Overcoming the pressures of employee health and wellbeing · employee health and wellbeing high on the business agenda. Employers must overcome these issues and find ways to keep

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Overcoming the pressures of employee health and wellbeingProviding support through the economic downturn

Executive summary

This first paper in a series from Simplyhealth, discusses the impact the economic downturn is having on employees, and how employers must work against this backdrop to keep morale and productivity levels high.

Stress and the economic downturn

Ben Willmott, Senior Policy Advisor to Government at the Chartered Institute of Professional Development (CIPD) discusses how the unprecedented pressures both employers and employees face are influencing the workplace.

The recession is leading to higher stress levels, as employees try to cope with pay freezes, budget cuts, rising inflation and, in many cases, the threat of redundancy.

Stress can lead to employees making poorer health choices, which can affect their working lives. Heart disease and obesity are just two issues that are placing employee health and wellbeing high on the business agenda.

Employers must overcome these issues and find ways to keep morale and productivity levels high. This means understanding how they can contribute to employee engagement and wellbeing.

Leadership is crucial, as there is a strong link between effective management and both psychological and physical health. However, this is an area where there is a major skills deficit in the UK.

Work life balance is another important factor that can help to keep stress levels down, and this is where an effective health and wellbeing strategy can play its part. Employers who support the emotional and physical health of their staff can help them to cope with the pressures of their home and work lives.

Reducing absence is often a challenge for employers, even without the added pressures of the economic downturn. Employee Assistance Programmes (EAPs) and occupational health benefits can help employees return to work more quickly. However, the success of these benefits relies on good management, strong relationships with employees and effective communication.

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Overcoming the pressures of employee health and wellbeing

An effective health and wellbeing strategy

Our own research at Simplyhealth has shown that an effective health and wellbeing strategy should consider the emotional, physical and financial health of employees and be flexible to respond to their changing needs.

There are many affordable health and wellbeing initiatives that are easy to implement. These include free financial workshops, exercise classes and healthy eating advice. These elements, together with benefits that help employees care for their everyday health and get treatment for unexpected health conditions can all contribute to an effective health and wellbeing strategy.

Our research has also shown the positive impact health and wellbeing benefits can have on employee engagement. Employees who have benefits in place are far more likely to be loyal to their employer and go the extra mile for them. Reduced staff turnover and increased productivity are great for business.

Communication is vital, if benefits are to have an impact on employee engagement. Employees must be aware of their benefits, understand them and value them.

Contents

• Introduction

• The pressures on employers for protecting the health and wellbeing of staff – Ben Willmott, Senior Policy Advisor to Government, CIPD

• Simplyhealth’s comments

• Ben Willmott profile

• About Simplyhealth

• References



Introduction

This is the first in a series of white papers from Simplyhealth that examine the issues surrounding health and wellbeing in the workplace. We are starting with a subject matter that’s very close to our heart; the pressures that employers face when it comes to caring for the health and wellbeing of their staff. Like us, you would have seen how this area has changed over the years.

There’s now a much greater appreciation of the importance of health and wellbeing and an understanding that a happy, motivated and healthy workforce is great for business. However, the economic climate, the fact that people are living longer and the removal of the Default Retirement Age (DRA), all affect health and wellbeing in the workplace.

In this white paper, we’ll be hearing from Ben Willmott, Senior Policy Advisor to Government at the Chartered Institute of Professional Development (CIPD). Ben explains how Government spending cuts have added to the pressures that both public and private sector employers face, particularly when it comes to managing absence and dealing with stress in the workplace.

We’ll be publishing more white papers over the coming months, exploring the following issues:

• CIPD Absence Management Report 2011 in partnership with Simplyhealth

• Wellbeing strategies in the workplace: Culture, leadership and communication

• Good health is good business – Return on Investment

• Combining Employee Benefits Packages – Making efficiencies

• Self funded health plans and tax efficient wellbeing

We hope this white paper highlights the challenges associated with health and wellbeing in the workplace and offers some solutions for you to consider. If you’d like to contribute to the discussion, please find us on LinkedIn.

