A Carrot for Companies to Get Workers in Shape: Stock Price

Could healthier employees boost a company's stock price?

A study of more than 350 U.S. and Canadian companies found that those with highly effective wellness and motivational programs had a total return to shareholders of 15 percent between 2004 and 2008. By comparison, investors in companies with the least effective programs declined 10 percent.

The study by Watson Wyatt Worldwide gives weight to arguments made by some companies, including International Business Machines Corp. and Quest Diagnostics Inc., that investments in wellness programs are going to pay off in higher productivity. Companies with the highest-rated health and productivity programs had revenue per employee of $483,000 versus $434,00 for those companies with less-effective plans during that same five-year period, the study shows.

A growing number of companies are adding wellness programs to try to control rising health care costs and to get more work out of their employees. An earlier study by Watson Wyatt found almost 60 percent of companies have some sort of wellness program.

The new survey by Watson Wyatt looks beyond wellness programs and measures companies that also are effectively motivating their employees. The combination pays off in fewer sick days, workers that are more engaged, and better customer service, says Shelly Wolff, North American leader for health and productivity at Watson Wyatt.

"Oftentimes companies will say my health programs relate specifcally to health costs, but there are many other outcomes that are associated with health care costs," Wolff says.