An Analytical Report By Suzanne Lozano

December 6, 2015
Abstract: Health care costs have been on the rise in recent years. Due to preventable health care
issues, companies and employees are paying more. In addition to higher health care costs,
preventable health care issues are also creating other issues in the workplace, which include
lower employee productivity and lower employee satisfaction. This paper explains why an
employee health and wellness program should be implemented, how employees needs should be
assessed, the common health and wellness issues affecting employees, and the strategies and
programs that will be the best and most appropriate to address these issues and likely interest
employees to participate in these programs.

Letter of Transmittal
From: Suzanne Lozano, workplace health and wellness solutions consultant for businesses and
companies
To: Business owners and Human Resources departments
Subject: Employee Health and Wellness Programs
With health care costs on the rise, it is of utmost importance that businesses and
companies commit to promoting employees optimal well-being and health in and out of the
workplace. This analytical report will discuss the processes and benefits of implementing an
employee health and wellness program. Many employees are unaware that making healthier
lifestyle choices dont have to be time consuming or difficult. When more resources about health
and wellness resources are available to employees, they will be better equipped and educated on
making healthier choice.
Research should reveal the positive benefits of an employee health and wellness program
for employees as well as the business. A proposed thesis for focus of research is since
employees health and wellness is important in and out of the workplace and affects customer
service and business productivity, the business must provide resources, access, and programs to
ensure that employees maintain a healthy physical and mental wellbeing. The following
questions were researched for this thesis:
-Why should an employee health and wellness program be developed?
Discuss the reasons and benefits of establishing an employee health and wellness
program.
- How can employees needs be assessed?
Focus on surveys, questionnaires, and research regarding the most common health and
wellness needs of employees.
-What are the key and most common health and wellness issues affecting employees?
Analyzes the key employee health and wellness issues affecting employees in the
workplace.
-What strategies and programs will be the best and most appropriate to address these issues
and likely interest employees to participate in these programs?
Focuses on strategies and programs that address employee health and wellness issues and
are likely to attract employee interest participation.

Establishing employee health and wellness programs need to be established with care and
proper management. Employee health and wellness is a workplace issue because employee
productivity, satisfaction, and health care costs are all affected by employee health. Further
research should be completed to properly implement and execute an employee health and
wellness program and gain optimal employee participation rates that will lower healthcare costs
and raise employee productivity and satisfaction.

Suzanne Lozano

Analytical Report- December 2015

Executive Summary
Introduction
The indirect costs of poor health, such as an
absence from work and reduced work
productivity, can result in two or three times
the amount of direct medical costs. This
means that employee wellness is of upmost
importance. Employee health and wellness
programs can help lower overall insurance
costs, increase employee productivity, and
an additional bonus is that it can also
increase employee satisfaction.
Purpose
This formal reports purpose is to educate
employees about the benefits of an
employee health and wellness program. By
addressing and determining the unhealthy
life style choices that employees make on a
regular basis, and determining what other
factors attribute to preventable health and
wellness issues, we can find resolutions and
healthy alternatives that will benefit the
employee and in turn benefit the business.
Scope
The goal is to inform employees about the
options, programs, and resources available
to them for a healthier live style and wellbeing. Since employees health and wellness
is important in and out of the workplace and
affects customer service and business
productivity, the goal of the business must
provide resources, access, and programs to
ensure that employees maintain a healthy
physical and mental wellbeing. To achieve
this goal, research will analyze the following
questions:
1. Why should an employee health and
wellness program be developed?
2. How can employees needs be assessed?

3. What are the key and most common

health and wellness issues affecting
employees?
4. What strategies and programs will be
the best and most appropriate to address
these issues and likely interest employees
to participate in these programs?
Methods
The information in this formal report comes
from academic research including online
articles and US government studies and
websites. While analyzing the four research
questions, the best supporting material was
obtained through the CDC website which
reports research from the past few years.
Limitations
The information in the report is limited to
the noted references. The positive effects of
employee health and wellness programs, is a
topic that is constantly researched.
Conclusion and Recommendations
Strategies should be combined and research
has shown that incentives improve the
chances that employees will participate in
the programs. Research show that the health
of employees is of utmost importance and
the reader should conclude employee health
and wellness programs make healthier
employees and healthier positively impact
the company.

