Total Rewards and Employee Well-Being Practices. A Report by WorldatWork, Underwritten by HealthMine March 2015

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1 Total Rewards and Employee Well-Being Practices A Report by WorldatWork, Underwritten by HealthMine March 2015

2 About WorldatWork The Total Rewards Association WorldatWork ( is a nonprofit human resources association for professionals and organizations focused on compensation, benefits, work-life effectiveness and total rewards strategies to attract, motivate and retain an engaged and productive workforce. WorldatWork and its affiliates provide comprehensive education, certification, research, advocacy and community, enhancing careers of professionals and, ultimately, achieving better results for the organizations they serve. WorldatWork has more than 65,000 members and subscribers worldwide; 95 percent of Fortune 500 companies employ a WorldatWork member. Founded in 1955, WorldaWork is affiliated with more than 70 local human resources associations and has offices in Scottsdale, Ariz., and Washington, D.C. Contact: WorldatWork Customer Relations N. Northsight Blvd. Scottsdale, Arizona USA Toll free: Fax CustomerRelations@worldatwork.org WorldatWork Society of Certified Professionals is the certifying body for six prestigious designations: the Certified Compensation Professional (CCP ), Certified Benefits Professional (CBP), Global Remuneration Professional (GRP ), Work-Life Certified Professional (WLCP ), Certified Sales Compensation Professional (CSCP) and Certified Executive Compensation Professional (CECP). The WorldatWork group of registered marks also includes: Alliance for Work-Life Progress or AWLP, workspan and WorldatWork Journal. HealthMine, formerly SeeChange Health Solutions, is an expert automated system uniting all health and wellness programs into a single, powerful solution. It incentivizes your members to take preventive actions keeping your healthy members healthy, and pre-empting members on the cusp of chronic disease. HealthMine also automatically alerts members about key actions for disease management. It empowers health plan administrators with data to improve group health outcomes and manage costs. HealthMine s proprietary Personal Clinical Engagement platform integrates lifestyle management and disease management. With 1+ million consumers engaged, HealthMine delivers ROI in wellness. In one plan alone, HealthMine has delivered $2.8 million in benefit savings returned to employees in a year, and $5 million in health care cost savings over the past five years WorldatWork Any laws, regulations or other legal requirements noted in this publication are, to the best of the publisher s knowledge, accurate and current as of this report s publishing date. WorldatWork is providing this information with the understanding that WorldatWork is not engaged, directly or by implication, in rendering legal, accounting or other related professional services. You are urged to consult with an attorney, accountant or other qualified professional concerning your own specific situation and any questions that you may have related to that. No portion of this publication may be reproduced in any form without express written permission from WorldatWork.

3 Introduction & Methodology This report summarizes the results of a December 2014 survey of WorldatWork members to gather information about current trends in total rewards and well-being practices. The focus of this research is to uncover findings that bring a unique perspective on comprehensive employee wellness programs and their benefits. On Dec. 10, 2014, survey invitations were electronically sent to 6,484 WorldatWork members. Members were selected for specifically noting compensation and benefits or work-life in their titles and/or areas of responsibility as well as indicating a job function code of total rewards. The survey closed on Jan. 16, 2015, with 446 responses, which is a 7% response rate. The data set was cleaned, resulting in a final data set of 414 responses. In order to provide the most accurate data possible, data were analyzed using statistical software. Any duplicate records were removed. Data comparisons with any relevant, statistically significant differences are noted within this report. The demographics of the survey sample and the respondents are similar to the WorldatWork membership as a whole. The typical WorldatWork member works at the managerial level or higher in the headquarters of a large company in North America. The frequencies or response distributions listed in the report show the number of times or percentage of times a value appears in a data set. Due to rounding, frequencies of data responses provided in this survey may not total 100%. WorldatWork conducted a similar compensation practices survey in 2011, which can be viewed on the WorldatWork website. Where possible, historical comparisons from data gathered in the previous survey are shown. Total Rewards and Employee Well-Being Practices WorldatWork 1