James Glover Simplyhealth Sales and Marketing Director, Employer

A happy, motivated and healthy workforce is great for business, but employers face challenges.



The pressures on employers for protecting the health and wellbeing of staff

Ben Willmott, Senior Policy Advisor to Government, CIPD

The prolonged economic downturn since the financial crisis and ensuing recession has placed employers and workers under unprecedented pressure. Government public spending cuts amounting to £81bn by 2014/15 have added to the difficulties faced by both public and private sector organisations, with many looking to reduce and manage costs or restructure to improve competitiveness and efficiency. Employees are also under increasing strain in the workplace as a result of downsizing, increased stress, pay freezes, job insecurity and rising inflation eroding wellbeing and standards of living. The CIPD’s quarterly Employee Outlook finds more than four in ten employees say they are under excessive pressure either every day or once or twice a week, with about 50% of staff saying they have been affected by more stress at work as a result of the economic downturn. A survey in 2010 by mental health charity Mind found that since the recession one in ten workers have sought support from their doctors and 7% have started taking antidepressants for stress and mental health problems directly caused by the pressures of recession on their workplace.

Against this backdrop employers need to find ways of improving productivity and service delivery and innovation by harnessing the full potential of their workforce, which means understanding and supporting the drivers of employee engagement and wellbeing.

For the CIPD the starting point is effective leadership and management capability, which is an area where the UK suffers a major skills deficit according to the UK Commission for Employment and Skills most recent strategic skills audit. This is not surprising perhaps given the UK invests less per manager in management development than any other country in Europe (Leitch review of skills, 2006).

The Government commissioned MacLeod Review of Engagement showcased a range of evidence showing a link between enhanced employee engagement and improved business performance. It identified four key enablers of employee engagement which were: Shared purpose; integrity – people reflect the organisations values in the way they work with each other and do business externally; employee voice; and engaging managers.

The CIPD’s Shaping the Future action research programme which explored the drivers of sustainable performance in a number of public and private sector organisations highlights the importance of clear shared purpose across an organisation that all employees can relate to. It also emphasises the value of collaborative leadership at all levels in supporting sustainable change, agility and employee engagement.

The economic downturn is adding to stress in the workplace.



CIPD research suggests engaging managers are ones that invest time in:

• Reviewing and guiding

• Providing feedback, praise and recognition

• Allowing the appropriate level of autonomy and empowerment

• Showing interest in employees as individuals

Another important factor in supporting positive employee engagement is adequate work life balance, according to CIPD research into employee engagement and the psychological contract over the last decade.

The increasing profile and recognition of the importance of leadership and management skills in boosting employee engagement and wellbeing was demonstrated by the recent launch of the Employee Engagement Taskforce by the Prime Minister David Cameron. He commented: “This taskforce has my full support because I know that it will work to bring together two of my Government’s top priorities – delivering sustainable growth across the UK, and coming up with new approaches to help people improve their wellbeing.”

The CIPD is a key member of the taskforce and will be working closely with it to continue to build the business case for investing in enhanced leadership and management skills and to spread best practice, information and guidance for employers.

Employers that put in place effective employee engagement strategies are supporting the emotional resilience and psychological wellbeing of their staff and will provide an environment where individuals are better equipped to juggle competing pressures at work and in their home lives.

There is a strong link between effective management and both psychological and physical health. The large scale Whitehall II study of civil servants (2004) found that an imbalance between demands at work and control was associated with higher rates of sickness absence, of heart disease, pain in the lower back, and mental illness.

A 2009 study of 3,000 Swedish employees found a link between poor management and leadership and a higher incidence of heart disease. The areas of management behaviour that were analysed were the manager’s consideration for the individual employee, provision of clarity in goals and role expectations, supplying information and feedback, ability to carry out changes at work successfully, promotion of employee participation and control.

People who are stressed are also more likely to make poor choices regarding alcohol consumption, diet and exercise. The Whitehall II study found a link between stress and alcohol dependency. This study also found that stressed individuals are more likely than others to eat a poor diet and take less exercise.

