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TheConnectionBetweenEmployeeHealthanditsAffectontheWorkplace
UndergraduateResearchThesisinHumanResources
PresentedinPartialFulfillmentoftheRequirementsfortheDegreeofBusinessAdministrationofTheOhioStateUniversity
By
MichaelBacha
TheOhioStateUniversity2017
Committee:
Dr.PatriciaWestDr.RobHeneman
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CopyrightedbyMichaelBacha
2017
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Abstract
Livingahealthylifestylecanaffectyourpersonalrelationships,mentalstate,andoverall
wellbeing.Companiesarebeginningtotakenoteofthisimpactandimplementingpolicies
andprogramstofacilitatehealthylivingstylesfortheiremployees.Whetherit’sputtinga
workoutfacilityintheoffice,offeringhealthierfoodoptionsinthecafeteria,oroutfitting
deskswith“stand-up”capabilities,manybusinessesaretryingtoimprovetheiremployee’s
health.Fortunemagazineestimatesthatcurrentlyonlyaround7%ofUScompanieshavea
comprehensivepromotionplantoencourageemployeestoliveahealthierlifestyle.Should
thispercentagebeincreased?Thepurposeofthisstudyistoseeifemployer’sactions
promotingwellnesshavebeenpayingoff,whathealthissuesshouldbefocusedonina
promotionprogram,andif,ingeneral,healthieremployeestendtoseemoresuccessinthe
corporateworld.ThemethodologyIusedtoanswertothisissuewasgatheringand
analyzingbiometricdatafromafortune100company.Thisdatahelpedtohighlightthe
corehealthissuesaffectingemployeesintheworkplace.Weight,bloodpressure,andstress
weretheoverwhelmingrisksin77%oflocationsfromwhichdatawasreceived.Alongwith
thisthereseemstobeastrongconnectionbetweenanemployee’shealthriskleveland
absenteerates.Employeesthatwereconsidered“healthrisks”missedonaverage3more
daysthanthosewithalowrisklevel.Overall,anaverageof$436,314inavoidablehealth
carecostswasfoundateachlocation.Basedonthesefindingsmystudyhelpstoshowthat
anindividual’shealthdoeshaveanimpactonpersonalandcorporation-wideachievement.
Thisresearchcanbeusedtosupporttheimplementationofhealthpromotionplans.
Keywords:healthylifestyle,corporatesuccess,healthpromotionplan
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Acknowledgements
IwouldliketosincerelythankDr.HenemanforbeingmyresearchadvisorandDr.Westfor
leadingtheHonorsContractprogram.Bothhaveofferedmesupportthroughouttheentire
researchprocess.Iwouldalsoliketothankthecorporationwhogavemeaccesstomy
primarydatasource.TheyaskedthatIkeeptheirnameprivate.
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Vita
May2013……………………………..SycamoreHighSchool
May2017……………………………..BSBALogisticsandOperationsManagement,
TheOhioStateUniversityMaxM.FisherSchool
ofBusiness
July2017………………………………IncomingPerformanceConsultantat
CroweHorwathLLP
MajorFieldsofStudy:LogisticsandOperationsManagement
MinorFieldsofStudy:Economics
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TableofContents
TitlePage…………………………………………………………..………………...……………………….…1
CopyrightPage…………………………………………..…………………...……………………………….2
Abstract..............................................................................................................................................3
Acknowledgments..............................................................................................................................4
Vita...........................................................................................................................................................5
ListofFiguresandTables…………………………………...………………………….…………….7
Introduction………………………………………………………………………………..........………..8-10
LiteratureReview…………………………………………………………….………...……………..10-14
Hypotheses…………………………………………………………………………………………………….14
Methodology…………………………………………………………………...……………………..…14-17
ResultsandConclusions……………………………………………………………………..….17-24
FutureResearch………………………………………………………………….........................23-24
Bibliography……………………………………………………………………………………………...…..25
Appendix1………………………………………………………………………………..………….26-27
Appendix2………………………………………………………………………………………………...28
Appendix3………………………………………………………………………………………………...29
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ListofFiguresandTables
Table1.CombinedEmployeeWellnessStudy…………………………………………………………...……12
Table2.TheRelationshipBetweenCholesterolandAbsenteeism…………………………………...12
Table3.ExampleSurveyQuestionsandResponses.……………………………………………………….17
Figure1.AvoidableHealthCareCostsAcrossCorporateandManufacturingFacilities……..19
Figure2.AverageHealthRiskRankingAcrossCorporateandManufacturingFacilities……21
Figure3.HealthStatusIndicators………………………………………………………………………………….22
Figure4.DaysAbsentDuetoHealthReasonsforEachRiskLevel…………………………………...23
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Introduction:
Thisresearchexamineshowtheimplementationofacorporatewellnessprogram
canaffectbothindividualandcompany-widesuccess,concentratingonifemployer’s
actionspromotingwellnesshavebeenpayingofffinancially,whathealthissuesshouldbe
focusedoninapromotionprogram,andif,ingeneral,healthieremployeestendtosee
moresuccessinthecorporateworld.Acorporatewellnessprogramisdefinedasanyplan
implementedbyanemployertoimprovethehealthofitsemployeeswhilealsohaving
offeringstohelpindividualemployeesovercomespecifichealthrelatedissues(i.e.chronic
smoking,depression).Inrecentyearstherehasbeenatrendofcompaniesimplementing
policiesandprogramstofacilitatehealthylivingstylesfortheiremployees.Whetheritis
puttingaworkoutfacilityintheoffice,offeringhealthierfoodoptionsinthecafeteria,or
outfittingdeskswith“stand-up”capabilities,manycompaniesaretryingtoimprovetheir
employee’shealth.Currentlyonlyaround7%ofUScompanieshaveacomprehensive
promotionplantoencourageemployeestoliveahealthierlifestyle(Galinsky,2008).
