Employers battle healthcare costs with investments in employees’ health
A healthy worker may be a happy worker, but healthy workers make even happier employers. With healthcare costs on the rise, so seems to be interest in promoting healthier lifestyles for employees.
There is no better example than right here in Vancouver. Nautilus spokesman Ron Arp admits his company’s line of business gives it an advantage in this area, but the manufacturer of fitness equipment and apparel is taking the health of its workers seriously.
Nautilus’ new Columbia Tech Center headquarters features a 3,500-square-foot gym for its employees at no cost, an idea that began two years ago at its previous location.
“It doubles as a show room and a place where employees and their families have access to work on the equipment anytime they want,” said Arp.
Nautilus also built a football/soccer field, baseball diamond, basketball court and track at its facility for use by employees and the public.
“It’s about creating an active-lifestyle friendly campus; walking the talk,” said Arp. “If we are going to champion fit and healthy lifestyles, we had to demonstrate that.”
The company didn’t stop there. Nautilus has made fitness training available to support employees who choose to workout, and the Nautilus Training Table offers healthy breakfast, snack and lunch choices at a subsidized rate for employees.
When the company made its facility entirely smoke-free, the company began offering free smoking-cessation classes to employees interested in quitting.
The company is also considering providing healthcare cost incentives for non-smokers and those who commit to active, healthy lifestyles, possibly by tracking usage of the company’s gym.
While employees’ waistlines may benefit from all the incentives, Nautilus has its eye on the bottom line.
A study by American Fitness Professional Associates member Mark Occhipinti showed employer-sponsored fitness programs lead to improved employee recruitment and retention, increased productivity, less absenteeism, reduced healthcare costs and fewer work-related injuries.
Princeton Athletic Club owner Russ Dyer said he markets these benefits to corporate membership clients. He said interest in the program has continually increased in the downtown-Vancouver facility’s 20-year history. There are now 35 companies with corporate memberships at Princeton.
“90 percent of companies that have enrolled are still with the club,” said Dyer. “It’s a long-term objective.”
Participating companies pay 30 percent of the normal rate for each employee. On average, 35 percent of a company’s employees will utilize a corporate membership, said Dyer. Some companies, however, have logged 60 percent usage.
The cost is tax deductible as a benefit.
“It’s starting to be accepted by the business community,” said Dyer. “Employees that maintain their health will be more productive and sick less often.”
Dyer said it has been shown that return on investment for employee wellness programs can be as high as three dollars to every dollar spent. Companies also use corporate memberships as a tool for recruiting and reducing turnover.
“There is enough collective research that we believe it is the right thing to do and the right message to send,” said Arp.
Nautilus expects cost savings and improvements in negotiations with healthcare providers, medical liabilities and absenteeism due to illness, said Arp.
“A lot of the healthcare costs we are going to face in the future are preventable,” said Arp, and with nearly 400 employees, “We can do ourselves a pretty significant favor on the benefit costs of our employees by getting in front of this.”
Employee retention, performance and satisfaction is also expected to increase.
“Happy employees work hard and smart,” said Arp.
Riverview Bancorp dedicated about 500 square feet to an employee gym plus men’s and women’s dressing rooms in its new operations center.
The facility includes various cardiovascular and weight training equipment available to all of the company’s approximately 100 employees throughout the day.
Senior Vice President of Marketing Scott Miller said Riverview CEO Pat Schaffer wanted to include the gym for the benefit of employees.
“Cost savings would be nice, but it was not part of the decision making process or expectation,” said Miller. “Those who work out are more productive and happy in their professional and personal lives.”
Riverview also included indoor bike racks at the new facility, said Miller, who expects to make the two-mile bike ride to work if the rain ever stops.
Arp said it is important for employers to engage employees in the process, adding that some programs may be right for some but not for others.
“This is an area that is intensely under study for best practices,” he said. “In five to 10 years we will see a range of tools and education emerge.”
