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robintek

Sep 01
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CONSIDER COMPANY IMAGE WHEN FORMULATING DRESS CODES FOR THE WORKPLACE

By Business Protection Bulletin

As the manager of a business, you want to focus on those things that drive success: Productivity, innovation, performance, and strategy. As you work to grow the business, you probably do not want to deal with more mundane office matters. Sometimes, however, these issues can have a major impact on employee morale, and they must be handled well. One such issue is the employee dress code. It would be nice if all employees used common sense every day and wore tasteful, professional clothing. Taste and professionalism, however, can be in the eye of the beholder. It is likely that your organization needs some kind of guidance on appropriate dress.

If the organization has an employee handbook, it probably has a section on acceptable dress for the workplace. Is the policy too vague to be useful or overly specific? Does it comply with legal requirements? Does it require dress that is more formal than necessary given the amount of customer contact employees have? Does it allow clothing that is too informal for regular customer contact? If the answer to any of these questions is yes, consider updating it. If not, make sure that you are enforcing it. Also, it might be wise to remind employees of the dress code policy periodically. This will inform new employees and reinforce the policy with veterans.

The organization should enforce the dress code without partiality. Individuals and groups of employees should be treated equally. Federal employment laws and regulations permit employers to set employee dress codes and to treat men and women differently within social norms. For example, it’s acceptable to require men to cut their hair while not making the same demand of women. On the other hand, it might not be acceptable to require women to wear skirts or men to wear uniforms while not making equivalent demands of the other sex.

Be aware that federal and state laws protect employees from discrimination on the basis of religion. Employers must make reasonable accommodations to employees who want to dress a certain way for reasons of religious observance. Some men might cover their heads or wear beards for this reason; women might wear clothing that almost completely covers them up; employees of both sexes might wear certain pieces of jewelry. Unless complying with these requests would pose an undue hardship for the organization, the employees’ wishes must be honored. Employers may refuse such requests if the clothing or style creates a safety hazard; in most other cases, they must make the accommodation.

On the other hand, the law does not require employers to allow workers to display tattoos and body piercing. Rather, employers are free to make business decisions about the display of these styles. Some employers might permit it for employees who seldom or never interact with customers. Others might permit it for everyone, especially if their customers frequently have tattoos or piercings. Still others might decide that it’s inappropriate for their businesses in all cases. The decision is entirely the employer’s, based on the balance between business needs and the need to attract and retain good employees.

This is really what dress codes are all about. Every business projects an image, and how its employees dress affects that image. Managers naturally want to put their best foot forward with customers. At the same time, a good workforce is not easy to build and retain. A too-strict dress code will repel good job candidates and could cause valuable employees to consider leaving. Inflexibility might violate anti-discrimination laws and inspire workers to file lawsuits. It is in an employer’s best interest to develop a dress code that reflects well on the business and keeps employees happy.

Sep 01
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COMMUNICATION IS VITAL IN IMPROVING THE CLAIMS PROCESS

By Business Protection Bulletin

Occasional severe injuries are an unfortunate part of the construction business. When they happen, a contractor may be looking at a very large lawsuit and will seek coverage under its Liability insurance policy. Undesirable side effects of Liability insurance claims include disputes between the contractor and the insurance company. Bad feelings can begin with the claim notice from the contractor, build with a letter from the claim adjuster listing every policy condition that might mean no coverage for the claim, exacerbate when the adjuster balks at the defense attorney’s bills, and erupt during negotiations over a settlement.

A contractor cannot control a claim adjuster’s actions, but there are things that can be done to influence the adjuster’s behavior for the better, minimize areas of disagreement, and make the whole process a little smoother. Claim adjusters find it frustrating when they receive initial claim notices that provide limited information. When giving the initial notice of a liability claim to its insurance company, the contractor should provide at minimum the following information:

  • Basic information, such as the date and location of the loss, names of injured persons, nature of injuries, and so on.
  • If the contractor has already hired defense attorneys, an explanation of its reasons for selecting that firm. For example, a particular firm might have significant experience defending contractors of the same type; the notice to the insurance company should state that.
  • A statement of what the contractor expects from the company during the claim process. This should present several questions for the company to answer, such as whether the attorneys will act as the conduit for information between the contractor and the company, whether the company will hold an early meeting with the contractor to discuss the case, and the confidentiality of certain communications.

