Workplace wellness-initiatives-survey-findings

Workplace Wellness Initiatives ©SHRM 2012In collaboration with and commissioned by Alliance for a Healthier Minnesota

SHRM Survey Findings: Workplace Wellness Initiatives

December 6, 2012

In collaboration with and commissioned by Alliance for a Healthier Minnesota


2

Worksite wellness initiatives: For the purpose of this survey, worksite wellness initiatives can be defined as a coordinated set of strategies that includes environmental supports, health benefits and workplace policies designed to meet the health and safety needs of all employees.

Definitions


3

How much do organizations spend on health insurance coverage for employees? Of the organizations that offer a health care plan for their employees, approximately three-fourths (76%) of organizations spend less than 25% of their organization’s operating budget on health insurance coverage for employees, whereas nearly one-fifth (19%) of organizations spend 25% to 49%.

How would organizations grade their employees’ health? Over half (54%) of organizations would give their employees’ health a “B – Good” rating, whereas 38% of organizations would rate their employees’ health as “C – Fair.”

How important are health-related issues in terms of overall organizational priorities? Nearly one-half (49%) of organizations indicated that health insurance costs are “extremely important to their organization.” Next on the list were decreased productivity (35%), absenteeism (30%) and workers’ compensation or disability claims (27%).

What are the top health conditions that are of greatest concern to employees? Roughly one-fourth of organizations reported obesity/overweight (24%) and stress and other mental health issues (23%) as the greatest health concerns for their employees. Other health concerns include lack of exercise/fitness (15%), chronic disease (11%) and high blood pressure (10%).

Key Findings


4

How do organizations feel about worksite wellness initiatives? Nearly nine out of ten (87%) organizations indicated that worksite wellness initiatives are very or somewhat beneficial. Practically all (96%) organizations reported that they strongly or somewhat agreed that the initiatives help workers develop healthier lifestyles. The majority (84%) of organizations also strongly or somewhat agree that worksite wellness initiatives lower health care costs and increase worker productivity.

Do organizations offer worksite wellness initiatives? Slightly more than one-half (55%) of organizations have a worksite wellness initiative for their employees. The majority (76%) of those organizations indicated that less than 10% of their operating budget is spent on these worksite wellness initiatives.

Do organizations plan to expand or improve their current worksite wellness initiative? Of the organizations that currently offer worksite wellness initiatives, 85% are very or somewhat interested in expanding or improving their current worksite wellness initiative in the next one to three years.

Do organizations plan to develop worksite wellness initiatives for their employees? For organizations that do not currently offer a worksite wellness initiative, 69% of them are very or somewhat interested in developing one in the next one to three years.

Key Findings (Continued)


5

Do organizations track the return on investment (ROI) of worksite wellness initiatives? Of the organizations that offer worksite wellness initiatives, roughly two-fifths (42%) of organizations track the return on investment (ROI) on these initiatives.

What reasons may deter organizations from offering a worksite wellness initiative? About three-fifths of organizations reported the cost of the initiative (65%) and lack of employee interests/expected low levels of participation (59%) as the most common factors that may deter organizations from offering a worksite wellness initiative.

What resources do organizations rely on when creating or expanding a worksite wellness initiative? Over one-half of organizations trust and value their business peers or fellow HR managers (58%), health care service providers (55%) and/or worksite wellness vendors and consultants (54%) when creating or expanding a worksite wellness initiative.

Should the government become more involved in worksite wellness initiatives? Nearly one-half (47%) of organizations indicated that state and local government should be more active in helping create and expand worksite wellness initiatives, although two-fifths (40%) of organizations indicated that the federal government should not really change its level of involvement.

Key Findings (Continued)


6

General Health Insurance


7

Approximately what percentage of your organization’s operating budget would you say is spent on health insurance coverage for your employees?

75% or more

50 – 74%

25 – 49%

Less than 25%

1%

4%

19%

76%

Note: n = 267. Only respondents whose organizations offer health care plans were asked this question.


