Why is Engaging Employees on Wellness so Hard?
by: Helen Box-Farnen
Source: eba.benefitnews.com
Employee engagement is the goal of just about every wellness and health management program. You need to engage employees to be more active, eat better, get more sleep. … You get the idea.
So why is engaging employees so hard? Maybe it’s because we haven’t really thought about it from the perspective of the employee – the end-user of the wellness initiative. According to research from a partnership of Aon Hewitt and The Futures Company, most people fall into discrete attitudinal segments that influence how they think and feel about wellness.
The folks in the C-Suite and most in leadership fall into a category that embraces a sense of control and responsibility when it comes to their health. And, they see wellness as part of the solution to important business problems: lowering costs and increasing productivity.
The average worker, on the other hand, has a completely different mindset. Here are a few of the attitudes that define nearly half of the U.S. population:
- Time-starved
- Seeks entertainment
- Family-oriented
- Stressed
- Likes high-tech media and social networking
- Interested in group activities and competition
- Wants to look and feel good
- Wants recognition for their accomplishments
- Trusts friends and family as information sources
In addition, while you might appreciate a lot of detail, the people you need to engage are not information-junkies. Try this approach with your clients and see if it doesn’t engage more of their workforce:
- Make it entertaining and create some buzz: To get employees’ attention, it needs to be fun, hip, humorous, and exciting.
- Appeal to what’s important to me: Tell employees how it will help them look good, feel good, and be more confident.
- Make it easy: Today’s workers are stressed and starved for time, so it needs to be simple and uncomplicated.
- Make me feel part of a community: Family and friends are important, and people like to feel connected to others.
Whether you are advising a client about products and services that will help them engage employees in wellness behaviors or you’re a benefits executive needing to achieve business objectives through improved health, wellness, and benefits consumerism, being successful might mean stepping outside of your own attitudes. Instead of approaching wellness as a way to solve the company’s issues – sell it to employees as a way to solve their issues. In other words, if you make it about them, you might just get what you need.
LEVEL WELLNESS
A recent survey by the Society of Human Resource Management found that 61 percent of companies are offering some sort of wellness initiative this year, up only slightly from 58 percent in 2008. Although wellness adoption by employers seems to have leveled off in the past few years, the elements of the programs have changed. For instance, 45 percent of polled employers said their program includes health and lifestyle coaching, compared with 33 percent in 2008.
A Push for Retirement e-Communication
Industry groups are urging DOL to end paper disclosure requirement
By Brian M. Kalish
Source: eba.benefitnews.com
As new retirement fee disclosures go into effect this summer, a coalition of 15 retirement industry groups are urging the Department of Labor to allow broader use of electronic communication for retirement plan participant disclosures, which are now mailed in paper form to plan participants.
"It's just the way technology is going, you've got people of all ages using the Internet," says Brian Tate, VP, banking and securities at the Financial Services Roundtable, one of the agencies pushing for the changes. "We think it's just an effective way for our members to reach out with their customers."
The drive for e-disclosure
Disclosures are there to help plan participants properly plan for their retirement, but "paper is counter-productive to that," says Anne Kim, managing director for policy and strategy at the Progressive Policy Institute, a Washington-based progressive think tank. "Paper is static, it's outdated. If the government's goal is to really help people take charge of retirement, they are going in the wrong direction."
Judy Miller, director of retirement policy at ASPPA - another group advocating for the changes - says there are many reasons why this idea is so valuable, including that it is just easier to read information online and there are many more presentation tools that allow for simplification of sometimes complex information.
"There is an awful lot of paper going out already that is just getting trashed and it's a waste," she says. "There will be even more with the new disclosure rules kicking in, and depending on the nature of the investment, [people] will be getting, in some cases, a box of paper. And we don't think they will be reading it. We think it will be better if they were encouraged to go online where it's easier to drill down and get something out of it."
