SURVEY ON EMPLOYER WELLNESS PROGRAMS AMONG SMALL- AND MID-SIZE COMPANIES
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1 SURVEY ON EMPLOYER WELLNESS PROGRAMS AMONG SMALL- AND MID-SIZE COMPANIES Conducted by Healthy Weight Commitment Foundation for YourWellnessAdvantage, a workplace wellness resource for small- and mid-size companies 2011 Healthy Weight Commitment Foundation
2 METHODOLOGY This report presents the findings of an online survey of employee benefits decision-makers conducted on behalf of Your Wellness Advantage, a workplace wellness information website operated by the Healthy Weight Commitment Foundation. The study fielded from January 3-19, A total of 624 employee benefits professionals participated in the survey. Study participants were selected from among the members of ResearchNow s leading online research panel. To qualify for the survey, respondents had to work for companies that have between 10 and 2,499 benefits-eligible employees and were required to play an active role in making decisions about the health and wellness benefits their company offers to employees. In fielding the survey, initial quotas were established to ensure a specific number of respondents in each of five groups by company size 150 in the 100 to 249 employee range, 150 in the 250 to 499 range, 100 in the 500 to 999 range, and 100 in the 1,000 to 2,499 range. A supplementary sample of 100 employers in the 10 to 99 employee range was then added to use for comparison in the analysis. For this report, the employers with 100 to 2,499 employees will be called mid-to-large sized companies and those with 10 to 99 employees will be called small companies. The survey data were weighted to more accurately reflect the makeup of companies by size in the U.S. The statistics used for weighting were based on the Census Bureau s 2007 County Business Patterns and 2007 Economic Census. A detailed description of the weighting methodology is available upon request. Throughout this report, numbers may not total to 100% due to rounding and/or missing categories. Because the sample is based on those who initially self-selected for participation in the panel rather than a probability sample, no estimates of sampling error can be calculated. An asterisk in the graphics means the difference between the two size categories of employers would be statistically significant (at the 95% confidence level) if the sample were a probability sample. Following is a summary of key findings and a detailed description of the survey results. 1
3 KEY FINDINGS Overall, six in ten mid-to large employers companies with 100 to 2,499 employees report having a wellness program. The incidence of these programs increases with company size, ranging from just 28% among small companies with 10 to 99 employees to 78% among the survey s largest employers (1,000 and 2,499 employees). Three in four benefits decision-makers at mid-to-large companies say their employer feels a sense of responsibility for employees emotional and physical well-being, and an equal proportion believe that their company demonstrates that it cares about employees wellness. Interestingly, many employers who do not have a wellness program six out of ten claim they too demonstrate they care about wellness. Employers who do not have wellness programs cite a variety of obstacles, including not having the appropriate staff, lacking an adequate budget, and lack of buy-in from senior management. The belief that wellness programs do not generate sufficient ROI is a more top of mind barrier for mid-to-large companies than for smaller companies. However, mid-to-large employers are also more likely to indicate that they do not have clear metrics for wellness program success. Mid-to-large companies offer an average of seven of the ten wellness program components examined in the survey. The largest companies, those with 1,000 to 2,499 employees, tend to offer more. The most common program component, among both small and mid-to-large employers, is a fitness offering. Among mid-to-large employers, the next most common offerings are preventative health measures specifically flu shots and screenings. For small companies, weight loss and smoking cessation programs round out the three most prevalent offerings. Many employers are still developing their programs. Of the mid-to-large companies that have a wellness program, half describe it as currently being implemented. Small employers are even more inclined to describe their programs as works in progress. Further, one out of three of those who have a program plan to expand it in the next three years. Three out of five mid-to-large employers who do not already have a wellness program plan to implement one in the near future. Both small and mid-to-large employers appear open to new ideas on how to fund, structure, and generally improve their wellness programs. Grants to help pay for wellness initiatives elicit a great deal of interest, and about three-quarters of benefits decision-makers would be interested in an online resource that could help them locate wellness services nearby. More than three out of five mid-to-large employers are interested in wellness webinars hosted by Fortune 500 HR directors or in affiliating with other local businesses to build out program offerings. Large majorities of employers express an interest in offering running and walking clubs, or health counseling. 2