4 Table of Figures Demographics Figure 1: Sector... 4 Figure 2: Organization size... 4 Figure 3: Industry... 5 Figure 4: Voluntary turnover... 5 Elements of Well-Being Figure 5: Employer-sponsored health-care Figure 6: Elements of well-being, overall percentages Strategy Figure 7: Well-being strategy Figure 8: Length of time well-being strategy has been in place Figure 9: Reasons for offering well-being programs or initiatives Eligibility Figure 10: Well-being eligibility Figure 11: Well-being eligibility and employee group Figure 12: Well-being and personal values Programs and Initiatives Offered and Utilized Figure 13: Employee usage of programs Figure 14: Attraction efforts Figure 15: Anticipated change Figure 15a: Reasons for increase in offerings Effectiveness Figure 16: Measurement of effectiveness Figure 17: Effect of well-being programs or initiatives Support for Organizational Well-Being Programs Figure 18: Retention of programs Figure 19: Incentives and penalties for participation or nonparticipation Figure 20: Acceptance and endorsement of well-being Figure 21: Communication of well-being programs or initiatives Figure 22: Support from line managers and supervisors Figure 23: Champion of well-being programs or initiatives Figure 24: Senior management and well-being Additional Analysis Figure 25: Well-being continuum Total Rewards and Employee Well-Being Practices WorldatWork 2

5 Figure 26: Number of programs offered and length of time well-being strategy has been in place Figure 27: Well-being continuum and the measured effect of the well-being programs and indicators Figure 28: Well-being continuum and voluntary turnover Total Rewards and Employee Well-Being Practices WorldatWork 3

6 Demographics Figure 1: Your organization is: (n=337) Public sector 12% Private sector, privately held 36% Nonprofit/Notfor-profit 18% Private sector, publicly traded 34% Figure 2: Please choose the total number of full-time employees (FTEs) your organization employs worldwide: (n=341) Option Percentage Fewer than 100 employees 7% 100 to % 500 to % 1,000 to 2,499 19% 2,500 to 4,999 12% 5,000 to 9,999 12% 10,000 to 19,999 8% 20,000 to 39,999 5% 40,000 to 99,999 7% 100,000 or more employees 2% Total Rewards and Employee Well-Being Practices WorldatWork 4

7 Figure 3: What is your industry? (n=341) Industries with less than 2% are not listed in this table. Option Percentage Finance and Insurance 12% Consulting, Professional, Scientific and Technical Services 11% All Other Manufacturing 10% Health-care and Social Assistance 9% Utilities, Oil and Gas 7% Retail Trade 6% Educational Services 5% Public Administration 4% Transportation 4% Pharmaceuticals 3% Computer and Electronic Manufacturing 2% Construction 2% Information (includes Publishing, IT, etc.) 2% Mining 2% Other Services (except Public Administration) 2% Wholesale Trade 2% Other 15% Figure 4: What is the approximate annual voluntary turnover for employees? (n=334) 34% 25% 20% 11% 5% 2% 3% 0%-5% 6%-10% 11%-15% 16%-20% 21%-26% 27%-40% 41% or more Total Rewards and Employee Well-Being Practices WorldatWork 5

8 Executive Summary This survey was conducted to identify traditional wellness plans and new trends in employee well-being. The objective was to gauge how many programs and initiatives organizations offer. The survey also focused on how those offerings are expanding to include a more integrated well-being approach beyond one that is related solely to physical health. Employers continue to depend on health and wellness initiatives to curb health-care costs and foster a successful and productive workforce. Ninety-six percent of organizations support well-being components, as shown in Figure 6, and 90% of their active employees, on average, are eligible. (See Figure 10.) Nearly three-quarters (74%) of organizations are increasing or considerably increasing their well-being offerings in the next two years, as shown in Figure 15, with the objectives of impacting health-care costs and increasing productivity as the top reasons for the increase. (See Figure 15a.) Having a strategy in place is an important component. Nearly half (49%) of organizations have a strategy and 54% of those have had one in place for three or more years. (See Figure 8.) It also appears as though source of the primary champions for well-being programs is growing into the senior-management ranks, including the CEO. (See Figure 23.) Consistent with the 2011 findings, most employers would retain their well-being offerings even if they were to stop offering employer-sponsored health-care. (See Figure 18.) Also consistent with 2011 results are the reasons for offering well-being plans; 82% are trying to improve employee health. (See Figure 9.) In addition to testing the broad concept of well-being, WorldatWork was interested in finding out some common themes within organizations that have a more integrated approach to well-being versus those with more traditional wellness programs. Organizations with an integrated approach offer a higher number of well-being programs, as shown in Figure 26, and report lower voluntary turnover rates. However, the prevalence of high turnover rates at traditional wellness organizations has grown since (See Figure 28.) Elements of Well-Being Of the 96% of organizations that support well-being elements in their organization, three of the top five offerings are health-related. (See Figure 6.) Since 2011, more organizations are Top 5 Well-Being Elements EAP resource and referral 81% supporting well-being by offering physical healthrisk assessments Immunizations Workplace safety 72% 72% (biometrics, physical Mental/behavioral health fitness, etc.) as this has coverage 70% increased by 14 percentage points to 58%, which is a statistically significant result. Physical fitness 69% Total Rewards and Employee Well-Being Practices WorldatWork 6

