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Millennials, who make up 36% of the U.S. workforce, are redefining what wellness means. Employers may need to change their approaches to engaging them.

Reproduced with permission from Benefits Magazine, Volume 52, No. 4, April 2015, pages 28-33, published by the International Foundation of Employee Benefit Plans (www.ifebp.org), Brookfield, Wis. All rights reserved. Statements or opinions expressed in this article are those of the author and do not necessarily represent the views or positions of the International Foundation, its officers, directors or staff. No further transmission or electronic distribution of this material is permitted.

M A G A Z I N E

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Today’s rapidly chang-ing workforce in-cludes as many as four generations, and

organizations are finding that a one-size-fits-all approach to benefits and

workplace wellness doesn’t work. Employ-ers hoping to engage millennials—a grow-ing and influential demographic that now comprises more than one-third of the work-force—may want to tailor their wellness of-ferings accordingly.

Generational ShiftAccording to the U.S. Census Bureau,

there are more than 80 million millennials (those born between 1976 and 2001), mak-ing it the largest generation in our country’s history. Millennials outnumber Generation X roughly 2-to-1. Millennials now make up 36% of the U.S. workforce; by 2020, they will account for nearly half of all workers.1

However, among these younger employ-ees, engagement is a real issue. An Aon Hewitt survey found that just 56% of mil-

by | Rajiv Kumar, M.D.

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lennials are engaged at work, compared with 60% of Gen-eration X and 66% of baby boomers. That makes millennials the least engaged generation in today’s workforce.2 Disen-gagement makes it difficult to hold onto the best young workers and can impede productivity. Future success could depend on the steps taken today to engage these employees.

One viable method of increasing engagement among this diverse group of employees is delivering an innovative well-ness program that caters to their needs and aligns with their preferences. This will require employers to throw out the old rulebook on how wellness programs should operate.

Rules of EngagementFor any organization looking to foster participation and

sustained engagement among millennials in its workplace wellness program, the following best practices can make a significant impact.

Make It Social and Fun

Younger workers are attracted to wellness programs that give them a voice and help them connect with others. That should come as no surprise, since 75% of millennials have at

least one social media profile.3 Millennials have an average of 250 Facebook friends, compared with 200 for Generation X and 98 for younger baby boomers.4 Millennials also like to be visible to those friends, as 55% have shared a “selfie” on social media sites, compared with just 24% for Generation X and 9% for baby boomers.5 (Only about 60% of boomers even know what a selfie is!)

In the context of wellness programs, social strategies can build new connections, strengthen existing relationships, generate self-sustaining momentum, enhance the worksite environment and produce positive health outcomes. Team-based competitions, peer-to-peer challenges and online communication tools foster meaningful interactions be-tween employees, motivating them to take action and creat-ing a valuable support network—for which millennials are perfectly suited.

Social strategies can also drive better outcomes. Recent research indicates that health-related behaviors can be “con-tagious,” spreading across long distances within social net-works.6 This indicates that leveraging social networks in corporate wellness programs holds the potential to spread healthier habits across an entire employee population—and even beyond. By focusing resources on key workforce influ-encers like millennials, a program can organically induce be-havior change across the organization.

Gamification is another crucial piece of the engagement puzzle. By making what used to be a chore into a fun and engaging experience, wellness programs that leverage game mechanics like points, levels and feedback loops can moti-vate people to work toward clear, step-by-step goals.

Gamification is a natural fit for millennials. After all, the eldest members of this generation were young children when the first Nintendo system launched in 1985. So it’s no sur-prise that twice as many millennials play video games on a daily basis compared with Generation X and baby boomers.7 Gaming appeals to their penchant for competition and desire to see how their performance compares with others. When coupled with social interaction, victory is much sweeter, be-cause members of this generation attach more meaning to achievements they can share with online social networks.