8

Wellness Themes


9

What grade would you give your organization’s employees in terms of being healthy?

F – Failing

D – Poor

C – Fair

B – Good

A – Excellent

0%

4%

38%

54%

4%

n = 403


10

What grade would you give your organization’s employees in terms of being healthy?

Comparisons by organization staff size

1 to 99 employees (67%) >500 to 2,499 employees (39%)

2,500 to 24,999 employees (46%)

Comparisons by organization staff size• Organizations with 1 to 99 employees are more likely than organizations with 500 to 24,999 employees to

grade their employees’ health as B – Good.

Note: Only statistically significant differences are shown.


500 to 2,499 employees (54%) > 1 to 99 employees (23%)

• Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to grade their employees’ health as C – Fair.


11

Rate the importance of the following issues in terms of overall organization priorities:

1 = Not Important

At All to Organizatio

n

2 3 4 5 6 7 8 9

10 = Extremely Important

to Organizatio

n

Health insurance costs(n = 404)

1% 1% 1% 1% 3% 3% 7% 17% 18% 49%

Decreased productivity(n = 402)

1% 0% 1% 2% 5% 6% 11% 18% 20% 35%

Absenteeism(n = 401)

1% 2% 2% 2% 6% 6% 11% 19% 21% 30%

Workers’ compensation or disability claims(n = 402)

2% 3% 3% 5% 9% 6% 12% 16% 15% 27%

Note: Percentages may not equal 100% due to rounding.


12

Rate the importance of the following issues in terms of overall organization priorities:


500 to 2,499 employees (31%) > 2,500 to 24,999 employees (11%)

Comparisons by organization staff size• Organizations with 500 to 2,499 employees are more likely than organizations with 2,500 to 24,999 employees

to rate health insurance costs a 9 on level of importance (1 = not important at all to organization, 10 = extremely important to organization).



13

Which from the list below do you consider to be the top three health conditions or areas that you feel are the greatest concern to your organization’s employees? Rank them in terms of your first, second and third choice.

First Choice(n = 405)

Second Choice(n = 404)

Third Choice(n = 403)

Obesity/overweight 24% 17% 12%

Stress and other mental health issues

23% 14% 14%

Lack of exercise/fitness 15% 19% 17%

Chronic diseases 11% 11% 11%

High blood pressure 10% 12% 12%

Tobacco use 7% 3% 8%

Workplace injuries 6% 2% 5%

High cholesterol 1% 7% 5%

Alcohol and substance abuse 1% 2% 4%

Poor nutrition 1% 7% 9%

Cold and flu vaccinations 1% 5% 4%



14

Which from the list below do you consider to be the top three health conditions or areas that you feel are the greatest concern to your organization’s employees? Rank them in terms of your first, second and third choice.


2,500 to 24,999 employees (34%) > 1 to 99 employees (13%)

Comparisons by organization staff size• Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 99 employees to

rank obesity/overweight as the top health concern for their employees.

Comparisons by organization sector• Publicly owned for-profit organizations are more likely than privately owned for-profit organizations and

nonprofit organizations to rank tobacco use as the second top health concern for their employees.

Comparisons by organization sector

Publicly owned for-profit (10%) >Privately owned for-profit (2%)

Nonprofit (1%)



15

Worksite Wellness Initiatives


16

In general, how beneficial would you say worksite wellness initiatives are to organizations like yours?

Not beneficial at all

Not very beneficial

Somewhat beneficial

Very beneficial

1%

12%

49%

38%

n = 404


17

In general, how beneficial would you say worksite wellness initiatives are to organizations like yours?




consider their workplace wellness initiatives as “very beneficial.”



18

Perspectives on Different Viewpoints About Worksite Wellness Initiatives:

Worksite wellness initiatives do little to improve overall worker health.

