2013 benefit strategies wellness-initiatives

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2013 benefit strategies wellness-initiatives

  1. 1. SHRM Survey Findings: State of Employee Benefits in the Workplace—Wellness Initiatives December 18, 2013
  2. 2. Introduction • This is part one of a series of SHRM survey findings examining employee benefits in the workplace. • The following topics are included in the six-part series titled State of Employee Benefits in the Workplace: » » » » » » Part 1: Wellness initiatives Part 2: Flexible work arrangements Part 3: Health care Part 4: Leveraging benefits to retain employees Part 5: Leveraging benefits to recruit employees Part 6: Communicating benefits State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 2
  3. 3. Definitions • For the purpose of this survey, wellness initiatives are any type of wellness program, resource or service offered to employees. Financial education initiatives are defined as any workplace initiative, program or resource designed to provide employees with information on how to effectively manage their financial resources for a lifetime of financial well-being. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 3
  4. 4. Key Findings • How many organizations offer wellness programs, wellness resources or wellness services to their employees? Almost three-quarters (72%) of organizations offer some type of wellness program, resource or service to their employees. Among these organizations, 56% reported an increase of employee participation in wellness initiatives in 2012 compared with 2011. • Do organizations conduct analysis on their wellness initiatives? Only one-fifth (20%) of organizations that have wellness initiatives conduct an analysis to determine the return on investment (ROI), whereas slightly more than one-fourth (27%) of them conduct an analysis to determine cost savings achieved by their wellness initiatives. • How effective are wellness initiatives? Nearly three-quarters (71%) of organizations that offer wellness initiatives indicated they were “very effective” or “somewhat effective” in reducing the costs of health care. Additionally, roughly three-quarters (76%) of organizations offering wellness initiatives rated their initiatives as being “very effective” or “somewhat effective” in improving the physical health of their employees. • Do organizations offer wellness incentives or rewards? Over one-half (56%) of organizations offered wellness incentives or rewards to their employees. Of these organizations, 82% of them indicated these incentives/rewards were “very effective” or “somewhat effective” in increasing employee participation in their organization’s wellness initiatives. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 4
  5. 5. What do these findings mean for the HR profession? • Wellness initiatives could mean a “win-win” for both employees and employers. The majority of organizations that offer wellness initiatives perceive that they are effective in improving employees’ overall physical health (e.g., initiatives encouraging preventive health). Moreover, wellness programs are often extended to the employees’ dependents, which has further implications for creating a healthy and more productive workforce. Financial wellness is also an area that organizations are finding has an impact on reducing employee stress. Fewer than two out of 10 organizations, however, are aligning their employee wellness initiatives with their financial education initiatives. This may be an area that could be explored further by organizations that are already engaging in wellness initiatives of some kind. • More employees are taking advantage of the wellness programs, wellness resources or wellness services that their employers offer. Over one-half of organizations that offer wellness initiatives noted an increase in employee participation in these initiatives. Furthermore, organizations reported that offering wellness incentives or rewards was effective in getting employees involved in these programs. The challenge remains in quantifying the impact of wellness programs. Organizations indicated that they would be more likely to invest in wellness initiatives if they could measure the impact. Fewer than three out of 10 organizations measure the ROI or the cost savings associated with wellness initiatives, though 71% perceived that wellness initiatives are “somewhat” or “very effective” in reducing the costs of health care. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 5
  6. 6. Does your organization currently offer any type of wellness programs, wellness resources or wellness services to your employees? 72% Yes 70% 2013 (n = 405) 2012 (n = 437) 28% No 30% Note: Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 6
  7. 7. Does your organization currently offer any types of wellness programs, wellness resources or wellness services to your employees? Comparisons by organization staff size • Organizations with 100 to 24,999 employees are more likely than organizations with 1 to 99 employees to offer wellness programs, wellness resources or wellness services to their employees. Comparisons by organization staff size 100 to 499 employees (72%) 2,500 to 24,999 employees (85%) > 1 to 99 employees (53%) Note: Only statistically significant differences are shown. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 7
  8. 8. How did your organization’s investment in employee wellness initiatives change in this fiscal year compared with last fiscal year? 37% Increased 43% 60% Remained the same 2013 (n = 290) 54% 2012 (n = 302) 3% Decreased 3% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 8
  9. 9. Did your organization conduct an analysis to determine the return on investment (ROI) for its wellness initiatives last year? 20% Yes 23% 2013 (n = 214) 2012 (n = 226) 80% No 77% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 9
  10. 10. How effective is your organization at determining the return on investment (ROI) for its wellness initiatives? 29% Very effective 24% 66% Somewhat effective 60% 2013 (n = 38) 2012 (n = 45) 5% Not very effective 13% Not at all effective 0% 2% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness service and conducted an analysis to determine the return on investment (ROI) for its wellness initiatives were asked this question. Respondents who answered “not sure” were excluded from this analysis. Percentages may not equal 100% due to rounding. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 10
  11. 11. Did your organization conduct an analysis to determine cost savings for its wellness initiatives last year? 27% Yes 28% 2013 (n = 215) 2012 (n = 230) 73% No 72% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 11
  12. 12. How effective is your organization at determining cost savings for its wellness initiatives? 31% Very effective 33% 57% Somewhat effective 56% 2013 (n = 51) 2012 (n = 45) 12% 11% Not very effective Not at all effective 0% 0% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness and conducted an analysis to determine cost savings for its wellness initiatives were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 12
