The case discusses the increasing importance given to Health and Wellness Programs (HWP) by corporates, in order to limit the rising health care costs of employees. The case describes in detail, the components of a HWP introduced by the pharmaceutical major, Johnson and Johnson (J&J). It discusses how J&J went about implementing the HWP, the initial hurdles faced and the benefits reaped after the . The case also mentions initiatives taken by J&J to significantly enhance the health and well-being of its employees in the new millennium.
In
1998, the American College of Occupational and
Environmental Medicine conferred on Johnson &
Johnson (J&J),3 the 4. J&J was one of
the four national winners5 selected for
having the healthiest employees and workplace
environment in the US.
The
US industry spent approximately $200 bn per annum on
employee health insurance claims, on-site accidents,
burn-out and absenteeism, lower productivity and
decreased employee morale due to health problems.
Moreover, according to the estimates of Mercer10,
US industry expenditure on the medical and disability
bills of employees was rising significantly. In 1998,
companies had paid an estimated $4,000 per annum, per
employee as health care costs, and that rose to $5,162
in 2001 and around $5,700 in 2002. Apart from other
health-related problems (Refer Table I), stress at
workplace was considered to be one of the main reasons
for this high industry expenditure. Work stress led to
problems like nervousness, tension, anxiety, loss of
patience, inefficiency in work and even chronic diseases
like cardiac arrest and hypertension. As a result of
these health problems, absenteeism increased and
productivity of employees declined. |
