Employee Health Promotion

Following cost, poor employee engagement and inadequate discussions and support are listed as the greatest challenges for organizations administering any health benefi t program.22 By law, organizations are required to explain any benefits or explicit conditions of employment to all employees – this is called “due process,” and it usually takes the form of a packet of information that new employees are asked to review and sign during orientation or, in the case of existing employees, a brief communication during open enrollment periods. Organizations that only participate in the minimally necessitated due process communication of a Employee Health Promotion , however, do a disservice to the plan and the business. Opinions about Healthcare in organizations represent one of the largest disconnects between management and employees. In discussing the need for savings, most organizations (70%) believe their business effectively communicates about rising Healthcare costs, while only 34% of employees feel rising Healthcare costs effect their business’ ability to succeed.23 When it comes to conduct, 74% of organizations believe their employees ought to be held largely accountable for improving, managing and maintaining health, yet only 4% of organizations think that employees participate in these activities. Under the proposed rules, the four requirements to be a bona fide Employee Health Promotion are:

• - The total reward that may be given to an individual is limited. The departments invited comments on the appropriate level of the reward, suggesting that a limit of 10% to 20% of the total expense of employee-only coverage may be appropriate.
• - The program must be reasonably designed to promote great health or prevent disease for people in the program.
• - The reward must be available to all similarly situated people. More specifically, the program must allow any individual for whom it is unreasonably diffi cult due to a healthcare condition to meet the Employee Health Promotion standard (or for whom it is medically inadvisable to attempt to meet the Employee Health Promotion standard) an opportunity to satisfy a reasonable alternative standard.
• - All plan materials describing the terms of the program must disclose the availability of a reasonable alternative standard.

Source: U.S. Department of Labor Employee Benefits Security Administration As Northwestern Memorial’s Kathryn Krivy says, “The most fundamental failure in any Employee Health Promotion is not communicating. You need to tell people what you’re doing and why you’re doing it. You have to get employees engaged and teach them of what’s going on.” A properly started Employee Health Promotion is designed to save a business more money with improved participation. However, a business must match its focus on program design with an equally strategic investment in efforts to participate employees in the initiatives. Lay out your case – Despite widespread recognition of rising Healthcare costs, employees remain skeptical that the issue impacts business operations. In fact, only 53% of employees even believe what their business communicates about the subject.24 Organizations need to be more candid and forthcoming about the amount they spend on Healthcare and how that relates to larger budgetary constraints and potential investments. Says Motorola’s Saenz: “We share with employees that we have been able to maintain Motorola’s Healthcare spend trend below national average over the past decade due to their participation in our various Employee Health Promotion Programs. This transparency is necessary to keep reminding people the reasons for our conduct.” An effective strategy is to focus on the cost savings and central health benefi ts to the employee and not the business. By personalizing the information in this way, it establishes a win-win scenario rather than presenting the program as a sacrifi ce on the part of the employee. Information ought to be presented through multiple channels, constructed in a way that makes sense to all levels of employees, and offered to employees, dependents and retirees. Make it your own – Every Employee Health Promotion will be different, and ought to reflect the culture of a business. While program areas will be determined by analyzing employee health risks, the actual offerings ought to be shaped by the nature of the business. Younger, more active employee communities may be attracted by different programs than an older or technicaloriented employee. In Addition, a global business with mobile employees will have different needs than a business with one central location. As noted earlier regarding PepsiCo’s HealthRoads, one strategy is for organizations to brand their Employee Health Promotion Programs. Union Pacifi c Railroad (HealthTracks), General Motors (LifeSteps) and Caterpillar (Healthy Balance) all adopted this approach to help create recognition and a larger meaning around their efforts. Having a branded plan helps employees and other stakeholders see the larger goals/objectives of the Employee Health Promotion , rather than focusing on isolated offerings. Say it loud, say it proud – As a potential cost-saving plan, Employee Health Promotion Programs ought to be given the same executive support and internal responsibility as any comparable business effort. Organizations ought to not approach wellness as simply a preventive, financially-motivated program, but rather as an opportunity for the business to distinguish itself and become more competitive. Jeffrey Treem, analyst, Edelman Change and Employee Program Engagement Group, says that effective communication about Employee Health Promotion Programs ought to be integrated into existing business communication channels and vehicles. “This comprises executive communication to external stakeholders,” he notes, “because this sends a powerful message back to employees about the importance of the programs. Employee Health Promotion Programs ought to not be treated as merely an additional employee perk, but rather an innovative and strategic effort to decrease costs and create a healthier work environment.” Talk among yourselves – The most powerful champions of any Employee Health Promotion will be the participants. Organizations ought to discover ways to facilitate discussions about the program among employees. This could take the form of support groups, interactive media and the sharing of success stories. However, since Employee Health Promotion Programs touch on potentially private health problems, it is valuable communication remains positive and inclusive, while not pressuring employees. Discussion of wellness problems ought to be voluntary, though organizations may consider providing incentives for those willing to contribute. Motivation and information from peers is likely to carry more credibility and significance than messages from management.

For many organizations, a smoking ban would not even apply to all employees. That is because currently 30 states and the District of Columbia prevent organizations from banning off-duty smoking.21 In Addition, 13 states prevent organizations from banning alcohol use away from work. Only six states have broad statutes that prevent organizations from prohibiting any lawful behavior. Michigan is the only state that expressly prohibits discrimination on the basis of weight, however the cities of San Francisco and Santa Cruz, Calif., also have this provision (San Francisco makes exceptions for police offi cers, fi refi ghters and the San Francisco 49ers football team). When beginning Employee Health Promotion Programs, organizations ought to keep in mind local statutes as well as established common law. Savings of Voluntary Employee Health Promotion = (number of participants x savings per participant) – (expense of program) Savings of Incentive-based Employee Health Promotion = (number of participants x savings per participant) – (expense of program + expense of incentives) Savings of Mandatory Employee Health Promotion = (number of participants x savings per participant) – (expense of program + expense of policy-related turnover + expense of limited talent pool) Constructing Employee Health Promotion policies in a business that employs unionized employees can pose unique challenges. Employee Health Promotion Programs may be perceived by some unions as a condition of employment and therefore would be subject to collective bargaining between the parties. However this situation can represent an opportunity for both groups, as a policy agreed upon between union leadership and management is likely to be received more favorably by employees. The United Auto Workers and General Motors worked together to create and position a joint Employee Health Promotion which has successfully reached more than 800,000 participants. (See Case Studies, UAWGeneral Motors LifeSteps Employee Health Promotion , p.21).