Posted: March 11th, 2023

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Wellness Programs and Employee Productivity and Absenteeism

Business Research Proposal

Wellness Programs and The Impact on Employee Productivity and Absenteeism

Anonymous

Austin Peay State University

MGT 5000

Dr. Tilooby

February 2, 2023

Abstract:

Employee wellness programs are becoming an increasingly essential area for innovation in employee services as preventive health programs and employee motivation campaigns have become more relevant and in demand. Existing health and wellness initiatives include resources to address unhealthy habits, advice on how to make healthier choices, and health tests, but they also have inadequate planning and implementation, which managers need to improve to encourage innovation. However, there are currently no complete models available to assist managers in recognizing and addressing the shortcomings of current initiatives. We conducted a qualitative study on employee wellness programs concerning productivity and absenteeism to address this deficiency. We presented a comprehensive approach to managing risk during the development of employee wellness programs in their efforts to enhance productivity and absenteeism by combining this comprehensive literature review with Glaser and Strauss’s grounded theory. With this approach, risks such as poor implementation, structure, and leadership support were identified. This approach also revealed solutions including targeted initiatives, leadership involvement, and program follow-up.

Keywords: Wellness Programs, Productivity, Absenteeism, Literature Review

Introduction:

Since the workforce of today has changed over the past few decades, so too has the strategy for finding and keeping qualified workers. Many people consider both the advantages and disadvantages of a company or organization when searching for, applying for, and accepting positions. A person’s decision to accept or reject a job offer may be influenced by the rewards provided, the organizational structure, and other factors. Financial pay used to be the primary deciding element in job searches in earlier decades. Specifically, which businesses were providing the highest compensation. However, in the workplace today, this may not be the case. According to Goleman (2003), most high-performing employees are driven by factors other than money since they prefer receiving intrinsic incentives over only extrinsic ones. In other words, employees want to feel like they’re having a positive impact on the organizations and communities they work in. Therefore, if businesses and leaders want to be effective and productive with their workers, they must combine many forms of motivation.

Employees also want to feel cared for by their employers and the organization. In the same way that they need recognition, gratitude, and respect from their employers, employees want to feel like more than just a number. Showing employees that their employer cares about their health and well-being is one approach for businesses to achieve this. The main causes of death worldwide, according to Tulchinsky (2014), are non-communicable diseases such as diabetes, cancer, heart disease, and stroke. Most often, bad dietary habits, inactivity, and a lack of resources can exacerbate these conditions. As a result, businesses have started implementing wellness initiatives to assist in addressing these pressing problems.

Employee health benefits and tools to attract top talent are progressive including employee wellness programs. Employee wellness programs are initiatives designed by the employer to support the promotion of health-related behaviors as a means of health prevention and promotion, as well as to incorporate secondary prevention such as disease management (Horn et al., 2020). Many businesses are starting to implement wellness programs within their firm, but many of these initiatives are not carried out efficiently, thus the potential benefits of these programs are not realized. Therefore, it’s crucial to thoroughly examine and understand what steps may be made to address the execution of wellness programs’ shortcomings as well as how employers might modify their approach.

At their place of employment, people in the United States spend more than a third of their lives (Holcomb, 2020). Many of these people have families, additional jobs, or other obligations that take up the rest of their free time. Because of this, individuals engage in these harmful behaviors and practices and the health and well-being of these employees are neglected. In the paragraphs that follow, we’ll utilize a qualitative approach to analyze and comprehend both the prospective advantages of wellness programs and certain disadvantages while also developing new areas of focus. We’ll also attempt to narrow down the correlations between programs offered with worker productivity and absenteeism, as well as whether these connections highlight the significance of these initiatives.