It is a good idea for the contractor to seek an in-person meeting with the claim adjuster within the first few months after making the initial notice. This meeting will separate the contractor’s claim from the dozens of other cases on the adjuster’s desk. It will facilitate an exchange of information, introduce the adjuster to the attorneys, educate the adjuster about the case, and allow both sides to discuss their expectations for the claim process, such as frequency of updates and the payment schedule for the attorneys.

Even with a detailed initial notice and an early meeting, disputes between the contractor and the company can still arise. If the two parties can define the issues specifically, they can limit the disagreements and focus on producing a successful claim resolution. Even if they disagree on whether the policy will cover the claim, a specific description of each side’s concerns can help narrow the areas of disagreement and reduce uncertainty. Therefore, it is in the contractor’s interest to be specific about its questions and concerns in all communications with the company. This should give the company an incentive to be clear about why it might not cover the claim. Armed with this information, the contractor can decide more easily how to proceed next — whether that will be to mediation, appeals to the company’s management, litigation, or other alternatives.

During this process, the contractor should not overlook his insurance agent as a resource and advocate. Agents deal with claim situations on a daily basis and can provide valuable information on what to expect and ways to make the process easier. Workplace injuries are upsetting and disruptive; ensuing lawsuits are stressful and take a contractor away from his real business. Following these steps can reduce the amount of stress and help bring the claim to a conclusion with which all parties can live.

Sep 01
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KNOW HOW TO INSURE PERSONAL VEHICLES USED FOR BUSINESS PURPOSES

By Construction Insurance Bulletin

Businesses have their employees travel on company business every day. A sales manager spends three days on the road visiting key customers. A hardware store employee drives to a wholesaler’s warehouse to pick up parts on order. An architect drives to a client’s location to review drawings for a proposed building renovation. Often, the employees drive their own vehicles on these trips. The business probably has its own Auto insurance to cover it should an employee have an accident while traveling on company business. What coverage does the policy provide for the employee?

If an employee causes injuries or damage to someone else while driving on company business, his own Personal Auto insurance policy will actually be first in line to pay the bills. A standard Personal Auto policy covers on a “primary” basis liability for accidents involving vehicles owned by the policyholder. This means that, if two or more policies cover the same loss (for example, a Personal Auto policy and a Business Auto policy), the personal policy pays for the loss until its insurance limits are exceeded. For example, if the amount of the loss is $500,000 and the Personal Auto policy provides Liability insurance for bodily injuries of up to $250,000 per person, the personal policy will pay all of its $250,000. The Business Auto policy will pay the remaining $250,000.

The personal policy covers the business as well as the employee. The standard personal policy covers any person or organization with respect to their legal responsibility for the employee’s acts or omissions. Suppose an employee, while driving on business, gets in an accident and severely injures the other driver. The court awards the other driver $500,000 and decides that the employee and the employer share responsibility, 50% each. The employee’s Liability insurance has a limit of $250,000 for injuries to one person. It will pay the full $250,000 — $125,000 each for the employee and the business.

Now coverage shifts to the Business Auto policy. Assume that this policy’s Liability insurance has a limit of $1 million for all injuries and damages from any one accident. It will pay $125,000 to cover the business’s liability for the accident (the business’s $250,000 share of the verdict minus the $125,000 paid by the employee’s policy). However, it will not pay the remaining $125,000 the employee owes. The policy’s terms state that it does not cover an employee if the auto involved in the accident is owned by the employee or a member of his household. The employee will be forced to pay the remainder out of pocket.

An employer that wants to protect its employees from situations like this can buy coverage for an additional premium based on the number of employees. A policy change (also called an “endorsement”) titled Employees As Insureds does just what the title implies: It insures employees for their liability while using their own cars. Even with this endorsement on the policy, the Business Auto policy will still pay only after the employee’s own insurance is used up. However, the employee will have coverage under the business policy for larger losses.

Any organization whose employees use their own cars in the business should discuss buying this additional coverage with our agency. Buying the endorsement will protect employees but might also hurt the organization’s loss record, which could result in higher premiums in the long run. Each organization must decide whether the benefits outweigh the risks. Regardless of the decision, this is coverage every organization should consider.

Sep 01
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DON’T SIGN THAT HOLD HARMLESS AGREEMENT UNTIL YOU READ THE FINE PRINT

By Construction Insurance Bulletin

Hold harmless agreements have become standard parts of construction contracts. In a hold harmless agreement (also known as an indemnity agreement), one party (the indemnitor) agrees to pay for damages assessed against another party (the indemnitee) for its liability for injuries or property damage arising out of the project. There are three basic forms of hold harmless agreements and they have different implications for a contractor’s Liability insurance.