Shouldmorecompaniesbetakingactiontoraisethisnumber?Iwantedtoknowiftaking
actionspromotingwellnesswouldhaveapositiveeffectstudiedand,morespecifically,
whattheseeffectswouldbe.
Thereareafewdifferentareasthisresearchfocuseson.Thefirstareaisthe
financialsideofwellnessprogramimplementation.Attheendofthedayoneofthemost,if
notthemost,importantquestionsforabusinessisiftheyaremakingmoneyornot.In
orderforabusinesstobesuccessfulandmakeaprofit,theymusthaveproductive
employees.Ifemployeesfeeltiredatworkorwornoutbeforetheendoftheday,thenthey
won’tbeasproductiveastheycouldbe.Thislackofefficiencycouldleadtolowerprofitsin
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thelongrun.Althoughawellnessprogramwouldlikelyhelptodecreasethisfatigue,one
negativeimpactawellnessprogramcouldhaveonprofitabilityisthecostofits
implementation.But,ifthecostoftheprogramisoffsetbyincreasedproductivity,thenthe
overheadcostsmaybeworthit.Notonlycouldtheseupfrontcostsbeoffsetbyincreased
employeeoutput,butcouldhelpdecreasecompanyhealthcarecostsinotherareasaswell.
AHarvardBusinessReviewstudyconductedbyCortneyRowanandKarunaHarishanker
(2014)foundthatcompanieswithwellnessprogramshavearound5%lowerhealthcare
coststhancompaniesthathavenoplan.Ifcompanyemployeesaren’tveryhealthy,then
healthcarecostsmaybeloweredwiththeimplementationofawellnessprogram.
Implementingaprogramwillundoubtedlycostacertainamountofmoney,butwillthis
costbeoffsetbyincreasedproductivityfromworkers?Willprogramsonlyincreasethe
actualhealthofanemployeeandnotchangeproductivityatall?Ormaybeaprogram
wouldhavezeroimpactonemployeeand/orcompanysuccess.
Second,specifichealthissuesprevalentwithinthecompanyarestudied.Knowing
whatproblemsamajorityofemployeesarefacingwillhelpacompanydevelopamore
personalizedhealthpromotionplan.Oneofthemainimpactsofaproperplancanbe
assumedtobeadecreaseinabsenteeism.Absenteeismisanemployee’sintentionalor
habitualabsencefromwork.Absenteeismcanbecausedbymanydifferentfactorslikejob
hunting,disengagement,andharassment.Eventhoughthereareamultitudeofreasonsan
employeemaynotshowupforwork,thisstudyfocusesonfactorsrelatingtohealth.Some
oftheseincludeinjury,depression,illness,andstress.Acorporatewellnessprogramcan
presumablypositivelyimpactallofthesereasonsformissingwork.Tryingtocurbthe
numberofemployeesthattakesickdaysshouldbesomethingthatallcompaniesstriveto
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accomplish.Theproductivitylostbecauseofthesedaysmissedcanbeveryharmfulnot
onlytotheemployee,buttothecompanyaswell.Gallup(2013)estimatesthatUS
companieslosearound$84billioneachyearduetoabsenteeism.Although,mostofthis
moneydoescomefromjobsthatrequirealargeamountofphysicallabor,therearestill
majorlosesinwhite-collarpositionsaswell.Itwascalculatedthat$15billionislostfrom
manager/executiveabsenteeismannually(Investopedia,2013).Thesecostscanbetraced
backtoafewmainareasincludingwagespaidtoabsentemployees,highcostreplacement
workers,andadministrativecostsofmanagingabsenteeism.