9 Strategy 49% of organizations stated that they have an employee well-being strategy in place, as shown in Figure 7, and 54% of those organizations have had their strategy in place for three or more years. (See Figure 8.) Organizations have many reasons for offering well-being programs/initiatives, and the top reasons include: improve employee health (82%), decrease medical premiums and claims costs (78%), and perceived value to employees (77%). These reasons are consistent with findings from (See Figure 9.) The longer an organization has had a well-being strategy in place, the more well-being programs they tend to offer. Organizations with well-being strategies in place for five or more years have a statistically significantly higher average number of programs than those with strategies in place for three or fewer years. (See Figure 26.) Eligibility For the majority of well-being programs, 90% of responding organizations, all active employees are typically eligible to participate in the majority of well-being programs. This is slightly lower than the 94% of organizations that reported widespread eligibility in 2011, which is a statistically significant shift. Spouses or domestic partners is the next largest eligible group (30%). (See Figure 10.) When asked if some programs are only available to select employees or groups, programs available to exempt/salaried employees has increased 4% and executive-only programs has risen 5% since (See Figure 11.) Programs and Initiatives Offered and Utilized While many of the top wellbeing elements supported are health-related, these findings also indicate a shared distribution among of healthrelated and work-life balance program rankings. (See Figure 13.) Top 5 Utilized Programs 1. Physical health risk assessment 2. Workplace safety 3. Flexible schedules 4. Encourage time away from work 5. Physical fitness (exercising) In organizations with existing programs, 74% anticipate an increase or considerable increase to their well-being offerings, while 24% indicate no change. Only 2% expect a decrease in wellbeing program and activity offerings. (See Figure 15.) The principal reason for those predicting an increase in offerings is the impact on health-care costs, which is consistent with findings in (See Figure 15a.) Total Rewards and Employee Well-Being Practices WorldatWork 7

10 Effectiveness A notable number of organizations are measuring the effectiveness of their well-being programs (72%), and more than half of these are measuring with participation rates (52%).Health-care costs (37%) and employee satisfaction surveys (31%) are also moderately utilized measures. (See Figure 16.) These measurements align themselves well with the reasons for offering these types of programs indicating further the strategic approach to these programs. We continue to see more than a quarter of organizations not measuring anything (28%). Reasons for Offering Well-Being Measurement of Well-Being Improve employee health 82% Participation rates 52% Decrease medical premiums and claims costs 78% Health-care costs 37% Perceived value to employees 77% Employee satisfaction surveys 31% Increase employee engagement 74% Employee awareness programs and employee engagement scores 22% 75% of organizations find employee satisfaction as the most positive measured effect of wellbeing programs, followed by biometric screening (73%), employee engagement (72%) and productivity (71%). (See Figure 17.) Support for Organizational Well-Being Programs Organizations that offer employer-sponsored health-care believe they would keep most of their well-being offerings if they discontinued employer-sponsored health-care. The well-being programs that organizations are most likely to keep fall in the workplace environment and worklife balance categories. Ninety-five percent of organizations would keep workplace safety and 92% would continue to encourage time away from work (vacation, not plugged in) and flexible schedules. The programs with higher drop rates include: resiliency training (29%), mental/behavioral health coverage (27%), and wellness coaching (26%). (See Figure 18.) While many well-being programs are neither incentivized nor penalized for participation, 64% of organizations offer incentives for physical health-risk assessments (biometrics, physical fitness, etc.). Smoking cessation continues to have the highest penalties (17%) followed by physical health risk assessments (11%). (See Figure 19.) 70% of organizations communicate about their well-being programs on a frequent and ongoing basis throughout the year, as shown in Figure 21, and 58% of line managers and supervisors are empowered to and responsible for supporting employees in participating in the offered programs. (See Figure 22.) These findings are consistent with results from In 2011, the primary champions of promoting well-being as a strategic and important organizational initiative were top HR executives (43%), which remains similar today but at a reduced percentage (35%). Other roles are increasingly taking the driver s seat including top benefits/total rewards executives (19%), CEO or president (17%), and all senior management (8%). (See Figure 23.) Total Rewards and Employee Well-Being Practices WorldatWork 8

