Johnson & Johnson's Health and Wellness Program
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BACKGROUND NOTE contd...In the late 1990s, with
the rising awareness about the link between the employees'health and an
organizations'productivity, more and more companies in the US started
offering health and wellness programs for their employees.
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According to a study conducted by Hewitt
Associates[17] in 2001 (involving 945 major corporations), around 93% of
the corporations offered HWPs compared to 89% in 1996. Explaining the
development, Camille Haltom (Haltom), a health care consultant with
Hewitt Associates explained[18] , “Because employers are under increased
cost pressures, there is a renewed interest and excitement about health
promotion and medical management programs that can provide cost savings,
reduce absenteeism and increase productivity.”
Major companies in the US reaped substantial benefits by implementing
WPs (Refer Exhibit II). PepsiCo[19] invested $2 million in a fitness
center and realized a return of three times the money it invested.
Similarly, Dupont introduced a program, ‘Health Horizons'[20] and
realized savings of five times the money it invested. |
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Tenneco[21] which invested a sum of $11 million to start
a fitness centre, spreading over a total area of 25,000 square feet in
Houston found that the annual medical claims of employees who participated
in its fitness program, decreased by about half. General Electric was able
to cut down its health care costs by 38% in one-and-a-half years by
introducing a wellness program for its employees. The employees who did not
participate in the program witnessed an average increase of 21% in health
care costs.
A study conducted by the Mutual Benefit Life Insurance Company, New Jersey,
revealed that the employees who participated in health programs had medical
claims that were, on an average, 70% less than that of non-participants.
Haltom said[22] , “We expect that organizations will not only continue to
offer health promotion programs but look for ways to enhance and expand
existing programs for employees.”
In order to protect and promote the health and well-being of its employees
and their families, J&J also introduced its HWP in 1995. Though several
organizations in the US had introduced HWPs earlier, the manner in which J&J
implemented it was unique and resulted in significant benefits for the
company.
THE HEALTH AND WELLNESS PROGRAM
EMPLOYEE ASSISTANCE PROGRAMS (EAP)
ERGONOMICS INJURY PREVENTION PROGRAM
THE BENEFITS REAPED
TABLE III - J&J HEALTHY PEOPLE 2005 TARGETS
EXHIBIT I - CHAA'S CRITERIA AND POINT WEIGHTING OVERVIEW
EXHIBIT II - BENEFITS OF HWP REAPED BY OTHER ORGANIZATIONS
EXHIBIT V - THE 16-POINT SAFE FLEET PROGRAM
ADDITIONAL READINGS AND REFERENCES
[17]
Hewitt Associates is a world-wide outsourcing and consulting firm, offering
a gamut of services in Human Capital Management to various companies in 39
countries. These services include HR strategies and technologies, HR benefit
outsourcing, health care, organizational change, retirement and financial
management and, talent and reward strategies.
[18]
In an article titled “Health and Productivity Programs Continue to Grow in
Popularity as Health Care Costs Rise,” by Suzanne Zagata-Mera and Kelly
Zitlow dated July 15, 2002 posted on www.was.hewitt.com.
[19]
PepsiCo is a global leader in foods and beverages industry with a turnover
of $27 billion in 2001. It has more than 1,47,000 employees. The company's
brands are sold in about 200 countries.
[20]
A health initiative program launched for the benefit of employees'health,
fitness and well-being, which yielded Dupont a return of $5 on every dollar
invested in the program.
[21]
Tenneco is a $3.5 billion global automotive manufacturing company based in
Lake Forest, Illinois. It is one of the largest designers, producers and
distributors of automotive and emission control products and systems in the
world.
[22]
In an article titled “Health and Productivity Programs Continue to Grow in
Popularity as Health Care Costs Rise,” by Suzanne Zagata-Mera and Kelly
Zitlow dated July 15, 2002 posted on www.was.hewitt.com
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