shrm survey findings: 2016 strategic benefits— wellness initiatives

November November November November 30, 30, 30, 30, 2016201620162016

SHRM Survey Findings: 2016 Strategic Benefits—

Wellness Initiatives

Introduction

The 2016 Strategic Benefits Survey is part of a survey series administered annually since 2012 by the

Society for Human Resource Management (SHRM). This research is used to determine whether various

employee benefits are leveraged to recruit and retain top talent. The five-part series features the

following topics, which are published as separate survey findings:

� Part 1: Wellness Initiatives

� Part 2: Flexible Work Arrangements

� Part 3: Health Care

� Part 4: Leveraging Benefits to Retain and Recruit Employees

� Part 5: Assessment and Communication of Benefits

In addition to overall results and results over time (where applicable), findings include comparisons of

organizations in the high-tech industry and all other industries.

Definitions

For the purpose of this survey, wellness initiatives are any type of wellness program, resource or

service offered to employees. Financial education initiatives are defined as any workplace initiative,

program or resource designed to provide employees with information on how to effectively manage

their financial resources for a lifetime of financial well-being.

2

Introduction and Definitions

2016 Strategic Benefits Survey—Wellness Initiatives ©SHRM 2016

• Wellness initiatives and use: About two-thirds (68%) of HR professionals indicated their

organizations offered some type of wellness program, resource or service to their employees.

• Return on investment (ROI) and cost savings from wellness initiatives: In 2015, more than three-

fourths of organizations (77%) that offered some type of wellness program, resource or service did

not conduct an analysis to determine their ROI and/or cost savings from their wellness initiatives; 13%

conducted both an ROI and a cost savings analysis, 7% conducted a cost savings analysis, and 3%

conducted an analysis to determine their ROI.

• Cost savings from wellness initiatives: Almost one-half (48%) of HR professionals indicated their

organizations’ wellness initiatives decreased their health care costs; about two-fifths (42%) indicated

they decreased unplanned absences, and about one-third (30%) indicated they increased work

productivity.

• Effectiveness of wellness initiatives in improving overall engagement of employees: About two-

thirds (65%) of HR professionals indicated their organization’s wellness initiatives were “somewhat

effective” in improving overall engagement of employees; 9% indicated they were “very effective” in

improving overall engagement.

3

Key Findings


• Wellness incentives or rewards: : : : Three-fifths (60%) of organizations that had wellness initiatives in

place offered wellness incentives or rewards.

» Of respondents from organizations that offered wellness incentives or rewards:

• About one-quarter (27%) indicated their organization’s wellness incentives were “very

effective” in increasing employee participation; about three-fifths (61%) indicated they

were “somewhat effective.”

• The most common wellness incentives or rewards offered were a reduction in the

employee’s health care premium (38%) and gift cards (37%); about one-quarter of

respondents indicated their organizations offered company gift items, such as t-shirts,

mugs and gym bags (26%), recognized employees in a company newsletter, intranet, etc.

(26%), or gave bonuses/cash (25%).

4

Key Findings (continued)


• Wellness initiatives are now part of most HR professionals’ benefits strategies. Many HR

professionals report using some type of wellness program, resource or service in their organizations,

yet few measure their ROI and cost savings, indicating that more work is needed in this area. HR

professionals who lack experience with measuring the outcomes of wellness programs may want to

consider developing their knowledge through research, networking with colleagues who have more

experience, and seeking out learning opportunities and training, especially training in calculating

ROI.

• Organizational leaders may increasingly expect to see cost savings from wellness initiatives. HR

professionals report some form of cost savings through their wellness initiatives either through

decreased health care costs, fewer unplanned absences or increased work productivity. While

organizational leaders may initially applaud these outcomes, they could come to expect even more

cost savings in the future, especially as they come to see these initiatives as a way to offset rising

health care costs elsewhere.

