Employment Resources

Telemedicine, which is already being used by many, is expected to become more popular in the future. Every employer should consider the advantages of this option for their employees. Although there are many vendors available, it’s best to choose one of the top three. To use telemedicine, patients call a phone number to speak to a trained representative. The representative completes a health profile for the patient. By doing this, the representative is able to determine what type of medical issue the patient may be facing. If the nature of the call isn’t an emergency, the representative ensures that a physician will call the patient back within a few hours. However, if the patient indicates a situation that is considered an emergency, the representative will urge that individual to seek emergency care or dial 911.

After speaking with the patient, the physician makes a diagnosis. If the physician feels that the patient needs further tests, the patient must schedule an appointment at a medical facility. However, most patients who use telemedicine programs have a cold, mild infection or a virus that can be cured with medication. If the patient needs medication, the physician calls a nearby pharmacy to order the prescription. Most physicians advise patients to schedule a visit with their regular physician after completing the recommended treatment.

Although telemedicine isn’t able to solve every problem a patient has, those who are fairly healthy can benefit from this program. Emergency room visits can cost thousands of dollars. Even a simple office visit costs more than what most people have in their pockets. In many cases, a visit to the doctor or emergency room isn’t necessary. Patients may simply be worried and need assurance. In some cases, they may only need a medication to solve their problem. For example, a patient who has chronic infections may have to spend a considerable amount of money to visit the doctor each time symptoms appear. However, if telemedicine is used, the patient is able to get the required antibiotics quickly. There is no need to risk contracting another virus to by going to a clinic. Patients may not have to take time away from work to wait for a doctor. The cost of telemedicine is much less than paying upfront for a doctor visit. However, patients who have extremely low copay amounts may pay slightly more for telemedicine. It’s definitely an affordable price to avoid the hassle of going to the doctor for a simple issue. This is also beneficial for people who live in rural areas.

Employers who wish to save money should consider telemedicine as an addition to their health plan. Employees who use telemedicine won’t need to take time away from work as often to see the doctor for simple or routine things. In addition to saving time, this plan also saves money. Healthier employees with more time to devote to work are a financial asset to the company. Employers considering this coverage should speak to an agent about the various options available.

The Department of Health and Human Services, commonly called HHS, recently added an update to the Interim Final Regulations for Women’s Preventative Care on August 1, 2011. This preventative program is regulated under the Patient Protection and Affordable Care Act, which is commonly called PPACA. Recent changes were developed by the Institute of Medicine to make the plan more beneficial. The institute’s orders to review which services are necessary for women’s health came from HHS. This new amendment outlines additional guidelines for Preventative Services and the needed alterations of policy provisions in health plans in the near future. The change applies to all plans that are classified as Non-Grandfathered. This includes health policies, insured plans and self-insured group health policies. With this change, health plans must cover Preventative Services. The outline includes a provision for birth control without deductibles or copay amounts.

This change applies to Non-Grandfathered plan year starting on or following August 1, 2012. After this time, they will be required to provide coverage without cost sharing for the following women’s Preventative Services:

• Annual well-woman visits to a healthcare provider
• Breastfeeding support, supplies, and counseling
• Gestational diabetes screenings
• Counseling for STIs
• HPV DNA testing for women over 30 years of age
• FDA-approved contraception methods and counseling for contraceptive users
• HIV screenings and counseling
• Domestic violence counseling and risk screening

There are some exemptions to these plans. Group health plans that are sponsored by some religious employers are exempt from the contraceptive coverage requirement. In addition to this, group health insurance coverage that has connections to such plans is also exempt from covering birth control for women. In definition, a religious employer is one that has the inculcation of religious values and its purpose, primarily serves people sharing religious tenets, is a non-profit organization under the IRC and is one who has a majority of employees sharing religious tenets.

Although these changes are nearly a year into the future, it is important to analyze the additional services’ impact on pricing. While these changes will benefit thousands of women across the country, the changes will certainly come with a price. Benefits Account Managers should keep abreast of of any additional changes and amendments affecting the Patient Protection and Affordable Care Act.

