The Wednesday Daily News letter to the editor pages, served as the location for the latest contribution to the debate over free gym and pool privileges for City workers, as a local contributor harvested statistical data to suggest that move was a cost effective one in the long run.
While the number crunching does highlight the benefits to a degree, most of the examples used were either large municipal or government departments or private corporations, all of which we suspect are in slightly better financial shape than the city of Prince Rupert and thus able to provide the perks of employment that have stirred debate across the city.
In particular comparing the City’s plans to those of multi national companies like Coca Cola, Coors and Du Pont seems to be missing the key ingredient fiscal ability and accountability, putting those and many other of the examples cited in a slightly different financial scheme than where our local government may be with its struggling finances and overtaxed ratepayer base .
The letter provides an interpretation of the initative that will no doubt find supporters and detractors among those that skim the editorial page for their daily dose of public soundings. Though judging by those letters to the editor that have appeared before, the latest offering is staking out space on the minority position.
Free access for city workers a good move
Letter to the Editor
Prince Rupert Daily News
Wednesday, June 4, 2008
Page four
To the editor,
I feel a need to respond to the recent criticisms leveled at the city for deciding to give their employees free access to our recreational facilities.
I applaud the city for implementing this progressive initiative. In my opinion, it is a cost-effective measure that will benefit the City of Prince Rupert in the long run.
I am not alone in my opinion, as more and more corporations are implementing similar programs for their employees. They’re not doing so to be altruistic but rather to improve the bottom line. This was corroborated in The Province last weekend in an article by Derek Sankey who wrote about companies boosting their health and wellness programs in Alberta.
According to Sankey, the benefits are numerous: It reduces employee absenteeism, improves the health of employees, raises the productivity and morale of their workforce and acts as an effective recruitment and retention tool for employers.
According to Sankey, the Canadian Healthy Workplace Council and the Graham Lowe Group released a study recently that found companies who have ‘multi-component workplace health programs’ have an average reduction in sick leaves, health plans costs, worker compensation claims, and disability costs of more than 25 per cent
Further research supports this study.
- It has been estimated that corporate wellness programs resulted in an estimated cumulative economic benefit of $500 to $700 per worker per year. (Shephard, Roy H. Do Work-Site Exercise and Health Programs Work> The Physician and Sportsmedicine Online- February 1999)
- Canada Life Insurance reported a return of $3.43 on their fitness program, and an overall return on investment of $6.85 on each corporate dollar invested on reduced turnover (32.4 per cent lower), productivity gains and decreased medical claims.
- DuPont’s Worksite Health promotion pilot sites saw a saving of 11,726 disability days and a return of $2.05 US for every dollar invested by the end of the second year.
- The Canadian government’s corporate wellness programs returned $1.95 - $3.75 per employee per dollar spent (as reported by Dr. Roy Shephard)
- Municipal employees in Toronto missed 3.35 fewer days in the first six months of their “Metro Fit” fitness programs than employees not enrolled in the program.
- BC Hydro employees enrolled in a work-sponsored fitness program had a turnover rate of just 3.5 per cent compared with a company average of 10.3 per cent,
- Johnson and Johnson estimated an average saving of $224.66 US per employee per year for the four years examined after the program introduction, with the bulk of the savings being in the third and fourth years,
- Coca Cola reported saving $500 every year per employee after implementing a fitness program, with only 60 per cent of their employees participating,
- Coors Brewing Co. reported that for each dollar spent on their Corporate Wellness Program they saw a $5.50 return, and the employees who participated reduced their absentee rate by 18 pre cent, and
- Prudential Insurance Company reported that the benefits costs for employees participating in their program were $312, as opposed to $574 for non-participants.
While the number crunching does highlight the benefits to a degree, most of the examples used were either large municipal or government departments or private corporations, all of which we suspect are in slightly better financial shape than the city of Prince Rupert and thus able to provide the perks of employment that have stirred debate across the city.
In particular comparing the City’s plans to those of multi national companies like Coca Cola, Coors and Du Pont seems to be missing the key ingredient fiscal ability and accountability, putting those and many other of the examples cited in a slightly different financial scheme than where our local government may be with its struggling finances and overtaxed ratepayer base .
The letter provides an interpretation of the initative that will no doubt find supporters and detractors among those that skim the editorial page for their daily dose of public soundings. Though judging by those letters to the editor that have appeared before, the latest offering is staking out space on the minority position.
Free access for city workers a good move
Letter to the Editor
Prince Rupert Daily News
Wednesday, June 4, 2008
Page four
To the editor,
I feel a need to respond to the recent criticisms leveled at the city for deciding to give their employees free access to our recreational facilities.
I applaud the city for implementing this progressive initiative. In my opinion, it is a cost-effective measure that will benefit the City of Prince Rupert in the long run.
I am not alone in my opinion, as more and more corporations are implementing similar programs for their employees. They’re not doing so to be altruistic but rather to improve the bottom line. This was corroborated in The Province last weekend in an article by Derek Sankey who wrote about companies boosting their health and wellness programs in Alberta.
According to Sankey, the benefits are numerous: It reduces employee absenteeism, improves the health of employees, raises the productivity and morale of their workforce and acts as an effective recruitment and retention tool for employers.
According to Sankey, the Canadian Healthy Workplace Council and the Graham Lowe Group released a study recently that found companies who have ‘multi-component workplace health programs’ have an average reduction in sick leaves, health plans costs, worker compensation claims, and disability costs of more than 25 per cent
Further research supports this study.
- It has been estimated that corporate wellness programs resulted in an estimated cumulative economic benefit of $500 to $700 per worker per year. (Shephard, Roy H. Do Work-Site Exercise and Health Programs Work> The Physician and Sportsmedicine Online- February 1999)
- Canada Life Insurance reported a return of $3.43 on their fitness program, and an overall return on investment of $6.85 on each corporate dollar invested on reduced turnover (32.4 per cent lower), productivity gains and decreased medical claims.
- DuPont’s Worksite Health promotion pilot sites saw a saving of 11,726 disability days and a return of $2.05 US for every dollar invested by the end of the second year.
- The Canadian government’s corporate wellness programs returned $1.95 - $3.75 per employee per dollar spent (as reported by Dr. Roy Shephard)
- Municipal employees in Toronto missed 3.35 fewer days in the first six months of their “Metro Fit” fitness programs than employees not enrolled in the program.
- BC Hydro employees enrolled in a work-sponsored fitness program had a turnover rate of just 3.5 per cent compared with a company average of 10.3 per cent,
- Johnson and Johnson estimated an average saving of $224.66 US per employee per year for the four years examined after the program introduction, with the bulk of the savings being in the third and fourth years,
- Coca Cola reported saving $500 every year per employee after implementing a fitness program, with only 60 per cent of their employees participating,
- Coors Brewing Co. reported that for each dollar spent on their Corporate Wellness Program they saw a $5.50 return, and the employees who participated reduced their absentee rate by 18 pre cent, and
- Prudential Insurance Company reported that the benefits costs for employees participating in their program were $312, as opposed to $574 for non-participants.
If the city, as an employer, experiences similar results at the ones above, this will ultimately benefit the entire city and its citizens. As operating and capital costs increase, for employer year by year, it is fiscally prudent to look at a variety of methods to reduce these costs where they can. Health and wellness programs are one such method. I believe this new initiative is a proactive approach that will prove to benefit us all.
Lianne Gagnon
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