Goran Lozo has lived a life few readers can probably imagine. Growing up in Yugoslavia, Lozo’s turn to karate at age 14 led to security and protection work behind the Iron Curtain at a contentious time in his homeland. As Lozo left Eastern Europe and that kind of work behind, the discipline and insight – and practice – of karate stayed with him. Based in northern metro Atlanta, Lozo has taken his experience into the world of wellness, specifically as it relates to the workforce, something Lozo believes is often overlooked, and when not overlooked, done poorly. Lozo is the founder and CEO of Workplace Wellness Impact, a consulting firm dedicated to high-impact, evidence-based wellness programs.
“Workplace Wellness is not a personal trainer in the company’s gym, free apples in the cafeteria, or gym membership reimbursement for employees,” said Lozo. “At its best, workplace wellness is about shaping the day-to-day environment so people can do good work, feel supported, and actually thrive, while saving the company substantial money.”
Lozo notes that workplace wellness has benefits up and down the company. Healthcare spending savings, employee productivity, employee retention, employees’ own personal health are all improved with a successful workplace wellness program. And it’s not just the company, it’s for government and policymakers as well. Better workforce health helps to improve chronic conditions that are among the major contributors to national health spending, both private and public dollars. Workplace wellness also helps to improve the overall labor force, encouraging participation and longer, healthier careers.
“Workplace wellness is not a soft, “nice-to-have” idea. It is a fundamental need that, if implemented, will influence both organizational results and broader societal outcomes,” said Lozo.
Lozo stresses that just having a fitness class in the company gym does not make for a successful program. That can be part of it but is only a piece of the pie. Companies need to be able to tailor the programs to their own needs and priorities but commit to an understanding of return on investment (ROI) and the value of investment, including engagement, company culture and retention.
“Comprehensive, mature wellness programs can generate several dollars in healthcare savings for each dollar invested. Those results come from organizations that have committed to the long term and have deeply integrated wellness,” said Lozo. “Studies indicate that in the short run, a substantial share of the financial return often comes from reduced absenteeism and improved productivity, rather than from short-term changes in medical costs alone. The reduction in healthcare costs is achieved through comprehensive, long-term programs.”
There is certainly enough research out there for insurance companies – particularly for large companies – do give credit for these types of programs. They wouldn’t do that if there weren’t proven results. Lozo’s rule of thumb is engagement and morale improves within a few months, with productivity following after that within a year and healthcare costs trending down after year two or in the three to five year range.
Employee incentives are a key to a program’s success. Programs without incentives see participation rates between 15 and 20 percent. Programs with incentives, dollar bonuses or vacation or something else, see participation rates up to 90 percent. Also important are executives and managers that champion, advocate and participate in programs that are easy to access and simple to understand.