Health savings accounts and flexible spending accounts are growing in popularity. Many people aren’t aware of the changes that take place in these plans from year to year. It’s important to discuss account details with an agent each year to be fully aware of the current rules or upcoming changes.

Flexible Spending Accounts
These accounts are sometimes called flexible spending arrangements. They are tax-advantaged accounts that let employees automatically deposit a specific amount of each paycheck into them. After funds accumulate, they can be used to pay for qualified medical expenses. These accounts are different from HSAs and HRAs in the respect that they are usually offered with traditional medical plans. They also differ from HSAs in the respect that the unused funds in the account may not be carried over to the next year. Debit cards or forms are used to access funds from the account if money is needed.

Flexible spending accounts allow account holders to contribute to the FSA for any costs that aren’t covered by insurance. Some examples of such expenses include coinsurance, copay amounts and deductibles. If a health insurance won’t cover a treatment or related health expense, FSA funds can be used to pay for it. The specified limits saw some changes from 2011 to 2012.

Contribution Limits
It was decided that 2012 would be the last year for no limits on FSA contributions. While there may not be limits in place, plans must specify a maximum percentage of compensation to be contributed to the FSA or a maximum dollar amount. The changes from 2010 to 2011 included over-the-counter medicines being eliminated from coverage if they weren’t prescribed by a doctor. The year 2013 will likely see one of the biggest changes: FSA contribution limits of $2,500 annually with yearly inflation increases.

Health Savings Accounts
HSAs are medical savings accounts that also have tax advantages. Taxpayers who are enrolled in HSA-qualified health plans with high deductibles are able to obtain them. At the time of deposit, the funds contributed to these accounts are not subject to federal income tax. Any unused funds that remain in the account at the end of the year are carried over to the next year and added to further contribution amounts. Since contribution also change with these plans each year, it’s important to be aware of the changes. The changes from 2011 to 2012 include an increase in out-of-pocket HDHP maximums and HSA contribution limits. However, there are no changes with the HDHP required minimum deductibles.

HSA Contribution Limits
Family: $6,250
Individual: $3,100
Catch-Up Contributions: $1,000

The individual amount of $3,100 reflects an increase of $50 from 2011’s limit. The $6,250 limit for families is an increase of $100 from 2011. Catch-up contribution limits, which are for people over the age of 55, remain the same between 2011 and 2012.

HDHP Minimum Required Deductibles
Self: $1,200
Family: $2,400
HDHP Out-Of-Pocket Maximum – Family: $12,100
HDHP Out-Of-Pocket Maximum – Self: $6,050

The HDHP limit increased by $100 between 2011 and 2012 for singles and by $200 for families. Another change between 2011 and 2012 is eligibility of over-the-counter medicines. Insulin is the only OTC medicine approved for reimbursement in 2012 under a health FSA, HSA or HRA without a prescription. In addition to this, it was decided that the penalty of 10% for ineligible expenses paid for using HSA funds would increase to 20% in 2012.

The Family and Medical Leave Act (FMLA) allows employees to take up to 12 weeks of job-protected unpaid leave for certain specified reasons, including to care for their own or a family member’s serious health condition. To avoid abuse of this provision, you as an employer are entitled to request a medical certification from the employee’s physician. FMLA regulations outline the information that may be required as part of the certification, and the process for obtaining it.

What types of medical issues amount to a “serious health condition” as contemplated by FMLA? The regulations require that the illness or injury involve either inpatient care (meaning an overnight stay), or continuing treatment by a health care provider that includes one or more of the following:

1. Incapacity of more than three consecutive full days, together with treatment; the treatment must occur on two or more occasions within 30 days of the first day of incapacity (unless extenuating circumstances exist), or an initial treatment must result in a regimen of continuing treatment (for example, medication, physical therapy).
2. Pregnancy or prenatal care.
3. A chronic condition that requires periodic treatment and continues over an extended period of time (but may include conditions that are episodic rather than continuous, such as asthma or epilepsy).
4. A permanent or long-term condition for which treatment might not be effective; the patient must be under continuing medical supervision, but need not be receiving active treatment (examples include Alzheimer’s, stroke, or the terminal stages of a disease).
5. Conditions requiring multiple treatments, such as restorative surgery following an accident, chemotherapy/radiation for cancer, physical therapy or dialysis for kidney disease.

