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It can be challenging for smaller businesses to attract and hold on to top-level employees. One compelling way to do so is by offering employee benefits packages that go beyond health insurance and retirement plans. An increasing number of firms are now including flexible benefits like corporate wellness programs.
However, setting up health and wellness benefits isn’t as simple as organizing a walking group or offering yoga class discounts. You must recognize the potential legal implications and issues when you start participating actively in your employees’ personal lives.
We’re going to delve into how corporate wellness programs can aid both companies and their employees. More importantly, we’ll shed light on the rules and legal aspects a business must adhere to when launching these programs.
Corporate wellness programs are initiatives led by a company to boost or sustain the health of employees. There are no hard and fast rules about what these programs should include, as they could differ from one company to another. Some examples are:
According to 2022 Zippia research, 52% of U.S. companies offer general wellness programs, 25% offer stress management programs and 18% offer meditation. Employees also report improved productivity after participating in wellness programs.
Well-designed corporate wellness programs have significant business advantages, including money savings, improved morale and better employee retention.
Creating robust wellness initiatives can lead to significant health-related savings for small businesses. By backing your team’s personal health goals, you’re likely to decrease the risk of sickness and accidents, resulting in overall better health.
“Major risk factors for chronic illness include inactivity, smoking and heavy alcohol usage. The most expensive conditions for health insurance and medical care are cancer and heart disease,” explained Daniel Foley Carter, director at SEO-Audits.io. “You can improve your employees’ general health and lower healthcare costs if your employee wellness program takes these variables into account. Long term, it will also have a favorable effect on the financial health of your business.”
According to CDC data, well-implemented workplace health programs can lead to 25% savings on workplace absenteeism, health care costs, workers’ compensation and disability management claims costs.
The company will benefit from less time lost to employee illness. With higher attendance comes improved overall business performance and productivity. Additionally, wellness programs can boost employee morale.
“Employees who participate in wellness programs feel valued and respected,” said Sep Niakan, managing broker at Blackbook Properties. “When workers feel respected and appreciated by their employers, they are happy. Employee enthusiasm at work frequently increases when wellness programs are offered.”
Niakan also said that healthy eating and regular exercise are likely to increase an employee’s productivity because they can focus better and require less time off due to illness or injury.
For many companies, corporate wellness programs add value to the total employee benefits package, providing incentives to current and future workers, increasing employee retention, and enabling the company to remain competitive within the labor market.
Paul Somerville, editor-in-chief and hardware program manager at Electric Scooter Guide, agreed that wellness programs significantly impact employee retention.
“Employee loyalty can be increased by an employer [that] offers a wellness program and encourages staff to work toward reaching their individual objectives,” Somerville said. “Offering a wellness program to your staff demonstrates your care for their health and happiness. [Employees] are more inclined to stay rather than look for work elsewhere when you view [them] as valuable assets of your business.”
Consider using HR reporting tools to track employee turnover automatically. If your rates are too high for your industry, create a plan to retain talent and reduce turnover costs.
Creating a wellness program at your business has many benefits, especially for big companies or ones that value their employees’ growth. But, it’s also important to recognize that wellness programs can carry certain risks. Knowing and managing these risks can help protect your business.
Having a wellness program shows your business really cares about the health and happiness of your employees. But, this can also bring up issues related to fairness and privacy at work. The more a company’s wellness program is formally structured and involved, the more it risks running afoul of federal laws.
The core federal laws that pertain to corporate wellness programs include the following:
As an employer, you should also be aware of anti-discrimination workplace laws at both the state and federal levels.
It’s also crucial for employers to consider informed consent and confidentiality.
Companies are strongly advised to incorporate a comprehensive, legally compliant waiver into their corporate wellness programs to reduce the risk of lawsuits by employees who may become injured or otherwise adversely impacted by wellness program participation.
“It is important to make sure that employees give their informed consent,” said Shaun Martin, owner and CEO of Denver Real Estate Solutions. “This means that they should be aware of what the program entails and what their rights are. Furthermore, they should be given the opportunity to opt out of the program if they do not wish to participate.”
Confidentiality is crucial in any wellness program. “Employees should be assured that their personal health information will be kept confidential and will not be used for any purpose other than the wellness program,” Martin said.
Small business owners should make note that privacy is a key part of many federal regulations. When setting up a wellness program for staff, it’s not enough to rely on workers having a full understanding of federal discrimination laws. Instead, ensuring privacy is highlighted in your wellness program’s guide and directions is a smarter move.
Should you need assistance in setting up a wellness program that meets all legal standards, need advice, or are dealing with a legal dispute due to your wellness program, consulting with an employment attorney might be beneficial.
Justin Walker contributed to the writing and reporting in this article.