Innovative Benefit Strategies: A Holistic Approach. Presented by: Donna Briggs, SPHR

Transcription

1 Innovative Benefit Strategies: A Holistic Approach Presented by: Donna Briggs, SPHR

2 Innovative Benefit Strategies: A Holistic Approach Learn ways to advance an organization s strategic goals, support the organization s mission and values, by enhancing employees physical, emotional and financial wellness through innovative benefit programs.

3 Learning Objectives Item 1 Item 2 Define physical, emotional and financial wellness Identify components of a comprehensive benefit program Item 3 Review current trends in benefit strategy Item 4 Item 5 Item 6 Connection between benefit education and employee satisfaction Correlation between benefit strategy and employee wellness Align benefit strategy with organization s overall strategic plan, goals and values

4 Wellness and Productivity Leading companies believe in identifying the root causes of health care cost increases and productivity erosion and are strengthening the link between health and employee effectiveness. The Health and Productivity Advantage. 2009/2010 North American Report. Watson Wyatt and National Business Group on Health.

5 Physical Wellness

6 Health & Wellness Health & Wellness Financial Health is a state of complete physical, mental, and social well-being and not merely the absence of disease of infirmity. - World Health Organization

7 Physical Wellness Physical Wellness is keeping your body functioning properly and in top condition to be able to perform daily activities and duties. Physical

8 Aspects of Physical Wellness Preventive Care Healthy Eating Habits Exercise/Physical Activity Caring for Minor Illnesses Seeking Medical Attention when needed Chronic Disease/Condition Management Medication Compliance Adequate Sleep

9 Emotional Wellness Emotional Wellness is the ability to handle emotions in a constructive way to enable you to enjoy life, meet life s challenges and be successful. Emotional

10 Aspects of Emotional Wellness Ability to constructively express emotions Positive self-esteem Satisfying relationships Self-awareness Optimism Manage stress Personal development Concern for humanity and the environment Seek meaning and purpose Contribute to society

11 Financial Wellness Financial Wellness is having an understanding of your financial situation and being prepared for financial changes. Financial

12 Aspects of Financial Wellness Seeks financial education Budget Debt management Savings to meet unexpected expenses Savings for desired items Retirement planning Insurance College savings Will, medical directive, power of attorney

13 Detriments to Wellness Stress Rapid social change Stressful work conditions Working long hours Unhealthy diet Sedentary lifestyle Smoking Alcohol Misuse/Abuse Insufficient sleep Lack of preventive care

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17 Job Stress Layoffs Restructuring Longer Hours Management Changes Hiring Freezes Minimal or No Salary Increases Hostile Work Environment Perceived Low Rewards Reduced Benefits Bad eating habits Lack of exercise Sleep loss Smoking Alcohol abuse/ misuse Illegal drug use Rx drug misuse High blood pressure Elevated cholesterol Heart Disease Loss of mental energy Burnout Depression Mind/body Health: Job Stress. American Psychological Association. August 23,

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19 Lack of Financial Security 9.1% U.S. Unemployment 6.1% Virginia Unemployment 27% increase in bankruptcy filings 2009 to M bankruptcy filings in 2010 United States Bankruptcy Courts. Bankruptcy Cases Commenced, Terminated, and Pending During 12- Month Periods Ending March 31, 2009 and United States Department of Labor. U.S. Bureau of Labor Statistics, Employment Situation Summary. July 2011.

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21 Why Should Employers Care? Personal Accountability Employer Responsibility

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23 Competitive Advantages Companies with highly effective health/wellness and productivity programs have significant financial and human capital advantages: Stronger balance sheets Lower benefit costs Higher workforce effectiveness & productivity Higher employee engagement The Health and Productivity Advantage. 2009/2010 North American Report. Watson Wyatt and National Business Group on Health.

24 Customer Satisfaction and Loyalty Profitability Employee Wellness and Satisfaction Employee Productivity

25 Decreased Employee Satisfaction Among Employees rated in top 10% for performance Employee engagement 23% decrease Understand link between company goals and their performance goals - 20% decrease Say my company lives up to the employment deal 30% decrease Satisfied with organization culture 28% decrease Employee Wellness and Satisfaction Prefer to remain with the company vs. take a comparable job elsewhere 14% decrease Looking Toward Recovery: Realigning Rewards and Re-Engaging Employees. 2009/2010 U.S. Strategic Reward Report. Watson Wyatt and World at Work.

26 Productivity Loss 29% of employees say personal financial issues have been a distraction at work Highest rate among employees 35 to 44 years old earning $100,000 or more 48% of employees have handled their personal finances during work hours Most companies experience 4-5 unplanned absences per employee per year 20-30% of companies experience more than 15% lost time due to presenteeism The Health and Productivity Advantage. 2009/2010 North American Staying@Work Report. Watson Wyatt and National Business Group on Health Financial Wellness Survey. PricewaterhouseCoopers. April Employee Productivity

27 Decreased Customer Service Have changes made in the company since the economic decline had an adverse impact on quality and customer service? 41% of Top Performers answered Yes 17% of Employers answered Yes Customer Satisfaction and Loyalty Looking Toward Recovery: Realigning Rewards and Re-Engaging Employees. 2009/2010 U.S. Strategic Reward Report. Watson Wyatt and World at Work.