To verify the presence of a serious medical condition, you may require a medical certification from the employee’s or family member’s medical provider. Employers can use Department of Labor Form WH-380-E, “Certification of Health Care Provider for Employee’s Serious Health Condition,” or may devise their own form, but in that case cannot require the employee to provide more information than that requested on the model certification form. You should notify the employee that certification of the medical condition will be required, either at the time leave is requested or within five business days of that date. If the leave was unforeseen, notice that certification will be required should be given within five business days after the leave has commenced. The employee then has 15 days to provide the certification.

If the certification is incomplete, vague, non-responsive or ambiguous, you can request in writing that the employee correct the deficiency, specifying what additional information is required to make the certification complete. The employee has seven days to correct the deficiency. You may also contact the medical provider directly for authentication or clarification of the information on the certification, but the individual from your organization who makes this contact cannot be the employee’s direct supervisor.

If the employee fails to provide a sufficient medical certification you can deny the FMLA leave request. The employee should be advised of this potential consequence at the time you first request the certification. If the employee’s need for leave lasts longer than a year, certification may be required on an annual basis. You also may require certification at a later date if you have reason to question the appropriateness of the leave, or its duration. If the employee’s medical condition can also be a disability within the definition of the Americans with Disabilities Act (ADA), information obtained through ADA procedures may be used in the FMLA leave determination.

Though FMLA leave is an entitlement for qualifying employees, employers have tools to control the risk that this entitlement is abused. Make use of the procedures allowed to ensure that only truly qualifying employees in your organization go out on FMLA leave.

Although the morale of many employees is below an optimal level, benefits education continues to be effective in boosting satisfaction in the workforce. More than half of employees in the United States feel that their employers value their work. However, this number seems to have declined from the average percentage in recent years. There can be several different reasons for a continuously low morale among employees. The reasons they’re not bouncing back are mostly due to varying personal experiences and situations. However, a benefits education program that is structured properly can be highly effective in boosting engagement. It is also a low-cost way to gain interest among employees.

In a world where many employees have experienced salary freezes or witnessed their colleagues being laid off, it’s important for employers to invest more time in communicating benefits options with them. This makes employees feel valued. Research shows that most employees don’t feel that they are valued in the workplace, so this issue should be a top priority. In an economy with jobs in high demand, employees feel more insecure and replaceable. They might not know how expensive and detrimental it is for employers to replace them and hire new employees. They might also doubt the longevity of the companies they work for. It’s important for employers to show how much they value their employees. They should shift some of their attention from the areas in which their business is affected by the economy to finding better ways of engaging employees with benefits education.

A benefits education program that is structured properly can have a significant impact on workforce satisfaction. If employees rate their benefits education favorably, they are more likely to rate their employers as very good or excellent. The same ratings usually also apply to the workplace. However, if employees feel that their benefits education is poor, they’re more likely to give their employer and workplace poor satisfaction ratings. Employees who rate their benefits education highly also say they would be more likely to continue working for their current employer. They usually say that they would stay with the employer if they were offered identical benefits packages and pay elsewhere. In the fluctuating economy, employers must work hard to show their employees how much they care. Neglect or care for an individual’s well-being is often what destroys or builds loyalty. If the employees experience benefits, the entire business also benefits. It’s much more difficult for a business to survive without content employees.

Employee health bills are fluctuating because of uncertainty related to the 2010 healthcare reform bill. Companies are trying to contain the damage by paying employee health claims out of pocket. Joseph Berardo, Jr., CEO of MagnaCare, said that the total savings from doing this could be between 10% and 20%. MagnaCare administers self-funded health insurance plans to municipalities and businesses in New Jersey and New York.