Literature Review:

Companies and organizations have started integrating employee wellness programs into their workforce and benefit offerings for several reasons. Arguments presented by Penalvo, Varga, and Secchi, indicate that wellness initiatives can improve employee health, lower absenteeism, and boost productivity. These potential advantages, in addition to others like the decrease in healthcare costs, may persuade companies to introduce wellness programs within their business. According to Bodin (2018), two-thirds of employers currently offer wellness programs for their workers. That is that employers with 50 or more employees and 90 percent of employers with over 40,000 employees offer wellness programs (Mattke et al., 2015). Research conducted by Lally (2016), analyzed more than 2,000 workers who completed a weight-loss, exercise, or smoking cessation program and saw individual well-being metrics rise by 13.5% and overall healthcare costs fall by 21.5%. It is evident that when employees actively engage in wellness initiatives, absenteeism decreases while productivity increases (Lally, 2016).

Again, the term “wellness programs” refers to activities that help people adopt good habits, change unhealthy lifestyles, and create a complete view of their physical, emotional, and social well-being (Varga et al., 2021). These practices tie into the need to attract qualified employees and an employee’s perception of how their employer views them. Employees want to fill both fulfilled and satisfied within their role beyond monetary rewards and benefits. These intrinsic needs can be fulfilled by the successful implementation of wellness programs. Incorporating wellness programs within their organizational structure can improve employee satisfaction, increase employee loyalty, and likewise increase productivity (Peñalvo et al., 2021). Job satisfaction generated from the implementation of five or more wellness programs has been shown to decrease turnover rates by 18% versus organizations that did not implement wellness programs with an average of 29% turnover rate (Varga et al., 2021).

“Health assessments, well-being courses, health coaching, and biometric screening” are just a few of the wellness initiatives that corporations have already put in place (Lin et al., 2019). Employee commitment levels can increase and good behaviors like brainstorming, improving problem-solving skills, and being able to overcome obstacles in the workplace can occur when employees believe that their employer cares about their health and well-being (Lin et al., 2019). In turn, this frequently results in increased productivity and fewer indirect costs like employee absenteeism when employees feel more valued and committed to their organization (Grossmeier, 2017). Organizations and leaders must be able to implement organizational initiatives successfully to lower overall costs while enhancing employee commitment, morale, and productivity. This is not always the outcome, as we will discuss in the sections that follow.

As was previously noted, implementing wellness programs in an organization has several advantages, including reduced stress, lower absenteeism, higher engagement, and an overall improvement in medical illnesses (Warnsley, 2015). However, if they are not executed correctly, many of these wellness initiatives risk failure. Poor implementation, a lack of employee engagement, and a lack of leadership commitment can all lead to the failure of wellness programs. According to Warnsley (2015), several companies don’t follow through on their investments in wellness initiatives by failing to monitor the effectiveness of these wellness programs, forfeiting the opportunity to properly assess changes in employee performance, absenteeism, and overall health factors. The effectiveness of wellness program objectives may suffer from these inefficiencies, which can also be expensive in terms of return on investment (ROI) and ongoing expenditures related to absenteeism, decreased productivity, and higher turnover rates.

Employee engagement, participation, and motivation are important issues that firms deal with when trying to adopt a wellness program (Marshall, 2020). It can be difficult to engage staff in wellness programs, and if this problem is ignored, potential programs may not succeed. Studies have shown that when employees believe participating in wellness programs would result in healthier lifestyles and lower health insurance costs, they are more likely to do so (Marshall, 2020). However, companies fall short of meeting these expectations by developing wellness initiatives that are too narrow and do not provide all the necessary tools for participation (Marshall, 2020). The involvement of leadership, especially executive leadership during the implementation phase, is another aspect determining the success of the implementation of wellness programs that many organizations neglect to consider. A cross-sectional study revealed that firms with higher levels of leadership support in wellness and health promotion initiatives had increased employee involvement rates, lower absenteeism rates, and higher productivity (Hoert et al., 2018). Results indicate, however, that many firms struggle to successfully retain engagement over a long period because they neglect to involve leadership in the implementation of wellness initiatives.