4 DETAILED FINDINGS Employers feel a sense of responsibility for employees well-being and believe they are showing they care. Still, not all believe they provide enough resources. Most benefits decision-makers with mid-to-large sized companies (100 to 2,499 employees) indicate their company feels a sense of responsibility for the physical and emotional well-being of their employees (76%), and a similar share believe that their company demonstrates that they care about the wellness of employees (78%). They are more likely than decision-makers in small companies (10 to 99 employees) to both feel this responsibility and believe they show it. Six in ten mid-to-large companies think their company provides enough resources and opportunities for their employees wellness (60%), but only four in ten small companies report feeling as if they do (41%). 3
5 Most employers feel familiar with workplace wellness programs, and sizable shares agree these programs have important business and HR benefits. Nearly all mid-to-large employers say they are familiar with wellness programs (93%), and eight in ten smaller employers do (83%). However the mid-to-large employers are far more likely to consider themselves very familiar with this workplace benefit (46% vs. 22%). More than eight in ten benefits decision-makers in mid-to-large companies believe that wellness programs result in quantifiable benefits such as reducing health insurance costs (84%), reducing absenteeism (85%), and increasing employee productivity (87%). Slightly fewer are sold on the idea that the benefits of wellness programs can exceed the program s cost (76%). Smaller company decision-makers hold similar beliefs, with roughly three-quarters agreeing that wellness programs result in each of those benefits. However, they are far less likely to strongly agree. 4
6 The prevalence of workplace wellness programs increases with company size. Six in ten mid-to-large employers (61%) say they already have a wellness program, including fully-implemented programs and those still in progress. Only half as many small employers have a wellness program (28%). The prevalence of wellness programs increases steadily with company size, reaching 51% among companies with 100 to 249 employees, 67% of those with 250 to 999 employees, and 78% of those with 1,000 to 2,499 employees. Likelihood of a company having a wellness program is clearly influenced by beliefs about the employer s role in promoting employees well-being and beliefs about what wellness programs can accomplish. Among mid-to-large companies, for example, benefits decision-makers who believe that wellness initiatives can produce enough benefits to 5
7 offset costs are twice as likely as those who do not hold this belief to report that their company has a program (70% vs. 32%). Many wellness programs are still a work in progress. As many mid-to-large employers indicate that their wellness programs are currently being implemented (32%) as say they are fully implemented (29%). Smaller employers also tend more to describe their programs as in progress (19%) rather than fully established (9%). Wellness programs appear to be relatively new to employers, regardless of company size. The majority of benefits decision-makers report their program has been in place for three years or less (80% of mid-to-large, 87% of small employers). 6
8 Employers rely largely on external providers to implement their programs, but it is also common to run programs in-house. Most companies employ wellness programs provided by their health insurer (83% of midto-large, 78% of small companies), but a majority also run programs in-house (69% and 60%, respectively). Half of mid-to-large employers also report using some other external provider (51%), but use of such organizations is less common among small employers (38%). Six in ten mid-to-large companies report using both external providers and in-house resources to implement their program (60%), 31% use only external providers, and 9% run their programs completely on their own. Among small employers, 41% use both internal and external resources, 40% use only external providers, and 20% have in-house only programs. Fitness and weight loss are among the most common wellness program offerings. Mid-to-large companies focus more on preventative health care. The survey asked employers whether they currently provide any of ten wellness program components, ranging from flu shots to nutrition management to stress reduction. Both mid-to-large employers and small employers offer seven program components, on 7
9 average. The largest employers, those with 1,000 to 2,499 employees, offer an average of eight. The most common program element, among both mid-to-large and small employers, is a fitness offering (87% and 90%, respectively). Next most common for the mid-to-large companies are flu shots and vaccinations (83%) and preventative screenings (82%). For small employers, weight loss (90%) and smoking cessation (85%) round out the top three most common program elements. Interestingly, small employers are more likely than the mid-to-large companies to report that their wellness program includes weight loss (90% vs. 76%) and responsible alcohol use programming (63% vs. 43%). Within the mid-to-large companies, the prevalence of some offerings increases with company size. Examples include weight loss offerings (from 69% of employers to 87% of 1,000-2,499 employers), nutrition management programs (63% to 83%), employee health assessments (75% to 84%), and health fairs (52% to 74%). Employers express a high level of interest in adding fitness-friendly wellness program offerings and in exploring new funding opportunities. 8