Make It Intrinsically Rewarding

In recent years, incentives have become an increasingly important component of wellness programs. Financial re-wards for wellness participation were in place at just 36%

learn more >>EducationHealth Care Management Conference April 13-15, Santa Monica, CaliforniaVisit www.ifebp.org/healthcare for more information.34th Annual ISCEBS Employee Benefits Symposium August 23-26, Vancouver, British ColumbiaVisit www.ifebp.org/symposium for more information.Worksite Wellness: Moving Beyond the Physical Dimension New England Employee Benefits Council. On-Demand Presentation from November 20, 2014.Visit www.ifebp.org/books.asp?14T10ODP for more information.

From the BookstoreHealthy Employees, Healthy Business: Easy, Affordable Ways to Promote Workplace Wellness, Second EditionIlona Bray. Nolo. 2012.Visit www.ifebp.org/books.asp?8907 for more details.Workplace Wellness Trends: 2015 Survey ResultsInternational Foundation. 2015.Visit www.ifebp.org/books.asp?7549E for more details.

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of employers in 2009 but will reach 89% by 2015/2016.8 More and more employees are also in favor of receiv-ing incentives for actions and results, as 54% think employers should reward participants for achieving specific, controllable health outcomes.9 This bodes well for outcomes-based incen-tives, where employers reward indi-viduals for achieving goals or making positive progress toward better health.

Yet, rather than thinking about re-wards in terms of size, the focus should be on how appealing they are to em-ployees. That’s where social incentives can come into play. There are power-ful results to be realized when financial and social rewards are combined.

Social incentives are not based on dollar signs but are linked to men-tal and emotional factors that affect us each and every day. They include teamwork, friendly competition, public recognition and altruism, all of which younger employees tend to value high-ly. In fact, 87% of millennials donated money toward a nonprofit in 2013, and nearly half donated their time.10 That’s why social incentives can be powerful in sustaining engagement in a wellness program versus one-time payouts for participation.

An increasing number of employers are including social incentives in their wellness program: More than half now sponsor individual or team competi-tions, and health groups—such as run-ning clubs, support groups and healthy family activities—are gaining ground.11 By promoting a healthy workplace cul-ture, organizations enjoy higher par-ticipation in wellness activities. Using a multivariate regression analysis to measure the impact of various engage-ment strategies, Towers Watson found

that emphasizing a strong culture of health boosted participation in health risk assessments by 29% and biometric screenings by nearly 18%. That’s equiv-alent to offering a $140 and $90 finan-cial incentive, respectively.12

A healthy dose of social incentives is vital to increase engagement in well-ness programs and sustain it across the year, particularly for millennials. And since the value continues to grow over time, the need for financial carrots to spur action is eventually reduced.

Make It Connected

Millennials tend to lead very busy lifestyles and look for options that are convenient, flexible, quick and avail-able on the go. They also are “digital na-tives”—the only generation that grew up with technologies like the Internet, cell phones and social media rather than having to adapt to them later in life.

That means mobile access is a must-have to effectively reach young workers. More than 85% of millen-nials have a smartphone.13 They are never far from their device, either—with 83% of millennials sleeping with

it on or keeping it right beside their bed14 (the author included). Because wellness programs ideally target day-to-day activities, it should be easy to interact with them in their day-to-day lives. For example, participants should be able to log exercise minutes before even leaving the gym or tally a meal’s calories right at the restaurant table. This in-the-moment availability elimi-nates many engagement barriers.

Personalization is also key. From Amazon to Apple, millennials are ac-customed to curated experiences, and if a wellness program fails to provide a certain level of tailoring, this gen-eration will notice. That’s one reason technology is so important. Wellness platforms should adapt intelligently to individual needs and preferences based on data collected and past actions. Rec-ommendations can then be tailored to the participant, effectively guiding each user to the appropriate programs, tools and support.

The quantified self movement is another hot topic for millennials, as nearly half of the group currently track their own health data.15 Mobile phones, smart watches and many other acces-

takeaways >>•  Millennials, who make up 36% of the U.S. workforce and by 2020 will account for nearly

half of all workers, are the least engaged.

•  Team-based competitions, peer-to-peer challenges and online communication tools foster meaningful interactions between employees, and gamification can work well with millenni-als.

