Motivation Show Presentation Final20121005
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The Role and Impact of Rewards & Recognition Corporate Wellness Programs
description
I recently had the privilege to present wellness programs and the effects that rewards can have on your program.
Transcript of Motivation Show Presentation Final20121005
The Role and Impact of Rewards & Recognition Corporate Wellness Programs
Overview of Today’s Seminar
Poll Questions Benefits of a Worksite Wellness Program Employee Incentives in a Wellness
Program Health Care Costs in Today’s Workplace Ways to Fund a Program Employee Engagement ROI/Savings in a Wellness Program Creating/Implementing a Program How Do You Pick a Wellness Partner? Q&A
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Today’s Presenter
Michael Emoff President of Shumsky Enterprises and co-owner of Boost Rewards. Michael developed the concept for Boost Rewards in 2005 to utilize web technology to deliver effective employee recognition programs, including rewarding for wellness. Shumsky was awarded in 2011 and 2012 as Dayton’s Healthiest Employer. Bringing 30 years of industry experience, Michael is a recognized national expert in the field of employee recognition and rewards. He is on the Board of Trustees for the Miami Valley Hospital Foundation, the Board of Directors for the American Heart Associations of SW Ohio and Incoming Board Member for the local Alzheimer’s Association.
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Poll Question #1
Is your company administering an employee wellness program in 2012?
A. YesB. NoC. Considering
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Results
Yes No Considering0%
20%40%60%80%
100%
Is your company administering an employee wellness program in
2012?
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Source: Boost Rewards/HR.com poll, 2012
FACT
• Starbucks Coffee’s Chairman recently noted that his company spends $200 million per year on insurance for its employees--more than the company spends on coffee.
Source: Welcoa, 2009
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Benefits of a Wellness Program
Control Increasing Health Care Costs Ability to Easily Track Progress and Success Improve Productivity/Profitability – healthy workers
are 3x more productive than unhealthy workers Reduce Absenteeism – each day of absence is nearly 6
times reduced worker productivity per year Improve Presenteeism – productivity is reduced by 8
times when workers are distracted by illness Culture - Improve employee morale and retention.
Companies who care about their employees are perceived as a great place to work by prospective employees and the community. Workplace wellness programs send a clear message to employees that management values their well-being.
7Source: business.inquirer.net, September 2012
Employee Incentives
• Wellness programs have proven success when incentives are offered- Merchandise, travel, gift cards
• 4 out of 5 employees will participate in a program with rewards. Only 1 in 5 employees will participate in a program without rewards.
• Incentives improve employee performance within the program by an average of 22%
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Source: Incentive Research Foundation, 2011Incentive Marketing Association
Poll Question #2
How important is reducing health care costs to your company?
1 = not important at all2 = less than important
3 = important4 = moderately important5 = extremely important
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Results
Not At A
ll Importa
nt
Less
Than Im
portant
Importa
nt
Moderat
ely Im
portant
Extremely
Importa
nt0%
10%
20%
30%
40%
50%
How important is reducing healthcare costs to your company?
10Source: Boost Rewards/HR.com poll, 2012
United States spends more annually on health care than any other country in the world. 76% of employer’s health care costs are preventable.
Diet and Sedentary Lifestyle – U.S. employers are spending more than $13 billion annually on obese and overweight employees.
By 2030, up to 67% of adults are predicted to be obese The United States health care costs surpassed $2.6 trillion in 2010. Less than
5% is used toward chronic disease prevention. Typically, health insurance is the #2 expense for employers (after payroll)
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Health Care Costs
Source: The World Health Organization and the Kaiser Family FoundationDepartment of Health & Human Services
Health Care Costs per Employee
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Actual and Projected, 1965–2018
Source: U.S. Department of Health and Human Services, 2009a.
• You can receive government grants to create and implement a wellness program:• http://www.firstvitals.com/employers.aspx
• Programs can be divided into two categories: HIPAA compliant (measureable results) and non-HIPAA compliant (based on participation only, not results)
• Employees receive up to 20% off of insurance coverage
Ways to Fund A Program
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• Through your insurance provider:• Write a letter to your
company’s insurance broker for assistance
• Broker submits to insurance provider (United Healthcare, Anthem, etc.)