Additional research demonstrates that employee resistance is a crucial sign of unsuccessful wellness program attempts. The fact that program participation requires the disclosure of personal health information as a condition of participation and the possibility of financial rewards makes employees less willing to participate than they might otherwise be. Employees are worried about potential financial obligations for these programs, as well as potential discrimination based on achieving or failing to achieve specific advancement targets, according to Madison (2016). Although the Affordable Care Act (ACA) and other laws have regulations protecting employees from unfavorable outcomes of participation or voluntary non-participation, employees might not be aware of these laws without communication from program leaders and other members of leadership. Lack of awareness of these protections often results in privacy violations, increased stigma, and increased chances of employment discrimination (Madison, 2016).

We will now look at new approaches for employee wellness initiatives after reviewing some of the drawbacks of current health and wellness programs. To encourage the successful implementation of employee wellness programs, businesses and leaders must be able to recognize where they are lacking and execute changes successfully. After all, according to Bottles (2015), better employee health supports a decline in employee absenteeism and correspondingly higher productivity. There are various ways to define a good wellness program, but there are a few crucial elements that must be considered. Effective communication, organizational alignment, multi-level leadership support, relevance, accessibility to low-cost or free programs, and applicability are all requirements for effective wellness initiatives (Secchi et al., 2015). To assure participation and employee commitment, wellness programs require the support and involvement of several levels of leadership. Additionally, as a commitment to enhancing the physical and emotional health and well-being of their employees, wellness initiatives should be in line with the organization’s existing goals and core values. If not, these projects might not be sustained over time.

Therefore, how can employers create a wellness program that will appeal to their employees’ interests? First, lack of time is one factor that may prevent employees from participating enthusiastically. Many workers are prevented or discouraged from participating because of their families and other commitments. Creating a wellness program that may be structured into an employee’s current schedule is one approach for firms to address this issue. There are only so many hours in a day that an individual can work effectively, contrary to what many employers believe. As a result, scheduling time during their existing shift allows individuals to participate in health activities and take a mental break from their work obligations. This encourages positive recurring behaviors while assisting employees in overcoming time availability constraints. Since there is presently no research that serves as an example of this strategy, this would be a good opportunity to further examine this proposal’s effectiveness.

Additionally, it would be beneficial to create new incentives that can be utilized to promote staff participation. There are numerous studies out there currently that highlight wellness program incentives like health premium savings, cash awards, and reimbursements for purchases related to well-being, among others. These benefits could not, however, provide a clear enough image to convince staff members to participate. Organizations should implement incentives for participation in addition to scheduling wellness breaks for workers. Earning more paid time off (PTO) and having prior absence infractions that employees may have accumulated over time forgiven are two potential rewards. These two benefits would allow employees to gain more time away from work as well as address some of the poor behaviors exhibited by employees such as absenteeism. When these advantages are combined with planned wellness scheduling, workers can take the appropriate breaks for their health, which lowers absenteeism and boosts productivity due to increased involvement. These programs could be assessed by counting the number of people who voluntarily accept the modified work schedules, gathering information on how much extra PTO has been accrued and tracking the frequency of ongoing absences.

Methodology:

This proposed study has a qualitative research design. We were able to further explore the relationship between employee wellness initiatives and the effects on productivity and absenteeism using the grounded theory study of Glaser and Strauss. According to Myers (2020), grounded theory is a qualitative research methodology that aims to build a theory that is based on data that has been systematically acquired and examined. In other words, grounded theory permits the researcher to develop a theory rather than starting with a theory and using data to prove it. Given that this method of research has provided a structured technique for gathering, evaluating, and synthesizing data on the relations between wellness initiatives and employee productivity and absenteeism, grounded theory was deemed an effective research method for this study. According to Hussein (2014), grounded theory gives researchers rules for carrying out research, gives them confidence when they start to second-guess their decisions, and deepens their thought processes as they go. Other qualitative research techniques, on the other hand, might not supply the framework and if not properly monitored could become ineffective.

This study’s targeted population included active full-time employees who have been employed for more than ninety days. Additionally, targeted organizations included in this study employed 50 or more employees. Utilizing stratified random sampling we were able to further examine different sub-populations of the organization that shares similar attributes. Driving this study forward we used secondary data collected from prior literature to help us conduct our research while allowing us to identify future areas of study. This literature entailed multiple prior peer reviews and published research papers, surveys conducted at the individual and organizational levels, and data analysis conducted by a third-party human resources company. This data was analyzed using qualitative software programs such as NVivo which is a program designed to efficiently and effectively compare data collected to identify similarities and patterns. These analytical tools allow leaders and program managers to identify the effectiveness of their wellness initiatives.