An effective health and wellbeing strategy will equip employees to overcome the pressures they face.

Stressed employees are more likely to make poor health choices.



However no matter how well managed an organisation is, employees will suffer ill health and need to take time off from work. The 2010 CIPD Absence Management survey, produced in partnership with Simplyhealth, finds the average level of employee absence is 7.7 days per employee per year, rising to 9.6 days for public sector workers highlighting the challenges UK employers face in managing and reducing absence levels.

This is particularly true in light of some of the demographic changes to the UK labour market which will see an increasing proportion of older workers. The end of the DRA from October will put an added focus on the importance of managing an ageing workforce effectively and on supporting employee wellbeing. The CIPD has long campaigned for the end of the DRA. People are healthier and are physically able to work for longer than in the past. Life expectancy is currently increasing by over two years per decade and this has a financial impact for the country. There is an economic advantage to have older people working, rather than being supported solely by a pension.

Our research has shown that many employees wish to work past retirement for differing reasons and many employers are already benefiting from allowing such flexibility. It is a myth that people’s health and physical capability fall off a cliff after the age of 65, but older workers do have higher levels of absence than younger workers and more employers will also have to provide reasonable adjustments to enable people to continue working.

Rising levels of obesity are another factor that will mean supporting employee health and wellbeing will continue to rise up the business agenda. It is predicted by the National Heart Forum that some 41% of men aged 20 to 65 will be obese by 2020 and a further 40% will be overweight. Meanwhile, 36% of women will be obese and 32% will be overweight.

In response to these pressures employers are going to have to be more proactive at managing absence and supporting wellbeing. Many employers are beginning to recognise the value of day one referral to occupational health services for conditions which are likely to be either recurrent or long term, such as mental health problems or musculoskeletal conditions. Employers such as Royal Mail, BT and AstraZeneca are investing in early intervention through their occupational health services because they benefit employees and because they get a better return on their investment in these services.

In addition, Employee Assistance Programmes (EAPs) which provide a confidential helpline and in many cases a number of counselling sessions for staff, can provide a useful source of confidential support and advice for employees who are under pressure and struggling to cope for whatever reason. However many EAPs are under utilised by employees and need to be promoted more effectively.

Early occupational health intervention can benefit employees and lead to a better return on investment.



Management behaviour in supporting return to work and rehabilitation is also increasingly critical, particularly in light of the new fitnote which replaced the Med3 sicknote a year ago. The purpose of the fitnote is to encourage more GPs to have conversations with their patients about the possibility of a phased return to work in recognition that this can help support their recovery.

However, just as important to any successful return to work is how positively managers respond to the idea of employees coming back before they are 100% fit and making adjustments in terms of their hours or duties.

CIPD research with the British Occupational Health Research Foundation (based on interviews and surveys with managers and employees who have returned to work following mental ill health) has provided guidance on the management behaviours that are likely to support a successful and lasting return to work. These include specific behaviours while the employee is off sick, on the initial return to work and in managing the team to encourage colleagues to help in the individual’s rehabilitation process.

The research emphasises that managers should be made aware that they don’t necessarily have to be knowledgeable about an employee’s health condition to be effective in supporting their return to work. It is more important that a manager shows general good people management skills, including effective communication, sensitivity to and understanding of the individual and awareness of the context.

Managers are most likely to be in a good position to support an employee returning to work if they have established a good relationship with that person prior to their absence. Thus part of good absence management is about effective people management and managers developing relationships with their employees based on mutual trust and confidence.



Simplyhealth’s comments

The importance of health and wellbeing has been brought into sharp focus by the economic climate, as employees have much greater financial pressures to cope with:

• Wholesale energy prices are increasing by 30% (Source: Ofgem)

• Food prices are soaring (Source: World Food Programme)

• Unemployment remains high (Source: Office for National Statistics)

• Pay freezes remain in the public and private sector (Source: Confederation of British Industry)

It is important to recognise the impact of these pressures, as there is no doubt that the uncertain economy is contributing to stress in the workplace. As Ben highlighted, stress can lead to employees neglecting their health and a vicious circle develops that can affect productivity, morale and sickness absence. It is important that managers are equipped to recognise the signs of stress and find ways to help employees deal with the pressures they’re facing. This goes beyond providing private medical insurance or an Employee Assistance Programme (EAP). A health and wellbeing strategy should be flexible to respond to changes in employee circumstances and incorporate physical health, emotional health and financial health benefits.

