Many organizations have embraced financial incentives — but with
mixed results
ARLINGTON, Va.--(BUSINESS WIRE)--Nov. 19, 2015--
Despite offering an array of programs to enhance worker health and
productivity, U.S. employers are finding it difficult to change the
lifestyle behaviors of their employees, according to a survey by global
professional services company Towers Watson (NASDAQ: TW). Furthermore,
the vast majority of organizations (88%) that offer employees financial
incentives for participation in these programs will reassess their
incentives over the next three years.
Driven by ongoing concerns over worker stress (75%), obesity (70%) and
sedentary lifestyles (61%), employer commitment to health and
productivity remains strong. Towers Watson’s Staying@Work Survey found
that a large majority (84%) of U.S. employers identify health and
productivity improvement as essential or moderately important to their
health strategies. Additionally, over three-quarters (77%) of U.S.
employers expect their organization’s commitment to increase or
significantly increase over the next three years.
“U.S. employers have long recognized that the health and productivity of
their workforce can influence business success and create competitive
advantage,” said Shelly Wolff, senior health care consultant at Towers
Watson. “Yet while the hot-button issues of stress and obesity remain
ever-present, the numerous programs and incentives designed to combat
them have failed to effectively engage employees. Employers may find the
key to making better progress hinges on looking at these programs
through an employee’s eyes.”
Interestingly, while Towers Watson’s Global Benefit Attitudes Survey
found that health is a clear employee priority, employees have
not connected to their employers’ well-being programs. Only one-third
said the well-being initiatives offered by their employers encouraged
them to live healthier lifestyles. In addition, 71% of employees prefer
to manage their own health, and nearly one-third (32%) said the
initiatives offered by their employers don’t meet their needs. Nearly
half (46%) don’t want their employers to have access to their personal
health information, in part due to privacy concerns, and close to
one-third (30%) don’t trust their employers to be involved in their
health and well-being.
In the last year, only 50% of employees participated in a well-being
activity or health management-related program. Individual program
participation was even lower, ranging from 48% for health risk and
biometric assessments, to 22% for worksite diet/exercise events, to 8%
for healthy-sleep or tobacco-cessation programs. On average, employers
offer their employees $880 through a range of annual incentives, but
employees collect only $365. Two-fifths of all employees don’t earn any
incentives at all.
“Employers recognize that employees are leaving a lot of money on the
table,” said Steven Nyce, senior economist at Towers Watson. “The good
news is, employers are doubling down on their commitment to build a
culture of health and improve the employee experience through technology
and personalized communication. They can also be heartened by the
progress some employers are making.”
Companies with the most effective health and productivity programs had
more employees participate in their programs and fewer employees using
tobacco, at risk for high glucose and with hypertension. These highly
effective companies also reported fewer days of unplanned absence and
lower annual medical costs per employee per year.
Other findings from the survey include:
-
A little more than half of employers today do not have an
articulated health and productivity strategy. However, in three
years, nearly half of the organizations plan to include a health and
productivity strategy as a key component of their organization’s
employee value proposition to help attract and retain talent and
motivate employees.
-
Many employers do not currently measure the impact of their health
and productivity programs. While 77% of employers measure program
participation to a moderate or greater extent, only 53% use a variety
of financial and nonfinancial benchmarks, and only 46% measure the ROI
of their programs.
-
Employers are taking a broader view of well-being by connecting
financial well-being to health. Nearly half of employers (47%)
offer financial well-being programs as part of their overall wellness
offerings, with another 33% planning or considering offering by 2018.
There is also growing interest in adding new tools and technologies to
help employees manage their financial lives.
About the Surveys
The 2015/2016 Towers Watson Staying@Work Survey was completed between
May and July 2015 in North America, Latin America, Europe, the Middle
East and Asia by 1,669 employers. The survey captures details on each
organization’s health and well-being strategy and programs in their
respective local markets. Additionally, 42 multinational firms responded
to a complementary survey capturing the perspective of the global
headquarters. In total, the data include responses from 34
countries/markets. The countries with the most number of responses are
the U.S., 487; Mexico, 118; Canada, 111; the Philippines, 91; Indonesia,
66; and China, 65. Seventy-three percent of respondents operate in
multiple countries, and respondents are in all major industry sectors.
Towers Watson’s Global Benefit Attitudes Survey examines employees’
attitudes toward their health and retirement benefits. Conducted in 19
economies between June and September 2015, the survey was completed by
30,000 employees, including more than 5,000 in the U.S., representing
all job levels and major industry sectors. The margin of error for the
total sample is +/– 1.3%.
About Towers Watson
Towers Watson (NASDAQ: TW) is a leading global professional services
company that helps organizations improve performance through effective
people, risk and financial management. With 16,000 associates around the
world, the company offers consulting, technology and solutions in the
areas of benefits, talent management, rewards, and risk and capital
management. Learn more at towerswatson.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151119006426/en/
Source: Towers Watson
Towers Watson
Rob Wyse, +1 212-920-1470
rob@capital-content.com