A wellness program financed by employees: General Dynamics' top-flight program doesn't cost the company a penny

Business & Health, May, 1991 by Timothy Begany

Recently, Business & Health conducted a fax survey on wellness programs. One response was from General Dynamics, the aerospace firm in San Diego, Calif. The respondent mentioned his organization's seemingly uniqe wellness program--unique in part because the company spends zero dollars to finance it. We felt this claim worthy of investigation.

General Dynamics' wellness program, which is part of a larger employee recreation program, began in 1949. It is under the direction of the company's Convair Recreation Association (CRA), an association governed by a council of employee volunteers. The program provides a number of facilities devoted to the well-being of the company's 16,000 employees, their spouses and dependents, and retirees.

Brian Stevens, manager of employee services and recreation, estimates that 20 percent of General Dynamics' employees take advantage of the program's wellness component. One hundred percent, he says, take advantage of the recreation program is some way.

The wellness component includes: a health and fitness center complete with weight training equipment and aerobics classes; nutrition seminars; weight-loss and smoking cessation programs; CPR training; blood pressure screening; fitness testing; and vision and hearing assessment.

The recreation program includes: a 19,000 square foot clubhouse (which serves as a meeting place for the 50 existing clubs), a 23-acre park containing athletic facilities, and an 89-acre reserve outside San Diego for camping and hiking. There is also an employee store, and both a company travel service and caterer. CRA also offers employees discount tickets to concerts, movies and sporting events.

The program itself provides incentive for employee use, Stevens says, "because we have all the major components that would attract someone: a great staff, low cost and convenience. And it's all in [the employees'] own backyard at work."

Vending wellness

CRA's method of financing its wellness and recreation programs may be these programs' most unique aspect. They operate at no cost to General Dynamics because the majority of the funds come from revenue obtained through food and beverage vending machine sales. About 560 such machines are in place throughout company facilities. CRA began collecting this revenue 42 years ago, when it subcontracted the vending machines through a nationwide food service company. At that time, both CRA and the food service agreed that CRA would be responsible for placing the machines and reporting any need for repairs or servicing to the food service. For doing this, CRA would receive 18 percent of the gross revenue of vending machine sales. Although Stevens wouldn't say how much CRA's 18 percent comes to, he says it provides "a healthy budget" for the recreation program.

Products sold in the vending machines include various soft drinks, snacks and candies. General Dynamics also puts emphasis on wellness by having machines stocked with healthier foods such as yogurt, fruits and fruit juices.

The rest of the funds. Stevens says, are collected from employees through membership fees. For example, an employee who wishes to join the health and fitness center must pay an annual fee of $100. Stevens describes these fees as nominal and greatly discounted from the rates employees would have to pay if they joined public health clubs.

Steven thinks the program is saving the company money, though General Dynamics hasn't figured out how much. He says its benefits are mostly intangible and "hard to measure in dollars and cents"--developing healthier employees, for example. He says, this translates into fewer sick days, higher morale, and higher productivity. He says the program also helps build camraderie among employees and fosters an atmosphere of company spirit and teamwork.