28 Negative Impact on Benefits 77% of HR professionals said benefits offerings have been negatively affected in some way by the economic downturn. Decreased employer contributions to premiums Increased premium cost to employees Higher health plan deductibles and cost share Increased health plan out of pocket maximums Decreased employer 401K match Decreased training and professional development 2011 Employee Benefits Research Report. Society for Human Resource Management. June 2011.

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30 Benefit Programs Medical Dental Life Disability Vision EAP Medical Gap Accident Critical Illness Long-term Care Legal Plans Pet Insurance Home/Auto Flexible Spending Account Medical and Dependent Care (FSA) Health Saving Account (HSA) 401K / Retirement Continuing Education Tuition Reimbursement Stock Purchase Elder Care Assistance Adoption Assistance Paid Holidays Paid Time Off Financial Counseling

31 Wellness Creates Business Value 11% Higher Revenue per employee 1.8 Fewer Days Absent per employee 1.2% Lower Medical Cost Trend 6% Lower Turnover The Health and Productivity Advantage. 2009/2010 North American Report. Watson Wyatt and National Business Group on Health.

32 Benefits Increase Employee Loyalty and Job Satisfaction Employees Satisfied with Benefits Employees Dissatisfied with Benefits I am very satisfied with my job. I do not plan on leaving my current employer in % 23% 59% 38%

33 Benefit Strategy Trends and Challenges Aging workforce Rising cost of medical benefits Increasingly diverse workforce Shift to employee decision making

34 Making Progress SHRM Employee Benefits Research Report found increased: Adoption of consumer-drive health plans (High Deductible Health Plans or HDHPs) Incentives/Rewards for participation in Health Risk Assessments Physical Wellness programs Flexible work schedules 2011 Employee Benefits Research Report. Society for Human Resource Management. June 2011.

35 Physical Wellness Strategies Preventive care education Health Risk Appraisals (HRA) Chronic condition/disease management Health promotion programs Biometric testing Healthy vending machines Adequate lunch breaks Lifestyle Behavior Change Programs Smoking Cessation Nutrition and Exercise Education

36 Emotional Wellness Strategies Employee Assistance Programs (EAP) Work/Life Balance Flex Time Job Sharing Work from Home Eldercare Support Healthcare Advocacy Mental Health Education Stress Management Educational Programs / Workshops Exercise Breaks Onsite Support Groups Office Environment / Design

37 Financial Wellness Strategies Personal Financial Assessments Financial Education Programs Financial Counseling / Advisor Retirement Plan Auto-Enrollment Retirement Auto-Escalation Will Preparation Legal Counseling Long-Term Care Education

38 More Than Health Insurance Do non-medical employee benefits increase employee loyalty? 59% of Employees answered Yes 37% of Employers answered Yes Looking Toward Recovery: Realigning Rewards and Re-Engaging Employees. 2009/2010 U.S. Strategic Reward Report. Watson Wyatt and World at Work.

39 Employees Rely on Employers For most employees, the worksite is their preference. u 76% have no one they rely on for financial advice or information. 1 u 68% don t have a personal life insurance agent, so they rely on the worksite for coverage. 2 u 58% of employees surveyed said it's important to have life insurance available through their employer. 3 According to LIMRA, The workplace is now the primary channel for obtaining and/or purchasing life insurance. 4 1,2 LIMRA, American Families at Risk, Facts from LIMRA International Life Insurance Awareness Month, September LIMRA, "Marketfacts Quarterly," Fall LIMRA, Group Life Insurance Annual Review 2005, May 2006.

40 Employees Invest in the Future The McKinsey Quarterly, Industry trends in recessions, December 2008.

41 Employee Paid Benefits Employees interested in having their employer provide a wider array of voluntary benefits that they can choose to purchase and pay for on their own Gen Y Born Gen X Born Boomers Born % 58% 43%

42 Employee Education Benefits education and communication is the most significant contributor to overall benefits satisfaction. Employee benefits satisfaction is twice as high at companies that effectively communicate the value of their benefits package. Watson Wyatt Worldwide, WorkUSA Study 2004/2005: Effective Employees Drive Financial Results, January, The most recent year for which statistics are currently available. And, Watson Wyatt Worldwide, The Shifting Requirements of Benefits Enrollment, January, 2007.

43 Conclusion When companies embrace holistic benefit strategies aimed at improving employee wellness and they support those efforts with comprehensive communication and education, it creates a loyal, engaged, and productive workforce resulting in significant financial and human capital advantages for the organization.

44 Thank you for attending today! Donna Briggs, SPHR