Broad Form: The indemnitor assumes all liability for accidents arising out of the project, regardless of who was at fault. Under this form, a subcontractor pays for its own sole negligence, its joint negligence with a general contractor for an accident, and the sole negligence of the general contractor. Therefore, an electrical contractor is liable if an employee injures another sub’s employee with a dropped tool; if an employee leaves materials in a walkway at the GC’s direction, causing another sub’s employee to trip and injure himself; and if the scaffolding, set up by the GC for the electrician to use, collapses on top of another sub’s employee. Many states prohibit this form of agreement unless the indemnitor finances the assumed liability with an insurance policy.

Intermediate Form: The indemnitor assumes all liability for accidents arising out of the project except for those where the indemnitee is solely negligent. Under this form, the subcontractor pays for all accidents in which it is at least 1% liable. In the above examples, the sub would not assume liability for the incident involving the scaffolding, but it would assume liability for the dropped tool and the materials left in the walkway.

Limited Form: The indemnitor assumes liability for accidents arising out of the project, but only to the extent of its own liability. Under this form, in an accident where each party was 50% liable, the sub would owe 50% of the judgment amount to the GC. In the case of the materials left in the walkway, if the jury held each party 50% liable and the award was $100,000, the GC would pay the $100,000 and the sub would owe the GC $50,000.

The ISO Commercial General Liability Coverage Form excludes coverage for injuries or damage for which the insured is obligated to pay damages because it assumed liability in a contract or agreement. However, the form makes an exception for liability assumed in “insured contracts,” including parts of contracts where the insured assumes the tort liability of another party to pay for injuries or damages to a third party. This exception gives a subcontractor insurance coverage for liability it assumes in a hold harmless agreement, if the injury or damage occurs after the contract’s execution. The policy will cover the GC’s attorney fees if the hold harmless agreement requires the sub to pay for them.

Another way for a sub to insure assumed liability is to add the GC as an additional insured under the CGL policy. However, it is important to understand that ISO changed its additional insured endorsements in 2004 so that they do not cover an additional insured for its sole negligence. This could be a problem if the contract contains a broad form hold harmless agreement. In the above examples, the additional insured endorsement would not cover the GC for the scaffolding accident even with the broad form agreement in place. To recover, the GC would have to make a claim for damages under the insured contract coverage.

Contractors should work closely with their attorneys to ensure that they understand the terms of hold harmless agreements. They should also consult our insurance agents to determine how their Liability insurance will apply to the agreements. The time to identify and eliminate coverage gaps is before the job starts and an accident occurs.

Sep 01
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CONTRACTORS HAVE CHOICES WHEN IT COMES TO INSURING LOSSES

By Construction Insurance Bulletin

The commercial insurance market can often be a difficult place for contractors. The insurance industry goes through market cycles; companies that are eager to insure contractors today might have no desire to do so when their losses mount and the market tightens. Because of this uncertainty, larger contractors often consider alternative markets for financing their risks of loss. One alternative is a captive insurance company, which is created and owned by one or more non-insurance companies to insure the owners’ loss exposures. Other options include self-insurance (paying losses out of pocket) and insurance options such as dividend plans, large deductible plans, retrospective rating plans, risk retention groups, and purchasing groups.

According to Business Insurance magazine, there were more than 5,200 captive insurance companies operating in 2008, falling into several types. Single parent captives are owned by one company. Group and association captives are owned by multiple entities. For example, groups of contractors could form captives to insure themselves and others.

Businesses that cannot afford the capital requirements of a captive can “rent” one from an insurance company or reinsurer, allowing them to share in the risks and the profits. Captives often use what is called a “fronting” mechanism, where an insurance company or reinsurer issues and administers the policies and handles the claims, and the insured businesses pay for the losses. Captives may insure the risks of their major owners only, or they may also insure other organizations.

Large companies might choose to self-insure; groups of companies in particular industries might band together to self-insure the risks of the group. For example, in some states groups of contractors have formed trusts to self-insure for Workers Compensation losses. Companies can also choose to partially self-insure by purchasing a large deductible program (one with a deductible of $100,000 or greater per occurrence) for Workers Compensation. Retrospective rating plans, while still insurance policies, are closer to self-insurance in that the final premium includes the amount of the business’ losses during the policy term, subject to a minimum and maximum. Dividend plans are types of insurance policies that typically offer the business the chance of receiving a portion of the premium back via a dividend should losses fall below a specified level. Risk retention groups are groups of businesses in the same industry that have created an insurance company for liability coverage. Purchasing groups are groups in the same industry who band together to buy Liability insurance from one insurance company.