•  Social incentives such as teamwork, friendly competition, public recognition and altruism can be powerful in sustaining engagement in a wellness program.

•  Millennials like options that are convenient, flexible, quick and available on the go and are very comfortable with technologies like the Internet, cell phones and social media.

•  Employees at organizations with a strong culture of health are more likely to cite nonmonetary reasons for participating in a wellness program.

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sories can now track steps, heart rate, blood sugar, calorie intake, sleep qual-ity and more. These wireless track-ing devices not only boost employee engagement in wellness programs but also provide objective data about be-havior change and health improvement that can be monitored and rewarded over time.

Make It Part of the Culture

Nine out of ten employers believe that the environment and culture in their workplace have the most influ-ence on impacting employee health and changing behavior.16 Unfortunate-ly, many organizations still struggle to ingrain their wellness strategy and goals into the overall corporate culture.

The idea of a “culture of health” isn’t some abstraction; it can result in real-world impact. For example, employees working at organizations with a strong culture of health are more likely to cite nonmonetary reasons for participating in a wellness program.17 Millennials are also three times more likely to report taking action on their health as well as rate all aspects of their performance higher when working at a company with a healthy culture.18 By spending time and resources to build such a cul-ture, organizations can save money on significant expenses like cash rewards for participating in a wellness offering. Such environments build sustainable engagement that lasts over time.

Workplaces with strong cultures of health typically leverage grassroots approaches that empower local em-ployees to serve as on-site “wellness champions.” Once this foundation of highly motivated employees is in place, a growing culture can be nur-tured through ongoing communica-

tion, technology and environmental changes. Leading organizations also emphasize work-life balance by of-fering employees tools and policies to achieve it—critical to millennials, with three out of four saying that work-life balance drives their career choices.19

Make It Holistic

Millennials have an expansive view of personal well-being, encompassing areas beyond those served by tradi-tional wellness programs. The Hart-man Group surveyed this generation to see what health and wellness meant to them. The generation’s top ten list includes tangible and intangible pri-orities:20

1. Being physically fit (60%) 2. Leading a balanced lifestyle

(57%) 3. Feeling good about myself (55%) 4. Having energy for an active life-

style (53%) 5. Not being ill (50%) 6. Being able to deal with stress

(47%) 7. Not being overweight (47%) 8. Being happy and cheerful (47%) 9. Being alert and bright-minded

(44%) 10. Maintaining a spiritual balance

(38%).Due to their growing influence in

the workplace, it’s no surprise that the concept of wellness has shifted over the years from strictly addressing physical health factors to improving overall qual-ity of life today. Successful programs can no longer simply be reactive to employ-ee health risks—They must be proactive and provide positive, holistic experi-ences. That means breaking the mold of traditional wellness packages to offer unique benefits that millennials desire.

One important aspect of quality of life is financial wellness. Millennials expect to rely primarily on personal savings and income to fund their re-tirement.21 This makes options such as 401(k) plans, individual retirement ac-counts and health savings accounts at-tractive to younger workers. In fact, the Bank of America Merrill Lynch 401(k) Wellness Scorecard found that nearly 40,000 millennial employees enrolled in a 401(k) plan for the first time dur-ing the first half of 2014—a 55% in-crease from the same six-month period in 2013.22

Financial wellness means not only offering these savings vehicles, which many employers already do, but also providing ways for employees to man-age their finances in a fashion similar to their health numbers. Some employ-ers are already taking proactive steps to make it easier to achieve financial wellness goals through mobile access, automatic enrollment and services that provide personalized investment advice. There are also opportunities to offer more education and resources around topics ranging from student loan debt and purchasing a home to retirement savings and controlling health care costs.

Millennials’ focus on quality of life can also bridge into other benefit ar-eas that are not traditionally viewed as wellness. Work-life balance can tie into policies on telecommuting and flexible hours, while mass transit benefit programs can appeal to this generation’s sense of environmental consciousness. With a holistic view, an organization can tie all of these components together and present a compelling story that attracts the best young talent and bolsters employee satisfaction overall.

