Bloomberg News recently aired “Working it Out”, a Street Smart Special, hosted by Carol Masser, describing the emerging trends in Health & Wellness programs in corporate America. “Working it Out” devoted 2 segments to the value corporate America recognizes from investing in employee Health & Wellness.
A few of the key points:
Corporate medical costs continue to rise
- One study noted that corporations medical costs rose 6% in 2008, and 7% in 2009
- A 2007 study conducted by The Milken Institute found that employers lose $ 1 trillion dollars in economic output annually, due to chronic health issues
- Well over 2/3 of people in our society are overweight
“Pay for exercise” program trends & examples
- Corporations as IBM and PepsiCo are leading the trend of employers investing in employee Health & Wellness programs. IBM pays its employees $ 150 for exercising 30 minutes/day, 3 days/week for 12 consecutive weeks. IBM employees are eligible to claim up to $ 300 annually to participate in exercise programs.
- Scotts Miracle Gro has 95% participation in their Health & Wellness program
- A survey conducted by Midwest Business Group on Health found most corporate executives were likely, or very likely, to expand wellness programs.
Corporations are reaping impressive ROI’s
- Return on investment in Health & Wellness programs are paying off for corporations. IBM initiated their Health & Wellness program 6 years ago, and has invested approximately $ 80M dollars, and calculated a return on investment of $ 190M; a 3:1 ratio. Pepsico’s VP of Wellness was quoted that for every dollar invested in Health & Wellness programs, they received $ 3.45 dollars in return!
“Pay for prevention” programs delivering quantifiable results for employers
- Health & Wellness programs are creating new “pay for prevention” businesses that design plans to incent employees to stay healthy. Virgin Health Miles is an example of one of the many companies designing “pay for prevention” plans for Papa John’s Pizza, Timberland, and Maiden Form Brand. Virgin Health Miles documented the following statistics during the first year:
- 29% of normal or overweight employees in the program moved to normal categories
- 21% of hypertensive or high blood pressure employees moved to normal categories
So, what does this mean to your cycling club?
First – Corporations recognize the importance of Health & Wellness programs in helping to reduce rising medical costs, insurance premiums, and lost productivity. Furthermore, beginning in 2014, employers will be able to offer reward payments of up to 30%, of an employee’s insurance plan costs, to workers participating in Health & Wellness programs. This is a 10% increase of the current level of 20%!
Second – Health & Wellness programs provide your cycling club with a tremendous opportunity engage in discussions with prospective sponsors. Talk with companies and gain an understanding of their vision and objectives for Health & Wellness programs. Then, align the value of cycling, and sponsorship of your club, provides the prospective sponsor. Discuss how cycling can help employees maintain a healthy lifestyle, while describing how sponsorship can add value to their brand.
For more information on leveraging Health & Wellness programs when seeking sponsorship please see my previous blog post – Employer Health & Wellness Programs – an avenue worth pursuing when seeking cycling sponsorship.
Thanks for visiting. Until next time, remember, “keep the rubber side down!”
Bloomberg TV – “Working it Out”, A Street Smart Special