Engaging with employees through health and wellbeing

Our own research has shown the positive impact that incorporating physical, emotional and financial health benefits can have on employee engagement, particularly on the loyalty they feel towards their employer. We published our ‘Engaging employees through health and wellbeing report’ in May. It found that 75% of employees who feel that their employer cares a great deal about their health and wellbeing are willing to go the extra mile. This is a key indicator of employee engagement, and shows the enormous impact health and wellbeing benefits can have on employees.

Our survey also showed a striking difference between employer and employee views. 22% of employers said that they offered access to health benefits, but only 12% of employees said this was the case. These differences in opinion highlight the importance of good communication. Employees may not be accessing important health and wellbeing benefits, because they do not know they exist. There is no point having a valuable benefit such as an EAP in place, if employees do not use it when they need it.

The importance of effective communication should not be underestimated, and doesn’t need to result in additional costs for your organisation. Healthcare providers can produce a range of marketing materials that can be sent directly to your employees or displayed in your offices. By working closely with your healthcare provider and your own marketing teams, you can get more value

An effective health and wellbeing strategy should support employees with their physical, emotional and financial health.



from the benefits you have in place. Ongoing promotions will keep the benefits fresh in employees’ minds, so they are aware of the support that is available.

Measuring health and wellbeing

We’ve already seen the impact that health and wellbeing benefits can have on employee engagement, but it can be difficult to measure the financial impact they have. There is no method of telling whether an employee would have gone on long term sick leave, if they hadn’t used the health benefits that you have made available to them. However, in a survey that we carried out last year with HR Magazine we discovered that nearly 50% of businesses do not need to measure the financial impact of their health and wellbeing strategies. In other words, there is already ‘buy in’ from directors who recognise the need to engage employees. Benefits do not always have to result in significant healthcare spend either. There are many affordable initiatives that are easy to implement that can contribute to an effective health and wellbeing strategy. These include:

• Free financial support one to one’s that are offered through the Financial Service Authority. This can help employees manage their money more effectively

• Healthy eating advice that can improve the health of employees and their families

• Lunch time activities such as a running or walking club

• Weekly weight management sessions

• Fitness classes such as yoga

These elements, together with benefits that help employees care for their everyday health and get treatment for unexpected health conditions all contribute to an effective health and wellbeing strategy.

Tools and research

We have highlighted the importance of communication for health and wellbeing. We can help develop a communications plan that fits your needs and keeps health and wellbeing fresh in your employees’ minds. You can bring health benefits to life for your employees by tying them in with health events such as National Eye Health Week or National Smile Week. If you would like a list of health events that are coming up this year, just get in touch by emailing [email protected].

We can also provide you with soft copies of our ‘Engaging employees through health and wellbeing report’, and you can access a webinar that provides an overview of our research with HR Magazine on our website: www.simplyhealth.co.uk/webinar. The CIPD absence management survey 2010 can also be downloaded from our website at www.simplyhealth.co.uk/media-centre.

There are many affordable initiatives that can contribute to an effective health and wellbeing strategy.

Tools and research available to you from Simplyhealth:

• Health Awareness Events

• Simplyhealth’s Engagement Research

• CIPD Absence Management Report 2010

• HR Magazine Research Summary



Ben Willmott profile

Ben Willmott joined the Institute in October 2003. He heads the CIPD’s public policy team which has a remit to inform and shape debate, and influence Government policy and legislation in order to enable higher performance at work and better pathways into work for those seeking employment. He is responsible for ensuring the CIPD’s interests are represented across a wide

range of public policy areas including: skills; employment regulation; employment relations; diversity; reward and pensions; health and wellbeing; and welfare reform.

