Introduction

Since 1996, when the U.S Surgeon General issued the historic report, Physical Activity and Health, much has been done to increase public awareness of the essential role that regular exercise plays in reducing health risks, increasing longevity, and improving overall quality of life.

Healthier employees have a positive impact on a company’s bottom line. They have lower worker’s compensation claims, improved productivity, fewer medical claims, and reduced absenteeism. The result is a win/win situation for individual health and company gain.

It has been reported that 80% of U.S worksites with 50 or more employees and almost all large employers offer some type of health improvement program.

Riedel JE, Lynch W, Baase C, Hymel P
Peterson KW, The effect of disease
Prevention and health promotion on Workplace productivity: a literature Review.
American Journal of Health Promotion. 2001

By implementing wellness programs, companies can not only aid in decreasing their compensation costs, but also reap the reward of healthier employees. Today’s organisations believe that their support of positive health habits is an important contribution to the overall culture of their business.

A 1994 Study described a $3 million project funded by the National Institutes of Health and the city of Birmingham, Alabama, that provided medical screenings and weight loss, stress management and smoking cessation programs. Five years after the implementation, costs had dropped $922 below the state average.

Worksite Wellness: 20-year Cost Benefit
Analysis and Report: 1979-1998.
University of Michigan Health
Management Research Centre. 1998

To date, the Health Balance Program at Caterpillar has reduced the high health risk for its participant employees by 14%. Caterpillar hopes that this reduction in health risk will lead to a long-term savings of $700 million by 2015.

US Department of Health and Human Services Prevention Makes Common Cents.
September 2003.