Workers’ compensation costs can quickly take over a small business’ budget. Luckily, how those rates are calculated gives you some control over what you pay. Understanding the relationship between employee wellness and workers’ comp rates can help you keep them under control.
Common Employee Wellness Programs and Their Outcomes
While there are no guarantees, employee wellness programs have been linked to reduced rates of certain common health conditions such as heart disease, obesity, and depression. When implemented holistically, they may also help employees manage stress levels.
Employee wellness programs can have many features, depending on your workforce demographics and concerns. Some activities that are commonly associated with them include:
- Smoking cessation programs
- Exercise challenges
- Health education classes
- Chronic disease self-management programs
How Wellness Programs Impact Workers’ Comp Costs
There is a fairly consistent connection between improved physical and emotional health resulting from wellness programs & workers comp costs. This is largely due to improvements in workplace safety. Workers who are healthier and happier tend to experience fewer accidents and illnesses which reduces your company’s risk profile and, in turn, your workers’ comp premiums.
In addition to improved fitness among workers, many places that have implemented an employee wellness plan also notice lower rates of accidents and injuries. This makes it an effective risk management strategy.