But, Miller stresses that the industry groups are not saying eliminate paper if a plan participant wants it, rather make it opt-in for paper, rather than opt-out. From a policy standpoint, using defaults such as automatic enrollment and default investments encourages good behavior, Miller says, with people getting more information out of information delivered electronically.
E-communication further allows access "anywhere, anytime, with the device of the user's choosing, and with a better filing system than paper notices," writes Ohio State University Law Professor Peter Swire, in a white paper, "Delivered ERISA Disclosure for Defined Contribution Plans."
That flexibility is important, Swire says, as with paper being stored in one place, "the lack of geographic flexibility can be an obstacle to examining documents and making investment decisions."
There is an additional cost savings involved, Swire says. While the preparation time to meet legal requirements would be the same, there is near zero marginal cost to send a few or a few million disclosures.
Will it happen?
The 15 trade associations pushing for the changes sent a letter to DOL at the end of March asking for the policy change, but have yet to receive an official response. "I think that the Department is aware of our concerns, but if you take a step back, you see more and more people, regardless of age, using the Internet and technology to communicate in a way that we couldn't think about five years ago," the Roundtable's Tate says.
Miller adds that while ASPPA is hoping that DOL will act, "we are, frankly, also talking with people on [Capitol] Hill. Because if DOL doesn't act, we are hoping Congress will give them a nudge."
It's inevitable, Kim says, that at some point DOL will change, but "it's a pity in the meantime that people are losing opportunities to take a more active role in managing their savings and getting access to the information they need while DOL sits on their hands.
"There's been enough interest on" moving to e-communication in government, such as IRS e-filing and paying parking tickets online. "The fact that DOL is behind will become so much more obvious," she says.
Tate says that in the end is it about the consumers as "we want to get the information to them as quick as possible. ... We do know they are working in a fast-paced environment ... let's try to make [this] as easy as we can."
Meanwhile, the DOL says in an e-mailed statement to EBA that it has "received a variety of letters on this issue in recent months and ... continue[s] to consider the issues raised in this letter and others that expressed differing perspectives and concerns. EBSA has not yet completed its broader evaluation of the current regulatory standards for the electronic distribution of disclosures required by ERISA, including the potential impacts on the rights and interests of plan participants and beneficiaries."
DOL says in the statement that in the interim, "the Department's current regulation and other guidance on electronic disclosures to participants and beneficiaries are available to plan administrators."
The letter to Phyllis C. Borzi, assistant secretary for the Employee Benefits Security Administration, is signed by 15 trade groups and Miller says that number is very helpful. "I think it's helpful for regulatory agencies when [they] don't have all of us coming in separately," she says. "When we can resolve our positions instead of ... telling them different stories."
Companies Look to Pharmacy Benefits for Savings
Employers increasingly are putting prescription drugs -- specifically their plan designs and providers -- under the microscope in hopes of spotting more health care savings.
Following a trend among health care plans, more prescription drug plans are shifting to a "value-based" model, according to Lauren Flynn Kelly, a blogger with AIS Health. In a recent post, Kelly highlighted one particular eight-tier formula that assigned clinical and financial values to drugs on each tier and included only a few lower-cost generics on its first tier.
Ritu Malhotra of The Segal Co. noted that this type of plan design promotes the use of generics -- particularly the lower-cost generic options.
"I think the value part of the value-based plan design is that those drugs are effective and much more cost-effective and could potentially result in a savings on the medical side if patients are more adherent," Malhotra notes in the AIS Health post.
Patient adherence is a primary goal of value-based plans, Kelly wrote. Unfortunately for employers, it's an area where the statistics remain grim. A recent poll by Express Scripts Inc. found that non-adherence cost the nation about $317.4 billion in 2011 in treatment -- that's not counting lost productivity and other costs that can occur when patients don't follow their prescribed drug regimen, according to a report in Employee Benefit News.
While adherence remains a constant obstacle, recent moves in the pharmacy benefit marketplace may create alternative opportunities for lower costs and stronger benefits, an online Workforce report suggests.