(n = 401)

Worksite wellness initiatives make employees feel that their privacy is

being intruded upon. (n = 400)

Worksite wellness initiatives only impact a limited number of workers.

(n = 403)

Worksite wellness initiatives reduce worker absenteeism. (n = 396)

Worksite wellness initiatives increase worker productivity. (n = 400)

Worksite wellness initiatives lower health care costs. (n = 401)

Worksite wellness initiatives help workers develop healthier lifestyles.

(n = 400)

26%

13%

10%

2%

2%

3%

48%

36%

25%

20%

14%

13%

5%

21%

44%

47%

59%

61%

53%

56%

5%

7%

17%

19%

23%

31%

40%

Strongly Disagree Somewhat Disagree Somewhat Agree Strongly Agree

Note: n = 396 – 403. Percentages may not equal 100% due to rounding.


19

Does your organization have a worksite wellness initiative?

No45%Yes

55%

n = 406


20



100 to 499 employees (52%)

500 to 2,499 employees (63%)

2,500 to 24,999 employees (80%)

25,000 or more employees (90%)

> 1 to 99 employees (27%)

2,500 to 24,999 employees (80%)

25,000 or more employees (90%)> 100 to 499 employees (52%)


• Organizations with 100 or more employees are more likely than organizations with 1 to 99 employees to offer worksite wellness initiatives in their organization.

• Organizations with 2,500 or more employees are more likely than organizations with 100 to 499 employees to offer worksite wellness initiatives in their organization.



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• Publicly owned for-profit organizations are more likely than privately owned for-profit and nonprofit organizations to offer worksite wellness initiatives in their organization.

• Government agencies are more likely than privately owned for-profit and nonprofit organizations to offer worksite wellness initiatives in their organization.



Nonprofit (53%)

Government (83%) >Privately owned for-profit (45%)

Nonprofit (53%)



22

Approximately what percentage of your organization’s operating budget would you say is spent on worksite wellness initiatives that are separate from health insurance coverage?

20% or more

10 - 19%

Less than 10%

0%

3%

12%

76%

9%

Note: n = 168. Only respondents whose organizations offer wellness initiatives were asked this question.


23

How many years ago was your organization’s worksite wellness initiative first created?

5 or more years

4 years

3 years

2 years

1 year

Less than 1 year

44%

10%

11%

18%

17%

0%



24

To the best of your knowledge, what are your organization’s reasons for offering a worksite wellness initiative?

Other

To reduce employee turnover rates

Worksite wellness initiatives were part of the existing health plan

Was requested by employees

To attract and recruit employees

To reduce the costs associated with disability claims

To reduce employee absenteeism

To improve employee morale

To improve employee productivity

To reduce employee health care costs

To improve the overall health of employees

3%

16%

16%

17%

26%

34%

49%

52%

53%

85%

92%

Note: n = 225. Percentages do not equal 100% due to multiple response options. Only respondents whose organizations offer wellness initiatives were asked this question.


25

To the best of your knowledge, what are your organization’s reasons for offering a worksite wellness initiative?




• Nonprofit organizations and government agencies are more likely than privately owned for-profit organizations to indicate requested by employees as a reason to offer worksite wellness initiatives in their organization.


Nonprofit (28%)

Government (32%)> Privately owned for-profit (7%)



indicate reducing health care costs as a reason to offer worksite wellness initiatives in their organization.


26

Do employees who participate in the worksite wellness initiative receive a financial incentive?

No50%

Yes50%



27

How interested is your organization in expanding or improving your current worksite wellness initiative in the next one to three years?

Not interested at all

Not very interested

Somewhat interested

Very interested

4%

12%

45%

40%

Note: n = 223. Percentages do not equal 100% due to rounding. Only respondents whose organizations offer wellness initiatives were asked this question.


28

How beneficial do you think employees find your organization’s worksite wellness initiative to be?


