Leadership

Are Employee Wellness Programs a Scam?

By Jessica Stillman

Updated on: March 17, 2009 / 11:23 AM EDT / MoneyWatch

The Find: No employee wellness program on the planet will save your company a dime, declares one HR pro, and anyone trying to sell you one is essentially a snake oil salesman.
The Source: HR pro Laurie Ruettimann of the blog Punk Rock HR writing for the Conference Board Review Soundings.

The Takeaway: Health care costs are inching up (if not soaring) at companies across America, and in the current economic climate managers are desperate to cut these costs. And where there's desperation, there' usually someone willing to exploit it. That's just what's happening with the all those touting employee wellness programs, says Ruettimann. In her usual uncompromising tone, the blogger behind Punk Rock HR holds nothing back:

There is no wellness program in America that will lower the cost of your company's medical benefit program. If someone tells you otherwise, she is wrong. In fact, long-term studies from clinics and hospitals across America show that weight loss and lifestyle changes are temporary, at best, and that 95 percent of those who lose weight--and benefit from eating right and exercising--will gain back the weight within five years.... programs that focus on weight loss, stress reduction, and exercise cannot prove either a long-term reduction in benefit costs or an overall improvement to your workforce's health.
Don't be the last chump in America to wake up and realize that wellness programs are a scam and distract you from your real goals as a leader. Skip the lectures on calories and exercise. Stop devaluing your employment brand by trying to motivate your workforce to join the local fitness center and drink more water.... If your company spends time and money lecturing your workforce on the benefits of diet soda and cardiovascular exercise, you are running an adult daycare program instead of a business.

So does she have any alternatives to offer those scrambling to bring down health care costs? Of course she does. Ruettimann suggests a back to basics focus on rewarding performance. On top of that all you can do is "use your political capital to influence the debate on health care reform" and "ask your HR department to craft a compensation plan that will attract and retain the best and brightest employees." Check out Ruettimann's blog for many more strong opinions on all things HR.

The Question: Are wellness programs just a distracting intrusion?

(Image of unfortunate snakes in snake oil by w a a, CC 2.0)