  13. 13. How did employee participation in your organization’s wellness initiatives change last year compared with the year before? 56% Increased 54% 40% 2013 (n = 222) 40% Remained the same 2012 (n = 226) 4% Decreased 6% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 13
  14. 14. How effective are your organization’s wellness initiatives in reducing the costs of health care? 11% Very effective 10% 60% Somewhat effective 58% 2013 (n = 151) 2012 (n = 145) 22% Not very effective Not at all effective 32% 7% 1% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” or “not applicable” were excluded from this analysis. Percentages may not equal 100% due to rounding. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 14
  15. 15. How effective are your organization’s wellness initiatives in improving the physical health of your employees? 10% Very effective 12% 66% Somewhat effective 74% 2013 (n = 229) 2012 (n = 188) 20% Not very effective Not at all effective 13% 3% 2% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” or “not applicable” were excluded from this analysis. Percentages do not equal 100% due to rounding. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 15
  16. 16. Did your organization offer some type of wellness incentive or reward last year? 56% Yes 57% 2013 (n = 268) 2012 (n = 284) 44% No 43% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 16
  17. 17. How effective were these wellness incentives or rewards in increasing participation in your employee wellness initiatives? 20% Very effective 31% 62% Somewhat effective 55% 2013 (n = 140) 2012 (n = 140) 16% Not very effective Not at all effective 13% 2% 1% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services and offered some type of wellness incentive or reward were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 17
  18. 18. Would your organization increase its investment in employee wellness initiatives if it could better quantify their impact? 84% Yes 90% 2013 (n = 165) 2012 (n = 186) 16% No 10% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 18
  19. 19. Are any of your organization’s wellness initiatives extended to dependents? 45% Yes 45% 2013 (n = 261) 2012 (n = 186) 55% No 55% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 19
  20. 20. Please indicate if your organization’s wellness initiatives are extended to any of the following groups: 98% 99% Spouses 75% 69% Dependent children Same-sex domestic partners 61% 58% Opposite-sex domestic partners 58% 48% Non-dependent children 2012 (n = 112-129) 52% Foster children Dependent grandchildren 2013 (n = 85-115) 36% 27% 38% 23% 17% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services and extended wellness initiatives to employees’ dependents were asked this question. Respondents who answered “not sure” were excluded from this analysis. Percentages do not equal 100% due to multiple response options. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 20
  21. 21. Are your organization’s employee wellness initiatives aligned with any financial education initiatives? 19% Yes 17% 2013 (n = 340) 2012 (n = 402) 81% No 83% Note: Only respondents whose organizations provided any type of wellness programs, wellness resources or wellness services were asked this question. Respondents who answered “not sure” were excluded from this analysis. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 21
  22. 22. Demographics State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 22
  23. 23. Demographics: Organization Staff Size 1 to 99 employees 33% 100 to 499 employees 32% 500 to 2,499 employees 17% 2,500 to 24,999 employees 25,000 or more employees 12% 6% n = 363 State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 23
  24. 24. Demographics: Organization Sector Privately owned forprofit 51% Nonprofit organization 24% Publicly owned forprofit 12% Government sector Other 11% 2% n = 377 State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 24
  25. 25. Demographics: Organization Industry Professional, scientific and technical services Health care and social assistance Manufacturing Government agencies Finance and insurance Educational services Religious, grantmaking, civic, professional and similar organizations Accommodation and food services Administrative and support and waste management and remediation services Construction Mining Transportation and warehousing Arts, entertainment and recreation Information Retail trade Real estate and rental and leasing Repair and maintenance Utilities Whole trade Agriculture, forestry, fishing and hunting Personal and laundry services Other Percentage 21% 17% 15% 12% 10% 9% 5% 4% 4% 4% 4% 4% 3% 3% 3% 2% 2% 2% 2% 1% 1% 7% Note: n = 375. Percentages do not equal 100% due to multiple response options. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 25
  26. 26. Demographics: Other Is your organization a single-unit organization or a multiunit organization? Does your organization have U.S.based operations (business units) only, or does it operate multinationally? U.S.-based operations only Multinational operations Single-unit organization: An organization in which the location and the organization are one and the same. 80% 20% n = 381 39% Multi-unit organization: An organization that has more than one location. 61% n = 381 What is the HR department/function for which you responded throughout this survey? For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both? Corporate (company-wide) 73% Multi-unit headquarters determines HR policies and practices. Business unit/division 16% Each work location determines HR policies and practices. 4% Facility/location 11% A combination of both the work location and the multi-unit headquarters determines HR policies and practices. 37% n = 244 59% n = 244 State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 26
  27. 27. SHRM Survey Findings: State of Employee Benefits in the Workplace—Wellness Initiatives Survey Methodology • Response rate = 11% • 441 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey • Margin of error +/- 5% • Survey fielded May 3-22, 2013 State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 27
  28. 28. Additional SHRM Resources • SHRM Research Findings: Workplace Wellness Initiatives • Wellness Benefits Resource Page • Designing and Managing Wellness Programs • Wellness Initiatives Can Ease the Pain of Rising Benefits Costs • What Level of Impact Fits Your Wellness Plan? • Federal Tax Implications of Wellness Incentives and Rewards State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 28
  29. 29. About SHRM Research • For more survey/poll findings, visit www.shrm.org/surveys • For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch • Follow us on Twitter @SHRM_Research Project leaders: Christina Lee, researcher, SHRM Research Project contributors: Alexander Alonso, Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 29
  30. 30. About SHRM The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 250,000 members in over 140 countries, the Society serves the needs of HR professionals and advances the interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. State of Employee Benefits in the Workplace—Wellness Initiatives ©SHRM 2013 30

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