• Wellness initiatives could become more closely linked to employee job satisfaction and

engagement strategies. As the workforce population ages, a greater appreciation of the value and

benefits of wellness initiatives may grow among the workforce. Workers over the age of 50 are more

likely to experience problems related to chronic health conditions and are therefore expected to

value wellness benefits even more highly. HR professionals already indicate that their organization’s

wellness initiatives are at least somewhat effective in improving the overall engagement of their

employees. This positive impact could increase as a greater proportion of the workforce interacts

more closely with these programs and experiences improved health outcomes as a result.

5

What Do These Findings Mean for the HR Profession?


• Changing health care needs could encourage the use of wellness incentives or rewards. If the

number of individuals suffering from chronic health conditions continues to climb—an escalation that

is expected by many experts given current trends in risk factors such as obesity and as a result of an

aging workforce—more organizations may budget a greater amount for wellness incentives and

rewards in an attempt to reduce the chronic health conditions that drive up their health care costs.

6

What Do These Findings Mean for the HR Profession? (continued)


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Key Findings

Wellness InitiativesWellness InitiativesWellness InitiativesWellness Initiatives

8

Change in organization’s investment in

employee wellness initiatives this fiscal year

compared with last fiscal year

Organizations that offer wellness programs,

wellness resources or wellness services to

employees

Note: Respondents who indicated they were “not sure” were excluded from this analysis. Only “yes” responses are shown.

68%

69%

76%

72%

70%

Yes

2016 (n = 613, 410)2015 (n = 384, 259)2014 (n = 348, 262)2013 (n = 405, 290)2012 (n = 437, 302)

36%

62%

2%

40%

59%

1%

41%

56%

3%

37%

60%

3%

43%

54%

3%

Increased

Remained the same

Decreased

Note: Respondents whose organizations had wellness initiatives in place were asked this question.


Wellness Initiatives Offered and Change in Investment

9

Return on Investment and Cost Savings from Wellness Initiatives

13%

7%

3%

77%

16%

7%

4%

72%

Yes, my organization evaluated both

the ROI and cost savings

Yes, my organization evaluated the

cost savings

Yes, my organization evaluated the

ROI

No, my organiation did not evaluate

the ROI nor the cost savings

2016 (n = 320)

2015 (n = 201)


Note: Respondents whose organizations had wellness initiatives in place were asked this question. Respondents who indicated they were “not sure” were excluded from this analysis. Percentages may not total 100% due to rounding.

Organizations that conducted analyses to determine the return on investment (ROI) and/or

cost savings from its wellness initiatives (during the previous fiscal year)

10

Cost Savings from Wellness Initiatives

48%

42%

30%

13%

Decrease in health care costs

Decrease in unplanned absences

Increased work productivity

Other


Note: n = 64. Respondents whose organizations conducted an analysis to determine their costs savings for its wellness initiatives, or had evaluated both their costs savings and ROI, were asked this question. Percentages do not total 100% due to multiple response options.

Type of cost savings from wellness initiatives

11

What do these findings mean for the HR profession?

47%

49%

4%

52%

44%

4%

53%

42%

5%

56%

40%

4%

54%

40%

6%

Increased

Remained the same

Decreased

2016 (n = 341)2015 (n = 206)2014 (n = 221)2013 (n = 222)2012 (n = 226)


Change in Employee Participation in Wellness Initiatives

Note: Respondents whose organizations had wellness initiatives in place were asked this question. Respondents who indicated they were “not sure” were excluded from this analysis.

