Given the rising costs of employee health-care benefits, companies are increasingly seeking ways to trim expenses. Most employers offering health insurance coverage shoulder 70 percent or more of the tab, which rises annually. Health-care costs are projected to grow an average of 6.7 percent annually between now and 2017.

When examining insurance costs, risk managers often discover that one of the biggest line items is employee health-care coverage. In many organizations, employee benefits are within the risk manager's responsibility. In other firms, this duty either falls to the human resources manager or represents a shared responsibility.

Wellness programs embody the idea that fitter employees are healthier and use fewer health insurance benefits. The less employees use these benefits, the greater the cost savings. Furthermore, healthier employees are productive, accomplish more on the job, and are less prone to absenteeism. Wellness programs can incorporate the following:

• Free or low-cost screening for diseases.
• Fitness facilities offered for free or at discounted rates to employees.
• Financial incentives for employees who lose weight or quit smoking. Conversely, financial disincentives for employees who engage in certain unhealthy activities.
• Sponsoring on-the-job health and exercise sessions or seminars.
• Paying for a portion of employees' off-site health club memberships.

Companies can incentivize employee participation in many ways. Some offer cash incentives, while others charge lower health insurance premiums. Better yet, businesses may even publicly praise and recognize employees who, for instance, successfully quit smoking or lose 20 pounds. Employers can use such "carrots" to maximize and motivate worker participation in wellness programs.