Many large employers are moving to boost programs that increase their workers' productivity, despite pressures they may feel to cut costs elsewhere. A new report from Watson Wyatt and the National Business Group on Health found that more than half of employers surveyed are planning no change or will increase their budgets for health and productivity programs. Furthermore, 72 percent have already added employee assistance programs, stress management or health coaches to onsite offerings, or plan to do so in the next year.
These programs have shown significant demand among employees. Forty-two percent of employers noted an increase in their workers' use of the company health plan. Nearly half said more workers are taking advantage of the EAP, and 30 percent saw an increase in disability claims.
And it seems to be working. According to the report, companies with the most effective programs managed to increase revenue by 11 percent per employee. Absenteeism was cut by 1.8 days per employee and medical trends fell by 1.2 percentage points. The report also noted that companies with effective programs were more likely to have lower health care costs, lower levels of presenteeism and lower turnover compared to their competition.
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"Companies are finding some relief from high benefit costs by investing in programs that improve the health of their workers," said Shelly Wolff, national leader of health and productivity consulting at Watson Wyatt. "Workers who haven't lost their jobs are under great amounts of stress and are increasingly turning to their employer for advice, treatment or assistance that goes beyond basic coverage when they get sick."
Still, some employers are resistant to address employees' needs. Seventy-eight percent of employers said excessive work hours was a major source of employee stress, but only 21 percent are addressing the issue. Another leading cause of stress is the fear of losing a job; 67 percent of employers said their workers were worried about being laid off, but only 41 percent are actively working to assuage that fear.
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