Changes in employee participation in organization’s wellness initiatives (between the previous

fiscal year and the year prior)

12

Improving the overall physical health of

employeesReducing the costs of health care

8%

64%

23%

4%

11%

71%

14%

4%

7%

71%

18%

4%

10%

66%

20%

3%

12%

74%

13%

2%

Very effective

Somewhat effective

Not very effective

Not at all effective

7%

58%

29%

6%

8%

69%

17%

7%

10%

62%

22%

6%

11%

60%

22%

7%

10%

58%

32%

1%

Very effective

Somewhat effective

Not very effective


2016 (n = 308, 331)2015 (n = 198, 214)2014 (n = 213, 214)2013 (n = 151, 229)2012 (n = 145, 188)


2015

Note: Respondents whose organizations had wellness initiatives in place were asked this question. Respondents who indicated they were “not sure” or “not applicable” were excluded from this analysis. Percentages may not total 100% due to rounding. 2015Statistically significant difference from 2015. 2012Statistically significant difference from 2012.

2012

Effectiveness of Wellness Initiatives in Reducing the Costs of Health Care

and Improving the Overall Physical Health of Employees

13

Effectiveness of Wellness Initiatives in Improving Overall Engagement of

Employees

9%

65%

22%

4%

Very effective

Somewhat effective

Not very effective



Note: n = 337. Respondents whose organizations had wellness initiatives in place were asked this question. Respondents who indicated they were “not sure” or “not applicable” were excluded from this analysis.

60%

59%

67%

56%

57%

Provide

wellness

incentives

or rewards

2016 (n = 393)

2015 (n = 243)

2014 (n = 251)

2013 (n = 268)

2012 (n = 284)

14

Wellness Incentives or Rewards


Note: Respondents whose organizations had wellness initiatives in place were asked this question. Respondents who indicated they were “not sure” were excluded from this analysis. Only “yes” responses are shown.

15

Effectiveness of Wellness Incentives or Rewards in Increasing Employee

Participation

27%

61%

10%

2%

36%

55%

9%

0%

25%

60%

14%

1%

20%

62%

16%

2%

31%

55%

13%

1%

Very effective

Somewhat effective

Not very effective


2016 (n = 176)2015 (n = 135)2014 (n = 154)2013 (n = 140)2012 (n = 140)


High-Tech

Companies

All Other

Organizations

Somewhat effective 77%* 55%

Not very effective 2%* 13%

Note: High-tech companies n = 48; all other organizations n = 128. *Only statistically significant differences are shown. “All other organizations” does not include high-tech companies.

Note: Respondents whose organizations had wellness initiatives in place and wellness incentives or rewards were asked this question. Respondents who indicated they were “not sure” were excluded from this analysis. Percentages may not total 100% due to rounding.

Differences between high-tech companies and

all other organizations

16

Basis for Wellness Incentives/Rewards

80%

56%

28%

Participatory

Activity-based, health-contingent

wellness program

Outcome-based, health-contingent

wellness program


Note: n = 234. Respondents whose organizations had wellness initiatives in place were asked this question. Percentages do not total 100% due to multiple response options.

1Participatory: Rewards toward participation in wellness programs/initiatives (e.g., subsidies toward a fitness center or class, a reward for participation in a biometric screening) 2Activity-based, health-contingent wellness program: Rewards are based on employee participation in wellness activities (e.g., walking, dieting or exercise programs)3Outcome-based, health-contingent wellness program: Rewards are based on employee outcomes (e.g., not smoking, meeting certain targets in biometric screening results)

1

2

3

17

Types of Wellness Incentives or Rewards Offered in Previous Year

38%

37%

26%

26%

25%

15%

7%

11%

45%

37%

25%

20%

7%

15%

Reduction in health care premium

Gift cards

Company gift items, such as t-shirts, mugs

and gym bags

Recognition in a company newsletter,

intranet, etc.

Bonus/cash*

Contribution to HSA/HRA*

Time off from work

Other

2016 (n = 234)

2015 (n = 143)


Note: Respondents whose organizations had wellness initiatives in place were asked this question. Percentages do not total 100% due to multiple response options. *”Bonus/cash” and “contribution to HSA/HRA” were added as response options in 2016. Thus, trend data are not available.

