:: Paul Rauseo ::

by

Employee Health, Wellness — No Longer Optional Benefit, but Strategic Imperative

Employee Health, Wellness– No Longer Optional Benefit, but Strategic Imperative

When you develop and implement work+life flexibility strategies that help businesses operate and individuals manage their work+life fit, you run into many often baffling false beliefs.  Since the start of the recession, two of these off-base convictions have stood out as managers and employees struggle to do more with less:

  1. Individuals think their health and wellness are “optional” parts of their work+life fit, and
  2. Line business leaders don’t connect how employee health and well being directly impact the optimal, effective functioning of their workplace, and they don’t understand (or don’t want to deal with) the role that they play to ensure employees are as healthy as possible.

Families and Work Institute (FWI) just released The State of Health in the American Workforce study.  The numbers are not only disturbing, but they are a real call to action for both individuals and employers.   The research shines a light on the paradox that working harder, faster, longer does more harm than good not only to our personal health and well being, but to business.   In the new work+life flex normal, employee health and wellness are not an “option,” they’re a strategic imperative.

Here are some highlights (to read the full report which is “the only study of its kind to provide 30+ year comparisons of life on and off the job,” go to the Families and Work Institute website):

Employee Health and Wellness Are Suffering:

  • Less than one third of employees (28%) today say their overall health is “excellent”—a significant decline of 6% from 2002.
  • 41% of employees report experiencing three or more indicators of stress sometimes, often or very often, which is a significant increase from 2002.
  • Work-life conflict increasing, especially for men.
  • One in three employees experiences one or more symptoms of clinical depression.
  • 49% of employees have not engaged in regular physical exercise in the last 30 days.
  • One in four smokes.
  • While little changed since 2002, 27% of employees still experience some kind of sleep problem that affected their job performance within the last month at least sometimes.
  • Nearly two out of three employed individuals (62%) are overweight or obese.
  • 8% of employees have no health insurance from any source, with low-wage/low-income employees less likely to have access and least likely to use even if they do have access.

 
Why Does it Matter?  Direct Impact on Business

There are two employees, A and B.  Employee A reports low levels of personal overall health and wellness, and B reports high levels.  Common sense would say that a manager gets more from employee B in terms of extra effort, satisfaction and commitment.  But the FWI research shows how significant this correlation between health and business impact really is:  “Employees’ physical and mental health, stress levels, sleep quality and energy levels all significantly impact important work outcomes of interest to employers, such as engagement, turnover intent and job satisfaction.”   Here’s my best attempt to present the study findings visually:  

 FWI chart

In other words, employee health and wellness isn’t just a nice perk, or program to offer when times are good.  Employee health and wellness are mission critical to an organization’s operating success, especially in this difficult time when everyone needs to bring the best of themselves to the table everyday.

A couple of specific findings to note:

  1. Hopefully, this research will be another nail in the coffin that work+life fit is a “women’s issue” only.  It is an “everyone” issue.  Work-life conflict increased more significantly for men than women from 2002 to 2008.  You might be surprised, but men said they are more positively affected by having economic security in their jobs and a good fit between their work and personal lives.  Whereas, women are more positively affected by being challenged in their jobs and by having autonomy.
  2. FWI joins WLF in using the term work-life “fit” in their research.  Hopefully, this affirmation of the concept of work-life “fit” will move us away from the limiting and inaccurate concept of “balance” to describe optimizing the unique way an individual’s work and life fit together.   Also noteworthy is the fact that work+life fit is the workplace effectiveness factor that directly affects the most aspects of employee health and wellness in the FWI study. 

What Can Managers/Employers Do?

How should a manager or employer respond to the findings especially in turbulent times when resources are tight, and there’s constant pressure to perform financially?  Too often when business leaders think of “health and wellness,” they go immediately to perks like an on-site gym and EAP.  But, as outlined in the visual model of the findings above, the interventions that lead to “excellent employee health and wellness,” and, in turn engagement, retention and satisfaction, are broader.   Some are benefits like health insurance, paid vacation and sick days that cost money, and others are behaviors and ways of operating the business that cost nothing.   Regardless, any money or effort expended is an investment that will have a return.