When employers debate whether to adopt a self-funding plan, the possibility of lower monthly healthcare costs should be considered in comparison with the risk of covering employees’ healthcare bills. There is no concrete answer for this issue that is right for all situations. The best answer depends on the demographics of employee bases and the company’s financial situation. The risk of an employee having an accident or developing a serious illness is a major concern.

Although nearly 93% of companies with more than 5,000 workers have self-funded plans, many smaller companies don’t. According to a recent survey conducted by Kaiser Family Foundation, the reason for reluctance among smaller companies is the possibility of being hit with a large employee healthcare bill and not having enough cash to pay it. The survey found that only 16% of companies with fewer than 200 workers had self-funded plans. However, industry experts expect interest in these plans to rise in the future.

The Benefits of Self-Funded Plans. From the data gathered, it’s clear that there are some benefits to self-funded plans. Other benefits might not be as apparent:

1. Quality of Data. Employers have better access to health claims of employees. In addition to this, they also have more information about their employees’ demographic information. Exposure is limited only to employees instead of a broad population. This is a major benefit over regular health plans, which only offer generalized information.
2. Customized Plans. Employers decide what is covered in the plan. This includes benefits, exclusions and eligibility provisions. Employee cost sharing, retiree benefits and policy limits are also decided by the employer. With exemption from state rules, employers are able to decide on specific provisions without state considerations.
3. Control of Cash. Since coverage isn’t prepaid, employers have access to interest and cash income that wouldn’t be available under regular insurance policies. Self-funded plans might also delay payment of health plan fees until the services have been charged. However, if claims are lower, the employer is able to retain the savings instead of allowing the insurer to keep that money. Another benefit is that self-funded companies are not under obligation to pay state health insurance premium taxes.
4. Lower Employee Premiums. Workers will enjoy lower premiums for both single and family plans. In addition to this, they also pay less up front when they’re enrolled in complete or partial self-funded plans than they would at a company that is fully insured.
5. ERISA Laws Replace State Regulations. This federal law exempts self-funded plans from the state’s regulations. This includes reserve requirements, insurance laws, premium taxes, mandated benefits and consumer protection regulations. Employers must still abide by rules from the following entities:
   • ADA
   • U.S. Tax Code
   • Health Insurance Portability & Accountability Act
   • Newborns’ & Mothers’ Health Protection Act
   • Pregnancy Discrimination Act
   • Mental Health Parity Act
   • Women’s Health & Cancer Rights Act

The Cons of Self-Funded Employee Plans. Although there are many benefits to enjoy by implementing self-funded plans, there are also potential downfalls. It’s important to consider these.

1. Financial Risk. With fewer employees than a larger company, there is a higher statistical risk of costly claims for illnesses or accidents. Most employers with self-insured plans purchase stop-loss coverage in order to get a reimbursement for claims totaling amounts over a specific dollar level. In a description posted by the Self-Insurance Institute of America, stop-loss coverage is insurance that indemnifies a plan sponsor from claim frequency or severity that is abnormal. Companies such as Zurich, Gerber Life and Arch Insurance, which are all considered large companies, provide this type of coverage.
2. Administrative Risks. The Department of Labor has researched how self-funded employers fail to implement efficient administrative systems. Failure to administer a plan correctly is considered a breach of fiduciary duty. Employers take full legal responsibility for operating the plan, so it’s important to realize just how crucial this responsibility is. In addition to worrying about this, there are also strict rules for private claims information. Since employers have access to such information, they must take further measures to protect it and keep it secure. In some cases, this might require hiring one or more security workers.
3. Administrative Costs. Self-insured claims can be administered within the company or handled by a subcontracted party, which is commonly called a TPA. These administrators assist employers in setting up self-insured group plans. They also coordinate stop-loss coverage, utilization review services and provider network contracts. However, there are extra costs for these services.
4. Economic Weakness. It might be necessary to keep a self-funded plan for a minimum of three to five years in order to fully enjoy the benefits. This might be extremely difficult for some companies during economic hardship.