Thelastareaexaminediswhetheremployeeswhoarehealthierindividualswere
actuallymoresuccessfulinthecorporateworld.Livingahealthylifestylehasmany
differentbenefits,suchasgreaterendurance,decreasedchanceofsickness,andgeneral
wellbeing.But,Iwantedtoknowwhetherbeingahealthypersongoespastbasicphysical
improvements.Dohealthierindividualsholdhighertitledjobscomparedtothosewho
aren’thealthy?MichaelHyatt(2015),aNewYorkTimesbestsellingauthorandformerCEO,
hasbeenquotedassaying“physicalhealthhasadirectimpactonyourprofessional
success”.Therecurrentlydoesn’tseemtobeanysoliddatathatsupportsthisstatement.Is
thereacorrelationbetweenphysicalhealthandanemployee’sabilitytomoveupin
management?
LiteratureReview:
Mostofthepublishedarticlesthatcomparecorporatewellnesstoworkoutputand
generalcompanysuccesshavefocusedonabsenteeismandcostsavingsduetoadecreased
needforhealthcarecoverage(SeeBaicker,Cutler&Song,2010;Aldana&Pronk,2001).
Muchofthisdatahasbeencollectedthroughsurveyssenttocompanies.Forexample,
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researcherswouldsendoutasurveybeforeahealthpromotionprogrambeginsandagain
6monthsafterthestart.Thissurveywouldconsistofquestionsrelatingtoemployee
health.Theymayaskabouteatinghabits,exercisehabits,percentageofemployeesthat
smoke,oranyotherhealthrelatedquestion.Anotherexampleofakeyinvestigation
methodthathasbeenusedbyresearchersiscomparinganumberofcompanyworkplace
wellnessprograms(SeeBaicker,Cutler&Song,2010).Researcherswoulddothistofigure
outthebestwaytosetupwellnessprogramsorfigureoutwaystocombineelementsof
differentprogramstocreateamoreeffectiveagenda.
ArecentstudyoutoftheJournalonHealthAffairs(2010)lookedathowworkplace
wellnessprogramscangeneratecostsavings.Overall,thearticletalkedverypositively
abouttheeffectsofwellnessprogramsthatcorporationshaveimplemented.Forexample,
onestatisticcitedinthearticlewaspromotionalprogramROI.Thearticlestatesthatfor
everydollarspentonwellnessprograms,thereisadecreaseof$3.27inmedicalcosts
(ShowninTable1).Anotherinterestingstatisticwasthatabsenteeismcostsfall$2.73for
everydollarspent.Althoughthesenumbersdogivegoodreasonforacompanytoadopta
wellnessprogram,thisdoesn’tmeanallprogramswillnecessarilywork.Therehastobe
strategybehindit.Tobuildaneffectiveprogram,thereshouldbepriorresearchonproper
implementation.Furthermore,thisarticlesaysthatfurtherexplorationandabroader
applicabilityoffindingsareneededbeforeanyconcretestatementsshouldbemadeabout
wellnessprograms.
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AnarticleauthoredbyDr.StevenAldanaandDr.NicolaasPronk(2001)publishedin
theJournalofOccupationalandEnvironmentalMedicinecomparesabsenteeratestomany
differenthealthissuesincludingcholesterol,obesity,andpsychosocialstress.Theresultsof
thecomparisonforcholesterolareshownbelowinTable2.Inshort,thetableshowsthat
workerswithhighercholesteroltendtohaveaslightlyhigherabsenteeratethanthose
withlowercholesterol.Overall,thisliteraturereviewdemonstratesthathealthissuesand
failureofemployeestoparticipateinfitnessandhealthpromotionprogramsareassociated
withhigherratesofemployeeabsenteeism.Whendetermininghowtomanage
absenteeism,employersshouldcarefullyconsidertheimpactthathealthpromotion
programscanhaveonratesofabsenteeismandotheremployee-relatedexpenses(Aldana,
2001).
Table 1
Table 2
Combined Employee Wellness Study
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Chris(1990)examinedthesuccessofhealthpromotionprogramsintermsof
continuedparticipation.Specifically,whatkeepsanemployeeontrackandways
companiescanensurethatalloftheiremployeesstickwiththeprogram.Oneissueof
laggingemployeeparticipationisthatitishardtogetanaccuratereadingofiftheprogram
isreallyworking.Asamplesizemustberatherlargeinordertocometoanyconclusions.
