Johnson & Johnson's Health and Wellness Program

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The Safe Fleet team was responsible for implementing several measures like training new drivers, reducing cases of high-risk driving and hiring field safety coordinators. Drivers were educated about the causes of the accidents, the preventive strategies to be undertaken and advantages of safe driving. The drivers were also trained to keep their vehicles in good running condition as per the vehicle maintenance plan, which was also a part of the Safe Fleet Program. J&J also installed a high-risk driver detection system, which enabled it to identify the drivers who drove recklessly and faced a greater risk of accidents. Explaining the problems in implementing the program, Seykens said, "One of the first obstacles encountered was the different mentality of people at our different sites. Each region having its own philosophy and cultural values, it wasn't immediately obvious how a common denominator could be found." After implementing the Safe Fleet Program, the number of accidents reduced significantly. According to Michael N. Ferrera, Manager, Safe Fleet, the crash rate in 2001 came down to 3.93 crashes per million miles, which depicted a 30% fall since the launch of the program.

The Benefets Reaped

To find out the impact of its HWP, the MEDSTAT group was asked to carry out an independent evaluation. The group scrutinized the medical insurance claims of 18,331 employees of J&J, who participated in the HWP during the period 1995 to 1999. The study thoroughly analyzed the medical expenditure of employees five years before and four years after the introduction of HWP. The study revealed that J&J had enjoyed substantial financial benefits to the tune of $8.5 million in the form of annual savings in medical care costs of employees. Most of the savings were realized in the third and fourth year of the implementation of HWP.

The company saved $225 per employee annually due to the decrease in the number of hospital admissions, cases of mental health problems and outpatient services. J&J also benefited due to increased employee productivity, lower benefit plan costs and reduced absenteeism. The study revealed that J&J had enjoyed substantial financial benefits to the tune of $8.5 million in the form of annual savings in medical care costs of employees. Most of the savings were realized in the third and fourth year of the implementation of HWP. The company saved $225 per employee annually due to the decrease in the number of hospital admissions, cases of mental health problems and outpatient services. J&J also benefited due to increased employee productivity, lower benefit plan costs and reduced absenteeism.

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