May 2011 Archives
In a survey on the Psychologically Healthy Workplace Program website, we asked, “Does your employee wellness program include financial incentives?”
Here are the results:
The most recent Art & Science of Health Promotion Conference looked at the use of financial incentives in more depth. Many companies, according to Dr. Ron Goetzel, a leading researcher at Emory University and Thompson-Reuters, have used financial incentives to increase participation within their wellness programs, with some very mixed results.
Some companies have used significant financial incentives, in the form of reduced health insurance premiums, or payment for memberships in fitness clubs. If the incentives are high enough, employees participate at higher rates in completion of health risk assessments and they are more likely to sign up for fitness activities or classes offered as part of the wellness program.
The problem that many of these companies have encountered is that higher rates of participation have not always led to behavior change. Participation rates are high only as long as the financial incentives are offered. If they are withdrawn, so that the employees may engage in wellness programs for intrinsic reasons rather than to get a financial reward, the participation rates plummet.
There is also a trend that many of the companies are noticing. If the financial incentives do not continue to increase, year to year, the participation rates are trending down. To be fair, these companies are still seeing a return on investment of approximately 3:1.
Other companies that do not offer large financial incentives are frustrated that modest financial incentives do not appear to be effective in increasing participation. Jill Young, MS, the Wellness Coordinator for the University of Montana discovered that small to modest financial incentives did not produce a positive return for their wellness program. It was only when the incentives were high that they were able to produce a positive return on investment.
This leaves us with some important questions. Do financial incentives work to promote wellness in the workplace? Can they be sustained over time? What is the tipping point for companies to experience positive benefits from investment in wellness? What are the conditions that are necessary to move a wellness program from a motivational system that is based on rewards to one that is more intrinsically motivated?
Our survey hints at difficulties associated with getting people to be motivated to improve their health and be able to live their lives with more energy and engagement. Providing financial incentives to engage in wellness programming has had some positive results, but there is more work to be done to understand the psychology of health and wellness.
Couldn't make it to our 2011 Psychologically Healthy Workplace Conference in Chicago? Never fear, a little bird told us there was a lot of event coverage on Twitter. We've aggregated the postings from the first day of the event, below. Stay tuned for tweets from day two, as well as other goodies, including interviews, photos from the conference and more.
#PHWC begins today. Larry Chapman leads the pre-conference session on how to build a wellness-focused workplace culture. #worklife
Healthy Workplace
PHWP_online
Larry Chapman doing a pre-conference session on creating a #wellness oriented work #culture #PHWC
Dr. David Ballard
DrDavidBallard
At #phwc pre-
conference workshop focus on creating wellness focused work culture
Matt Grawitch
DocGrawitch
Great
news for small businesses -- you can also have wellness-focused culture, just like the large organizations, says
Chapman #phwcHealthy Workplace
PHWP_online
Challenges facing businesses: aging workforce, fundamental changes, globalization, economic
uncertainty, health-related costs #phwcHealthy Workplace
PHWP_online
Companies need to get economics of business and their concern of employees in balance, says
Chapman #phwc
Angel Brownawell
brownawell
To
get management on board with wellness, it cannot focus on only betterment of employees. Must also have economic
benefit - Chapman #phwcHealthy Workplace
PHWP_online
8
wellness culture domains: communication, incentives, policy, leadership, infrastructure, environment, normative,
evaluation. #phwcMatt Grawitch
DocGrawitch
Need
congruence between formal policies, informal policies, and actual practices. #phwcMatt Grawitch
DocGrawitch
Policies, practices, norms and values, phys. environ, function of the org, external environ,
interactions all contribute 2work culture #phwcMatt Grawitch
DocGrawitch
Avg.