Theoretical Framework:

Employee wellness programs and other health initiatives are developed for a variety of reasons. Attracting and hiring skilled individuals to work for their firm, recruitment is a major factor. Second, by demonstrating that companies care about employees’ health and well-being, these initiatives are intended to contribute to an increase in employee satisfaction and engagement. Finally, businesses use wellness initiatives to combat problematic employee traits like low productivity and absenteeism. According to Leon Destinger’s cognitive dissonance theory (CDT), psychological tension develops when a person’s behavior contradicts his or her thoughts and beliefs (Harmon-Jones & Mills, 2019). Dissonance, a term used to represent both psychological distress and the discrepancy between cognitions, serves to draw attention to actions and viewpoints that people want to alter (Harmon-Jones & Mills, 2019).

An early study of CDT showed that when employees performed undesirable behaviors and received smaller incentives, they modified their actions to favor this behavior (Hinojosa et al., 2017). This improved research capacity allowed management to look more closely at how incentives affect attitudes and behaviors. The cognitive discrepancy, dissonance, motivation, and discrepancy reduction are the four steps in the arousal and reduction of dissonance, according to Hinojosa et al. (2017). These processes assist in recognizing the main cognitive conflicts, highlighting the detrimental impacts of inconsistency, increasing motivation caused by dissonance, and that people may lessen dissonance by altering their cognitive beliefs. By reducing dissonant cognitions, introducing new consonant cognitions, downgrading the significance of dissonant cognitions, or elevating the significance of consonant cognitions, dissonance can be decreased (Harmon-Jones & Mills, 2019).

Cognitive dissonance theory as it relates to employee wellness programs plays an important role in recognizing negative employee attitudes and behaviors that employees possess and ways these behaviors can be addressed or altered to benefit both the employee and the organization. For example, an employee who learns that lack of exercise, increased stress, and poor mental health can increase the chance of heart disease and stroke can experience dissonance. In this example, to reduce dissonance the employee could increase their physical activity and make changes in efforts of reducing their mental stress. These actions would remove the conflicting cognitions and consequently have beneficial side effects that might increase employee engagement and thus productivity and satisfaction. It is crucial to remember that the employee can also lessen dissonance by changing how they think about how ineffective behavior and elevated stress can affect them. An employee’s dissonance might reduce while their negative behaviors stay the same if they were to adopt the belief that being inactive will lower their risk of accident or injury and that experiencing more stress will keep them cognitively alert. These elements need to be closely watched and addressed in a way that will bring about positive change rather than enabling people to adapt or normalize undesirable behaviors.

Conclusion:

Therefore, even though wellness efforts have been around for a long time, research indicates that it is quite challenging to consistently assess the advantages and success of these programs. Even while more than two-thirds of employers provide wellness initiatives, some businesses struggle to put them into practice (Bodin, 2018). Many firms don’t deliver on their promises, which causes them to see little to no outcomes or makes it difficult to properly examine the data these wellness initiatives have produced. Attracting and retaining talented employees is a leading priority for companies, and they must also ensure they are fulfilling their responsibility to operate economically. With the proper structure and the commitment of top leadership, employee productivity, and absenteeism can be improved using employee wellness programs. Further research is required to better understand and reap the rewards of creating and implementing an efficient and well-structured employee wellness program. To further understand how incentives, leadership involvement, and program follow-up affect how certain wellness programs turn out, more research is required. The research currently available does not identify long-term advantages achieved over an extended period, despite earlier studies highlighting short-term benefits from designing and modifying wellness programs. Some investigations could not be completed because of time restrictions, a lack of resources, or staff turnover. These failures, however, should serve as motivation to continue developing, implementing, and researching the positive effects that wellness programs have on staff employees and the organization.

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