Anotherbigissueaboutanalyzingparticipationratesandprogrameffectivenessisthat
mostcompaniesdon’ttracknumbersrevolvingaroundthesetopics.Overall,theauthor
statesthathealthprogramparticipationratesstartouthigh,butseeasharpdropoffafew
weeksafterinitiation.
Addley(2001)publishedanarticleinthejournalofOccupationalMedicineinOxford,
EnglandthatfocusesaroundastudycompletedinNorthernIrelandthatevaluatedthe
effectivenessofa6-monthwellnessprogram.Theprogramconcentratedonoverallhealth,
discussingmanydifferentfactorslikeregularexercise,healthyeating,andsmoking.Outof
allthefactorsaddressed,smokingseemedtobethehardesttochange.Only14%ofpeople
whowantedtoquitremainedabstinentbytheendofthesix-monthperiod.Ontheother
hand,closeto70%ofemployeeskeptahealthydietandregularexerciseroutine
throughouttheprogram.Overall,theprogramseemedtobeeffective,butfurtherresearch
isneededtoshowtheprogram’seffectonabsenteeismandproductivity.Theselasttwo
articlesprovideagoodbackgroundastohoweffectiveorineffectivewellnessprograms
canbe.
Nomattertheresearchmethodused,therewasonecommonalityinalmostallofthe
studiesIlookedat.Absenteeismwasoneofthekeyfiguresthatresearcherslookedatto
measuretheeffectivenessofwellnessprograms.Overall,mostarticlesIfoundhavesaid
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thatwellnessprogramsareeffective,buttheyaren’tsuretowhatextent.Tobuildan
effectiveprogram,thereshouldbepriorresearchonproperimplementation.Furthermore,
additionalexplorationandabroaderapplicabilityoffindingsareneededbeforeany
tangiblestatementsshouldbemadeaboutwellnessprograms.Becauseofthislackof
confidenceinthecurrentresearchresults,afirstgoalofthisresearchistohelpconfirmor
denytheresearchthathasalreadybeenconductedwithnewdata.
Hypotheses:
1. H0:ThehealthpromotionprogramwillnothaveatangibleimpactonthecompanyHA:Thehealthpromotionprogramwillhaveatangibleimpactonthecompany
2. H0:Therewillbeasimilarsetofhealthproblemsacrossalltestedlocations
HA:Therewillnotbeasimilarsetofhealthproblemsacrossalltestedlocations
3. H0:Healthandfitnessleveldoeshaveanaffectonanindividual’srankinacompanyHA:Healthandfitnessleveldoesnothaveanaffectonanindividual’srankinacompany
Methodology:
DatafromaFortune100foodandwellnesscompany,referredtoasBrandX,was
usedasthebasisforthisresearch.Theanalysisofthisdatawasnotonlyessentialformy
research,butitalsowasveryhelpfultothehumanresourcedepartmentwithinthe
company.Thefirmimplementedanewwellnessprogramin2016andwaslookingto
examineitseffectiveness.Thisprovidedreal-timedata.Thecompany’sprogramfitthe
stateddefinition(anyprogramimplementedbyanemployertoimprovethehealthofits
employeesandhasofferingstohelpindividualemployeesovercomespecifichealthrelated
issues(i.e.chronicsmoking,depression)).Ihadtheopportunitytoworkdirectlywiththe
HumanResourcesdepartmenttogenerateaplantocollectbothtangibleandintangible
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healthinformationonalargesubsetofemployees.Thisdataretrievalwasbrokenupinto
twodifferentsegments.
ThefirststepItookallowedmetofindanswerstothefirsttwotopicsofmy
research.IneededtounderstandhowthepromotionprogramfinanciallyimpactedBrand
X.IalsowantedtoseewhatthecorehealthissuesatBrandXwereandbasedonthat
decidewhetherthecompanyshouldsustainorrestructureitscurrenthealthprogram.This
firstpartwasverytangibledatathatwasalreadyquantifiedorcouldeasilybequantified.
Justbeforethestartoftheirhealthpromotionprogram,BrandXbeganoptionalannual
biometricscreeningsin2015.Theirhealthcareprovidercameintobothcorporate
buildingsandmanufacturingfacilitiesaroundthenationtocollectinformationrelatingto
corevitalsigns.Theydocumentedinformationsuchasbloodpressure,stresslevels,and
cholesterollevels.Iwasgrantedaccesstothetwoyearsofdatatheyhadcollected,sothatI
couldaggregateandanalyzeit.