cost of employee's health in 2010 - $34,918. Includes health plan, sick leave, workers comp, presenteeism,
disability #phwcHealthy Workplace
PHWP_online
Presenteeism -- Productivity lost at work bc of a health condition, even minor ones like
indigestion, sore throats, etc. #phwcHealthy Workplace
PHWP_online
Presenteeism accounts for more than half of that cost #phwcMatt Grawitch
DocGrawitch
Regarding presenteeism, says Chapman, "Workforces will be more productive by addressing underlying
health problems" #phwcHealthy Workplace
PHWP_online
"This
is enhancement of human capital. Wellness is one of the best platforms to put together everything we do in
workplace." Chapman #phwcHealthy Workplace
PHWP_online
Chapman recommends Health Research Center (@umhmrc) for studies to help get buy-in from management http://ow.ly/4w67D #phwcHealthy Workplace
PHWP_online
Chapman - wellness is intentional lifestyle characterized by personal responsibility, moderation,
max personal enhancement of health. #phwcHealthy Workplace
PHWP_online
#MentalHealth cannot be ignored. Depression, chronic stress have higher employee health costs
than obesity, smoking, high cholesterol. #phwcHealthy Workplace
PHWP_online
Workplace wellness program - organized workplace program that assists employees in making
voluntary behaviors changes ... (cont) #phwcHealthy Workplace
PHWP_online
(cont) behavior changes that reduce health and injury risks, improve health consumer skills and enhance their
personal productivity #phwcHealthy Workplace
PHWP_online
Identy health needs, intervene in the 8 domains, assess intrrmediate effects, assess long-term
effects #phwcMatt Grawitch
DocGrawitch
Needs
relate to health risks, injury rates, chronic illness, disabilities, absenteeism, medical costs, and presenteeism.
#phwcMatt Grawitch
DocGrawitch
Use
employee biometrics, as well as questions ("Does wellness program help you be more productive") to measure impact
#phwcHealthy Workplace
PHWP_online
Benefits of workplace programs for employers: improve employee health; reduce sick leave, cost of
health benefits, workers' comp #phwcHealthy Workplace
PHWP_online
Intangible benefits: improve employee morale, loyalty, decision-making, productivity,
recruitment/retention, competitiveness #phwcHealthy Workplace
PHWP_online
Wellness focused culture is critical to effective wellness program. #phwcMatt Grawitch
DocGrawitch
The
best-designed wellness program won't do much good if you're not using effective communication to reach, inspire
employees. #phwcAngel Brownawell
brownawell
Component of wellness culture: communication. Distribute info and promotion through vehicles that
will provide greatest reach. #phwcHealthy Workplace
PHWP_online
Wellness communication needs to be timely, repetitive and have a call-to-action. "What do you want
people to do?" #phwcHealthy Workplace
PHWP_online
Also
to consider with wellness communication, make sure it can reach the family, not just the employee. #phwcHealthy Workplace
PHWP_online
"Most
employers have not done a very good job at telling employees WHY this (wellness program) is good for them." -
Chapman #phwcHealthy Workplace
PHWP_online
Chapman recommends incentive that reduces an employee's health care premium. Builds connection
between wellness-health costs #phwcHealthy Workplace
PHWP_online
When
you have a high enough employee participation (like at LLBean where > 90%), it creates cultural phenomenon in
workplace. #phwcHealthy Workplace
PHWP_online
Include wellness program as part of employee policies: HR, health benefits, etc. Also, include
family involvement. #phwcHealthy Workplace
PHWP_online
"You
never know when spouse will be on the employees' health plan," says Chapman. Also, program can be family-
strengthening. #phwcHealthy Workplace
PHWP_online
Consider the workplace environment to promote wellness: What food options are at meetings? Can you