Express Scripts' $29 billion purchase of Medco Health Solutions could shake up the pharmacy benefit management (PBM) landscape, potentially creating a polarization between big PBMs that offer the best costs and smaller PBMs that can offer more services, F. Randy Vogenberg of the Institute for Integrated Healthcare told Workforce.
Linda Cahn, founder of Pharmacy Benefits Consultants, suggests that the merger may prompt some employers to start shopping for better deals.
"I think people are aware that changing PBMs can save them large amounts of money, and they are also aware that marketplace developments create further incentives to conduct [request for proposals]," Cahn told Workforce.
Most employers, however, likely won't make any sudden moves with their PBMs at renewal time later this year.
"Change creates controversy, and employers are not looking for controversy," Vogenberg said.
6 Tips to Engage Gen Y Employees
By Dr. Ronald Leopold
Source: https://eba.benefitnews.com
Benefits are typically structured to reward and motivate employees who stay at the company for the long haul. For example, retirement rewards and paid time off usually get sweeter as time goes on. Dangling a long-term benefits carrot makes sense for driving retention right? — Perhaps not when it comes to Gen Y workers. As companies focus on attracting and keeping a pipeline of Gen Y employees, I maintain that, when it comes to benefits, it is time for a mind-shift from long-term to a short-term value and appeal.
The annual MetLife Employer and Employees benefits survey tells us that Gen Y employees really, truly value their benefits. This is the generation hardest hit by the recession — experiencing underemployed and unemployed and in debt forever with student loans. Sixty-six percent of these younger workers say that, because of economic conditions, they are counting on more help from employers through employee benefits. In addition, they are more satisfied with their benefits than any of their generational co-workers (52% compared with 36% of older boomers.)
For ten years, the MetLife study has shown a strong correlation between employee loyalty and being satisfied with benefits. However, here’s the kicker. Despite being super-satisfied with benefits, the study shows that more than half of Gen Y intends to be the first out the door looking for a new job!
This contradiction does not mean that Gen Y workers are a self-centered, disloyal bunch. In fact, they take their careers and their financial futures very seriously. Rather than being grasshoppers in the job market, they are serial resume builders. To them loyalty is demonstrated by high performance not by how long you stick around. This is a challenge for employers who are conditioned to investing in employers when they join the company, in hopes of payback measured in decades.
I suggest that employers accept the inevitable and ask themselves what they can do to create a benefits program that delivers what Gen Y workers need and want today and not in some rosy future.
Here are some examples to consider:
1. Flexibility matters. Gen Y values generous time off policies and freedom to work when and where they like. Work-life balance is more important to Gen Y than any other generation – 50% say it makes them feel loyal to their employer. This is a powerful retention carrot. If you offer it, they will take it – but will not take advantage. Don’t send mixed signals about use of this benefit.
2. Gen Y prefers choice and customization when it comes to benefits. With inelastic benefits budgets the solution for this preference is voluntary benefits. This generation is used to reaching into their wallet for their benefits, so give them the choices they crave with employee-paid insurance products – from car insurance to pet insurance.
3. Gen Y is serious about their finances and concerned about risk. Provide liberal life and disability coverages from day one. Offer supplemental buy-ups to ensure adequate coverages.
Financial education in the workplace is highly valued at all levels — from basic financial literacy to sophisticated investment advice. Turn to carriers to deliver low-cost/no cost programs.
4. Health coverage is a big concern. Sixty-eight percent of Gen Y survey respondents are concerned about paying health care premiums and out of pocket costs. Help them meet these costs with affordable supplementary health products such as dental and vision coverages. These are popular benefits that you don’t have to be sick to use.
5. Advancement opportunities drive loyalty — more than their employers realize. The MetLife Study shows that 66% of Gen Y cite this as an important loyalty driver, yet only 42% of employers are on board. Don’t make employees have to move out in order to move ahead.
