Experts weigh in on why smart companies are moving to implement workplace wellness programs—and how to start yours.
A CSD Staff Report
Much has been written about the impact of Millennials on America’s workforce. And it’s true that young people—those born between 1980 and 2000—have very different skills and values from the Gen-Xers and Boomers who came before them. Companies seeking to engage them often focus on their tech savvy, their teamwork bias, and their desire for work/life balance. But a new Aon Hewitt study reveals another way to create a Millennial-friendly culture: Help them manage their health.
Carmella Sebastian, a certified Wellness Council of America (WELCOA) expert in workplace wellness, said smart companies will heed this advice in light of the coming workplace demographic shift.
“Millennials are very comfortable with the idea of employers being involved in their health,” Sebastian said. “And as boomers retire and Millennials surge in the door, the demand to integrate wellness into the workplace will continue to grow. It is best for companies to get on top of this right now.”
Sebastian identified some intriguing numbers from the Aon Hewitt study:
• Forty-six percent want to gather as much quantifiable data about their health as possible.
• Sixty-four percent say that cash (or another tangible benefit) would most motivate them to participate in a workplace wellness program.
• Thirty-three percent indicate that providing cash-based incentives would most help them achieve their 2014 health goals.
Workplace wellness may be defined as any workplace health promotion activity or organizational policy designed to support healthy behavior in the workplace and to improve health outcomes. Participating companies might offer health education and coaching, medical screenings, weight management programs, on-site fitness programs, smoking cessation counseling, etc. Family Express, which operates 62 convenience stores in Indiana, built a gym and added recreational activities at its newly-constructed headquarters to help employees stay committed to good health.
Companies can also allow flex time for exercise, offer healthy options in vending machines, provide incentives for participation and more.
Good Health Pays Off
The best news is well-designed, well-run wellness programs pay off. In the February 2010 issue of Health Affairs, several wellness program studies were published, revealing that medical costs fell $3.27 for every $1 spent on wellness. Furthermore, absenteeism costs fell $2.73 for every $1 spent. That is a 6:1 return on investment (ROI).
“Harder to quantify, but just as impactful, is the fact that your investment in your employees’ well-being will jump-start their morale, loyalty, and engagement—all of which is good news for their productivity and your bottom line,” Sebastian said. “Since the Millennials who are driving the wellness movement will be in the workforce for quite some time, think of proactively engaging with them as a smart long-term investment.”
Sebastian said there are key components to include as you develop your own company’s workplace wellness program, including assessing your company’s culture and having the right health assets on hand.
As human beings, we learn by watching others and patterning our behavior after theirs. That’s why Sebastian recommended designating a “wellness champion,” someone visible and well-known throughout the organization who is willing to be in the vanguard of implementing new wellness initiatives. Be sure to choose a person who has the authority to make decisions for the program and who can obtain the necessary funding to turn ideas into reality.
“In most cases this will be your CEO or even the human resources director, but not always,” Sebastian said. “I once had a CEO who hated to exercise and loved desserts. If your CEO is not game for becoming a wellness champion, have them appoint someone who is. It’s hard to tell employees, ‘Do what I say and not what I do.’ Remember, people will be watching their wellness champion. I had someone come up to me in line while I was buying a bagel to ask me why I was eating carbs.”
Form a wellness committee
Your wellness champion can’t be everywhere all the time, so find others who share the same vision and who are also willing to carry the wellness torch forward. Make sure to include all age ranges—Millennials included—in this group. Organize them into a committee with a charter and a budget. They will be empowered, and their excitement will be infectious.
“Don’t choose a group solely composed of ‘health nuts’ who are running marathons,” Sebastian said. “Be sure to also pick some people who have struggled with their wellness behaviors. They will be easier for most people to relate to. For example, when my company went smoke-free, we had a committee made up of current smokers, prior smokers, and those who had never smoked. When we convinced the current smokers that we were on the right path, the news spread through the organization, and implementation of the program was that much easier.”
Know your population
If you’ve seen one company, you’ve…seen one company. The fact is healthcare and its associated costs differ dramatically from industry to industry and from organization to organization. Think about how truck drivers differ from teachers, or how short order cooks differ from lawyers.
Before you get the wellness ball rolling, you need to know what you’re up against. Are your employees mostly sedentary? Are there a lot of smokers? Does your company provide a gym where the majority of employees exercise on a daily basis? All of these things will affect your healthcare costs.
“One key aspect of knowing your population is reviewing your claims with your health insurer on a quarterly basis,” Sebastian said. “You also need to find out the reasons for absences and how many employees are accessing behavioral health providers.”
But that’s not enough. By the time claims are filed and employees are absent, the proverbial horse is out of the barn.
“That’s why it’s especially important to assess the current status of your employees’ health,” Sebastian said. “How do you find that out? Use the health risk assessment provided by your insurer and consider holding a health fair where you can have biometrics done (blood pressure, cholesterol level, height and weight, etc.). This will give you real-time information about your population and will reveal what your wellness program should focus on. Since Millennials place a high value on quantifiable health data, you’ll probably have an especially enthusiastic response from them.”
Assess your company’s culture
Sebastian suggested doing a cultural assessment (also called an environmental assessment) before you begin any wellness program. This will tell you what your employees really think about how health-friendly your organization is (which is often different from what you think they think).
The assessment should answer questions such as: Are employees required to lift items that are too heavy for them?
“As part of the cultural assessment, find out what health topics and initiatives interest your employees,” Sebastian said. “Putting together a great outdoor walking program won’t really be successful if you live in a place where the average temperature is 10 degrees and your employees would rather be bowling. Ask what your employees would like to do and how interested they are in improving their health. Make the survey anonymous, and you’ll get their honest answers.”