Be sure to weigh the benefits and disadvantages of self-funded plans before making any changes. If the task of determining how profitable such a change would be is too difficult, consider hiring the services of a professional analyst.

An employer’s health care expenditures are greatly impacted by the overall health of their workforce. In fact, the March 2011 Thomson Reuters Workforce Wellness Index found that the unhealthy behaviors of employees cost their employer an average of $670 per year, per employee.

The Thomson Reuters Workforce Wellness Index tracked the collective health of American workers with an employer-sponsored health insurance plan by considering six risk factors – blood pressure, cholesterol levels, blood glucose levels, and alcohol and tobacco usage. The costs associated with less-than-optimal health was also gauged.

The index declined two percentage points to 84.4% between 2005 and 2009. An ideal state of health, whereby there aren’t any behavioral risk factors or risk-related additional health care costs within a certain population present, is represented by a score of 100. The decline in ideal health is a major contributing factor when it comes to the rising health care costs for U.S. employers.

The index found that the six behavioral risk factors mentioned above were associated with 14% of the direct health care costs among the working, privately insured population. And, of the average $670 per employee that unhealthy behaviors cost the employer, $400 is attributed to high BMIs and $150 is attributed to elevated blood glucose levels. A separate study by Duke University also showed a clear relationship between how much is spent on a worker’s Workers Compensation claim and their BMI, which uses height and weight to measure body fat. The Duke study estimated that Workers Compensation claims for obese workers averaged $51,000 and those for workers of a normal/average weight averaged $7,500 dollars.

Given the research, it would be prudent for any employer trying to find ways to reduce their health care costs to confront the behavioral risks among their workforce. Experts recommend that employers and insurance providers compare their beneficiaries against the national norms, as this will help begin identifying and addressing any specific problem areas. What else can you, the employer, do?

Employee Wellness Programs. According to statistics from the CDC, employee lifestyle choices are attributed to 75% of an employer’s productivity losses and health care costs. Workplace wellness programs have been proven to improve employee health and therefore improve a company’s financial bottom line. In fact, the Wellness Council of America found that three dollars in health care costs are saved for each dollar invested in a wellness program.

Although the benefits to employer and employee alike are clear in writing, studies have shown that employee participation in wellness programs only averages 5% when an employer doesn’t offer incentives. A 2011 survey by employee support and work/life benefit provider Workplace Options showed the following:

• Of the respondents, 76% felt it’s appropriate for companies to provide incentives for employees to better their well-being and health.
• If offered an incentive, 73% of the respondents would enroll in their employer’s wellness program to better their personal health.
• Only 36% of the respondents worked for an employer offering initiatives like wellness coaches, fitness programs, and on-site health screenings.

With the cost of health care premiums, absenteeism, and Workers Compensation continuing to rise for employers, many are starting to embrace the idea that offering employees rewards to pursue a healthy lifestyle is a worthy investment gamble. A Fidelity Investments and National Business Group on Health study showed that employee wellness incentives per employee increased from $260 in 2009 to $430 dollars in 2010. Representatives from the study noted that employers now face the challenge of getting employees to continue the healthier behaviors they adopt over the long run, not just temporarily from an incentive.

Just like most employees, most businesses start to look at ways they can cut their expenses during difficult economic times. One common focal point of such is employee benefits programs, especially in the area of health benefits. Considering that health benefits are frequently the most expensive aspect of a company’s benefits program, this might seem like a reasonable, logical place for an employer to take cost-cutting measures. However, employers should carefully consider what the consequences will be from making cuts to their employee benefits programs; whether or not there are any alternative cost-cutting options available; and, if benefits cuts are a must, how they can lessen the impact.

The Consequences. Let’s say you, as an employer, decide to target your employee benefits program and make some significant cost shifts toward your employees with the idea you’ll cut costs and save money. If the cost shift involves higher deductibles and/or co-pays for employees, then they might procrastinate in seeing a physician when they’re suffering symptoms of illness or injury, forgo or delay filling vital prescription medications, and do without wellness care. If the cost shift involves premium increases, then many employees, especially young and relatively healthy ones, might decide to drop coverage all together. The exodus could leave your plan with a larger and more undesirable risk pool. These types of cost shifts can very well cost the health plan more money over the long run. Furthermore, it can impact your company’s bottom line negatively when it comes to employee morale, productivity, disability costs, and absenteeism.

