Wellness investment yields better than 1:1 return

For companies to commit financially to anything these days, executives first need to know that the return on investment (ROI) is worth getting involved. Even internal investments such as employee wellness programs, which have lacked hard ROI data in the past, must prove that they’re a sound investment.

If you’re one of those searching for wellness program ROI data, you’ll be happy to hear that recent research suggests companies that invest in employee wellness get their investment back, and then some.

A survey of 225 employers by Health2 Resources revealed that 73% of companies successfully measured the ROI of wellness programs. Of those that measured ROI, 83% said their programs had a return of better than 1:1 on their investment.

"Employers are becoming more sophisticated about measuring the return on investment from wellness and disease management programs, and today's economic outlook dictates that these programs bring a positive ROI," said Sean Sullivan, president and CEO of the Institute for Health and Productivity Management.

"No other kind of health management program has been given the same scrutiny as health and productivity management in measuring its effectiveness in reducing total health-related costs, including sick days, disability claims and impaired performance at work. Employees are too valuable a human capital investment for companies to take their health and productivity for granted."

The survey also found that most employers with and without wellness programs in place believe that paying employees to participate boosts program success and return value. An estimated two out of three U.S. companies offer programs dedicated to employee health, and 66% of those with programs also use incentives.

Other key findings:

• The most commonly used incentives are premium reductions followed by merchandise/tokens and gift cards.
• Smoking cessation programs are the most popular health and wellness program to offer, with weight management and physical activity programs a close second.
• Some organizations with as few as 210 employees are offering incentives valued at $1,450 per year to keep employees healthy.
• Diabetes programs are the most popular disease management program offered in 2009.

Does your company offer any health and wellness programs for employees? What kind of incentives, if any, are promoted to get employees involved? Have they seen a positive ROI?

Please leave a comment and let us know about your company’s experience with wellness programs.

Wellness investment yields better than 1:1 return

Federal agencies improving work/life balance, setting precedent for private sector

A number of federal agencies, including the Office of Personnel Management (OPM), are implementing new programs to improve work/life balance issues for the thousands of workers they employ.

Earlier this month, three federal department and agency heads, including OPM Director John Berry, met to discuss how to improve the work environment within each organization.

Berry, who said that he would give the OPM’s current work/life balance programs a “generous” grade of D+, is working with the Interior Department and the General Services Administration (GSA) to create a set of model programs for the 7,000 employees at the agencies’ neighboring headquarters.

“Establishing work/life programs and creating a better work environment is critical, particularly in the public sector, where managers don’t control pay and benefits, Berry says.” (Workforce)

Berry started by setting up “The Wolf Pack,” a group of 12 employees to give insight into what work/life balance issues the OPM workforce is most concerned with.

Among the list of top priorities is providing day care for employees’ parents and expanding the OPM health clinic. OPM has since devoted $300,000 in upgrades to the clinic. He is also working to expand and broaden the organization’s telework program, of which 34% of OPM employees already participate in.

“Experts believe that if Berry’s programs are successful, not only will other federal agencies adopt them, but private employers will as well, as they realize they need such programs to compete for talent.” (Workforce)

Read more about the OPM’s work/life balance initiatives in their recent press release: Four Federal Agencies Combine Forces To Create a Model Federal Work-Life Campus.

Federal agencies improving work/life balance, setting precedent for private sector

Develop a worksite obesity prevention program with new, free CDC tool

As a follow-up to our Monday post on how a lack of healthy snacks in the office are putting workers’ waistlines to the test, I wanted to share a new resource for businesses wanting to enhance their wellness program this year.

Yesterday, Ann Bares at Compensation Force spotlighted LEAN Works, a new online resource to help employers determine how much obesity costs their business each year.

LEAN Works is a new web-based resource developed by the Centers for Disease Control & Prevention (CDC) full of completely free interactive tools and evidence-based resources to help any organization develop an effective worksite obesity prevention and control program.

The site features an obesity cost calculator to estimate how much obesity is costing your company and how much you could save by using different workplace interventions.

LEAN Works also includes example presentations to help pitch your wellness program within your organization, tools to help collect employees’ baseline health information, workplace health audits and employee interest surveys.

Visit the CDC’s LEAN Works! Leading Employees to Activity and Nutrition.

