Johnson and Johnson's Health and Wellness Program


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Case Details:

Case Code : HROB025
Case Length : 14 Pages
Period : 1998 - 2001
Pub Date : 2001
Teaching Note :Not Available
Organization : Johnson and Johnson's
Industry : Consumer Goods
Countries : USA

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Top management is recognizing physical fitness as a prudent investment in the health, vigor, morale and longevity of the men and women who are any company's most valuable asset."

- Dr. Richard Keller, Ex-President of the Association for Fitness in Business1.

"We believe our Health & Wellness Program can continue to achieve long-term health improvements in our employee population."

- Dr. Fikry Isaac, Director, Johnson & Johnson, Occupational Medicine, Health & Productivity2.

Introduction

In 1998, the American College of Occupational and Environmental Medicine conferred Johnson & Johnson (J&J)3 the Corporate Health Achievement Award (CHAA)4. J&J was one of the four national winners5 selected for having the healthiest employees and workplace environment in the US.

The award was decided on the basis of four parameters6 - Healthy People, Healthy Environment, Healthy Company and Overall Management (Refer Exhibit I). These parameters were considered crucial for developing and deploying a comprehensive corporate health program.

In 2000, the New Jersey Psychological Association presented J&J with the Psychologically Healthy Workplace Award for its commitment to workplace well-being and developing a psychologically healthy work environment for its employees.

According to analysts, these prestigious awards were given to J&J in recognition for its continuous efforts to create a healthy work environment. The company not only offered employee assistance programs and benefits packages but also introduced several family-friendly policies and offered excellent professional development opportunities to its employees. All this was done under the Health and Wellness Program (HWP) that the company introduced in 1995.

The program benefited both J&J and its employees. The company saved $8.5 million per annum in the form of reduced employee medical claims and administrative savings.

Johnson and Johnson's Health and Wellness Program - Next Page>>

1] In an article titled "A reduction in employee health care expense with an increase in productivity through the implementation of a fitness/wellness plan," by Daniel Filipponi posted on www.stfrancis.edu. 

2] In an article titled "First Long-Term Health and Wellness Program Evaluation Confirms Employee Benefit, Company Savings for Johnson & Johnson," posted on www.icaa.cc.

3] J&J is located at New Brunswick, New Jersey, US and has employee strength of 40,000 in the US alone. The company operates in more than 51 countries all over the world and has more than 1, 01,800 employees worldwide. J&J sells its products in over 175 countries.

4] CHAA was created to provide national recognition and honor to companies that have superior employee health, safety, and environmental management programs. It was intended to encourage corporate self-assessment and continuous improvement.

5] Other winners included Boeing, IBM and the First Chicago NBD Corporation.

6] Each parameter was evaluated by determining the appropriate level of "maturity" of a company's health program. This was done by individually rating the parameters and adding the points. The objective was to evaluate each parameter for comprehensiveness and appropriateness (as mentioned in Exhibit I) and how well it was implemented across the company.

  

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