Suzanne Lozano

Analytical Report- December 2015

Table Of Contents
Abstract.Cover Page
Letter of Transmittal.1
Executive Summary...2
Table of Contents...3
Introduction....4
Study Focus 1:
Why should an employee health
and wellness program be developed?....5-7

Study Focus 2: How can employees

needs be assessed?......................................8-9
Study Focus 3. What are the key and
most common health and wellness
issues affecting employees?.............................10
Study Focus 4. What strategies and
programs will be the best and most
appropriate to address these issues and
likely interest employees to participate
in these programs?..........................................9-10

Results Discussion.11
Conclusion & Recommendations12
Appendix A References13

Suzanne Lozano

Analytical Report- December 2015

Introduction
In recent years healthcare costs have
been on the rise and preventable illness and
injuries are contributing to the higher health
care costs for employees and companies.
The indirect costs of poor health, such as an
absence from work and reduced work
productivity, can result in two or three times
the amount of direct medical costs. This
means that employee wellness is of upmost
importance. Employee health and wellness
programs can help lower overall insurance
costs, increase employee productivity, and
an additional bonus is that it can also
increase employee satisfaction. Great
customer service and productivity from the
employees ensure that costumers, or patients
in medical workplaces, are getting the
proper service and care that they need. This
also insures that important tasks are being
properly completed. When an employee is
out sick from a preventable medical issue, or
at work but not being as productive as they
could be because of a preventable medical
issue, this creates vulnerability with service
and care and other workplace productivity
issues.
By addressing and determining the
unhealthy life style choices that employees
make on a regular basis, and determining
what other factors attribute to preventable
health and wellness issues, we can find
resolutions and healthy alternatives that will
benefit the employee and in turn benefit the
business. Employees are often unaware of
how wellness and health can help them. By
offering programs that can help with
guidelines for nutrition, daily activity, and
such programs like smoking cessation, the
employee can gain the knowledge they need
to make wiser and healthier lifestyle
choices. More research is needed to
determine the most common needs of

employees and the best methods to fulfill

these needs. This business analytical report
analyzes the extensive research on employee
health and wellness programs and the
positive impacts of the program in the
workplace and in the employees lives by
addressing the following four research
questions:
1. Why should an employee health
and wellness program be developed?
2. How can employees needs be
assessed?
3. What are the key and most
common health and wellness issues
affecting employees?
4. What strategies and programs will
be the best and most appropriate to
address these issues and likely interest
employees to participate in these
programs?

Since employees health and wellness is

important in and out of the workplace and
affects customer service and business
productivity, the business must provide
resources, access, and programs to ensure
that employees maintain a healthy physical
and mental wellbeing.
Figure 1.Healthcare Costs

Suzanne Lozano

Source: Huffingtonpost.com

Analytical Report- December 2015

Study Focus 1: Why should

an employee health and
wellness program be
developed?
Employee health and wellness
programs can have many positive impacts
on the employee and the company. Health
and wellness programs in the workplace can
improve employee health, which in turn,
improves employee productivity, boosts
employee satisfaction, and lowers health
care costs for the employee and the
company. Though some studies have shown
that there are some issues and problems with
employee health and wellness programs,
more research has shown that the positive
benefits far out weigh any negative.
Healthier Employees are more productive
A positive wellbeing is a key
component of a productive employee.
According to the CDC website the use of
effective workplace programs and policies
can reduce health risks and improve the
quality of life for the 138 million workers in
the United States. 1Since the average
American worker spends at least 1/3 of their
time at work, the workplace is a commonsense place for employees to receive health
services and wellness programs. Workplaces
can contribute to helping employees live
healthier lives and consequently the
company reaps positive benefits in return.
A senior director for health and well-being
at Sodexo North America has explained,
The health of our nation depends on
companies stepping up to the plate and
taking employee health and well-being
seriously, not only because it is the right
1

http://www.cdc.gov/workplacehealthpromotion/planning/index.ht

thing to do, but also because it can have a

significant impact on the overall
performance of the organization. 2 This
means that employee health and wellness
programs have a strong potential to
positively impact employee health and
productivity. Research has shown the
positive benefits and impact of employee
health and wellness programs. According to
a recent study findings uncovered a solid
link between highly effective health and
productivity strategies and strong human
capital and financial resultsincluding
improved worker productivity, increased
turnover savings, and improved benefit cost
managementthat underpin organizational
health. 3 Employee health and wellness
programs impact employees productivity in
a positive manner. The programs raise
employee productivity because they are
reducing common health issues in
employees
Employee health and wellness
programs reduce common health issues in
employees. Common health issues lead to
more sick days and less productivity. The
Office of Personal Management (OPM), an
independent agency of the United States
government that manages the civil service of
the federal government, addresses these
issues and the impact of an employee health
2