What’s The Alternative? An alternative to cost shifts would be to focus your benefit dollars on the measures that will enhance employee well-being and overall health. Some ideas would include:

• Using incentives to motivate employees to participate in wellness activities, such as weight loss and fitness programs, tobacco cessation classes, and nutrition education and counseling.
• Using incentives to motivate employees to participate in activities that can screen and detect serious medical conditions, such as glucose level testing, blood pressure screenings, cholesterol testing, and completion of health risk assessments.
• Providing extensive preventive care coverage.
• Having an employee assistance program (EAP) available to your employees can be especially helpful during poor economic conditions since it can provide resources and/or referrals for things like financial counseling, crisis intervention, and stress management.

If You Must… Despite the negative consequences, you might feel that cost-shifting is your only feasible option. If so, make sure that you do everything possible to soften the blow to your employees. Here are some ideas:

• Offer voluntary benefits to your employees. This will cost you little, if any, money. While the employee will be responsible for most to all of the cost, they’ll benefit from group rates, convenient payroll deductions for the premiums, and the ability to personalize their coverage selections to meet their own unique needs.
• Offer Flexible Spending Accounts (FSAs), which will let employees pay for health care expenses with pre-tax dollars and get the most of their health care dollars.
• Offer employees Consumer-Directed Health Plans (CDHPs). These plans combine A Health Savings Account (HSA) with a health plan that has a higher deductible.

All of the above options have a commonality in that they each require an employee to get more personally involved in the their own health and the management of their health-related benefits. Whether the change makes the employee more vigilant in scheduling preventive care visits, participating in wellness activities, or budgeting their future health care expenses, the point is that the employee is assuming more responsibility for their health care and management thereof. It is this greater individual responsibility on the part of the employee that can be one of the best long-term cost-management tools available to an employer.

The Employee Retirement Income Security Act (ERISA) is a federal law enacted to set minimum standards for the majority of voluntary pension and health plans in the private industry to protect involved individuals. This federal statute went into effect on September 2, 1974. ERISA requires plan sponsors to provide participants with thorough information about features and funding. In addition, it mandates fiduciary responsibilities for managers and controllers of plan assets. The statute also requires plans to have an established grievance and appeals process that is easy for participants to use in order to get benefits from their plans. Participants who are the victims of fiduciary duty breaches have the right to sue under this statute’s provisions.

Important ERISA Changes. Over the years, there have been several amendments made to the ERISA statute. These changes were made to further the protections offered to health benefit plan participants and beneficiaries. One of the most important amendments is the Consolidated Omnibus Reconciliation Act (COBRA). This amendment provides selected workers and their families the opportunity to continue their health coverage for a specified amount of time following the loss of a job or other certain events.

Another important amendment to the ERISA statute is the Health Insurance Portability Act (HIPAA). This provision created new protections for workers and their families with preexisting medical conditions. Such individuals would have likely faced discrimination in applying for health coverage prior to this act. The Mental Health Parity Act, Newborns’ & Mothers’ Health Protection Act and the Women’s Health & Cancer Rights Act are also important changes made to ERISA.

Definition of Responsibilities. Employers who are fiduciaries need to be familiar with the amendments made to the ERISA statute. This knowledge is helpful in understanding responsibilities. All fiduciaries have an important set of responsibilities since they act on behalf of the plan participants and beneficiaries. The following are important responsibilities to memorize:

• Act in the interest of the plan participants and beneficiaries with the purpose of providing them with their benefits.
• Follow plan documents that are consistent with ERISA.
• Carry out all duties in a prudent manner.
• Hold the assets of plans in trusts.
• Only pay reasonable plan expenses.