OncereceivingthisdataIbrokedownmyanalysisintoathree-stepprocess.The
firstofthesethreestepswastoaggregatetherawbiometricdataIreceivedfromthehealth
carecompany.Ineededtohaveonelocationwhereallofthedatacouldeasilybe
manipulatedforeasierunderstanding.ItransferredthepdffilesIreceivedfromboth2015
and2016intoalargeexceldocument.OnceIhadtherawdatafromeachlocationfrom
whichitwascollected,Icreatedvisualstoshowtrends,outliers,andsimilaritiesbetween
locations.Thissecondstepofanalysiswasusefultome,butwasmoresomeantforBrandX
becauseitwastoospecifictodrawanyoverallconclusions.Thelastandmostimportant
stepwasasecondaggregationofinformation,sothatIcouldseeoveralltrendsacrossthe
companyfrompre-implementation(2015)topost-implementation(2016).Ibroughtall
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locationstogethertogeneratestatisticsthatwouldbehelpfulindrawingconclusionsfor
myresearch.Thesegraphsandconclusionswillbedetailedinthe“Resultsand
Conclusions”portionofthethesis.
ThesecondstepItookinmyresearchwastocombinewiththeBrandXHR
departmenttocreateaseriesofhealthrelatedquestions.Thisstephelpedtogiveanswers
relatedtothethirdcoretopicinmyresearch.Iwantedtoseeifhealthierindividuals
tendedtobemoresuccessfulthanthosethatarenotashealthy.InordertodothisI
comparedthecorporatefacilityquestionnaireresultstothoseofthemanufacturingfacility.
Thequestionwecreatedprovidedanopportunitytoreceiveinformationthatwasmore
intangibleandqualitative.Becauseitwasamassquestionnaire,itnotonlyincludedhealth
relatedquestions,butgeneralcompanyquestionsaswell.Anexampleofthesetof
questionssentoutandrelatedresponsescanbeseenonpage17inTable3.Thissurvey
wascompletelyanonymousanddidnotaskquestionsaboutdemographicsotherthan
genderandage.Asstated,itfocusedontwodifferenttopics:companyspecificquestions
andgeneralhealth.Eventhoughsomeofthequestionswereunrelatedtomydesired
research,theinformationIdidreceivewasextremelyhelpfulingeneratingmyconclusions.
Also,itisimportanttonotethatnotallofthequestionnaireswerecompletebecauseanyof
thequestionscould’vebeenleftunfilledifthepersondidn’twanttoanswerit.
TotalRespondents 1358
Order CATEGORY/ITEM %Fav
NUTRITION,HEALTH,&WELLNESS 1 Mycompanypromotesahealthyworkenvironment. 79%2 Ifeelenergizedtocomeintoworkeverymorning 68%3 Ifeelmotivatedtogobeyondmyformaljobresponsibilities. 81%
Table 3
Example Survey Questions and Responses
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Becausethedataforthesurveywasalreadyaggregatedandinexcel,itwasmuch
easiertoanalyzethisdatacomparedtothesetofrawbiometricinformation.Once
receivingallofthesurveyresults,Ifilteredoutthequestionsthatwereunrelatedtomy
project.Iwasnowleftwithasingleexcelworkbookfromwhichtoanalyzeandfindtrends.
Icreatedasetofvisualsandgraphsfromthe2016data,whichwillbefullydescribedinthe
“ResultsandConclusions”segmentofthethesis.
Asforthetimelineformyresearch,Istartedtheprocessofdatacollectioninthe
middleofJuly2016andfinishedmyanalysisinFebruaryof2017.Thebeginningofthis
processwasfocusedaroundfindingmydatasourcefortheresearch.Thistookmeafew
weeksandledintotheanalysisofthecompany’saccompanyingdata.Althoughtherewasa
largeamountofrawdata,Iwasabletoaggregateeverythingintoafewexcelfileswhich
mademyanalysismucheasier.OnceIfinishedtheanalysisinFebruary,Ibegan
interpretingtheresultsanddrawingconclusions.Thisleadsmetomyfinalandmost
importanttopicsofthisthesis:“ResultsandConclusions”and“FurtherResearch.”
ResultsandConclusions:
Thefirstportionofmyresearchwastodetermineiftherewasasignificantfinancial
impactonBrandX.Ireceivedhealthcarecostsummariesfrom21differentlocationsthat
employedatotalof4,377people.Thefullsummaryofthecostsateachlocationcanbe
foundinAppendix1.Afteraveragingthesenumberstogetamorecompleteoverall
summation,itdoesseemthatthewellnessprogramdidmakeanimpactonlocationhealth
carecosts.Seventy-sixpercentoflocationshadasignificantdecreaseintheiravoidable
directhealthcarecosts.Thesecostsincludeanypaymentmadebythecompanyfor
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employeehealthcare.Eachlocationdecreasedhealthcarecostsbyanaverageof$21,557.
