Workplace Wellness Programs the Key to Cutting Insurance Costs

According to numerous studies, healthier employees lead to lower premiums. And if employers can make their employees healthier without cutting benefits or shifting more premium costs to their employees, is there a downside? After all, Fortune 1000 companies have been using wellness to combat rising health care costs for years.

According to a Duke University study, the cost of obesity among full-time employees is estimated to be $73.1 billion. As a result of health problems linked to obesity, lost job productivity could be more costly than medical expenditures. The report recommended that employers promote healthy foods in the workplace, encourage a culture of wellness
from the CEO on down, and provide economic and other incentives to employees who show signs of improvement. While workplace wellness programs began as a niche industry, they have morphed into comprehensive programs for worksites of all sizes.

They’re touted as an effective business strategy to improve the health and productivity of
workers, reduce health care costs, attract new employees, and retain existing ones.

Sadly, these programs have no value if they’re not used. A study by the National Institute
for Occupational Safety and Health, “Availability of and Participation in Workplace
Health Promotion Programs (WHPPs) by Sociodemographic, Occupation, and Work
Organization Characteristics in U.S. Workers,” found that approximately 47 percent of workers have access to WHPPs and only 58 percent of those with access actually participate.

So, who’s using WHPPs and who’s not?

That depends on several factors, including the type of job and whether the employee is full time or part time.

Occupations such as farming, fishing, forestry, food preparation and serving, construction, and extraction had the lowest availability of WHPPs and workers in these occupations were also the least likely to participate in the programs. Employees who worked less than 20 hours a week, worked regular night shifts, were paid by the hour,
or worked for temporary agencies were also less likely to participate.

Researchers also identified barriers that kept workers from participating, including time
constraints, lack of awareness, low supervisory support, and perceived need, but noted such barriers vary by industry.

The report concluded that employers should gauge workers’ priorities before designing and implementing WHPPs and to customize programs to their employees’ specific needs in order to maximize participation.

Another factor that may be helpful in gauging participation is to identify which wellness perks were most important to workers and how those perks impacted productivity.

Polling among employees was surprising. It wasn’t fitness facilities nor technology-based
health tools that topped the list of why workers had job satisfaction, but air quality and natural light.

Air quality and light were the biggest influencers of employee performance, happiness, and well-being. Also high on the must-have list was water quality, followed by comfortable temperatures, then acoustics and noise levels.

Not surprisingly, employees want to be able to customize their work environment, such as the temperature and natural light.

One company has taken those needs to heart by managing the acoustic levels in their employee’s space by creating a floor plan without assigned seating. Neighborhoods of workspaces were designed specifically for employees collaborating in person, remotely, or those who choose to work alone. Similar arrangements can be made for temperature and light.

Here are seven steps employers can take to improve their results:

  • Make WHPPs employee-centric – Survey employees about their workplace wellness priorities and tailor or modify the program to those needs.
  • Integrate WHPPs with workplace safety programs – For positive results, common safety issues such as work schedules, workplace culture, ergonomics, substance exposures, noise levels, fatigue, and so on should be incorporated with the wellness
    program.
  • Recognize that workplace wellness is more than physical health – Studies have shown that most worksite health programs focus on physical activity, nutrition, and stress management. Environmental factors such as air, light, temperature, and acoustics are usually overlooked.
  •  Personalize as much as possible – Employees love to personalize their workspace, whether it’s framed photos of their kids or Star Wars memorabilia. Along those same lines, employees expect the company to take their well-being into account in
    all aspects of work.
  • Recognize that workplace wellness is more than physical health – Studies have shown that most worksite health programs focus on physical activity, nutrition, and stress management. Environmental factors such as air, light, temperature, and acoustics are usually overlooked.
  • Recognize the challenge of changing human behavior – Personal behaviors and habits, including health and safety, are very difficult to change. It takes take time and effort.
  • Give employees a sense of ownership – Much like a culture of safety, employees must buy into a culture of wellness. Consider a wellness committee from a cross-section of departments and employees to provide input and drive participation.
  • Monitor employee satisfaction – Attempt to measure the return on investment of WHPPs, including health care costs, absenteeism, disability claims, and workers’ compensation claims. It’s important to incorporate “soft” measures, too, such as satisfaction and morale.