6. Text and Tweet to build engagement – communicate in preferred ways to build a benefits bridge to Gen Y.
Benefits are a powerful draw for attracting Gen Y to a company – 56% of Gen Y report that benefits were an important reason why they chose their current employer. They may not collect a gold watch from you, but you can motivate them to stay as long as possible by providing benefits that clearly help them solve immediate problems and needs.
Kaiser Health Tracking Poll: Early Reaction to Supreme Court Decision on the ACA
This poll fielded following the Supreme Court’s decision upholding the heart of the Affordable Care Act (ACA) finds a majority of Americans (56 percent) now say they would like to see the law’s detractors stop their efforts to block its implementation and move on to other national problems.
Democrats overwhelmingly say opponents should move on to other issues (82 percent), as do half (51 percent) of independents and a quarter (26 percent) of Republicans. But, seven in ten Republicans (69 percent) say they want to see efforts to stop the law continue, a view shared by 41 percent of independents and 14 percent of Democrats.
The public is also divided in its emotional reaction to the decision, with similar shares reporting being angry (17 percent) and enthusiastic (18 percent). Negative emotions run highest among Republicans who support the Tea Party movement, with 49 percent of this group saying they are angry at the decision.
Solid majorities of voters of every political stripe say the decision won’t impact whether or not they vote this November – though Republicans are more likely than Democrats (31 percent compared to 18 percent) to say the result makes them more likely to turn out.
The poll is the latest in a series designed and analyzed by the Foundation's public opinion research team.
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Information provided by the Public Opinion and Survey Research Program
Publication Number: 8329
Publish Date: 20-07-0212
When You Eat Matters
By Dr. Ann Kulze, M.D.
Evidence is quickly mounting that when you eat and the timing of your meals may be as important as what and how much you eat. In a fascinating new laboratory study, scientists found that lab rats that consumed high fat food over a restricted period of 8 hours a day gained significantly less weight and showed far superior metabolic health relative to an identical group of rats that consumed the same amount of high fat food calories over a 24 hour period of time. According to the study's lead author, it appears "every organ has a clock" and that there are times when they work at optimal capacity and other times when they operate more sluggishly. Like our hunter-gatherer ancestors likely ate, this study suggests that discrete meal times (not random munching) and protracted periods of no food intake over a 24 hour cycle (like from dusk to dawn) are best for metabolic health and weight control. I am currently working hard to eat my dinner before the sun goes down to optimize my metabolic machinery (5).
Even more, a large, first-of-its-kind study in human subjects was just published that supports the critical importance of regular meals, especially BREAKFAST! and refraining from grazing or snacking during the day. The objective of the study was to determine the associations between skipping breakfast, eating frequently, snacking, and the risk of weight gain and type 2 diabetes. Over 51,000 adult males were followed over a 30 year period of time to gather the relevant information for this evaluation. The conclusions of this landmark study were as follows:
- Regular consumption of breakfast was associated with a reduced risk of type 2 diabetes independent of body weight. (Somehow eating breakfast protects metabolic health.)
- Eating 2 or less meals a day was associated with a greater risk of obesity and type 2 diabetes.
- Eating > 4 times daily or snacking was associated with an increased risk of weight gain and type 2 diabetes. (6)
Bottom line: For optimal weight control and metabolic health - eat breakfast, lunch, and dinner and no more than 1 daily snack.
Learn How Inflammation Can Lead to Chronic Diseases
By Dr. Ann Kulze, M.D.
Inflammation is now widely recognized as a primary driver for most all chronic diseases and it appears that losing even modest amounts of weight can effectively douse the damaging inferno of excess inflammation in the body. For this one year evaluation, 438 women were placed on a weight loss program through diet or diet and exercise. For women in the diet and exercise group, measures of C-reactive protein (a key marker for inflammation in the body) dropped 42%. In the diet only group, levels dropped by 36 percent. For both groups, losing just 5% of their initial body weight provided even larger reductions in C-reactive protein. Because higher levels of C-reactive protein have been linked to a litany of chronic diseases including heart disease, type 2 diabetes, and cancers of the breast, colon, lung and uterus, this study underscores the enormous benefits that can result from losing even small amounts of excess body fat.
