I recently had the privilege to present wellness programs and the effects that rewards can have on your program.

1. The Role and Impact of Rewards &
Recognition Corporate Wellness Programs

2. Overview of Today’s Seminar
 Poll Questions
 Benefits of a Worksite Wellness Program
 Employee Incentives in a Wellness
Program
 Health Care Costs in Today’s Workplace
 Ways to Fund a Program
 Employee Engagement
 ROI/Savings in a Wellness Program
 Creating/Implementing a Program
 How Do You Pick a Wellness Partner?
 Q&A

3. Today’s Presenter
Michael Emoff
President of Shumsky Enterprises and co-owner of Boost Rewards.
Michael developed the concept for Boost Rewards in 2005 to utilize
web technology to deliver effective employee recognition
programs, including rewarding for wellness. Shumsky was awarded
in 2011 and 2012 as Dayton’s Healthiest Employer.
Bringing 30 years of industry experience, Michael is a recognized
national expert in the field of employee recognition and rewards.
He is on the Board of Trustees for the Miami Valley Hospital
Foundation, the Board of Directors for the American Heart
Associations of SW Ohio and Incoming Board Member for the local
Alzheimer’s Association.

4. Poll Question #1
Is your company administering an
employee wellness program in 2012?
A. Yes
B. No
C. Considering

5. Results
Is your company administering an
employee wellness program in 2012?
100%
80%
60%
40%
20%
0%
Yes No Considering
Source: Boost Rewards/HR.com poll, 2012

6. FACT
• Starbucks Coffee’s Chairman recently noted
that his company spends $200 million per year
on insurance for its employees--more than the
company spends on coffee.
Source: Welcoa, 2009

7. Benefits of a Wellness Program
 Control Increasing Health Care Costs
 Ability to Easily Track Progress and Success
 Improve Productivity/Profitability – healthy workers
are 3x more productive than unhealthy workers
 Reduce Absenteeism – each day of absence is nearly 6
times reduced worker productivity per year
 Improve Presenteeism – productivity is reduced by 8
times when workers are distracted by illness
 Culture - Improve employee morale and retention.
Companies who care about their employees are
perceived as a great place to work by prospective
employees and the community. Workplace wellness
programs send a clear message to employees that
management values their well-being.
Source: business.inquirer.net, September 2012

8. Employee Incentives
• Wellness programs have proven
success when incentives are offered
- Merchandise, travel, gift cards
• 4 out of 5 employees will participate
in a program with rewards. Only 1 in
5 employees will participate in a
program without rewards.
• Incentives improve employee
performance within the program by
an average of 22%
Source: Incentive Research Foundation, 2011
Incentive Marketing Association

9. Poll Question #2
How important is reducing health care costs to
your company?
1 = not important at all
2 = less than important
3 = important
4 = moderately important
5 = extremely important

10. Results
How important is reducing healthcare
costs to your company?
50%
40%
30%
20%
10%
0%
Source: Boost Rewards/HR.com poll, 2012

11. Health Care Costs
 United States spends more annually on health care than any other country in
the world. 76% of employer’s health care costs are preventable.
 Diet and Sedentary Lifestyle – U.S. employers are spending more than $13
billion annually on obese and overweight employees.
 By 2030, up to 67% of adults are predicted to be obese
 The United States health care costs surpassed $2.6 trillion in 2010. Less than
5% is used toward chronic disease prevention.
 Typically, health insurance is the #2 expense for employers (after payroll)
Source: The World Health Organization and the Kaiser Family Foundation
Department of Health & Human Services

12. Health Care Costs per Employee
Actual and Projected, 1965–2018
Source: U.S. Department of Health and Human Services, 2009a.