In addition to holding down insurance premiums, wellness programs can positively affect workers’ compensation costs, although measuring the impact takes longer because of the method of calculating the experience rating.

For Cutting-Edge Strategies on Managing Risks and Slashing Insurance Costs visit www.StopBeingFrustrated.com

Culture Issues: Having a Good Culture is More than being OSHA & HR Compliant (Benchmarking Your Culture)

If you cannot measure it, you cannot improve it.” – Sir William Thomson (Lord Kelvin).

Sure, you can think you’re improving something, but unless you know what the problem was in the first place you can’t truly fix it, and if you don’t truly fix it your improvement is nothing more than band-aid surgery. For example, a baseball player is in a deep slump and can’t hit a lick. Suddenly he’s goes four for five in a game and thinks he solved his problem. But what caused the problem? Without analyzing and benchmarking what he’s been doing all along, i.e. the angle of his bat, how high he holds his hands, the all-important “launch angle,” he will not have a true measure of if he is on the right track or just “having a good day.”

This is not uncommon in the business world. Let’s take for example your experience modifier, which is one of the biggest drivers of an employer’s workers’ compensation premium. The lower your experience modifier is the lower your premium will be.

Your experience modifier is based on your data, total claim dollars and audited payroll amounts over a three-year period.  Unfortunately, most insurance agents will come to you and say: “You have a 0.94 experience modifier. That is great! You are getting a credit of 6% for a great loss history.” In other words, your company is making money. Therefore, you must be stressing to your employees to be job safety conscious. But that’s not automatically the case.

Many times a business owner believes because they are making money they have a good culture, so all is good.  However, when they conduct an analysis, and do a deep dive into the all-important data points, they can see that there are issues within the company that is holding them back from real growth, productivity, accountability and profitability. From making real money.

To Continue Reading: Construction Today Magazine

Culture Issues: Accountability When it Comes to Job Performance

Close your eyes and imagine you’re the manager of a professional baseball team, it’s Game 7, bottom of the ninth, two outs, your team is up 3-2 with the tying run on third base, and the winning run on first base. Batter hits a fly ball to the gap in right center field, and the base runners go on contact. The center fielder starts to sprint… if he catches it – game over; if he plays it on one hop – the score is tied with the winning run in scoring position. The center fielder dives at full speed, lands on the ground as the ball just skips over his glove… the 3rd base runner ties the score as the ball continues to roll all the way to the warning track allowing the 1st base runner to score – the game is over and you lost.

Now, as the manager of the team, what is your reaction?  Do you “back” your fielder and compliment him on making a rational decision? Or, do you hold him “accountable”, by laying blame and berating the player for making a bad choice?

Continue to read at: Commercial Construction & Renovation

For Cutting-Edge Strategies on Managing Risks and Slashing Insurance Costs visit www.StopBeingFrustrated.com

 

HR Tip: Managers are key to culture issues – how to avoid a toxic workplace

In today’s competitive marketplace, it’s distressing to hear that one in two workers have seriously thought about leaving their current job. A recent report by the Society for Human Resource Management (SHRM), The High Cost of a Toxic Workplace Culture: How Culture Impacts the Workforce-and the Bottom Line, notes that many workers consider culture and managers to be closely connected, holding managers responsible for creating a toxic workplace. In fact, 76% of employees say their manager sets the culture of their workplace and 58 percent of employees who quit a job due to workplace culture say that their managers are the main reason they ultimately left.

More findings:

  • 1 in 3 say manager does not know how to lead them
  • 3 in 10 say manager does not encourage a culture of open and transparent communication
  • 1 in 4 dread going to work, don’t feel comfortable expressing their opinions, and don’t feel respected or valued
  • A breakdown in communication is perhaps the most common sign of a toxic atmosphere at work

The report notes that even if the culture is not toxic, but “average,” it’s not enough. Employees still think about leaving and aren’t likely to recommend the organization to a friend. Managers can build strong and positive workplaces by listening to employees, holding workers and leaders accountable for their actions, setting expectations, and clarifying information.

Workplace culture is a critical business asset and employees see the company through their immediate boss. Is the culture you have the culture you want? How well does the individual manager’s behavior reflect the organization’s core values? What steps are needed to keep values and actions aligned?

For Cutting-Edge Strategies on Managing Risks and Slashing Insurance Costs visit www.StopBeingFrustrated.com