Fast Food and Cancer..Did You Know?
By Dr. Ann Kulze, M.D.
After completing the most rigorous and comprehensive review of scientific data to date, an expert panel of world-renown cancer experts recommended, "fast foods be consumed sparingly, if at all." They concluded that limiting calorically dense food, especially fast foods and sugary beverages, was one of the most important steps an individual could take to reduce cancer risk. (World Cancer Research Fund/American Institute for Cancer Research. Food, Nutrition, Physical Activity, and the Prevention of Cancer: A Global Perspective. Washington, DC AICR, 2007)
Some PPACA Compliance Tabled Until After Elections
July 10, 2012
Source: eba.benefitnews.com
Most employers waited for the U.S. Supreme Court’s landmark decision upholding health care reform before developing a strategy on provisions in the Patient Protection and Affordable Care Act (PPACA,) slated to take effect in 2014 and beyond, according to a new Mercer survey.
But some eyebrows will be raised at Mercer’s findings that the waiting game continues for 16% of the more than 4,000 respondents, who admitted no action will be taken on 2014 compliance until after the November elections. Forty percent said they will begin examining these parts of the law now that the court has ruled.
Although health care reform still faces a contentious political outlook, Mercer suggests that employers should stay on track in their efforts to comply with PPACA as enacted or else they may face penalties.
“Employers who prefer to continue in wait-and-see mode until after the November elections will have less time to prepare, should they ultimately decide to comply with the law’s 2014 requirements,” says Mercer partner Tracy Watts. “In the meantime, they still need to comply with all the requirements that have already gone into effect.”
Certainly, employers must act quickly to implement new requirements for 2012 and 2013, such as providing benefit summary disclosures, complying with new dollar limits on health care flexible spending arrangements, and increasing Medicare withholding for high earners. But the rules going into effect in 2014 that are aimed at expanding access will have broader implications for many employers.
More than a fourth of survey respondents (28%) said that compliance with the new requirement that employees working an average of 30 or more hours per week must be eligible for coverage will present a “significant challenge” for their organization.
“Employers with large part-time populations, such as retailers and health care organizations, are faced with the difficult choice of either increasing the number of employees eligible for coverage, or changing their workforce strategy so that employees work fewer hours,” said David Rahill, President of Mercer’s health and benefits business. “With the average cost of health coverage now exceeding $10,000 per employee, a big jump in enrollment is not economically feasible for many employers.”
The requirement to auto-enroll newly eligible employees in a health plan – which means that employees will automatically be covered unless they take action to opt out – is also expected to increase the rolls of the insured for many employers. Nearly one-third (29%) of respondents to the Mercer survey said this will be a significant challenge, especially because other provisions of PPACA will limit the amount of health plan costs employers can pass along to employees through higher premiums or deductibles.
Still, the provision that worries most employers – 47% of survey respondents – is the excise tax on high-cost plans, expected to go into effect in 2018.
“Employers already struggling with annual health care cost increases of double or triple general inflation are determined to avoid this tax,” said Sharon Cunninghis, U.S. leader of Mercer’s health and benefits business. “We’ve been seeing a lot more interest in cost-saving measures, such as consumer-directed health plans and employee health management, since the tax was proposed.”
When asked whether they agreed or disagreed with the statement, “[The reform law] has provided the impetus for our organization to pursue more aggressive health benefit cost-management strategies,” more than half – 52% – agreed. Employer actions were one factor that helped to slow health benefit cost growth in 2011 relative to 2010.
Survey results suggest this trend will continue. Asked whether they planned to be more aggressive about managing plan costs going forward now that health reform has been confirmed, 54% said yes. And while 41% said no, it’s only because they were already taking aggressive action to manage expenses.
A Mercer webcast will be held on July 12 at noon EDT to provide a closer look at how the Supreme Court's decision will affect employers going forward.