Abebe, N. (2015). The Value of Workplace Wellness Programs.

Employee Benefit Plan Review. 70(2). 7-9
3

Caver, K. Davenport, T.O, Nyce, S. &

Taylor, C (2015). Capturing the Value of Health and
Productivity Programs. People & Strategy, 38(1), 30-35.

Suzanne Lozano

Analytical Report- December 2015

and wellness program in the workplace.

According to the OPM website, employee
health and wellness programs can help
employees understand their risks for disease,
preventive health services, and promote
healthy lifestyles and support a healthy
working environment. 4 Employee health
and wellness programs improve employee
health issues and the programs also lower
overall health care costs for employees and
companies.
The Impact on Healthcare Costs
The US is currently struggling with a
huge surge in healthcare costs. Research
found on the Centers for Disease
Control and Prevention (CDC) website
states that Since 2000, health insurance
premiums for a typical family of four have
increased by 114% proving costly for both
employers and employees.5 The
overwhelmingly high health care costs can
be reduced with preventative health services
provided by employee health and wellness
programs because high heath care costs are
mostly caused by preventable and/or
controllable illnesses. According to Maria
Grillo of Cornell University of the $2.8
trillion that the United States has spent on
healthcare in recent years, the majority of it
(75%) is spent treating chronic disease.
Chronic disease is a long-standing
condition that can be controlled but not
cured It is the leading cause of death and
disability in the U.S., which is 1.7 million

lives each year. 6 Health care costs are an

issue for employees and companies so what
helps lower costs? Employee health and
wellness programs lower costs. In a recent
research article it is stated that a recent study
found that long-term participation in a
wellness program is associated with lower
healthcare costs as well as decreased
healthcare use. That same article states that
although some health risk factors, such as
heredity diseases, cannot be modified,
employers should focus on education and
personal discipline for others that are more
controllable such as smoking, physical
inactivity, weight gain, and alcohol use
and, by extension, hypertension, high
cholesterol, and even depression. In
addition, the article also discovered that
workplace wellness programs have been
found to have three main benefits: lower
healthcare costs, greater employee
productivity, and higher workplace morale.
Figure 2. Healthcare Costs

Source: CNN.com

https://www.opm.gov/policy-data-oversight/worklife/healthwellness
6
5

http://www.cdc.gov/workplacehealthpromotion/planning/index.ht
ml

Grillo, M.C. (2014) Workplace Wellness Programs: Are They

Part of the Answer To the U.S.s Growing Healthcare Crisis?
Cornell HR Review, 1-9)

Suzanne Lozano

Analytical Report- December 2015

Study Focus 2: How can

employees needs be
assessed?
Workplaces need to gather and
assess employee information to determine
the right options and programs for
employees. The assessments provide insight
into employees needs for the benefit of the
company because the company needs to
know what programs and resources to
provide to the employee. The assessments
also help the employee with their individual
needs because the employee becomes more
aware of their health. The needs of
employees must be properly assessed in
order for employee health and wellness
programs to be the most effective.
Companies need to be sure that they are not
compromising employee privacy. To do
this, businesses and companies must comply
with privacy rules and regulations regarding
employee information. The Health Insurance
Portability and Accountability Act (HIPAA)
permits health-risk assessments (HRAs) and
Biometric screenings. These type of surveys
and evaluations help offer insight into the
health and wellness needs of the employees.
Figure 3. Assessments