Thisequatestoanannualsavingsofjustunderfivepercent,whichisthenationalaverage
forcompanieswithwellnessprogramsascalculatedbytheHarvardBusinessReview
(Lebowitz,2015).Thesepaymentsdon’tincludeanycostsmadeforfamilymembersonthe
healthcareplanofanemployee.Whenallhealthcarecostsareincludedeachlocation
savesanaverageof$64,962.Thisalsoturnsouttobejustunderafivepercentsavings,
cominginat4.96%.
Myanalysishelpstoshowthattheimplementationofawellnessprogramcanhavea
significantpositivefinancialimpactonabusinessandthatmyfirsthullhypothesis(seepg.
14)canberejected.ThisstatementwasstatisticallysupportedbyaT-Test,fromwhichthe
$-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
Direct Indirect Total
Cost
CostType
AvoidableHealthCareCostsAcrossCorporateandManufacturingFacilities
Pre-Implementation
Current
Direct: actual employee, Indirect: family members, Pre-Implementation: 2015, Current: 2016
Figure 1
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outputcanbeseenbelowinFigure2.Itshowsthattherehasbeenasignificantreductionin
healthcarecostsacrossthesetoftestedlocationsfrom2015to2016.$20,000maynot
seemlikeahugesaving,butwhenyouconsiderthenumberoflocationsmanylarge
companieshavearoundtheglobethisnumberbeginstoaddup.Isuspectthatthisvalue
wouldn’tcontinuetodecreasebyasmuchoverthenextfewyearsbecausetheinitial
implementationwouldshowthelargestchange.But,itisimportanttonotethatnotevery
individualatthetestedsitesparticipatedandthatthe21includedsitesareonlyasmall
samplesizeofthetotallocationsfromwhichBrandXoperates.Thesefindingsare
importantdatapointstohelpsupporttheclaimmadebytheHarvardBusinessReviewin
2015.EventhoughHBRcompletedasimilarstudyinthepastitisimportanttoconfirm
precedenttohelpprovidemoreevidenceinsupportoftheimplementationofawellness
program.Overall,thesesavingsaresignificantandsupporttheeffectivenessofhealth
promotionprograms.
Thesecondportionofmyresearchwastobegintounderstandwhathealthissues
individualsareaffectedbythemostandhowawellnessprogramcouldbeadaptedto
relievetheseproblems.Aswiththebiometricdata,Ireceivedinputfrom21different
Figure 2
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locationsemployingatotalof4,377individuals.Thefullsummaryofthebiometric
responsesrelatedtothistopiccanbefoundinAppendix2.Lookingthrougheverylocation,
itdoesseemthattherearethreeoverwhelminghealthproblemsthatamajorityof
employeesface.Becauseofthesesimilaritiesmysecondnullhypothesis(seepg.14)can’t
berejected.Weight,bloodpressure,andstresswerethethreehighestemployeehealth
risksat77%oflocationstested.Itisalsoimportanttonotethatweightwasthenumber
onehealthriskateverysinglelocation.Becausetherewerenopriordatapointstocompare
thesenumberstothereisnowaytoconcludehowthepromotionprogramhashelped.But,
itisimportanttoknowwherethecompanyshouldfocusitseffortsinthefuture.By
knowingthatthesearethemostcommonhealthissues,BrandXwillbeabletoadapttheir
wellnessprogramtohelpemployeesfacingthesehealthproblems.Thisdatacouldalsobe
usedbyothercompanieslookingforideasonhowtostartupawellnessprogram.
Figure 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5
%ofTotalHalthRiskRank
RankofHealthRisk
HealthRiskRankingBreakdown
Weight
BackCare
Cholesterol
Stress
BloodPressure
Eating
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Thelasttopicofinterestinmyanalysisofhealthpromotionprogramsisifhealthier
employeestendtobemoresuccessfulintheworkplace.Differingfromthefirsttwotopics,I
obtainedmyrawdataforthistopicfromthesurveythatIcreatedalongwithBrandX.To
prefacemyresults,itshouldbenotedthatmydistinguishingsuccessfactorwasifan
employeeworkedinacorporatefacilityoratamanufacturingplant.Idonothavespecific
salarynumbers,butitcanreasonablybeassumedthattheaverageemployeesalaryata
corporatefacilityismuchhigherthanthatofamanufacturingworker.Thereweretwo
mainfindingsfromtheanalysisofthisdata.Thefirstrelatedtothenumberofhealthrisks
anemployeehad.Healthriskscanbedefinedasanymedicalailmentthatcanbediagnosed
byadoctor.Afewexamplesofhealthrisksarehighbloodpressureandobesity.