set up a walking course? #phwcHealthy Workplace
PHWP_online
#PWHC starts
soon with opening remarks by @DrDavidBallard, followed by the general session, "What's Next in Flex" #phwcHealthy Workplace
PHWP_online
.@DrDavidBallard will be
talking about "Positioning Your Organization for Success in the Economic Recovery" #phwcHealthy Workplace
PHWP_online
Despite economic recovery and return to growth, not many benefits, money has trickled down to
employees, Ballard says. #phwcHealthy Workplace
PHWP_online
Recent workplace survey from APA found many employees unhappy, stressed and will consider seeking
new jobs soon. http://ow.ly/4wjjk #phwcHealthy Workplace
PHWP_online
What's a psychologically healthy workplace? Uses organizational best practices to improve employee
well-being, organizational function #phwcHealthy Workplace
PHWP_online
Psychologically healthy workplace practices-- there are five: See them here: http://ow.ly/4wjqV #phwcHealthy Workplace
PHWP_online
Employees in psychologically health workplaces have less stress, lower turnover, as reported by
winners of PHWP awards program. #phwcHealthy Workplace
PHWP_online
Organizations with psych. healthy workplaces have comprehensive plans, custom tailor programs and
ongoing evaluations. #phwcHealthy Workplace
PHWP_online
Employee well-being is sometimes built into mission statement; senior managers are also involved,
"walking the talk." #phwcHealthy Workplace
PHWP_online
.@DrDavidBallard explaining
criteria, selection of Psychologically Healthy Workplace Awards. Info here: http://ow.ly/4wjLP #phwcHealthy Workplace
PHWP_online
National-level PHWA given to nonprofits, corporations, govt agencies, large and small -- shows ANY
ORG can put practices into place. #phwcHealthy Workplace
PHWP_online
Ballard - We are poised right now to make a big difference in the workplace for many years to
come. #phwcHealthy Workplace
PHWP_online
Opening session of #phwcMatt Grawitch
DocGrawitch
@drdavidballard delivered
opening comments. Some companies understand importance of psychological health. Others just don't get it. #phwcMatt Grawitch
DocGrawitch
Psychologically healthy workplace is about optimizing stakeholder value rather than maximizing
shareholdet returns #phwcMatt Grawitch
DocGrawitch
Next
session: what's next in flex? #phwcMatt Grawitch
DocGrawitch
General session on workplace flexibility to be led by Jennifer Sabatini Fraone (@bccwf) and Kyra Cavanaugh (@lifemeetswork). #phwcHealthy Workplace
PHWP_online
Up
next: "What's Next in Flex: Trends in Research and Implementation" by J. Fraone of @bccwf and K. Cavanaugh of @LifeMeetsWork #phwcHealthy Workplace
PHWP_online
Today
at Psychologically Healthy Workplace Conference in Chicago: What's Next in Flex with @lifemeetswork @sabatinj http://j.mp/1YZxUw
BC CtrforWork&Family
BCCWF
Fraone: What is flexibility – involves flexible times and flexible places, and also career
flexibility #phwcHealthy Workplace
PHWP_online
2
dimensions of flexibility: time and place. Not about working less #phwcMatt Grawitch
DocGrawitch
World
of work is changing. For ex, no longer a primary breadwinner in household, but workplace hasn't adapted to these
changes. #phwcHealthy Workplace
PHWP_online
What's happening now in flex: More people willing to discuss it (like White House), HR more
willing to add flex to orgs. #phwcHealthy Workplace
PHWP_online
There's a business case for flex. Helps with retention, recruitment. But also significant economic
benefit of savings. #phwcHealthy Workplace
PHWP_online
Stronger culture of flexibility negatively correlated with voluntary turnover. #phwcMatt Grawitch
DocGrawitch
Work
flexibility improves attraction&retention; can also improve productivity& decrease costs of commuting real estate &
energy consumptionMatt Grawitch
DocGrawitch
What's next in flex: More attention given to men. This is no longer a "mommy" issue, as its been