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Key Findings

DemographicsDemographicsDemographicsDemographics

19

Demographics: Organization Industry


PercentagePercentagePercentagePercentage

Professional, scientific and technical services 32%

Manufacturing 17%

Health care and social assistance 11%

Finance and insurance 8%

Educational services 7%

Information 6%

Government agencies 5%

Transportation and warehousing 4%

Wholesale trade 4%

Administrative and support, and waste management and remediation services 4%

Retail trade 4%

Note: n = 570. Percentages do not total 100% due to multiple response options.

20

Key FinDemographics: Organization Industry (continued)


PercentagePercentagePercentagePercentage

Accommodation and food services 4%

Religious, grant-making, civic, professional and similar organizations 4%

Construction 3%

Arts, entertainment and recreation 3%

Real estate and rental and leasing 2%

Utilities 2%

Repair and maintenance 2%

Agriculture, forestry, fishing and hunting 2%

Mining, quarrying, and oil and gas extraction 1%

Personal and laundry services 1%

Other industry 12%

Note: n = 570. Percentages do not total 100% due to multiple response options.

21

Key FinDemographics: Organization Sector


58%

19%

15%

5%

2%

Privately owned for-profit

Nonprofit

Publicly owned for-profit

Government

Other

Note: n = 565. Percentages may not total 100% due to rounding.

22

Key FinDemographics: Organization Staff Size


n = 550

33%

34%

19%

10%

4%

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

23

Key FinDemographics: Other


n = 567

U.S.-based operations only 71%

Multinational operations 29%

Does your organization have U.S.-based

operations (business units) only, or does

it operate multinationally?

n = 378

For multi-unit organizations, are HR policies and

practices determined by the multi-unit headquarters, by

each work location or by both?

Multi-unit headquarters determines HR

policies and practices.55%

Each work location determines HR policies

and practices.4%

A combination of both the work location and

the multi-unit headquarters determines HR

policies and practices.

40%

Corporate (companywide) 79%

Business unit/division 14%

Facility/location 7%

What is the HR department/function for

which you responded throughout this

survey?

Note: n = 376. Percentages may not total 100% due to rounding.

Single-unit organization: An organization in

which the location and the organization are

one and the same.

38%

Multi-unit organization: An organization that

has more than one location.62%

Is your organization a single-unit organization or a

multi-unit organization?

n = 571

24

SHRM Survey Findings:

Survey MethodologySurvey MethodologySurvey MethodologySurvey Methodology

SHRM Survey Findings: Strategic Benefits—Wellness Initiatives


Survey Methodology:

• Response rate = 10%

• 738 HR professionals from a randomly selected sample of SHRM’s membership participated in this

survey

» 243 of the 738 HR professionals were from organizations in the high-tech industry

• Margin of error +/- 4%

• Survey fielded April-May 2016

Project Lead:

Karen Wessels, researcher, workforce planning, SHRM Research

Project Contributors:

Evren Esen, director, SHRM-SCP, workforce analytics, SHRM Research

Jennifer Schramm, manager, SHRM-SCP, workforce trends and forecasting, SHRM Research

Samantha DiNicola, SHRM Research


Additional SHRM Resources

Health Care Reform Resource Page: www.shrm.org/healthcare

For more survey/poll findings, visit www.shrm.org/surveys

For more information about SHRM’s Research Services:

» Customized Research Service, visit www.shrm.org/customizedresearch

» Employee Engagement Survey Service, visit www.shrm.org/peopleinsight

» Customized Benchmarking Service, visit www.shrm.org/benchmarks

Follow us on Twitter @SHRM_Research


About SHRM

The Society for Human Resource Management (SHRM) is the world’s largest HR

professional society, representing 285,000 members in more than 165 countries. For

nearly seven decades, the Society has been the leading provider of resources serving

the needs of HR professionals and advancing the practice of human resource

management. SHRM has more than 575 affiliated chapters within the United States and

subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.

shrm survey findings: 2016 strategic benefits— wellness initiatives

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