Figure4showsthatthereareahigherpercentageofhealthyindividualsatcorporate
locationsthanmanufacturingplants.Onaverageonly4%ofemployeesatcorporate
Health risks include any listed medical condition (i.e. high blood pressure). Low=0-2 health risks, Moderate=3-5 health risks, High=6+ health risks. # of corporate employees= 1,144. # of manufacturing employees= 9,524
Figure 4
Health Status Indicators (Top- Manufacturing, Bottom- Corporate)
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locationsarehighhealthrisks(6+diagnosablehealthissues).Manufacturingfacilities
employahigherrateoftheseindividuals,cominginat9%.Eventhoughthesamplesizes
aredifferentformanufacturingemployeesandcorporateemployees,thisdataisstill
reflectiveofBrandX.Thecompanyhas5timesmoreworkersinplantsthancorporate
offices.Thisdataonhealthriskssupportsmythirdnullhypothesis(seepg.14).
Anothersignificantsetofstatisticsreceivedfromthesurveyistheconnection
betweenabsenteeratesandhealthrisklevel.Itisveryimportantforemployeesto
minimizethenumberofsickdaystheytaketoincreaseindividualandcompany
productivity.Figure5onthenextpageshowsthedifferencesinabsenteeratesbetween
healthrisklevels.Employeeswithahighhealthrisklevelaccountforhalfofthesickdays
acrossthecompany.Ifyouaren’tattheoffice,thenyoucan’tbeproductive.Thishelpsto
furtherprovemynullhypothesisthathealthieremployeesaremoresuccessfulinthe
workplace.Appendix3provideslocationspecificdataonabsenteeratesforeachrisklevel.
Figure 5
19%
31%
50%
DaysAbsentDuetoHealthReasonsforEachRiskLevel
Low:0-2HealthRisks
Moderate:3-5HealthRisks
High:6+HealthRisks
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Overall,Icanconcludethatahealthpromotionprogramcanbeveryeffectiveif
implementedcorrectlyandemployeehealthdoeshaveanimpactonacompany:
1. Wellnessplanscandecreasecostsby5%(hypothesis#1supported)
2. Weight,BloodPressure,andStresswerethethreemostcommonhealthrisk
factorsat77%oflocations(hypothesis#2supported)
3. Manufacturingplantshaveahigherrateofhighhealthriskemployeesthan
corporateoffices(hypothesis#3supported)
4. HighhealthriskemployeesaccountforhalfofthesickdaysatBrandX
(hypothesis#3supported)
FurtherResearch:
Therearemanydifferentavenuesthatcouldbetakentofeedoffofmyinitial
research.Firstoff,employeesatthecompanyfromwhichIreceivedmydatawillcontinue
myresearch.AlthoughIgeneratedmanyimpactfulresults,theywillbemuchmore
authoritativeifalargersamplesizeofdataisanalyzedoveranextendedperiodoftime.I
wasonlyabletolookatstatisticsfromtwoyearsandacross20+locations.IfBrandXcan
findtrendsacrosstheirhundredsoflocationsovermultipleyearsitwillbeanevenmore
crediblestudy.Alongwiththis,ifmorecompaniesbegintocompletesimilarresearch,
firmsacrossthenationwillbeabletofurtherconfirmordenymyfindings.
Anotherpotentialsourceoffutureresearchwouldbetolookintohowahealth
promotionplanspecificallyaffectscompanyprofits.Iwasabletogainanunderstandingof
thecostreductionsassociatedwithwellnessprograms,butnottheoverallimpactonthe
bottomline.Onewaythiscouldbedoneistoanalyzetheproductivitygainedfroma
sampleprogramandputavalueonthisadditionalcompletedwork.Alongwiththis,
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researchshouldbecompletedlookingathowspecifichealthrisksaffectproductivity.For
example,howmuchefficiencyislostfromincreasedstresslevelsonthejob.
ThefinalresearchextensionthatIwouldliketomentionoccursmoreonthe
medicalsideofthespectrum.Medicalresearchshouldbecombinedwiththisresearchto
outlinespecificactionsemployeesandcompaniescantaketoimprovethecoregroupof
healthissuesimpactingemployees(weight,bloodpressure,andstress).Itisveryusefulfor
BrandXtoknowthatweight,bloodpressure,andstresshavenegativeimpactsona
majorityoftheiremployees,butthereisnosimplefixfortheseailments.Bylookingat
scientificresearch,companieswouldbeabletomakespecificpromotionprogramsforeach
employeetobettertheirhealth.Thisimprovedhealthwouldhopefullyhaveapositive
impactonthebusiness.