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Wellness 2.0

As millennials continue streaming into the workforce and moving up the corporate ladder, the demand to weave well-ness into all aspects of the workplace environment inevitably will grow stronger. Already, this generation has altered the norms of what wellness even means and the ways that such programs are delivered. To be successful, employers must take a proactive approach to meeting millennials’ needs.

Millennials are accustomed to rapid innovation; they ex-pect tomorrow’s wellness program today.

Endnotes

1. Maximizing Millennials: The Who, How, and Why of Managing Gen Y. UNC Kenan-Flagler Business School/Young Entrepreneur Council, 2013. Accessed at http://onlinemba.unc.edu/mba-at-unc-blog/geny-in-the- workplace. 2. “2014 Trends in Global Employee Engagement.” Aon Hewitt, 2014. 3. “Millennials: Confident. Connected. Open to Change.” Pew Research Center, 2010. Accessed at www.pewsocialtrends.org/files/2010/10/ millennials-confident-connected-open-to-change.pdf. 4. Pew Research Center’s Internet Project Survey, August 7-September 16, 2003. Pew Research Center. 5. Pew Research survey, February 14-23, 2014. Pew Research Center. 6. N. A. Christakis and J. H. Fowler, “Social contagion theory: examin-ing dynamic social networks and human behavior.” Statistics in Medicine 32.4 (2013): 556-577. 7. “Millennials: Confident. Connected. Open to Change.” Pew Research Center, 2010. Accessed at www.pewsocialtrends.org/files/2010/10/ millennials-confident-connected-open-to-change.pdf. 8. 2013/2014 Staying@Work Survey. Towers Watson/National Business Group on Health, 2013. 9. 2014 Consumer Health Mindset. Aon Hewitt/National Business Group on Health, 2014. 10. “2014 Millennial Impact Report.” The Chronicle of Philanthropy and Achieve, 2014. Accessed at www.themillennialimpact.com/2014-research. 11. 2013/2014 Staying@Work Survey. Towers Watson/National Business Group on Health, 2013. 12. Steven Nyce. Boosting Wellness Participation Without Breaking the Bank. Towers Watson, 2010. (Accessed online: www.towerswatson.com/en/

Insights/Newsletters/Americas/Insider/2010/boosting-wellness- participation-without-breaking-the-bank.) 13. “Mobile Millennials: Over 85% of Generation Y Owns Smartphones.” Nielsen. Accessed at www.nielsen.com/us/en/insights/news/2014/mobile-millennials-over-85-percent-of-generation-y-owns-smartphones.html. 14. “Millennials: Confident. Connected. Open to Change.” Pew Research Center, 2010. Accessed at www.pewsocialtrends.org/files/2010/10/ millennials-confident-connected-open-to-change.pdf. 15. “Are millennials the next great health generation?” Employee Benefit News, March 2014. Accessed at http://ebn.benefitnews.com/news/are- millennials-the-next-great-health-generation-2739645-1.html. 16. 2014 Health Care Survey. Aon Hewitt, 2014. 17. 2014 Consumer Health Mindset. Aon Hewitt/National Business Group on Health, 2014. 18. Culture of Health: A New Perspective. Wellness & Prevention, Inc., 2011. 19. J. M. Twenge, S. M. Campbell, B. J. Hoffman and C. E. Lance. “Gen-erational differences in work values: A review of the empirical evidence.” Journal of Management, 2010. 20. A Culture of Wellness 2013. The Hartman Group, Inc., 2014. Accessed at www.hartman-group.com/downloads/culture-of-wellness-report- overview-2013.pdf. 21. Work in Retirement: Myths and Motivations. Merrill Lynch/Age Wave, 2014. 22. 401(k) Wellness Scorecard. Bank of America Merrill Lynch, October 2014.

Rajiv Kumar, M.D., is the founder and chief executive officer of ShapeUp, which delivers social networking and gaming-based wellness programs to large employers and insurance

companies across 138 countries. Kumar earned his medical degree from the Warren Alpert Medical School of Brown University and has focused his career on prevention, public health and innovation in health care. He also received his bachelor of arts degree in business economics from Brown University.

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