considered in past. #phwcHealthy Workplace
PHWP_online
People w/out children need flex too! RT @phwp_online: Flextime This is no longer a "mommy" issue,
as it's been considered in past. #phwcAngel Brownawell
brownawell
Men
want to be more than breadwinners, want to be more involved in kids' lives, says Recent study from @BCCWF #phwcHealthy Workplace
PHWP_online
"Listen to the men in your organization. Don't assume this is a women's issue or a mommy issue,"
says Fraone. #phwcHealthy Workplace
PHWP_online
Work
-life issues are an everyone issue, not just a mommy issue. #phwcMatt Grawitch
DocGrawitch
Also,
millennials expect flextime. No flex="no thanks!"Healthy Workplace
PHWP_online
Millenial workers will demand flexibility. Plus, boomers have aging parents to take care of making
flex critical for them too. #phwcMatt Grawitch
DocGrawitch
Aging
workforce can benefit from flex as retirement age increases and more workers become caregivers #phwcHealthy Workplace
PHWP_online
Technology availability means more possible remote work, which means business continuity during
bad weather, disasters, etc. #phwcHealthy Workplace
PHWP_online
Flex
is also strategic because global environment requires agility, Fraone says. #phwcHealthy Workplace
PHWP_online
Flexibility can make your business more agile especially in a global marketplace. #phwcMatt Grawitch
DocGrawitch
Flex
workplaces benefit with lower health care costs. Employees have lower stress, better physical health, #mentalhealth #phwcHealthy Workplace
PHWP_online
Organizations must do more than offer flexible programs; they must have an established flexible
culture, says Cavanaugh #phwcHealthy Workplace
PHWP_online
Four
levels of flex: nonexistent, informal, strategic, and deeply embedded. #phwcMatt Grawitch
DocGrawitch
Cavanaugh presenting 7 challenges to a flexible work culture. Challenge #1 - Manager
atttiudes.Healthy Workplace
PHWP_online
Manager attitudes are a challenge to flex. #phwcMatt Grawitch
DocGrawitch
Attitudes abt work still stuck in industrial revolution, but we're now in largely a service
industry. Manager mindset holds back flex #phwcHealthy Workplace
PHWP_online
Solution: Train the managers. Break the cycle so they can embrace new way of working. Encourage
managers to talk about discomfort. #phwcHealthy Workplace
PHWP_online
Challenge #2 to flex: Senior leaders like the status quo. #phwcHealthy Workplace
PHWP_online
Another challenge to flex. Senior leaders like the status quo. #phwcMatt Grawitch
DocGrawitch
Solution: Restate the business case to senior leaders; demonstrate lowered costs by adding
flex.Healthy Workplace
PHWP_online
Challenge # 3: Perception that flex doesn't work for everyone.Healthy Workplace
PHWP_online
Flex
CAN work for everyone, but you have to get creative, Cavanaugh says. #phwcHealthy Workplace
PHWP_online
Third
challenge to flexibility. Flex won't work 4 everyone #phwc. Reality: there is flex for everyone it just doesn't look
exactly the same.Matt Grawitch
DocGrawitch
Solution: Customize flex by team. Let corp policies outline choices. Let managers customize flex
to fit needs of their dept, location. #phwcHealthy Workplace
PHWP_online
Challenge # 4: Idea that being on site, having face time means you're working! #phwcHealthy Workplace
PHWP_online
4th
challenge to flex: the need (real or perceived) of face time. #phwcMatt Grawitch
DocGrawitch
Solution to face time myth: Focus instead on employee performance. #phwcHealthy Workplace
PHWP_online
It's
OK to say no to flex, but tie it into productivity and performance. "No, but I'm concerned about .. and if I see
changes ..." #phwcHealthy Workplace
PHWP_online
Challenge # 5: Flex grows underground. Informal flex is a big threat to a psychologically healthy
workplace. #phwcHealthy Workplace
PHWP_online
Offering informal flex can give perception that it's OK for some people, while not OK for others.
