"Top-level support for the program has been very important. Our CEO is seated right along with all employees and takes the same health evaluation. Additionally employees had a year to get ready for the program. We communicated through all mediums to make sure everyone understood the objectives of the program," says Frazier.
Those efforts have paid off both monetarily and in terms of better employee health. The company estimates that they have saved $5.5 million since 2003. (They calculate this by including a 10% increase trend in costs that they
didn't incur.) Comparing 2006 to 2007, employees' scores on several specific measurements saw significant improvement. Cholesterol levels improved 60%, while glucose measurements improved 62%. Employees saw a 46% improvement in their HDL levels, a 66% improvement in LDL levels and 71% in triglyceride levels. This translates to an overall 61% improvement in scores from 2006.
Gallatin Steel offers its employees incentives to take a Health Risk Assessment. If they take the assessment they receive a 50% reduction in their monthly healthcare cost contributions. That means a family of four would only pay $50 a month instead of $100 a month. Ninety-nine percent of the employees took the test. Gallatin, an employer of 500 associates, is based in Ghent, Ky. and produces flat-rolled carbon steel.
And the incentives don't stop there. Physical fitness is a key component of health and one that Gallatin Steel takes seriously. In 2005 they built a 3 mile jogging path and a 2,500 square fitness center. The center is free to employees, open 24/7 and staffed by a full-time trainer. It offers personalized exercise plans as well as noon walks and after work classes. Sixty percent of the employees hold memberships and 35% of those use the facilities on a regular basis. To increase usage, the company offers merchandise and gift card awards.
The company also offers a benefit called Healthy Lifestyle, which is associated with their medical plan. Employees receive $1,000 per year to spend on health programs. Reimbursable programs include weight loss programs, dieticians' services, physicals and immunizations.
Competitions seem to generate a lot of enthusiasm as well. Gallatin participated in the Body for Life Challenge -- a 12-week healthy living contest based on diet and exercise. And this year the company is creating a Tour to Kentucky bike race.
"Developing a culture that focuses on improving health takes time and resources but is absolutely worth the effort. For companies interested in starting a wellness program, I would recommend putting together a wellness council, like Gallatin did. Our council includes associates working shifts at the plant as well as administrative staff," explains Cathy Hanley, director of HR. "People really appreciate these programs, and I truly believe it gives us a competitive edge."
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