Develop a worksite obesity prevention program with new, free CDC tool

Limited healthy snack options test workers’ waistlines

Our days are busy, breaks are short and fitting a well-balanced meal in at work can be a tough job. For many of us, eating at work is typically done on the go and we’ve memorized our favorite vending machine combination that will curb our hunger or give us a quick, sugary boost.

Snacking at work is almost a fact of life. It’s going to happen, but unfortunately the most popular snacks at work tend to be unhealthy – full of sugar, fat, salt and oil.

Even for those watching their waistlines, unhealthy office snacks can derail even the strictest diet, according to a recent survey on workplace eating habits.

About two out of three employees find it challenging to eat healthy at work, reveals the Peapod Biz Bites Survey sponsored by Peapod Business Delivery. Only 7% of respondents claimed to eat healthier in the office than at home.

"One of the best ways to support healthy lifestyles in the workplace is also one of the easiest," said Cathy Leman, a Chicago-area registered dietitian and certified personal trainer. "When you control the environment that you spend eight-plus hours per day in, you automatically set yourself up for success. That means stocking the break room with healthy, accessible snack foods.” (Press release)

Almost half of employees (47%) surveyed cite having too many tempting unhealthy snack options at work as the top reason they’re not eating healthy at work. Less than one-third (28%) of employees said their workplaces offer enough healthy snack options to keep them satisfied.

What employees want most in the office – fresh produce. However, only 36% of companies provide fresh fruit and vegetables for their employees on a regular basis.

Top nutritionists at WebMD warn against “desktop dining” and unhealthy snacking habits because they hold potentially disastrous health effects. Nutritionists advise putting aside work if possible and take a few minutes to enjoy your food and choose healthy workplace snacks.

“Katherine Tallmadge, a registered dietitian and spokeswoman for the American Dietetic Association, tells her clients to snack up to three times a day but to limit calories to 100-200 calories for each snack.

"I like to recommend snacks that provide a little carbohydrate, protein, and a small amount of fat, if any," she says. (WebMD)

Tallmadge suggests creating a snacking strategy and to have a plan. Keep healthy snack foods at your desk for times when you need a nutritional boost, but may not have the time to eat a full meal.

Keep some of these healthy snack foods handy:

• Trail mix and/or dried fruit and nuts
• Instant oatmeal packets (low sugar)
• Tuna salad kits
• Higher-fiber, lower-fat crackers
• Low-fat yogurt
• Reduced-fat cheese

How do you ensure you’re snacking healthy at work? Does your office provide fresh produce or healthy vending machine snacks? Leave a comment and let us know how well you’re able to snack healthy in your workplace.

Limited healthy snack options test workers’ waistlines

Employers brace for 2010 healthcare cost hike

It’s estimated that U.S. employers will see a 9 percent jump in healthcare costs in 2010 and workers will be footing more of the bill, according to an annual trend report by PricewaterhouseCoopers (PwC).

The annual medical costs trends report also revealed that workers are more likely to utilize their health insurance coverage out of fear that they will loose their jobs. More uninsured and underinsured people are expected to turn to Medicaid for health coverage.

The rise in healthcare costs may be offset partially by cost declines associated with U.S. health care reforms and the potential for high deductible health plans and wellness programs, according to PwC.

Of the 500 employers surveyed by PwC: 



• 42% plan to increase their workers’ share of healthcare costs in 2010, and
• 41% said they would change the design of health care plans to increase medical cost sharing.

The study comes at a time when new health-reform legislation is heating up congressional hearings. President Obama has pledged to push his plans to revamp health-care regulation through Congress and Senate hearings this summer. Before anything is approved, it will be up to employers to manage rising costs.

"Employers are squeezing dollars out of their programs to save money," Mike Thompson, principal at PricewaterhouseCoopers global human resource solutions group, said in a statement.

"As the economy recovers, employers will refocus on more sustainable longer term approaches to medical cost containment based on an increasingly shared interest between employers and their workers." (Reuters)

What is your company doing to offset the rise in healthcare costs? Please leave a comment and let us know.

Employers brace for 2010 healthcare cost hike

Are you prepared to handle flu-related HR issues?

As the World Health Organization (WHO) raises the alert level of the H1N1 flu virus (aka. swine flu), employers’ concern over how an outbreak could affect their businesses has seemingly tapered off.