Not very beneficial

Somewhat beneficial

Very beneficial

2%

8%

76%

15%



29

How beneficial do you think employees find your organization’s worksite wellness initiative to be?


500 to 499 employees (24%) > 100 to 499 employees (5%)


Comparisons by organization staff size• Organizations with 500 to 2,499 employees are more likely than organizations with 100 to 499 employees to

indicate that their employees find their organization’s worksite wellness initiatives to be very beneficial.


30

How interested is your organization in developing a worksite wellness initiative in the next one to three years?

Not interested at all

Not very interested

Somewhat interested

Very interested

10%

21%

42%

27%

Note: n = 179. Only respondents whose organizations do not offer wellness initiatives were asked this question.


31

How interested is your organization in developing a worksite wellness initiative in the next one to three years?




Comparisons by organization staff size• Organizations with 1 to 99 employees are more likely than organizations with 100 to 499 employees to indicate

they are not interested at all in developing a worksite wellness initiative in the next one to three years.


32

How beneficial would your employees find a worksite wellness initiative if your organization created one?


Not very beneficial

Somewhat beneficial

Very beneficial

2%

15%

65%

18%

Note: n = 178. Only respondents whose organizations do not offer wellness initiatives were asked this question.


33

Based on your experience, do you think that worksite wellness initiatives were effective in . . .

Reducing worker absenteeism at your organization? (n = 221)

Reducing your organization's health care costs? (n = 222)

Improving worker productivity at your organization? (n = 221)

47%

52%

52%

Note: n = 221 - 222. Only respondents whose organizations offer wellness initiatives were asked this question. Data shown reflect “yes” responses.


34

Business Strategy


35

My organization would be interested in creating or expanding a worksite wellness initiative if:

There was a community initiative that recognized employers with healthy workplaces. (n = 400)

My employees actively requested such an initiative. (n = 400)

It would help attract and retain talented employees. (n = 400)

The state and federal government provided tax incentives for these initiatives. (n = 397)

We could demonstrate a financial return on investment for these initiatives. (n = 402)

Health plans offered premium discounts or rebates for these initiatives. (n = 402)

7%

7%

3%

7%

1%

3%

25%

19%

14%

12%

8%

6%

46%

40%

45%

36%

37%

35%

22%

35%

40%

44%

54%

56%

Strongly Disagree Somewhat Disagree Somewhat Agree Strongly Agree



36




500 to 2,499 employees (20%) > 2,500 to 24,999 employees (4%)


• Organizations with 2,500 to 24,999 employees are more likely than organizations with 1 to 99 employees to “strongly agree” in creating or expanding a worksite wellness initiative if financial return on these initiatives could be demonstrated.


• Organizations with 500 to 2,499 employees are more likely than organizations with 2,500 to 24,999 employees to “somewhat disagree” that creating or expanding a worksite wellness initiative would help attract and retain talented employees.


37



• Government agencies are more likely than privately owned for-profit organizations to “somewhat agree” in creating or expanding a worksite wellness initiative if employees actively requested such an initiative.


Government (60%) > Privately owned for-profit (33%)

Government (28%) > Publicly owned for-profit (5%)


• Government agencies are more likely than publicly owned for-profit organizations to “somewhat disagree” in creating or expanding a worksite wellness initiative if state and federal government provided tax incentives for these initiatives.


38

Does your organization track the return on investment (ROI) of its worksite wellness initiatives?

No

Yes

58%

42%



39

Does your organization track the return on investment (ROI) of its worksite wellness initiatives?



2,500 to 24,999 employees (60%)

25,000 or more employees (68%)

> 100 to 499 employees (16%)

Comparisons by organization staff size• Organizations with 500 or more employees are more likely than organizations with 100 to 499 employees to

track the return on investment (ROI) of its worksite wellness initiatives.


• Publicly owned for-profit organizations are more likely than privately owned for-profit and nonprofit organizations to track the return on investment (ROI) of its worksite wellness initiatives.