His personal areas of interest include: leadership and management skills; stress and absence management; employee engagement and wellbeing; and conflict management. He has led the CIPD’s involvement in research with the Health and Safety Executive on line management behaviour and stress and with the British Occupational Health Research Foundation on line management support for return to work. He also authored the CIPD’s annual Absence management survey for a number of years.

He has authored and edited a wide range of guidance for HR practitioners and line managers on a variety of subjects including managing drug and alcohol misuse in the workplace, stress management, working with cancer; employee voice; tackling staff fraud and dishonesty; and managing conflict at work.

His other areas of interest include working time, flexible working, and data protection.

He has a Masters degree in employment law from the University of Kingston.

Prior to joining the CIPD he was news editor and employment law editor at Personnel Today magazine.



About Simplyhealth

Simplyhealth is a specialist in healthcare. Our heritage dates back to 1872 so we are experienced in offering healthcare solutions for businesses in the UK.

We help 11,000 businesses with their healthcare, including major blue chip companies such as John Lewis Partnership, British Airways, Tesco and Royal Mail.

We provide cover for two million people, and because we focus on healthcare, we have the experience and knowledge to develop tailored packages to meet the needs of our clients. Our health plans include health cash plans, dental plans, private medical insurance and self funded health plans.

We pride ourselves on delivering exceptional personal customer service. From hands on account management, to dedicated care managers who’ll support your employees through their claims. We’re also award winners. Most recently, we were named Best Private Health Insurance Provider at the 2011 Consumer Moneyfacts Awards.

Our 1,100 employees are all based in the UK and we have offices in Andover, Bristol, Manchester and Leeds. We follow mutual values and care about our communities. Last year we donated £1.6m to health related charities and good causes.

Find out about future white papers

If you would like to receive our future white papers, please join our mailing list. Just call 0845 075 0063 or email [email protected] and we’ll send you our white papers as soon as they are published.

Our next white paper will be titled: CIPD Absence Management Report, brought to you in partnership with Simplyhealth. It will highlight the current absence trends and discuss industry specific issues.


References

Employee Outlook survey (CIPD, Spring 2011) http://www.cipd.co.uk/hr-resources/survey-reports/employee-outlook-spring-2011.aspx

Mind survey (No report – findings published on their website) http://www.mind.org.uk/news/3372_workers_turn_to_antidepressants_as_recession_takes_its_toll

HM TREASURY. (2006) Leitch Review of Skills: Prosperity for all in the global economy – world class skills. Final report [online]. London: The Stationery Office.

Management competencies for enhancing employee engagement (CIPD, April 2011) http://www.cipd.co.uk/hr-resources/research/management-competencies-for-engagement.aspx

Work stress and health: The Whitehall II Study Published by Public and Commercial Services Union

on behalf of Council of Civil Service Unions/Cabinet Office, 2004) http://www.ucl.ac.uk/whitehallII/pdf/Whitehallbooklet_1_.pdf

V. Nyberg A, Alfredsson L, Theorell T, Westerlund H, Vahtera J, Kivimäki M. (2009). “Managerial leadership and ischaemic heart disease among employees: the Swedish WOLF study.” Occup Environ Med 66(1): 51-5

CIPD Absence Management survey (CIPD in partnership with Simplyhealth, 2010) http://www.cipd.co.uk/binaries/5343_Absence-Management-survey-report-2010.pdf

Manager support for return to work following long-term sickness absence: Guidance. (CIPD, August, 2010) http://www.cipd.co.uk/hr-resources/guides/manager-support-return-work-following-long-term-sickness-absence.aspx

Private health insurance Health cash plans Dental plans Self funded plans

Simplyhealth is a trading name of Simplyhealth Access, registered and incorporated in England and Wales, no.183035. Registered office: Hambleden House, Waterloo Court, Andover, Hampshire SP10 1LQ. Authorised and regulated by the

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Overcoming the pressures of employee health and wellbeing · employee health and wellbeing high on the business agenda. Employers must overcome these issues and find ways to keep