10 More than eight in ten mid-to-large employers who currently have a wellness program or plan to implement one in the near future say they would be at least somewhat interested in offering health and wellness counseling (85%) as a part of their overall wellness program. Three-quarters are interested in running or walking clubs (78%), and fewer, though still a majority, express an interest in offering employees incentives to participate in individual sports (61%). Mid-to-large employers are more inclined to be very interested in health counseling services (37% vs. 22% of small employers). Mid-to-large companies are more likely to suggest a wellness program is forthcoming, and some who already have a program report plans for expansion. Nearly two-thirds of mid-to-large employers who do not currently have a wellness program report that they are likely to implement one within the next three years (63% are at least somewhat likely). By comparison, fewer than half of small employers (44%) foresee implementing a new program in the near term. 9
11 Among mid-to-large employers who already have an established wellness program in place, about three in ten indicate that they have plans to expand within the next 12 months (31%). Employers with fully-implemented programs are satisfied with participation levels. A large majority of mid-to-large companies with fully implemented wellness programs are at least somewhat satisfied with their current participation levels (86%). This is true even though 49% say that fewer than half of their employees participate in the wellness program. About three-quarters of benefits decision-makers report that their companies offer incentives to promote employee participation in their wellness programs (76% of mid-tolarge employers, 74% of small employers). Employers without wellness programs most often point to personnel and budget insufficiencies as well as a lack of buy-in from senior management as obstacles. Mid-to-large companies with no wellness program indicate there are many major or minor reasons why their company has not established one. Roughly three-quarters say not having the staff to manage the program is a barrier (78%), they lack the budget (78%), or there is inadequate interest from senior management (76%). Seven in ten feel they do not have the expertise to develop program activities (71%) or that senior management does not feel the return on investment (ROI) is high enough (71%). Six in ten indicate that lack of employee interest is a barrier to initiating a wellness program (63%). Small companies report similar reasons for not establishing a wellness program, except that the perception of insufficient ROI is less common (54%). 10
12 11
13 Employers learn about wellness programs in a variety of ways. Yet, many are interested in discovering new resources. Literature from program providers is the most common source of information about workplace wellness programs for benefits decision-makers in mid-to-large companies (70%), followed by the internet (64%). Informal word of mouth and networking are also reported as an information source by 52%. Mid-to-large employers are significantly more likely than small employers to report using industry-specific sources of information, including literature from program providers (70% vs. 52%), conventions and seminars (41% vs. 17%), and industry magazines (37% vs. 12%). Relatively few benefits decision-makers report using advertisements or regular newspapers to educate themselves about wellness programs. 12
14 Employers were asked about several approaches to help them implement, expand, or improve their wellness programs. Not surprising, grants to help pay for a program elicit interest from a large majority (86% of mid-to-large employers and 80% of small employers). Only small proportions report they are currently aware of federal grants or subsidies available for wellness program initiatives (20% of mid-to-large employers, 16% of small employers). In line with their proclivity to search online for information, more than three out of four benefits decision-makers say they would be interested in an online resource that would help locate wellness services and programs near their business (79%, 75%). Six in ten mid-to-large companies indicate interest in webinars about wellness programs hosted by HR directors at Fortune 500 companies (64%) or affiliating with other businesses in their communities to build or expand wellness programs (62%). Interest in both of these programs rises in relation to company size; seven in ten of the largest companies those with 1,000 to 2,499 employees are interested in each (72% affiliating with businesses, 70% webinars). Small companies are far less likely to express interest in these webinars (just 42% are interested). 13
15 Employers of all sizes agree they have clear goals for what they want their wellness programs to accomplish, but measuring success has met with mixed results. Seven in ten benefits decision-makers, among both mid-to-large and small employers, strongly or somewhat agree that their company has clear goals for what their wellness program should achieve (69% and 71%, respectively). Small employers (77%), however, are significantly more likely to believe that their company has clear metrics to evaluate the success of their wellness programs than mid-to-large employers (52%). 14
16 PROFILE OF RESPONDENTS 15
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