#phwcHealthy Workplace
PHWP_online
Challeng #5: informal flexibility. Can create an environment of "haves" and "have nots" #phwcMatt Grawitch
DocGrawitch
Solution: Find positive experiences of flex and communicate them to help shift expectations about
flex.Healthy Workplace
PHWP_online
Challenge # 6: Not sure how to measure effectiveness of flex. How do we know if it's working?Healthy Workplace
PHWP_online
Challenge numero 6: can be difficult to know if flex intiativea are working. #phwcMatt Grawitch
DocGrawitch
Solution: Identify and track metrics to measure. Choose short-term and long-term metrics that
matter to dept and leadership. #PhwcHealthy Workplace
PHWP_online
Challenge # 7: Flex remains siloed in organizations.Healthy Workplace
PHWP_online
Unlucky number 7: flex remains siloed in many orgs. #phwcMatt Grawitch
DocGrawitch
Solution: Engage cross-functional flex teams. This influences multiple stakeholders, builds more
comprehensive case for flex. #phwcHealthy Workplace
PHWP_online
Thanks to Fraone and Cavanaugh for their presentation on flexible workplaces. Follow them at @BCCWF and @LifeMeetsWork #phwc #FFHealthy Workplace
PHWP_online
Happening now: "Exploring the Importance of Integration in Worksite Health Management" with Laura
Ellison of Motorola Solutions #phwcHealthy Workplace
PHWP_online
Many
types of health programs in the workplace: risk appraisals, health fairs, screenings, flu shots, incentive
programs, etc. #phwcHealthy Workplace
PHWP_online
Develop programs and plans to benefit everyone on the health risk spectrum (low-risk, at-risk,
injury, conditions, disability #phwcHealthy Workplace
PHWP_online
Starting point to creating health program, says Ellison, decide on your management business
philosophy for employees. #phwcHealthy Workplace
PHWP_online
Build
a health program, wellness plan that is a "business within a business" - Ellison #phwcHealthy Workplace
PHWP_online
Integration also needs measurement. For ex, physical activity (walking clubs, yoga) need to be
connected to business goals as well. #phwcHealthy Workplace
PHWP_online
Common program pitfalls: Emphasis doesn't match needs of employees. No common goal with vendors
and resources. Timing is off. #phwcHealthy Workplace
PHWP_online
That
concludes Day One of #PHWC. Conference continues at 8 am CST tomorrow. Thanks to our audience tuning in from
home.Healthy Workplace
PHWP_online
A recent global survey conducted by BlessingWhite attempted to identify drivers of retention and turnover.
The top three reasons people identified for staying with their current employer was:
- Liking the work they do: 30%
- Having development or advancement opportunities: 17%
- Believing in the organization’s mission: 11%
Conversely, the top three reasons people identified for leaving their employer was:
- Lacking opportunities for growth or advancement: 26%
- Disliking the work: 15%
- Wanting more money: 15%
Now, one conclusion you could draw from this is the same as the press release that BlessingWhite put out: Employees will stay for the work but leave for their career. I am not sure I agree with this conclusion, though, because I am always wary of sweeping generalizations when less than a majority of people completing a survey endorse a particular response.
I interpret their results a little bit differently. The results indicate a lack of agreement about what is the most important reason to stay or leave. Because, not a single reason was endorsed by half or even a third of respondents, there was a great deal of variation in responses.
Some of that variation was undoubtedly driven by generational differences and other variation was driven by the country in which the respondent worked, both of which BlessingWhite highlight in their report. However, some of the variation was also likely driven by the uniqueness of the person (e.g., differences in priorities, life situations).
The lack of consistency in responses means organizations should not simply take the results of this survey and design costly, companywide initiatives to improve the number of people who like what they do or increase the number of growth opportunities that exist within the organization.
Instead, the results highlight the need to figure out what drives retention and turnover in your own organization – because clearly there is likely to be some variability. It also means that to maximize the impact on employees, your intervention(s) must be multifaceted. Otherwise, you run the risk of only improving retention and turnover for a relatively small subset of workers.
Therefore, the results of this survey really emphasize the importance of tailoring retention initiatives to the unique characteristics of the organization and its workforce. Of course, to be able to do that, you will need a good needs assessment to provide valid, actionable data on which to design future initiatives.
Photo Credit http://www.flickr.com/photos/keepthebyte / CC BY-NC-SA 2.0
The Psychologically Healthy Workplace Program has a strong presence in Canada, with local programs in Alberta, British Columbia, Ontario, Manitoba and Nova Scotia. The Association of Psychologists of Nova Scotia recently announced its 2011 provincial-level awards. Check out the video, below, to learn more about the winners.