HRAs
HRAs are questionnaires and surveys
that employees can complete to evaluate
their individual health risks and quality of
life and according to the European
Occupational Safety and Health
Administration, this risk assessment is the
cornerstone of the European approach to the
prevention of ill health.7 HRAs collect data
on health status and behavior and the
information collected is used to provide
custom feedback to participants about their
current health risks, and an action plan for
addressing them. The screenings are used to
identify individuals at high risk for chronic
and poor health conditions. An example of a
simple HRA is provided below from the
CDC website:
1 Would you say that in general your health is
a. Excellent
b. Very good
c. Good
d. Fair or
e. Poor?
2 Now thinking about your physical health, which
includes physical illness and injury, for how
many days during the past 30 days was your
physical health not good?
3 Now thinking about your mental health, which
includes stress, depression, and problems
with emotions, for how many days during
the past 30 days was your mental health not
good?
4 During the past 30 days, for about how many days
did poor physical or mental health keep you
from doing your usual activities, such as
self-care, work, or recreation?
7

Source: Huffingtonpost.com

Heaney, C. A., Toker, S., & Ein-Gar, D. (2015). Why

wont they participate? Barriers to participation in worksite
health promotion programmes.European Journal Of Work
& Organizational Psychology, 24(6),

Suzanne Lozano

Analytical Report- December 2015

Biometric Screening
Biometric Screening shares the same
data collecting goal as HRAs, but they differ
because Biometric screening collects
information on physical characteristics of
the individual rather than health status and
behavior. The screening collects employee
information such as height, weight, body
mass index, blood pressure, cholesterol, and
glucose level. According to a recent study
the screenings are used to identify
individuals at high risk for chronic
conditions such as diabetes, hypertension,
and dyslipidemia.8 Both HRAs and
Biometric screening provide information
about employees health that is needed to
determine what health and wellness
programs will benefit them the most. Since
participation is voluntary for HRAs and
biometric screening, employers sometimes
offer financial incentives to persuade
employees to take part in workplace
wellness programs.
Figure 4. Biometric Screening

Getting Employees to Complete

Assessments
Offering incentives mean more
participation from employees. According to
Frostin and Roebuck, a number of questions
were asked of nonparticipants to gauge their
likelihood of participating in response to
various types of financial incentives.8 Their
survey concluded that at least 66 percent of
individuals would participate in HRAs or
biometric screening if a financial incentive
was introduced. The use of incentives
encourages employees to provide responses
that are needed to benefit them, and the
company. However, the use of incentives to
get employee assessments isnt the only
approach to get employees to respond.
Managers play a significant role in
employee participation. The Gallup
Business journal suggest that companies can
improve the prognosis for better results if
they enlist managers to promote well-being
initiatives with their teams and in one-onone conversations with their employees.
9
Encouragement from managers improves
employee completion rates of much needed
assessments. The assessments will
determine the health and wellness issues that
are affecting employees.
Figure 5. Health and Wellness

Source: atlantahealthsys.com
Source: wssu.edu

Fronstin, P. &Roebuck, M.C.(2015). Financial

Incentives, Workplace Wellness Program Participation,
and Utilization of Health Care Services and Spending.
EBRI Issue Brief, (417), 4-23)

O'Boyle, E., & Harter, J. (2014). Why Your Workplace

Wellness Program Isn't Working. Gallup Business Journal,
6

Suzanne Lozano

Analytical Report- December 2015

Study Focus 3:
What are the key and most
common health and
wellness issues affecting
employees?

diabetes, and chest pain). The CDC website

mentions five main areas of employee health
and wellness, with subcategories, that the
workplace should focus on. The CDC
suggests that the following module should
be used as guidance to address the most
common health and wellness issues that
employees face.10 The Module below
provides a strategy for companies to use that
will provide help address the key and most
common health and wellness issues
affecting employees. The next section
addresses the strategies and programs that
will be best and most appropriate to address
the health and wellness issues.