Prudent action requires extensive expertise. This is one of the most important responsibilities employers have under ERISA. Fiduciaries lacking such expertise must hire a professional who has the proper knowledge to complete those functions. Prudence requires excellent skills in making fiduciary decisions. Every decision must be documented properly. It’s best for fiduciaries hiring service providers to interview several candidates, make comparisons and then make a decision. Following plan terms is also a vital responsibility. This includes memorizing the plan, reviewing it regularly and keeping it current.

Employer Liability Information. It’s important to know the potential liabilities that accompany employer responsibilities. Any fiduciaries who don’t follow standards of conduct face personal liability for restoration of losses to the plan. They also must restore profits that were obtained through personal misuse of plan assets. Fiduciaries have the ability to limit their liability in some circumstances. Proper documentation is an essential way to reduce the likelihood of undue liability issues arising.

Fiduciaries may also hire service providers to handle their responsibilities. In doing this, it is essential to include verbiage in the service contract that places responsibility of mismanagement of the plan on the service providers. Employers are responsible for the selection of service providers. However, they’re not liable for the decisions and actions of the providers they choose. It is important to remember that monitoring the service providers is essential. Keep documentation of all periodic monitoring to further reduce liability risks.

Every employer knows that the most important assets to any company are its employees. The ultimate goal employers want from employees is to reach maximum productivity levels. To accomplish this, employees need to be at their best. Promoting fitness is one of the most beneficial choices any employer can make to encourage their workers to reach their full potential. Exercise supports an optimal weight, better overall health and has many other benefits. Consider the following important reasons for promoting employee fitness:

1. Fit employees are less likely to use sick days. When employees use fewer sick days, they contribute more to overall productivity. They also reduce the hassle of trying to find replacements at the last minute. Employees who exercise are much less likely to get sick than those who don’t exercise. Fit employees are also less likely to take an extended leave of absence, require surgery or quit because of health reasons.

2. Employees who are fit are more confident. Exercise gives employees the feeling that they’re doing what they’re supposed to be doing. This creates a sense of confidence, which allows them to set higher goals and strive for excellence. Since they don’t settle for less than meeting their goals, they are very successful.

3. Exercise gives employees more energy. Although many people think exercising drains energy levels, it actually creates more energy. Exercise promotes better circulation, which allows ample amounts of blood to reach the brain consistently. This makes employees more focused and alert.

4. Exercise encourages goal achievement. Fitness programs demand commitment and goal setting. Since employees are familiar with these important tasks, they’ll also carry them into the workplace. Employees who can achieve goals consistently are an asset to any company.

5. Employees who are fit make good leaders. Since they’re disciplined by nature, fit employees tend to do well at leading others. Their confidence is high, and they tend to use that to help direct others. They’re usually the first ones to jump in with a solution to a problem. Every employer knows that having a problem solver is an asset.

6. Exercise contributes to a better attitude. When people exercise, the chemical changes in their body create a better mood. People who are in a good mood make excellent employees because they are more balanced mentally.

7. Employees who exercise inspire confidence in others. Fellow employees are likely to look up to an employee who is fit. The fit employee’s discipline to follow an exercise program gives other employees the sense that they’ll always have someone to provide solutions to problems. Fit employees are also more likely to speak up when something isn’t right. If there are problems with other employees, a system or equipment, they’re not too timid to confront their supervisors.

8. Encouraging exercise is a good way to promote teamwork. Planning employee softball games, hikes or other activities is a good way to encourage fitness. However, these examples also promote teamwork. When employees can learn to work as a team outside of work, they’ll have an easier time working together as a team during business hours.

9. Fitness reduces employees’ stress levels. Exercise has the phenomenal ability to lessen the amount of stress felt from physical and emotional tensions in life. Employees who aren’t stressed are more focused, positive and happy. Their clear minds allow them to focus on work, which means they contribute to a much higher level of productivity.

10. Encouraging employee fitness shows that employers care. Many employees feel that their employers don’t appreciate them or their contributions. Employee turnover is reduced in work settings where employers show genuine concern for employees. Providing free gym memberships, employee sports leagues or other enjoyable fitness opportunities is an excellent way to say “I care about you.”