Each alternative has advantages and disadvantages. Captives can offer tax advantages, they cut out the portion of the premium spent on insurance company overhead and profit, and they give the owners control over risk management. However, they must meet large capital requirements to comply with state laws, and fronting arrangements still require insurance company involvement. Self-insurance, large deductible, and retrospective plans reduce premium costs, give businesses some control over their loss costs, and provide incentives for safe operations, but they can also be a drain on cash flow and their ultimate costs can be hard to predict. Contractors who can predict their future losses with reasonable accuracy might find these plans advantageous.

Because all of these options require contractors to finance at least some losses themselves, they should have access to significant financial resources before using any of them. Also, the options can be complex. Contractors should consult with our professional insurance agents to investigate each option’s implications for the business. Traditional insurance is no longer the only financial protection option available to contractors, but it would be unwise to jump into an alternative without learning the facts.

Sep 01
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RELY ON YOUR BRAIN POWER FOR ON-THE-JOB SAFETY

By Workplace Safety

Everyone has heard the old adage “Experience is the best teacher.” Although it’s true that you remember what you learned from an experience, especially a bad one, you might not like the other consequences that are part of the learning process.

This is especially true when it comes to on-the-job safety. Learning from a bad experience usually involves injury, and sometimes death. This shouldn’t have to be the case. But unfortunately, not exercising proper caution and not paying careful attention can lead to these outcomes.

You probably hear a supervisor tell you or your co-workers, “Be careful,” or “Pay attention” any number of times during the day. The next time you hear those words, stop a minute and think of all the reasons you should be careful. Then follow that supervisor’s advice, so you can avoid having an accident that might be the last thing you ever learn.

You might be thinking, “I’m experienced, I don’t have accidents.” If you are, you’re setting yourself up for a bad learning experience. Accidents happen when you least expect them, and no worker, no matter how experienced, has any special immunity from having an accident. That’s why it’s so important to follow safe work procedures. They are designed to help you avoid the causes of possible injury while getting the job done correctly. That’s also the reason your employer provides you with personal protective equipment (PPE), because using it prevents or minimizes the probability that you will be injured.

Always remember your brain is your best defense against injury. Let it remind you to:

  • Follow proper work procedures at all times. Never take short cuts, even if you think that they will save time. All of the time you save will be lost if your short cuts cause you to be injured.
  • Concentrate on the task at hand. That means giving it your full attention until it’s completed. Avoid any kind of distraction, such as talking, or joking around with co-workers because they can result in your being seriously hurt.
  • Use PPE whenever appropriate. Be sure it fits correctly, and that you wear it in the manner it was intended.
Sep 01
Love0

SAFEGUARD YOUR HANDS FROM WORKPLACE INJURIES

By Workplace Safety

You probably aren’t aware of how complex a piece of equipment your hands are. There are a total of 27 bones in your hand and wrist. These bones are joined together by ligaments, which also hold the joints in place. Nerves carry messages from your brain to your hands and fingers to help them move. All of this intricate machinery is wrapped up in a layer of skin. The skin provides a barrier against foreign objects, as well as heat and cold. The skin on the back of your hand is thin and elastic, but on the palm, it is thicker to provide traction, cushioning and insulation.

Just like any other delicate piece of equipment, your hands need to be safeguarded while you are working. The most common sources of injury stem from mechanical hazards from tools, equipment, machines, structures and vehicles such as:

  • Chains, gears, rollers, wheels and transmission belts
  • Spiked or jagged tools
  • Cutting, chopping and grinding mechanisms
  • Cutting tools such as knives and presses
  • Falling objects

You can make your hands less vulnerable to these risks by following these safety tips:

  • Work at a pace at which you feel comfortable – The number of hand injuries you will have is in direct proportion to how quickly you work.
  • Keep alert – Stay focused on what your hands are doing whenever you are using tools or machinery.
  • Use a push stick to feed a circular saw.
  • Handle the tools and equipment you work with properly – Never take shortcuts.
  • Use wrenches that properly fit the nuts and bolts you wish to tighten.
  • Use long magnetic poles for retrieving items from places that are too dangerous for hands to reach.
  • Don’t hold the work piece in your hand while using a hand tool because the tool could slip and cause injury.
  • Never try to repair power tools or machinery without first checking that the power is shut off and the machine is locked out.
  • Wear the appropriate gloves when handling chemical substances.
  • Wash your hands thoroughly with soap and warm water or use special cleansers, especially after direct contact with a chemical substance.
  • Don’t wipe your hands with chemically contaminated rags.
  • Don’t operate machinery if you are taking any medication unless your doctor tells you it is safe to do so. Some drugs can slow your reflexes, which makes your hands vulnerable to injury.
Sep 01
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WORKPLACE ACCIDENT PREVENTION: EVERYONE BEARS RESPONSIBILITY

By Workplace Safety

When it comes to accident prevention in the workplace, you are your brother’s keeper. You have a responsibility to make sure that the co-workers around you, or those who use the same tools, equipment or materials that you do, are not injured because of your negligence. Furthermore, to make the workplace as safe as possible for everyone, all workers need to keep their eyes open for any dangerous situations in their midst.

Keep the following in mind to make your workplace as safe as possible:

  • Warn a worker who is in a dangerous position. Sometimes inexperience can cause a worker to perform a task in a manner that might result in injury. If you see this happening, don’t just explain to your co-worker what he or she is doing wrong; demonstrate the right way to do it.
  • Call attention to a task if a worker seems distracted. Conversation and noise can present serious distractions. If a co-worker seems not to be paying attention to the task at hand, go over and try to gently re-focus his or her attention.
  • Set a good example. Always use tools and equipment in the intended manner. Never joke around when handling tools or equipment. Remember, younger co-workers can be influenced by the behavior they see in their older peers.
  • Keep machine guards in place. Machines usually have moving parts that might accidentally come into contact with a worker’s body. When this happens, the worker can be killed or maimed. Machine guards prevent contact with moving parts during the normal operation of the machine.
  • Report tool/equipment defects to your supervisor. Continuing to use a defective tool or piece of equipment instead of reporting it could result in possible injury to you or a co-worker.
  • Encourage co-workers to report every injury. Sometimes an injury that seems insignificant can escalate down the road. If an accident is not reported at the time it occurs, it might not be covered by insurance if it is reported at a later date.
  • Encourage co-workers to wear personal protective equipment (PPE). Your employer provides PPE so that you will be protected. Always wear it if it’s necessary for the task being performed. Ask co-workers to wear it as well.
  • Ask questions if you are confused about what you have been asked to do. Never perform a task unless you are completely sure of the correct way to do it. Ask your supervisor to show you the proper method.
  • Take safety suggestions in the cooperative spirit in which they are made. Co-workers are responsible for each other’s safety. If a suggestion is made about the way in which you are performing a task, don’t respond with anger. Instead, thank the co-worker making the suggestion for caring enough about your personal safety to take the time to correct you.

When all workers look out for themselves and others, everyone’s safety is enhanced.

Sep 01
Love0

ENROLLEES SATISFIED WITH CONSUMER-DIRECTED HEALTH PLANS

By Employment Resources

The number of people enrolled in consumer-directed health plans continues to grow, and satisfaction with these plans remains high, according to several recent surveys. Furthermore, many of those covered by consumer-directed plans say they wouldn’t have health insurance coverage otherwise, indicating that consumer-directed plans should be considered a key element of any health care reform proposals.

The Kaiser Family Foundation/Health Research & Educational Trust reports that 13% of firms that offered health benefits in 2008 had a consumer-directed option-a high deductible health plan (HDHP) paired with either a health reimbursement arrangement (HRA) or a health savings account (HSA). This is up from the 10% of employers that offered a consumer-directed plan in the previous year. Enrollment in these plans grew from 5% in 2007 to 8% in 2008, with most of the increase occurring among workers in small firms (three to 99 employees), where 13% of eligible employees now were enrolled in consumer-directed plans.

An annual census of health insurance carriers conducted by the industry trade group America’s Health Insurance Plans shows similar growth. The survey, which focused on HDHP/HSA arrangements only, reported enrollment in these plans in the group market rose to over 4.6 million in 2008, up from 3.4 million in 2007. Almost a third-31%-of new coverage issued in the small group market was for HDHP/HSA products.