25
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26
Appendix1:HealthCareCostsSummary
2015 Avoidable Costs by Location
Direct Indirect Total
Medford $574,200 $1,148,400 $1,722,600 Little Chute $791,200 $1,575,100 $2,366,300 Springville $791,100 $1,582,100 $2,373,200 Solon $345,800 $691,700 $1,037,500 Mt. Sterling $593,300 $1,174,200 $1,767,500 Jonesboro $524,500 $1,048,900 $1,573,400 Gaffney $583,100 $1,166,200 $1,749,300 Danville $381,700 $763,500 $1,145,200 Franklin Park $273,500 $546,900 $820,400 Burlington $383,400 $765,500 $1,148,900 Bloomington $320,700 $641,400 $962,100 Waverly $266,800 $527,000 $793,800 Jacksonville $225,100 $450,200 $675,300 Freehold $159,400 $318,900 $478,300 Anderson $895,300 $1,786,100 $2,681,400 Tulare $372,800 $745,700 $1,118,500 Laurel $370,600 $741,100 $1,111,700 Fort Wayne $460,400 $920,800 $1,381,200 Modesto $162,000 $324,000 $486,000 Bakersfield $477,400 $954,800 $1,432,200 Itasca $210,300 $416,700 $627,000
27
2016 Avoidable Costs by Location
Direct Indirect Total
Medford $527,800 $1,055,600 $1,583,400 Little Chute $747,200 $1,486,300 $2,233,500 Springville $753,100 $1,506,300 $2,259,400 Solon $346,400 $692,800 $1,039,200 Mt. Sterling $568,600 $1,124,100 $1,692,700 Jonesboro $501,000 $1,002,000 $1,503,000 Gaffney $582,500 $1,165,000 $1,747,500 Danville $379,700 $759,400 $1,139,100 Franklin Park $277,900 $555,900 $833,800 Burlington $343,400 $685,200 $1,028,600 Bloomington $279,600 $559,100 $838,700 Waverly $229,900 $456,900 $686,800 Jacksonville $234,500 $468,900 $703,400 Freehold $170,100 $340,100 $510,200 Anderson $797,000 $1,582,300 $2,379,300 Tulare $355,000 $710,000 $1,065,000 Laurel $351,800 $703,500 $1,055,300 Fort Wayne $411,400 $822,800 $1,234,200 Modesto $157,000 $314,000 $471,000 Bakersfield $460,400 $920,200 $1,380,600 Itasca $235,600 $467,300 $702,900
28
Appendix2:HealthRiskSummary
Health Risk Ranking by Location
1 2 3 4 5
Medford Weight Blood Pressure Stress Back Care Cholesterol
Little Chute Weight Stress Blood Pressure Cholesterol Back Care
Springville Weight Cholesterol Stress Blood Pressure Back Care
Solon Weight Blood Pressure Stress Back Care Back Care
Mt. Sterling Weight Blood Pressure Stress Back Care Cholesterol
Jonesboro Weight Blood Pressure Back Care Eating Back Care
Gaffney Weight Back Care Stress Blood Pressure Eating
Danville Weight Blood Pressure Back Care Stress Back Care
Franklin Park Weight Blood Pressure Stress Back Care Back Care
Burlington Weight Blood Pressure Stress Back Care Cholesterol
Bloomington Weight Stress Blood Pressure Cholesterol Eating
Waverly Weight Stress Blood Pressure Back Care Eating
Jacksonville Weight Blood Pressure Cholesterol Stress Back Care
Freehold Weight Blood Pressure Cholesterol Stress Back Care
Anderson Weight Blood Pressure Stress Cholesterol Back Care
Tulare Weight Blood Pressure Stress Cholesterol Back Care
Laurel Weight Blood Pressure Stress Back Care Back Care
Fort Wayne Weight Blood Pressure Stress Cholesterol Back Care
Modesto Weight Stress Blood Pressure Cholesterol Back Care
Bakersfield Weight Blood Pressure Stress Cholesterol Back Care
Itasca Weight Blood Pressure Stress Cholesterol Back Care
29
Appendix3:LocationAbsenteeRatesBasedonHealthRiskLevel
Days Absent Due to Health
Low: 0-2 Moderate: 3-5 High: 6+
Medford 450 750 1100 Little Chute 554 969 1349 Springville 380 1055 1224 Solon 284 269 474 Mt. Sterling 308 504 1120 Jonesboro 568 542 774 Gaffney 718 807 2063 Danville 207 435 890 Franklin Park 110 314 345 Burlington 363 406 392 Bloomington 150 363 288 Waverly 67 230 557 Jacksonville 22 161 51 Freehold 98 320 25 Anderson 449 748 860 Tulare 450 242 934 Laurel 467 861 2189 Fort Wayne 494 475 608 Modesto 124 255 738 Bakersfield 355 858 858 Itasca 118 354 380