Go for the low-hanging fruit
As you begin to look at the data, a picture of your company’s wellness challenges will start to form. Your biggest problems will stand out. For instance, maybe 25% of your employees smoke, or there’s a high rate of obesity in your workforce. These numbers might actually be the easiest to move, so focus on the issues they represent first.
“At one company I worked with, smoking numbers were very high, and the rate of bronchitis and lung cancers were also higher than average,” Sebastian said. “So the wellness committee decided to grasp this low-hanging fruit and go smoke-free. In other words, no more smoking in any of the stores, in front of the building or on any company property. This was a good strategy, because studies have shown that going smoke-free can decrease smoking rates in a company by 6%. People who are smoking socially or for stress relief won’t put up with the hassle of having to walk off property or giving up their lunch hour to find a suitable place to light up. We had 10 people quit smoking in the first month.”
When you are starting a workplace wellness program, you really want a successful first year.
“You need a win to let employees know that this program is not just a ‘flavor of the month,’ but is something that your organization believes in and will invest in,” Sebastian said.
Don’t be afraid to ask for freebies
Paying for a wellness program can be costly, but not if you know where to go for discounted services and freebies. First, make sure that you are getting all the help you possibly can from your health insurance carrier. It is in their best interest to keep your employees healthy and you happy, and that means low claim costs. At the very least, your insurer should be able to provide a health risk assessment, and beyond that, most will cover the cost of having a health fair with biometrics.
“If your insurer isn’t willing to help with a health fair, or if you are a small employer, health risk assessments are available free of charge online—and you can collate the information yourself,” Sebastian said. The Wellness Council of America provides all kinds of free stuff for the asking.”
She also recommended looking for help in the following areas:
• Ask local healthcare providers to perform biometrics. Doctors who are new to the area can get established by spending a couple hours of doing blood pressure checks, and health fairs are a great way for hospitals and group practices to market themselves.
• Weight Watchers will come to your office and do a program at lunch time as long as you have 15 people to participate.
• The American Lung Association can provide assistance with a smoking cessation program. And as a result of a smoking litigation settlement that occurred several years ago, various states have free online resources for smoking.
• The American Diabetes Association may be able to assist with a diabetes education program or free screening.
Give your facilities a health makeover
For instance, if you have stairs, make sure they are safe and brightly lit. If you provide food onsite, add fruits and vegetables to the mix.
“Regarding food in general, remember that if you make the healthy items cheaper, they will be purchased,” Sebastian said. “If your company is situated on a large enough plot of land, think about starting a walking program. Some companies have even instituted walking meetings, which I think is great. Walking is a terrific form of exercise, and all you need is a good pair of sneakers. Just be careful about walking off-site for liability purposes.”
Be sure to incentivize. It’s important to start your workplace wellness program gently and to reward employees for participating. You want people to understand that this is not a heavy-handed company and that your first priority is their health. So to begin with, Sebastian recommended making participation in the program your goal.
As employees get used to the program, which can take a couple of years, you can move to outcomes as a barometer of success. And in the meantime, incentivize early and often. Remember, Millennials cite tangible benefits as a big motivator.
“The good news is, incentives don’t have to break the bank,” Sebastian said. “You can get employees to participate in a walking program for as little as the cost of a pedometer and a water bottle. A t-shirt can also be a great motivator. And nothing beats a plum parking space for a month to get someone thinking about good health habits.”
As your program advances, you will want to tie the incentives you offer into the benefit plan.
“One way is to offer a higher cost share by the company for certain outcomes. Another is to require employees to complete a health risk assessment in order to get healthcare coverage. Some companies even mandate participation in a disease management program in return for health benefits,” Sebastian said. “You will want to consider mandates only as your program advances into years three through five, though.”
Celebrate your successes
As your workplace wellness program advances, transparency is important. Your employees need to know about setbacks and challenges, certainly…and they need to celebrate successes. Whenever your organization focuses on and eventually reaches a goal, make a big deal about the achievement in order to maintain and increase morale.
“Take every opportunity to share participation numbers, statistics on progress, or best of all, human interest stories,” Sebastian said. “Remember, everyone enjoys celebrations and rewards,” she added. “Even your most health-resistant employees will put forth a little more effort when they know there’s something in it for them.”
Evaluate your outcomes and plan for success. When organizations start workplace wellness programs, a common complaint from employees is that the programs are only another “flavor of the month,” and that they will be short-lived. That being the case, you need to show that good health is part of the fabric of your organization—not a passing fad. Nothing does this more effectively than scheduling a yearly review of your program’s results and proactively planning for the coming year.
“These two activities are critical when incentives become part of the benefits plan as this is communicated to employees during open enrollment,” Sebastian said. “Regardless, your wellness committee should formally review the outcome of the previous program year, as well as compile goals and suggest a budget for the next year. Their conclusions and recommendations should be communicated to all employees as a continuous quality process.”
Over time, these programs create a “culture of wellness” that’s good not only for your company and employees, but for the entire community.
“With the Affordable Care Act aiming a spotlight on preventative care, it’s time for the business world to increase its role in helping people change their lifestyles,” Sebastian said. “In fact, the legislation includes a $9 million national initiative designed to establish and evaluate workplace wellness programs. As you focus on your own organizational health initiatives, know that Millennials are the perfect partners to help develop and roll them out. Young, health-conscious employees can be your staunchest allies and wellness ambassadors for years to come.”