The WHO officially declared the H1N1 flu virus a pandemic on Thursday by raising the threat level of the virus to Phase 6. The pandemic status of the virus doesn’t mean that it is more dangerous, but that it has infected people in more countries. The Phase 6 threat level means community-level outbreaks have hit more than one continent.

News coverage surrounding swine flu has calmed down and so seems employers’ concern regarding any danger the illness may pose to their organizations. Approximately two in five employers (41%) do not have a human resources policy in place for health-related emergencies, although they have employees working in areas with confirmed swine flu (or Influenza A) cases, according to a survey by Mercer.

“With the continued increase of reported cases of Influenza A [swine flu], it is important for employers to develop a plan for dealing with the myriad HR issues that can arise in the event of a pandemic or other health care emergency,” said Danielle Dorling, a consultant in Mercer’s HR effectiveness consulting business. “In particular, organizations with a global workforce and decentralized HR units need to have a coherent procedure in place for employee care in the event of a health emergency.” (Mercer press release)

Among the key survey findings:

• 53% of the employers surveyed were considering whether to create back-up and contingency plans in response to the outbreak
• 43% said they planned to restrict or cancel business travel
• 41% said they planned to allow employees to work at home
• 27% opted for voluntary quarantine for employees exposed to risk
• 24% enforced quarantine on employees judged at risk
• 24% indicated they were taking no special actions.
  

Employers also said they would cancel meetings, screen staff members returning from travel, require medical check-ups and review health or insurance plans as a result of the recent swine flu outbreak.

“Business continuity plans should be standardized and employers must be able to communicate in a streamlined, swift and decisive fashion,” Dorling said. “Ad-hoc reaction can lead to confusion, unnecessary panic and expensive global inconsistencies that can expose the organization to significant financial risk.”

In April, Secretary of Homeland Security Janet Napolitano asked private employers to do their part in helping the federal government protect workers from the illness, saying that employers should be thinking ahead about what they would do if affected by swine flu or other contagious diseases.

Before you create policies and procedures regarding the spread of viral infections in your workplace, there are a few legal and ethical issues to consider. Employers should know the rights of exposed employees, if they can order employees to go home and how the Americans with Disabilities Act could come into play, among a list of other important questions.

G.Neil’s free “Flu in the Workplace” white paper explains the answers to those questions along with information on how to protect your employees and business from serious contagious diseases.

Are you prepared to handle flu-related HR issues?

IRS answers more pressing COBRA questions

If you’re an employer struggling with COBRA questions, the Internal Revenue Service (IRS) has published added guidance on the federal premium subsidy to help answer some of the most common issues.

The new COBRA regulations, which were part of President Obama’s American Recovery and Reinvestment Act of 2009, contain specific changes to COBRA health benefit requirements that affect former employees, their employers and COBRA coverage providers.

Under the subsidy, involuntarily terminated employees must pay 35 percent of the COBRA premium and employers must front the money for the remaining 65 percent. After paying insurers directly, employers can then claim the payment as an offset against payroll tax liabilities using the updated Form 941.

The IRS published information earlier this year to answer major questions from the public regarding eligibility for the COBRA subsidy. Information has been added to the question-and-answer style document as new questions develop.

Last week, the IRS updated the online document with additional information including guidance on whether an employee who is a reservist would be eligible for the subsidy if called to active duty.

Q. Does an involuntary termination of employment occur if a member of a military Reserve unit or the National Guard who is employed by a civilian employer is called to active duty?

A. Yes. This is the case regardless of whether the civilian employer otherwise treats the employee’s absence as a termination of employment or a leave of absence.

The IRS also added information in response to questions regarding elected officials and employees hired for a limited period of time.

Q. In the case of an employee who is hired only for a limited period, such as a seasonal worker, or a teacher hired only for one school year, can the end of employment at the end of the period be considered an involuntary termination?

A. Yes. Under Notice 2009-27, Q&A-1, an involuntary termination may include the employer’s failure to renew a contract at the time the contract expires, if the employee was willing and able to execute a new contract providing terms and conditions similar to those in the expiring contract and to continue providing the services. Thus, if an employee hired for a limited period works to the end of the period, is willing and able to continue employment, and terminates employment because of the failure of the employer to offer additional work, an involuntary termination occurs for purposes of the premium subsidy.

For more answers to questions on COBRA continuation health coverage read the IRS FAQs for employers.

IRS answers more pressing COBRA questions