• Receive up to $300 per employee
Ways to Fund A Program
Poll Question #3
Do you believe offering a wellness program affects your company’s insurance premiums?
A. Not at all affects premiumsB. Slightly affects premiums
C. Moderately affects premiumsD. Significantly affects premiums
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Not at a
ll affects
Sligh
tly aff
ects
Moderat
ely aff
ects
Significa
ntly aff
ects0%
20%
40%
Do you believe offering a wellness program af-fects your company's insurance premiums?
Results
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Source: Boost Rewards/HR.com poll, 2012
Wellness Programs & Insurance Premiums
• Rising insurance premiums will not stop unless behaviors are controlled• GOOD NEWS: Almost all of the top health issues in US are preventable• Launch a successful wellness program and your annual renewal rates with
your insurance provider may decrease• A wellness program is typically only about 3% of an employer’s current
health care costs
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Proven Case Study
• Johnson & Johnson began its wellness program in 1979 and now saves an estimated $9 to $10 million annually.
• This company was studied for 5 years prior to program launch & four years after:• “A well-conceived health and wellness program that focuses on
prevention, self-care, risk factor reduction, and disease management can produce substantial benefits for employers and their employees.”
Source: Incentive Research Foundation, July 2011
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Poll Question #4
What is the biggest obstacle in achieving a successful program?
A. Limited Budget B. Employee EngagementC. Executive-level Support
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Limited Budget Employee Engagement
Executive-Level Support
0%10%20%30%40%50%60%70%
What is the biggest obstacle in achieving a successful program?
Results
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Source: Boost Rewards/HR.com poll, 2012
Employee Engagement
• 58% of companies state the biggest obstacle is lack of employee engagement, which leads to low participation
• Where incentives were offered, participation grew from 26% to 90%
Source: Incentive Marketing AssociationLong term study by Johnson & Johnson
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ROI and Savings in Wellness Programs
THE NUMBERS: On average, takes 18 months to see an improvement to the bottom line Higher participation and longer time period yields a higher ROI Risk – many employers contribute too little and expect too much Ideal investment per participant $100-$300 On average, a $1 investment yields $3 in savings Remember: It is more effective to reward for healthy behaviors vs.
punishing for unhealthy behaviors
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Sources:Dr. Ron Goetzel, Directory of Emory University Institute for Health and Productivity StudiesUnited States Department of Health & Human ServicesWellnessproposals.com
Example – Typical Client
• Points-based incentive program with Executive-level support
• 290 employees• $25,000 investment for Year 1• After Year 1, ROI is $180,000
based on claim savings• Participation doubled
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Investment Savings$0
$50,000
$100,000
$150,000
$200,000
Year 1
7 Steps to Implement a Wellness Program
1. Obtain Senior Management Buy-In2. Create a Wellness Team3. Collect Data and Assess for Focus
(HRAs, Surveys, etc.)4. Draft an Annual Operating Plan
• Establish a Budget, Find a Wellness Platform, Set Award Reasons & Incentive Levels, Establish Goal – Education/Activity/Results Oriented
5. Choose Appropriate Health Initiatives• Activity (walking program), Education, Results
6. Ongoing & Supportive Environment7. Track Progress and Evaluate Results
• Report progress to your insurance broker
• GOAL: Engaged employees23
What can you do to implement change?
• Write your Representativehttps://writerep.house.gov/writerep/welcome.shtml
• Raise Awareness• Educate your employees and communicate in a
positive manner• Start or re-launch your company’s wellness program!
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How do you pick a wellness partner?
Beneficial wellness partners will offer:• A solution based on your company size• Easy implementation process• Incentives to the participants• Marketing efforts to ensure strong
program communication• Data management• Comprehensive tracking and reporting• Relieve your burden and let them do
the work for you!
