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How a Culture of Wellness Leads to Better Businesses

Getting sick is a part of life. But for retailers, sick or injured employees can lead to extra costs and a loss of productivity and efficiency. In 2019, independent research group Integrated Benefits Institute found that illness-related work absences cost employers nearly $3,900 per employee and 1.5 billion days of lost productivity. Employees will always have to use some sick days in a year, but there are steps employers can take to minimize the impact, such as adding a workplace wellness program to encourage healthier employees.

According to Statista, 83 percent of large firms in the U.S. offer some type of wellness program. In 2019, 84 percent of employers believed their company’s wellness program had a positive impact on employee productivity and performance, and 72 percent felt wellness programs helped reduce healthcare costs. Like any new workplace initiative, a wellness program costs time and money to implement, but the return on investment is seen beyond the bottom line, with healthier and happier employees and a strong culture built on wellness.

To help you consider the effect a wellness program could have on your operation and your staff, Hardware Retailing consulted a wellness program expert, Dr. Steven Aldana, CEO of WellSteps and author of seven books and over 75 research articles on the impact of work site wellness programs. Dr. Aldana addresses misconceptions about establishing a wellness program. Plus, discover how the management team at Cole Hardware implemented a successful and comprehensive wellness program for its employees.

I don’t think wellness programs make an impact.

Wellness programs can positively impact employee health, which has a direct impact on employee medical expenses and saves employers money each year.

The Centers for Disease Control performed a systematic review of 56 published studies of workplace health programs and found that wellness programs can lead to a 25 percent savings each on absenteeism, health care costs and workers’ compensation and disability management claims costs.

While they may not be necessary, benefits like health care reimbursement, 401(k) programs and other perks attract quality workers to your company. Aldana points out that wellness programs are also a crucial tool for recruiting and retaining great employees.

“Employers offer benefits in addition to salaries so their employees will understand that their employers value their work efforts and want them to stick around for many years,” Aldana says. “Beyond reducing costs from sick and injured employees, employee wellness programs have an even bigger impact on employee morale and productivity. When employees have access to a wellness program, they feel valued by their employer, which is important as employees are companies’ most valuable assets.”

Since the 1920s, Cole Hardware has been a fixture in the San Francisco area, promoting family, community and customer service. Even its motto, “Cole. Hardware for the soul,” speaks to the company’s culture and desire to make its community and the world a better place.

“We are a family business, and our founder’s quote says it best: ‘There are no strangers here, just friends we haven’t met.’ This tagline is seen outside each of our stores, it’s our modus operandi,” says Irma Fernandez, who is in charge of the company’s human resources and staff development. “Our employees are part of the family, and families take care of each other. Our culture is one of cooperation and service to others.”

Cole Hardware’s commitment to positivity and promoting good in business and the community is also seen in the wellness program the company offers its employees. Currently, Cole Hardware has six stores in the San Francisco area and 128 employees who are the company’s biggest investment, says Fernandez.

“We are always looking for different ways we can take care of our associates,” Fernandez says. “Offering a great benefits package is important as it shows that we care for our people. Our benefit package also helps with employee retention and overall employee wellness and productivity.”

I don’t have the money to implement a wellness program.

Wellness is a broad category, and a workplace wellness program can include everything from basic health insurance to extras like smoking cessation programs, fitness memberships and mental health days.

Aldana says businesses don’t have to invest a lot of money in a wellness program to see results, as there are a number of free options available to companies (see the sidebar below).

Along with medical and dental insurance, a flexible spending account, life insurance and 401(k) program, Cole Hardware’s wellness package includes inexpensive benefits such as access for every employee to Calm, an app that helps associates improve health and well-being.

Inexpensive to start and manage, Cole Hardware also has a “High Five” box in the store where employees can share extraordinary actions they observe in other employees. Each month, one name is randomly drawn from the box and that employee receives a $50 bonus.

I don’t have the time to manage a wellness program.

For smaller organizations, a wellness program can be run by any employee who has an interest in wellness, Aldana says. You can also access wellness program vendors that offer platforms for as little as $2 to $5 per employee per month. These vendor platforms manage your programs and include tools that allow you to sign up employees for a wellness program, track participant progress, give out awards and more.

“These wellness platforms offer comprehensive wellness programs that are easy to administer and will work with anybody using a web-enabled device,” Aldana says.

Wellness programs can be simple too. Aldana says the most basic programs include incentives for healthy living or program completion, participation in individual and team wellness challenges and completion of a simple health risk assessment.

