Employers are reinventing their wellness programs into comprehensive
health and productivity (H&P) programs for a very good reason — improved
profits. A recent study conducted by
Watson Wyatt Worldwide of 355 human
resources and health benefits managers at
U.S. organizations with at least 1,000
employees reveals that the companies with
the most effective H&P programs acheived
20 percent more revenue per employee,
16.1 percent higher market value and 57
percent higher shareholder returns.
“Companies are embracing the progress
that has been made in the health and productivity space,” says Caty Furco, office practice leader, Group and Health Care, for
Watson Wyatt Worldwide, San Francisco.
“Companies with effective H&P programs
outperform other companies. Organizations
that understand the linkage between effective programs and their company’s performance are ahead of the game. We are in an era
that can have a positive impact on both business and employees, and that’s exciting.”
Smart Business spoke with Furco about
what constitutes an effective H&P program.
What is the current thinking regarding H&P
programs?
Global competition and pressure for
greater efficiency are causing employers to
seek new ways to help manage benefit costs
and increase worker output Increasingly,
companies are looking at the health of their
workers as the new growth engine to stave
off health care inflation and keep employees
on the job and productive.
In addition to stronger revenue per employee, companies that have a strong H&P program were more effective at managing direct
benefit costs. The philosophy behind the new
H&P programs is that companies need to
appeal to their entire range of employees in
order to drive employee engagement toward
improved health and productivity.
What drives employee engagement toward
health and improved productivity?
A traditional siloed approach toward
employee health and productivity is out; a
holistic approach is in. What this means is that employee programs that support stress reduction, a healthy work environment, support for
time off, management of chronic conditions,
health education, on-the-job safety, health
insurance and disability coverage are no
longer viewed separately — they are combined and integrated into a single approach.
Employees’ life experiences are not segmented, so benefits should be approached in a way
that can provide the right services across the
entire benefit and workplace continuum. A
single access point makes it easier for employees to use the program. Creating incentives
that inspire excitement and employee adoption rates are also part of the holistic
approach. An integrated approach also gives
the company a single data repository, so it can
use the information to refine its offerings and
construct effective employee incentive programs. A lack of actionable data was one of
the barriers to H&P effectiveness as cited in
our study, so a single data repository is a plus.
What constitutes an effective H&P program
framework?
An effective H&P strategy goes beyond
simply adding more programs; it integrates
prevention (at home and work), manages health and provides incentives for behavioral
change. Our survey identifies that the top
three elements for an effective H&P framework include: employee engagement driven
through the use of incentives and communication; appropriate programs, including the
use of technology; and a way to measure and
continuously improve the results.
A single technology intake from a user perspective makes it easy for employees to do
everything from recording a sick day to signing up for an education program; on the back
end, the technology tracks utilization, membership and ROI, and provides an integrated
set of data analytics. Naturally, the one constant throughout the framework is communication. The more the program is communicated, the greater the results. H&P must
become part of a company’s corporate culture and new reality of how business is run.
Will an H&P program be costly?
A best-in-class H&P program does not have
to be expensive to be effective. It’s important
for each program to uniquely reflect the culture of the organization and its employees.
Monetary incentives as low as $50 for weight
reduction or smoking cessation can often
catch the attention of employees, and doing
something as simple as waiving co-pays on
drugs used to manage chronic illnesses may
be enough to encourage employees to take
those drugs consistently and manage their
conditions. While we can look at the results
and the H&P framework used by other companies and learn from them, the best design
is one uniquely tailored to that organization,
and it’s not necessary to keep up with leading-edge inventions to be successful.
How quickly can CEOs expect results after
installing an H&P program?
A successful H&P program will produce
results over time because you are changing
employee behaviors. While deploying these
concepts and programs won’t necessarily
produce immediate results, the numbers in
the survey should be incentive enough to
begin and sustain the journey.
CATY FURCO is the office practice leader for Group and Health Care Practice of Watson Wyatt Worldwide for Northern California. Reach
her at [email protected] or (415)733-4309.