Employees who complete the HRA

or Biometric screening have the advantage
of knowing what their health risks or needs
are. Companies use this information to know
the most common health and wellness issues
affecting their employees. The challenge
that companies face stems from the
voluntary nature of wellness program
assessments. The health and health risks of
Figure 6. 5 Health and Wellness Areas of Focus
employees who opt out of the assessments
Source: CDC.gov
are not known. Though these individual
employees health issues are not known,
establishing resources
through the employee
health and wellness
Health
Health
Mental
Adult
Injury
programs that pertain to
Behaviors Screening Health
Immunization
common health issues in
the country can help
Alcohol & Blood
Depression Work-Related Influenza &
improve the health of the
Substance Pressure
Musculoskeletal Pneumococcal
employees who opted out
Misuse
Obesity
Disorders &
of the assessment.
Nutrition (BMI)
Ergonomics
According to the CDC
Physical Cancer website several studies
Activity Breast
have reviewed the
Tobacco Cancer leading physical and mental
Use
Cervical
health conditions in terms
Cancer of direct medical costs and
Colorectal
lost productivity to U.S
Cholesterol
employers including
Type 2
several chronic diseases
Diabetes
(e.g., heart disease),
depression, and musculoskeletal disorders
(e.g., back pain)... Four of the top ten most
10
expensive health conditions to US
http://www.cdc.gov/workplacehealthpromotion/p
lanning/index.html
employers are related to heart disease and
stroke (high blood pressure, heart attack,
Suzanne Lozano

Analytical Report- December 2015

Study Focus 4:
What Strategies and Programs
will be the best and most
appropriate to address these
issues and likely interest
employees to participate in
these Programs?
Employee health and wellness programs
should be carried out properly to ensure that
employees and companies are getting the
most positive returns. A recent study states
that, Workplace wellness plans aren't
cheap But if they're done right, they have
the potential to offset rising healthcare costs
and build a more productive workforce
Not only do employers spend a fortune
subsidizing employees' healthcare costs, but
they also see greater productivity and fewer
missed workdays from employees with
higher well-being. 11When the right health
and wellness programs are implemented, the
positive benefits out weigh the negative.

Organizational elements of the workplace

structure, culture, practices and policies such
as health benefits, health promotion
programs, work organization, and leadership
and management support
Environmental elements of the physical
workplace such as facilities and settings
where employees work as well as access and
opportunities for health promotion provided
by the surrounding community where
employees live.
Figure 7.
Right-to-Left Logic Model

Strategies and Programs

There are different strategies and
programs that companies can implement.
The CDC offers an outline on its website:
Individual elements of an
employees lifestyle, such as their health
behaviors, health risk factors, and current
health status
Interpersonal elements of an
employees social network including
relationships with managers, coworkers, and
family that provide support, mentoring or
role models

Source: CDC.gov

11

O'Boyle, E., & Harter, J. (2014). Why Your Workplace

Wellness Program Isn't Working. Gallup Business Journal,
6

Suzanne Lozano

Analytical Report- December 2015

The best method for success is to combine

the strategies. The CDC website states that
It is important for the overall workplace
health program to contain a combination
of individual and organizational level
strategies and interventions to influence
health, including:
Health-related Programs
opportunities available to employees at the
workplace or through outside organizations
to begin, change or maintain health
behaviors
Health-related Policies are formal
or informal written statements that are
designed to protect or promote employee
health. Supportive workplace health policies
affect large groups of workers
simultaneously and make adopting healthy
behaviors much easier. They can also create
and foster a company culture of health.

use of incentives is a proven way to gain

employee participation in the health and
wellness programs. An example of
incentives motivating employees to
participate in the programs can be found in a
study a recent study. According to the study
offering incentives to obtain the buy in of
the higher risk employees was critical to
reducing overall health care costs. Tacked
on financial incentive to the existing
wellness program in an effort to attract highrisk employees whose poor exercise routines
or diets made them susceptible to expensive
illness. As a result, wellness attendance
among employees increased when the
incentives were tacked on.12 Offering
employees incentives, especially financial
incentives, boost participation rates.
Figure 8. Elements of Wellness

Health Benefits part of an overall

compensation package including health
insurance coverage and other services or
discounts regarding health
Environmental Support refers to the
physical factors at and nearby the workplace
that help protect and enhance employee
health.
Use of Incentives
The use of incentives motivates
employees to participate in health and
wellness program in the workplace.
According to the Health Insurance
Portability and Accountability Act of 1996
(HIPAA), it is prohibited to discriminate
against individuals based on health status,
but companies are allowed to provide
rewards or financial incentives for employee
participation in a wellness programs
(Fronstin, P. &Roebuck, M.C.(2015). The

Source: wcu.edu

12

Jamison, J., & Kleiner, B. (2015). Excellence In

Wellness Program Incentives. Franklin Business & Law
Journal, 2015(3), 41-49.