The FWI report offers insightful implications for businesses,especially around the difficult task of addressing economic security in these tough times, but I would add:

  • Make  work+life flexibility, or flexibility in how, when and where work is done and life is managed, part of the way your organization operates and not just a program, perk or benefit.  It will go a long way to achieve many of the behaviors and workplace effectiveness factors outlined in the report that affect health and wellness.
  • It’s not enough to offer stress management or weight loss classes, reimburse gym memberships and provide information about healthy eating.  You need to give and encourage time for people to use the gym, shop for healthy food and go to weight loss class without feeling badly.  (Check out Cindy Goodman’s excellent post on the FWI research and how one Florida business owner make weight loss and health a mission in her company).
  • Be a role model and clarify expectations.   People are very, very scared right now.   They are terrified to do anything that jeopardizes their job.   Managers must role model the desired behavior if employees are to feel comfortable– take vacation, and sick days, talk about going to the gym, eating healthfully and getting rest.  Things you should be doing anyway, and might have let fall to the wayside over the past few months.   

 

What Can You as an Employee Do?

Much more than you think.  Yes, many of us are scared but really that is no excuse.  Doing as much as you can to be healthy and able to contribute extra effort and commitment on the job is no longer optional.  In fact, it’s imperative for your job security.  Again, paradoxically, you may think working harder, faster and longer will reduce the risk of losing your job.  But the research shows that if that overwork make you unhealthy it’s having the opposite impact.  You aren’t as engaged, committed or satisfied, which could make you more vulnerable when employment decisions are made.

Where to begin?  When I run my corporate work+life fit seminars we always end with an exercise called “One Small Thing.”  Small changes in your work+life are very powerful especially as they relate to health and wellness.  Here are common examples of small health and wellness changes employees have committed to making over the years:

  • Go to bed an hour earlier and get up earlier to work out two days a week.
  • Put my gym clothes in my car and go right to the gym before going home.
  • Make a list of meals for the week and shop over the weekend so there is food in the house.
  • Turn off the TV an hour before a go to bed and wind down.
  • Start meditating for 30 minutes every morning.
  • Keep a journal every night before I go to bed.
  • Make a date with my best friend to go to the movies once a month.

Your employer can do its part to create a culture and workplace that supports employee health and wellness, but in the end, it’s you doing it. This is particularly true when it comes to financial security, one of the workplace effectiveness factors influencing health and well being.  While not part of the study, I wonder how much of this increased stress relates to the fact that “three out of five workers” live paycheck to paycheck according to a recent CareerBuilder survey.   Better personal financial choices could mitigate some of the stress related uncertainty in employment and earnings. 

Finally, during the call to announce the research results, FWI President, Ellen Galinsky, summed it up by saying, “In the U.S. we see work as a sprinting marathon.  Instead we need to think about it more in terms of weightlifting.  In between periods of exertion, there’s rest and recovery.  This gives you the strength to exert your best effort the next time.”  I agree.   Hopefully this research will challenge the false beliefs that employee health and wellness are “optional” and break us out of our sprinting marathon that is no longer working—if it ever really did. 

Thanks to Cali Williams Yost 

by

2012: How should businesses be preparing for OBAMACARE?

Best Practices: Wellness, Four Ways Companies Can Lower Their Medical Costs

Obamacare has created enormous uncertainty for business owners. Business owners are unclear about what Obamacare’s mandates will cost them in 2011, 2012, 2013, or 2014 or what additional benefits will have to be provided. All they know is that these things will cost them more — probably a lot more — and that they’re going to be spending a significant amount of time and money in the foreseeable future. Tax accountants and consultants will be challenged with calculating insurance options or fines.

The most immediate strategy at this time and any time are to controls costs and maximize profitability so that businesses can weather unforeseen storms, such as Obamacare. The ROI (Return on Investment) advantages of Wellness Programs must be harnessed.