At Cole Hardware, many of the wellness benefits are easy to implement and manage, including the smoking cessation benefit, where employees receive a $300 bonus when they quit smoking for at least six months. The company offers access to an Employee Assistance Program, which provides up to nine consultations per year for mental, financial or family issues and more with professional counselors and is administered by the company’s health insurance company.

Cole Hardware partners with a third-party vendor to offer and manage benefits, which saves the company time and effort.

“We work with ADP to provide our associates with perks and discounts on phone plans, movie tickets, pet insurance and more,” Fernandez says.

I don’t think my employees will participate.

It’s true that getting employees to participate in any program you implement can be challenging. But employers can change employee attitudes by starting with buy-in from the top.

“Wellness program participation depends on how much company leadership supports the program,” Aldana says. “If leadership doesn’t care about wellness, the employees won’t care.”

Successful programs also have employees who are wellness champions and can run the program or serve on a wellness committee, Aldana says. Along with financial rewards, employees can be incentivized to participate with gift cards, t-shirts, paid time off or other perks.

“Many programs allow significant others to participate so that motivation from friends and family encourages each employee to engage in healthy behaviors,” Aldana says. “But motivation to participate should be positive and come from a place of support and encouragement.”

Posters, emails, text messages, employee meetings and company newsletters can all be used to share what a company offers and encourage participation in the wellness program.

At Cole Hardware, offering benefits that employees want and care about helps drive participation. The stores are all located in heavily populated areas and many employees utilize public transportation to get to and from work.

“We offer employees a commuter program, which encourages them to use public transportation, which also makes a positive impact on the environment,” Fernandez says.

The commuter program has several different tenets to fit the different needs of employees. Benefits include a cash reimbursement each month for biking to work at least three days during a work week as well as subsidies for parking expenses and public transportation.

The company also makes it easy for employees to take part in the fitness activities they enjoy by offering 50 percent off monthly fitness expenses, up to $40 per month. Qualifying activities include gym memberships, dance classes, yoga and more.

I don’t know where to start.

Retailers who don’t know where to start with a wellness program can find help and resources from a number of wellness program vendors. Aldana says many of these vendors work with companies of all sizes and budgets.

Employers can also look to their insurance carrier, with many larger insurance companies offering wellness programs for insured members. Your insurance broker is an excellent resource to help you find or start a wellness program as well.

“For small businesses, there are definitely additional challenges to making a wellness program succeed,” Aldana says. “But fortunately, there are also resources to overcome those challenges and make small business wellness a success.”

Companies can start with the basics, offering wellness programs that benefit employees physically and mentally. Cole Hardware’s benefits package includes up to four weeks of paid time off per year after five years of employment.

“Vacation is important as it allows our employees to disconnect from work and find balance in their life,” Fernandez says. “Taking time off reduces stress and increases productivity in our employees.”

Employees receive bereavement leave, up to 72 hours of sick time each year and up to 40 hours off a year for parents to engage in their childrens’ schools. The company also pays employees to take industry-related online courses.

“Offering these types of benefits has helped us during the hiring process,” Fernandez says. “We operate in a very competitive market, so it is imperative that we offer a solid benefits package that helps sway potential candidates our way.”


Becoming Self Aware About Self Care

Retailer offers employees free yoga membership

As small business owners, Armando and Ita Reyes understand and live the difficulties of maintaining self-care. Together they own and operate Carpenter Bros. Hardware & Rental in Ann Arbor, Michigan, and Ita owns and operates a yoga studio located next to the hardware store. And they have two active sons.

The Reyeses offer every employee a free yoga membership after three months of employment. Their employees have full access to the studio and can attend any class they want, Ita says. While not every employee utilizes this benefit, it’s still important to the Reyeses to promote wellness in their operations.

“Wellness is important, not just as employees, but as human beings,” Ita says. “If you take care of yourself, if you feed yourself well, if you get your sleep, you can perform better at work but also at everything else in life.”

Ita and Armando work to set an example for their employees, despite demanding schedules. Armando has put in a small gym at their home so he can work out anytime, and Ita invests in her own mental and physical health.

“We have the hardware store, I have the yoga studio, we have two kids. I’m all over the place,” she says. “If I didn’t stop and practice yoga, get a massage or stop and meditate, I just couldn’t do all the things I have to do.”


Wellness Wealth
Discover resources for implementing and managing a wellness program at your operation here.

About Lindsey Thompson

Lindsey joined the NHPA staff in 2021 as an associate editor and has served as senior editor and now managing editor. A native of Ohio, Lindsey earned a B.S. in journalism and minors in business and sociology from Ohio University. She loves spending time with her husband, two kids, two cats and one dog, as well as doing DIY projects around the house, coaching basketball, going to concerts, boating and cheering on the Cleveland Guardians.

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