Suzanne Lozano

Analytical Report- December 2015

10

Results Discussion
Why should an employee
health and wellness program
be developed?
The research revealed employee health and
wellness programs should be established for
many reasons. There are both positive
benefits for the employee and the business.
Researched revealed that healthcare costs
can be reduced for the employee and
company. Employee productivity is raised.
Employees miss less days because of
preventable illness and injury. Research also
showed that employee health and wellness
programs boost employee satisfaction.

How can employees needs be

assessed?
The research revealed that employees health
and wellness needs can be assessed using
several different methods. HRAs, Biometric
screening, and national research can be used
to assess the most common health and
wellness issues that employees face in the
workplace. Research revealed that
incentives should be used to help promote
employee participation with these
assessments and surveys.

What are the key and most

common health and wellness
issues affecting employees?
The research revealed the leading physical
and mental health conditions in terms of
direct medical costs and lost productivity to
U.S employers including several chronic
diseases.

What strategies and programs

will be the best and most
appropriate to address these
issues and likely interest
employees to participate in
these programs?
The research revealed that there are several
different methods and strategies that can
appropriately address the key health and
wellness issues that employees face in the
workplace. Studies have shown that
incentives improve participation rates for
these screenings. Strategies should be
combined and research has shown that
incentives improve the chances that
employees will participate in the programs.

Suzanne Lozano

Analytical Report- December 2015

11

Conclusion &
Recommendations
In conclusion, the analytical report
researched areas that companies must
review to ensure that an employee health
and wellness program will be implemented
properly so that employees and the company
can reap the full benefits of the programs.
The following four questions were answered
so that the reader can be well informed on
the topic of employee health and wellness
programs in the workplace:
1. Why should an employee health and
wellness program be developed?
2. How can employees needs be
assessed?
3. What are the key and most common
health and wellness issues affecting
employees?
4. What strategies and programs will be
the best and most appropriate to
address these issues and likely
interest employees to participate in

Research has shown that employee health

and wellness programs should be developed
because healthy employees are more
productive, more satisfied, and are absent
from work less. Employee health and
wellness programs have also been proven to
improve employee health and reduce health
care costs. The needs of employees can be
assessed with HRAs and biometric
screening. Studies have shown that
incentives improve participation rates for
these screenings. The most common health
care issues that employees face, can be
improved by employee health and wellness
programs. Strategies should be combined
and research has shown that incentives
improve the chances that employees will
participate in the programs. Research show
that the health of employees is of utmost
importance and the reader should conclude
employee health and wellness programs
make healthier employees and healthier
positively impact the company.

Suzanne Lozano

Analytical Report- December 2015

12

Appendix A References
Abebe, N. (2015). The Value of Workplace
Wellness Programs. Employee Benefit Plan
Review. 70(2). 7-9

http://www.cdc.gov/workplacehealthpromoti
on/planning/index.html

Caver, K. Davenport, T.O, Nyce, S. &

Taylor, C (2015). Capturing the
Value of Health and Productivity
Programs. People & Strategy, 38(1),
30-35.
Fronstin, P. &Roebuck, M.C.(2015).
Financial Incentives, Workplace
Wellness Program Participation, and
Utilization of Health Care Services and
Spending. EBRI Issue Brief, (417), 4-23)
Grillo, M.C. (2014) Workplace Wellness
Programs: Are They Part of the
Answer To the U.S.s Growing
Healthcare Crisis? Cornell HR
Review, 1-9)
Heaney, C. A., Toker, S., & Ein-Gar, D.
(2015). Why wont they participate?
Barriers to participation in worksite
health promotion programmes.
European Journal Of Work &
Organizational Psychology, 24(6),
Jamison, J., & Kleiner, B. (2015).
Excellence In Wellness Program
Incentives. Franklin Business & Law
Journal, 2015(3), 41-49.
O'Boyle, E., & Harter, J. (2014). Why Your
Workplace Wellness Program Isn't
Working. Gallup Business Journal, 6
https://www.opm.gov/policy-dataoversight/worklife/health-wellness

Suzanne Lozano

Analytical Report- December 2015

13