13. Ways to Fund A Program
• You can receive government grants to create and
implement a wellness program:
• http://www.firstvitals.com/employers.aspx
• Programs can be divided into two categories: HIPAA
compliant (measureable results) and non-HIPAA
compliant (based on participation only, not results)
• Employees receive up to 20% off of insurance
coverage

14. Ways to Fund A Program
• Through your insurance
provider:
• Write a letter to your
company’s insurance broker
for assistance
• Broker submits to insurance
provider (United
Healthcare, Anthem, etc.)
• Receive up to $300 per
employee

15. Poll Question #3
Do you believe offering a wellness program
affects your company’s insurance premiums?
A. Not at all affects premiums
B. Slightly affects premiums
C. Moderately affects premiums
D. Significantly affects premiums

16. Results
Do you believe offering a wellness program
affects your company's insurance premiums?
50%
40%
30%
20%
10%
0%
Not at all affects Slightly affects Moderately Significantly
affects affects
Source: Boost Rewards/HR.com poll, 2012

17. Wellness Programs & Insurance Premiums
• Rising insurance premiums will not stop unless behaviors are controlled
• GOOD NEWS: Almost all of the top health issues in US are preventable
• Launch a successful wellness program and your annual renewal rates with
your insurance provider may decrease
• A wellness program is typically only about 3% of an employer’s current
health care costs

18. Proven Case Study
• Johnson & Johnson began its wellness program in
1979 and now saves an estimated $9 to $10 million
annually.
• This company was studied for 5 years prior to
program launch & four years after:
• “A well-conceived health and wellness program that focuses on
prevention, self-care, risk factor reduction, and disease management
can produce substantial benefits for employers and their employees.”
Source:
Incentive Research Foundation, July 2011

19. Poll Question #4
What is the biggest obstacle in achieving a
successful program?
A. Limited Budget
B. Employee Engagement
C. Executive-level Support

20. Results
What is the biggest obstacle in achieving a
successful program?
80%
60%
40%
20%
0%
Limited Budget Employee Executive-Level
Engagement Support
Source: Boost Rewards/HR.com poll, 2012

21. Employee Engagement
• 58% of companies state the biggest obstacle is lack of
employee engagement, which leads to low
participation
• Where incentives were offered, participation grew
from 26% to 90%
Source: Incentive Marketing Association
Long term study by Johnson & Johnson

22. ROI and Savings in Wellness Programs
THE NUMBERS:
 On average, takes 18 months to see an improvement to the bottom line
 Higher participation and longer time period yields a higher ROI
 Risk – many employers contribute too little and expect too much
 Ideal investment per participant $100-$300
 On average, a $1 investment yields $3 in savings
 Remember: It is more effective to reward for healthy behaviors vs.
punishing for unhealthy behaviors
Sources:
Dr. Ron Goetzel, Directory of Emory University Institute for Health and Productivity
Studies
United States Department of Health & Human Services
Wellnessproposals.com

23. Example – Typical Client
• Points-based incentive Year 1
$200,000
program with Executive-level
support $150,000
• 290 employees $100,000
• $25,000 investment for Year 1 $50,000
• After Year 1, ROI is $180,000 $0
based on claim savings Investment Savings
• Participation doubled

24. 7 Steps to Implement a Wellness Program
1. Obtain Senior Management Buy-In
2. Create a Wellness Team
3. Collect Data and Assess for Focus
(HRAs, Surveys, etc.)
4. Draft an Annual Operating Plan
• Establish a Budget, Find a Wellness Platform, Set Award Reasons &
Incentive Levels, Establish Goal – Education/Activity/Results Oriented
5. Choose Appropriate Health Initiatives
• Activity (walking program), Education, Results
6. Ongoing & Supportive Environment
7. Track Progress and Evaluate Results
• Report progress to your insurance broker
• GOAL: Engaged employees

25. What can you do to implement change?
• Write your Representative
https://writerep.house.gov/writerep/welcome.shtml
• Raise Awareness
• Educate your employees and communicate in a
positive manner
• Start or re-launch your company’s wellness program!

26. How do you pick a wellness partner?
Beneficial wellness partners will
offer:
• A solution based on your company size
• Easy implementation process
• Incentives to the participants
• Marketing efforts to ensure strong
program communication
• Data management
• Comprehensive tracking and reporting
• Relieve your burden and let them do
the work for you!

27. Q&A
Michael Emoff
www.boostrewards.com
Michael.Emoff@boostrewards.com