There is huge hidden expense in companies often not measured or discussed; the cost of absence, disability and the cost of lost productivity. Personal illness accounts for 34 percent of unscheduled absences often resulting in lost productivity and the need for higher headcounts. The higher headcounts result in increased costs for additional healthcare. It’s a vicious cycle. The cost of absence, disability and lost productivity alone might make the difference between a company being profitable or not profitable.

Companies, large and small lose enormous revenue when they operate their business with ineffective absence-management business processes and wellness program management. It is imperative that companies focus and place emphasis on the employees and their being fully healthy and productive as part and parcel of their planned profit models.

When employees come to work sick or not feeling well and are unable to perform at 100%, they are considered to be present on the job, but absent in the context of being productive referred to as presenteeism. Employees, more than ever, feel increased pressure to be at work today. They present a health or safety hazard to themselves and fellow workers and pose a health risk to others by potentially spreading their illnesses. This further exasperates productivity.

Best Practices: Four Ways Companies Can Lower Their Medical Costs

1. Wellness Consultant/Wellness Committees

Consult an on-sight business provider of health and wellness programs. Consultants provide a proactive approach and focus on improved health for the individual while minimizing costs for the corporation. Typical responsibilities of a wellness consultant might include the following:

o Review the current wellness strategy, offerings and procedures that are available to employees via a Wellness Audit or Wellness Gap Analysis

o Survey preferences and specific wellness needs

o Develop a health promotion operating plan, including a vision statement, goals, and objectives that utilize wellness as a business imperative

o Assisting in implementing, monitoring and measuring the effectiveness of the business health plan initiative

2. Tobacco-Free Company Initiative in the Workplace

An American Productivity Audit found that tobacco use was a leading cause of worker lost production time — more than alcohol abuse or family emergencies. The North Carolina Prevention Partners. Quit Now NC!: Tobacco Use & Quitting Facts, study showed that the #1 reason why people quit smoking is that their worksite has gone smoke-free. There is much opportunity for business leaders to help educate and motivate employees to adopt a smoke free life.

3. Workplace Obesity Prevention Program

Workplace obesity prevention programs can be an effective way for business owners to reduce obesity and lower their healthcare costs, eliminate presenteeism, lower absenteeism and increase employee productivity.

Many companies have come to realize that changes in the workplace can easily encourage the adoption of healthy behaviors through changes in everyday work activities. Such interventions might include the installation of bike racks on company property, facilitating physical activity through the use of company walks, use of staircases and marked company walk trails. Still other companies are offering healthier food choices in cafeterias and vending machines and beginning to change company culture by establishing health improvement goals that align with the organization’s overall Wellness Program Mission Statement.

4. Health Screenings/Health Risk Assessments

With the country buzzing about Obamacare many companies are offering health screenings and or assessments to their employees. Companies hope it would motivate the workforce to change some unhealthy behaviors and stay front-minded about their health. Blood tests offered as part of the health assessment often turn up many opportunities for better living.

Health screenings allow workers to learn about their current health status, and determine risk for common diseases including diabetes, heart disease, asthma and other medical conditions. Workers can review the results of the screening and follow up to do further tests, or request a treatment plan or wellness program based on immediate needs.

Companies that are fully committed to a Comprehensive Employee Wellness Program will often include:

o Flu Shots

o Immunizations

o Health Fairs

o Health Coaching

o On-site Seminars

o Biometric Screenings

o Wellness Challenges with Incentives

Companies have come to realize that healthy employees boost a company’s bottom line. Experience has shown that companies will experience less sick time; take fewer disability days resulting in higher productivity.

ROI of Wellness

$1 investment in wellness programs saves $3 in health care costs, according to the Wellness Council of America and according to the Centers for Disease Control. More than 75% of employers’ healthcare costs and productivity losses are related to employee lifestyle choices.