Nonprofit (29%)



40

How important is it to your organization to have a measureable ROI (return on investment) one to three years from now in order to determine the value of worksite wellness initiatives?

Not important at all

Not very important

Somewhat important

Very important

1%

14%

43%

41%



41

How important is it to your organization to have a measureable ROI (return on investment) one to three years from now in order to determine the value of worksite wellness initiatives?



2,500 to 24,999 employees (50%)> 100 to 499 employees (25%)


• Organizations with 500 to 24,999 employees are more likely than organizations with 100 to 499 employees to indicate having a measurable return on investment (ROI) one to three years from now in order to determine the value of its worksite wellness initiatives as “very important.”



42

Implementation Issues


43

Regardless of whether you have a worksite wellness initiative at your organization or not, what are some of the reasons why organizations like yours often decide not to offer a worksite wellness initiative?

Percentage

Cost of the initiative (n = 392) 65%

Lack of employee interest/expected low levels of participation (n = 392) 59%

Lack of time (n = 392) 54%

Management does not see the value of it (n = 392) 45%

Employees do not see the value of it (n = 392) 42%

Lacking expertise/staff (n = 392) 39%

Lack of information/resources about how to develop and maintain an initiative (n = 392)

36%

Lack of facilities (n = 392) 35%

Unable to find someone who will champion the initiative (n = 392) 34%

Organization is too small (n = 391) 28%

Would not reduce health insurance costs (n = 392) 26%

High employee turnover (n = 392) 11%

Other (n = 391) 3%

Note: Percentages do not equal 100% due to multiple response options.


44





• Organizations with 100 to 499 employees are more likely than organizations with 1 to 99 employees to not offer a worksite wellness initiative due to the cost of the initiative.



500 to 2,499 employees (61%) > 1 to 99 employees (35%)

• Organizations with 500 to 2,499 employees are more likely than organizations with 1 to 99 employees to not offer a worksite wellness initiative because management does not see the value of it.


500 to 2,499 employees (63%) > 25,000 or more employees (29%)

• Organizations with 500 to 2,499 employees are more likely than organizations with 25,000 or more employees to not offer a worksite wellness initiative due to lack of time.


45


Comparisons by organization staff size (continued)



1 to 99 employees (48%) >


500 to 2,499 employees (22%)

2,500 to 24,999 employees (14%)

• Organizations with 1 to 99 employees are more likely than organizations with 100 to 24,999 employees to not offer a worksite wellness initiative because the organization is too small.


• Nonprofit organizations are more likely than publicly owned for-profit organizations to not offer a worksite wellness initiative due to lack of time.


Nonprofit (66%) > Publicly owned for-profit (43%)


46

Which of the following would you consider to be trusted and valued sources of information about creating or expanding a worksite wellness initiative for your organization?

Percentage

Business peers or fellow human resource managers 58%

Health care service providers 55%

Worksite wellness vendors and consultants 54%

Health care insurers 48%

State and local health departments 39%

Nonprofit health organizations 37%

Online resources 34%

Business organizations and trade associations 26%

Other 1%

Note: n = 394. Percentages do not equal 100% due to multiple response options.


47

Which of the following would you consider to be trusted and valued sources of information about creating or expanding a worksite wellness initiative for your organization?





500 to 2,499 employees (66%)> 1 to 99 employees (41%)

• Organizations with 100 to 2,499 employees are more likely than organizations with 1 to 99 employees to consider worksite wellness vendors and consultants as trusted and valued sources of information when creating or expanding a worksite wellness initiative.


• Nonprofit organizations are more likely than publicly owned for-profit or privately owned for-profit organizations to consider nonprofit health organizations as trusted and valued sources of information when creating or expanding a worksite wellness initiative.


Nonprofit (52%) >Publicly owned for-profit (32%)

Privately owned for-profit (32%)


48

If there was a network in your community for business leaders to learn about issues related to worksite wellness initiatives and to share information, how likely is it that someone from your organization would join this network?

