There are times when employees are demotivated simply because they are exposed to many perils. The removal of the peril solves the problem and increases employees’ productivity (Gantner, 2012).

Absenteeism is an issue common with companies that fail to implement a good in-house wellness program. Fundamentally, many employees get sick or ill. As such, they spend more time away recovering or visiting a hospital. The productivity of a company is affected negatively. With some employees being away, some tasks and duties may not be handled in the right manner. Available employees work more to cover for their absent colleagues. This can also lead to increased stress as people are overworked. Time consumed when an employee in recovering or away on a sick leave costs GM millions of dollars. Such losses will be reduced with the implementation of an appropriate wellness program (Lowe, 2010).

Wellness programs also help in boosting a company’s reputation. Reputation is a significant resource that determines the success of a company or organization in the contemporary world. Companies with a good reputation find it easy to compete in the market. This can be attributed to the fact that they encounter few challenges trying to attract the best talent and the highest number of consumers (Cummings & Worley, 2015). As mentioned earlier, potential employees are attracted to companies that care about their wellbeing. One way through which many employers show they care is implementing a wellness program. Customers are also attracted to businesses that ensure a healthy workforce. GM has in the past suffered a bad reputation as a result of work-related injuries (Steers & Nardon, 2014). The company needs to show is renewed commitment to the safety and health of its employees. In the end, it will enjoy an improved reputation and competitive edge. A good reputation will also aid it expand to other markets with ease. Generally, the high health care cost issue is both a threat and an opportunity. Essentially, GM can use the opportunity to improve work standards to avoid high health costs. In the process, it will also earn a good reputation for being an employer of choice (Gatchel & Schultz, 2012).

In-house wellness programs also lead to the development of an organizational culture that emphasizes on healthy behaviors. For example, supportive organizational culture is demonstrated by activities aimed at ensuring a healthy workforce. Many companies are susceptible to health challenges as a result of their employees failing to embrace behaviors that increase safety in the workplace (Cummings & Worley, 2015). This is also a common challenge at GM. Companies with cafeterias where healthy foods are in abundant encourage their employees to embrace healthy eating habits. The risk of falling sick are reduced. Employees are also cautious enough, hence reduced accidents. Creating an in-house wellness program is one thing and selling it is another. It is essential for the management at GM to ensure its people understand the need for the program and its benefits. This motivates them to consume its services. Similarly, employees are highly motivated to take part in creating a healthy workplace. Some may even go to the extent of suggesting ideas on how to further ensure employees’ health and safety (Burke & Richardsen, 2014).

Managers that implement wellness programs also create a sense of camaraderie with employees. Fundamentally, they get the opportunity to engage in activities that are not work-related, for example, having lunch with employees. Good relationships are also important in creating a highly motivated workforce. Employees who interact freely with their managers are develop trust. This means that they are willing to take orders from their managers and ensure their execution (Cummings & Worley, 2015). Correspondingly, this creates a teamwork culture. The interactions made with employees help managers address some of the issues employees may be facing that have a negative impact on their motivation. Managers learn what may be affecting employees and their ability to perform. Dealing with the issues leads to increased performances. For example, the management can learn work environmental factors that contribute to health issues. In the end, these factors are eliminated and in the process a safe work environment is created (Gantner, 2012).

Ultimately, wellness programs provide the incentive to succeed. There are companies that offer free screening services to their employees (Steers & Nardon, 2014). This can easily result into an employee learning the importance of visiting a doctor from time to time to assess their health. For example, the screening process can enable an employee to learn a developing health problem and address it before it hits. A company is able to prevent health challenges as opposed to waiting until they occur before trying to solve them. Normally, prevention is less costly as compared to cure. In general, employees develop the desire to succeed when working with a company with an in-house wellness program (Cummings & Worley, 2015).

Conclusion

In-house wellness program have become integral to the success of companies. With increasing health care costs, companies have been forced to look for ways to cut eliminate perils and prevent employees from coming to harm while working. GM has wellness program. Nevertheless, its program is not comprehensive enough to enable it reap all the benefits linked with ensuring employee health and safety. There is the need for the company to emulate strategies employed by companies such as Google to improve on its wellness program. Implementing such a program will result into increased employee morale and productivity. Equally, the company will be in a position to lower the number of absent employees as fewer people will get sick. The move will also aid GM to cut its healthcare costs. Principally, the company needs to implement a good wellness program that is line with the health needs and wants of its employees.

References

Burke, R. J., & Richardsen, A. M. (2014). Corporate wellness programs : linking employee and organizational health. Cheltenham : Edward Elgar.

Cummings, T. G., & Worley, C. G. (2015). Organization development & change. Stamford, CT : Cengage Learning.

Gantner, R. K. (2012). Workplace wellness : performance with a purpose, achieving health dividends for employers and employees. Moon Township, PA: Well Works Pub.

Gatchel, R. J., & Schultz, I. Z. (2012). Handbook of occupational health and wellness. New York, NY: Springer.

Lowe, G. S. (2010). Creating healthy organizations : how vibrant workplaces inspire employees to achieve sustainable success. Toronto : University of Toronto Press.

Steers, R. M., & Nardon, L. (2014). Managing in the Global Economy. New York, NY: Routledge.

Appendix

Graph 1

Retrieved from: http://www.forbes.com/sites/mikepatton/2015/06/29/u-s-health-care-costs-rise-faster-than-inflation/

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