The growing number of employees covered by consumer-directed health insurance products report that they are, by and large, satisfied with their coverage, and they also are likely to be actively engaged in their health care. A survey by OptumHealth of individuals enrolled in HSAs found that 82% were satisfied with their accounts. Most of these individuals-80%-had set up HSAs in order to be able to save for future health care expenses, and 70% had an annual income of $75,000 or less. Also, 30% said they would not have health insurance if it weren’t for their consumer-directed plan coverage.

Both the respondents to the OptumHealth survey and those to a survey by HSA Bank reported behaviors indicative of engaged health care consumers. For example, 64% of the OptumHealth survey respondents said they inquired about generic options for medications and 47% said they asked their health care provider about charges for services. Furthermore, a large majority-83%-agreed people should approach purchasing health care services as they do other major consumer purchases, and research their options in an effort to try to get the best price. Among the respondents to the HSA Bank survey who were in a consumer-directed product:

  • 26.2% of those who had visited a doctor in the past 12 months had inquired about the cost of the visit prior to making the appointment.
  • 32.9% of those who had visited a doctor in the past 12 months had asked about lower cost alternatives for recommended treatments.
  • 79.5% of those who were prescribed a prescription drug asked for a generic instead of a brand name product.

With continued growth of consumer-directed plan enrollment, and cost-conscious consumer habits, these types of plans hold great potential for effectively controlling a company’s health plan cost growth.

Sep 01
Love0

TIPS FOR BUILDING NO- AND LOW-COST WELLNESS PROGRAMS

By Employment Resources

Most people and businesses probably accept the logic that companies implementing wellness initiatives must be saving some money as a result. If employees lose weight, stop smoking, become more active, and have tools to detect and begin to manage potentially serious conditions at an earlier, more treatable stage — all of which can result from wellness program initiatives — it seems reasonable to assume that a company’s health care costs should be affected favorably. Yet, data on wellness initiatives’ return on investment (ROI) remains elusive, which can spell trouble for these programs when economic conditions call for justification of every dollar a department spends.

In times of scrutinized budgets and spending cutbacks, wellness programs that require little or no expense outlay, yet address either (or both) disease prevention or early detection — the dual focus of wellness initiatives — might be the best (or only) option for cash-strapped businesses. Here are some ways to bring wellness programs into the workplace without making a significant capital outlay:

  • Use premium incentives and surcharges to motivate employees to engage in healthy behaviors or abandon unhealthy ones. For example, offer employees a credit they can use to offset their required health plan premium contribution in exchange for participating in a health risk appraisal, or charge a lower health plan premium contribution for nonsmokers than for smokers.
  • Take advantage of wellness features that are included in your company’s health care plan and promote them as part of your wellness program. Consult with the health plan carrier to determine what offerings are available. Check to see if the carrier offers additional wellness-related services outside of your health plan and, if so, consider adding some of these to your plan. This might raise the health plan premium somewhat, but remember that employees will help to pay for the cost of the additional wellness efforts through their share of the premium payment.
  • Look for free resources in the community that can be made available to employees as part of a wellness initiative. For example, a local health department might have individuals who could speak to employee groups on seasonal health issues, such as the flu or about resources the community makes available to residents, such as immunization clinics.
  • Explore offerings that might be available through nonprofit organizations that focus on a specific disease. A Calendar of National Health Observances (available at www.healthfinder.gov/nho) lists contact information for hundreds of such organizations, and some of these might be sponsoring activities in your area with a wellness focus (for example, National HIV Testing Day, Melanoma/Skin Cancer Screening and Detection Month).
  • Check to see whether hospitals in your area offer free blood pressure and/or cholesterol screenings.
  • Try to develop partner-type relationships with local hospitals, clinics, and other organizations (for example, the YMCA) to make free or low-cost wellness activities available to employees.

According to the Alliance for Wellness ROI, an intercompany cooperative formed to standardize the terminology and measurement of wellness return on investment, published ROI resulting from wellness programs ranges from $1 to $20 for every dollar spent on wellness initiatives. Unfortunately, since this is such a dramatic range, questions arise as to what exactly is being measured. Arguably, measurement of wellness ROI should include not only reductions in health care costs, but also Workers Compensation cost savings, reduced absenteeism and disability, productivity gains, and improvements in employee morale and retention. However, until reliable measures of wellness ROI become standardized-enabling benefits departments to clearly justify program costs-no- and low-cost wellness opportunities are likely to be necessary staples of corporate wellness initiatives.

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