Very unlikely

Somewhat unlikely

Somewhat likely

Very likely

7%

19%

45%

29%

n = 393


49

Role of Government


50

In your professional opinion, which one of the following best describes how your organization views the government’s involvement in worksite wellness initiatives for companies like yours?

The government should be more active in helping create and expand worksite wellness initiatives

The government should be less active in helping create and expand worksite wellness initiatives

The government should not really change its level of involvement in helping create and expand worksite wellness initiatives

39%

20%

40%

47%

15%

38%

State and Local Government (n = 392) Federal Government (n = 388)



51

Demographics


Demographics

Approximately what percentage of your regular full- and part-time employees are covered under some type of health care plan offered by your organization?

Mean 78%

Median 80%

Note: n = 356. Only respondents whose organizations offer health care plans were asked this question.

52

Approximately what percentage of your regular full- and part-time employees have access to your worksite wellness initiatives?

Mean 93%

Median 100%


How many years has your organization been in operation?

Mean 54

Median 35

n = 386

In what region is your organization located?

Midwest 34%

South 32%

West 19%

Northeast 15%

n = 406


53

Approximately what percentage of your regular full- and part-time employees are covered under some type of health care plan offered by your organization?



• Regular full- and part-time employees at publicly owned for-profit organizations are more likely than those at nonprofit organizations to be covered under some type of health care plan offered by their organization.


Publicly owned for-profit (mean – 83%) > Nonprofit (mean – 73%)


Demographics: Organization Industry

54


Percentage

Professional, scientific and technical services 17%

Manufacturing 14%

Health care and social assistance 13%

Finance and insurance 8%

Education 6%

Transportation/communication/utilities 5%

Religious, grant-making, civic professional and similar organizations 4%

Retail trade 4%

Accommodation and food services 3%

Administrative and support and waste management and remediation services 3%

Information 3%

Public administration 3%


Demographics: Organization Industry (continued)

55

Percentage

Transportation and warehousing 3%

Arts, entertainment and recreation 2%

Educational services 2%

Real estate, renting and leasing 2%

Agriculture, forestry, fishing and hunting 1%

Construction 1%

Mining 1%

Repair and maintenance 1%

Wholesale trade 1%

Other 1%



Demographics: Organization Sector

Government agency

Publicly owned for-profit

Nonprofit organization

Privately owned for-profit

7%

19%

21%

52%

56

Note: n = 406. Percentages do not equal 100% due to rounding.


Demographics: Organization Staff Size

25,000 or more employees

2,500 to 24,999 employees

500 to 2,499 employees

100 to 499 employees

1 to 99 employees

7%

20%

15%

31%

28%

57

Note: n = 406. Percentages do not equal 100% due to rounding.


Demographics: Other

Does your organization have U.S.-based operations (business units) only, or does it operate multinationally?

U.S.-based operations only 72%

Multinational operations 28%

n = 406

58

Is your organization a single-unit organization or a multi-unit organization?

Single-unit organization: an organization in which the location and the organization are one and the same

36%

Multi-unit organization: an organization that has more than one location

64%

n = 406

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or by both?

Multi-unit headquarters determines HR policies and practices

52%

Each work location determines HR policies and practices

5%

A combination of both the work location and the multi-unit headquarters determines HR policies and practices

43%

n = 279

What is the HR department/function for which responded throughout this survey?

Corporate (companywide) 67%

Business unit/division 15%

Facility/location 18%

n = 279


Survey Methodology

SHRM Survey Findings: Workplace Wellness Initiatives

In collaboration with and commissioned by Alliance for a Healthier Minnesota

• Response rate = 14%

• 406 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey

• Margin of error +/- 5%

• Survey fielded: June 14 – July 13, 2012

Workplace Wellness Initiatives ©SHRM 2012In collaboration with and commissioned by Alliance for a Healthier

Minnesota59

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