RETAILOBSERVER.COM NOVEMBER 2014
64
E
ight out of ten New Jerseyans work for a small employer,
with about 1.4 million employed by an employer with 50
employees or less. As in most states, the smaller the
employer, the higher the health care premium. For example, in
2012, an employer with 20-50 employees paid about $8,800 per
employee per year for health care. In contrast, an employer with
100 or more employees paid about $7,500.
Recently, EANJ convened ten meetings with employers in five
regions of the state. Among the top issues expressed by the
458 private sector employers that participated were 1) increased
health care costs (78%); 2) maintaining the productivity of the
existing workforce (62%); 3) the mismatch of skills of current
and future workers (39%); and 4) finding the money to make
capital investments (32%).
The issues are interrelated and all employers face them. But
as workplace wellness programs are now commonplace, they
are supported primarily by larger employers who have the
critical mass of employees to get a ROI.
Gallup estimates that 450 million days of work a year are
missed because of health problems, resulting in an estimated
cost of $153 billion in lost productivity. Statistically, even if
there are only 50 employees within a company:
• 30 sit all day to do their work
• 25 experience moderate to severe stress
• 17 are overweight by 20% or more
• 12 smoke
• 12 suffer from some form of cardiovascular or other disease
• 25 have high cholesterol
• 8 take a prescription drug for depression, anxiety or other
mental disorder
• 5 are heavy drinkers
• 5 have high blood pressure
• 3 are diagnosed with diabetes
• 5 use marijuana (not prescribed)
• 1 uses cocaine
At least 25 percent of health care costs incurred by working
adults are directly attributable to health risks that can be modified
(e.g., diet, exercise, tobacco use, moderate alcohol consumption,
etc.). Moreover, the lost productivity due to absenteeism would
substantially increase if the costs of "presenteeism" were also
included. "Presenteeism" is when employees report to work but
are less productive in their jobs because of
poor health or substance abuse.
SHOULD A SMALL EMPLOYER
HAVE A WELLNESS PROGRAM?
The short answer is YES
S E R V I C E D E P A R T M E N T
RO
Ralph E. Wolff , MCAP, CSM
Industry Relations, PSA
Service News features alternating writers discussing
topics of the service industry.