While the effects of Obamacare remain uncertain, we do know that providing employees with the information and tools to adopt healthy behaviors will have huge payoffs. It is a good investment to keep the American workforce healthy and businesses profitable.

by

New Health Care Bill

This Profit Engineer warns small business owners to fully understand the impact of this healthcare bill to their pricing model.

The healthcare bill, Patient Protection and Affordable Care Act (H.R. 3590), as well as the Health Care & Education Affordability Reconciliation Act of 2010 (H.R. 4872) has immediate ramifications for small businesses with more than 50 full-time equivalents (FTE’s).
Therefore, the most essential compliance step is for you to identify how many full time employees (about 40 hours) or FTE’s you have working for you. Employers near the magic number of 50 FTE’s will have to make sure you accurately count your employees. Keep records for each non-exempt worker, and certain identifying information about the employee and data about the hours worked and the wages earned.
Once you understand your employee count, you can determine your options or penalty calculations. You may want to analyze your employee count on a quarterly or monthly schedule based on how close you are to the federal goal post of 50 FTE’s.
Employer coverage mandate (”pay or play”)
Large employers will have to make available to all employees a minimum level of coverage or pay a per-employee penalty (fee). Employers will not be required to provide coverage for part-time employees, but these employees may be counted as partial employees for purposes of determining whether an employer has 50 employees. The bill is still unclear as to how employees will be counted and what formula will be used, but it looks like the real “number” to be counted will be a baseline of total hours worked by all employees. For that reason, keep accurate time records as described above. If the employer offers coverage but employees are forced to purchase insurance through the state-based exchanges because the employer’s coverage is not affordable, the employer must pay separate fees. This “Pay or Play” provision goes live in 2014 upon the creation of the state-based exchanges. Once the exchange is established, it can:
– Assess employers with more than 50 FTE’s that do not offer coverage and have at least one full-time employee who receives a premium tax credit a fee of $2,000 per full-time employee, excluding the first 30 employees from the assessment. For example, an employer with 50 employees will pay a penalty of $40,000 (20 times $2,000) for not offering coverage.
– Employers with more than 50 FTE’s that offer coverage but have at least one full-time employee receiving a premium tax credit, will pay the lesser of $3,000 for each employee receiving a premium credit or $750 for each full-time employee. (Effective January 1, 2014)
– Require employers that offer coverage to their employees to provide a free choice voucher to employees with incomes less than 400 percent federal poverty level whose share of the premium exceeds 8 percent but is less than 9.8 percent of their income and who choose to enroll in a plan in the Exchange. The voucher amount is equal to what the employer would have paid to provide coverage to the employee under the employer’s plan, and will be used to offset the premium costs for the plan in which the employee is enrolled. Employers providing free choice vouchers will not be subject to penalties for employees that receive premium credits in the Exchange. (Effective January 1, 2014)
Creation of state healthcare exchanges
Small businesses and individuals would have the choice of buying health insurance through state-based exchanges. The exchanges are expected to offer easy-to-understand competitive benefits at affordable prices. Some small businesses and individuals may be eligible to receive credits toward the purchase of insurance through the exchanges. The exchanges will begin in 2014.
Limitation on employee contributions to healthcare flexible spending account
Employees would be limited to an annual contribution of $2,500 to health care flexible spending accounts. One downside is that employers would no longer be permitted to reimburse employees for over-the-counter medication under flexible spending arrangements. For example, over-the-counter cough and allergy medicine that can now be paid under flexible spending arrangements will now be paid out of pocket by employees with post-tax dollars. This provision is effective at the beginning of 2011 in the Senate bill, but the House bill would delay the effective date to 2013.
Elimination of preexisting condition exclusions and lifetime limits
Group health plans and insurers will no longer be permitted to exclude coverage for preexisting conditions or place lifetime limits on coverage. Lifetime limits are prohibited effective six months after enactment of the legislation. Preexisting conditions exclusions must be eliminated for dependent children within six months of enactment and must be completely eliminated by 2014. Thanks to Christa Rapoport for great info on this National Healthcare Plan.