11 Additional Analysis By viewing well-being in an integrated way, organizations may have a better understanding of what these programs and initiatives can do in creating an atmosphere for employees at work and beyond. A well-being continuum was developed based on answers to key questions in this survey, to analyze how organizations perceive employee well-being on a holistic level. In 2014, the continuum revealed that 39% of organizations are operating with an integrated approach to wellbeing, as opposed to a more traditional and less integrated approach. This has shifted from 2011 where 45% of organizations landed on the integrated side of the scale. (See Figure 25.) Integrated well-being organizations are more likely to rate the measured effect on health-care costs extremely positive or positive (73%) compared to traditional wellness organizations (53%). Additionally, integrated well-being organizations are more likely to rate the measured effect on employee satisfaction extremely positive or positive (77%) compared to traditional wellness organizations (68%). (See Figure 27.) High voluntary turnover (11% to 15%) in traditional wellness organizations is greater than those with an integrated approach to well-being by more than 10 percentage points. (See Figure 28.) Total Rewards and Employee Well-Being Practices WorldatWork 9

12 Results and Analysis Elements of Well-Being Figure 5: Do you offer employer-sponsored health-care? No 4% No 3% Yes 96% Yes 97% 2011 (n=478) 2014 (n=413) Total Rewards and Employee Well-Being Practices WorldatWork 10

13 Figure 6: What elements of well-being do you support within your organization? (Check all that apply.) (n=380) Health-Related Work-Life Balance Immunizations 72% Flexible schedules 62% Mental/behavioral health coverage 70% Encourage time away from work (vacation, not plugged in) 61% Physical fitness (exercising) 69% Community involvement programs 56% Smoking cessation 66% Child-care assistance 26% Diet and nutrition 61% Elder-care assistance 20% Physical health-risk assessment (biometrics, physical fitness, etc.) 1 58% Caregiving assistance 12% Disease management 57% Relief from work overload 5% Behavioral/mental health-risk assessment 30% Retirement-Related Financial education (e.g., primary focus on retirement/investment education) Financial advice (e.g., primary focus on retirement/investment advice) Financial wellness (e.g., debt management, budgeting, etc.) Workplace Environment 63% Workplace safety 72% 37% Ergonomics 57% 28% Stress-Related EAP resource and referral 81% Yoga 28% Meditation/mindfulness training 10% Resiliency training 8% Skill-Building Education Wellness coaching 38% Stress management 36% Time management 31% Healthy workplace relationships 19% Behavioral modification 14% Healthy personal relationships 11% Parenting skills 11% Do Not Offer Well-Being Programs We do not offer any well-being programs 4% 1 A statistically significantly larger number of organizations are offering physical health-risk assessments as an element of well-being in 2014 (58%) compared with 2011 (44%). Total Rewards and Employee Well-Being Practices WorldatWork 11

14 Strategy Figure 7: Does your organization have a strategy when it comes to employee well-being? No 46% No 51% Yes 54% Yes 49% 2011 (n=447) 2014 (n=365) Figure 8: How long have you had this well-being strategy in place? Only participants that responded yes in Figure 7 received this question. Less than 1 year 7% 17% More than 1 year but less than 3 years 38% 39% 3 years but less than 5 years 23% 28% 5 or more years 21% 26% 2011 (n=242) 2014 (n=179) Total Rewards and Employee Well-Being Practices WorldatWork 12

15 Figure 9: What are the reasons for offering well-being programs/initiatives to your employees? (Check all that apply.) Improve employee health Decrease medical premiums and claims costs Perceived value to employees Increase employee engagement Improve employee productivity 85% 82% 77% 78% 79% 77% 72% 74% 73% 70% Improve employee retention 64% Drive or support overall culture Reduce absenteeism 61% 64% 61% Improve employee attraction Decrease disability and worker's compensation costs 55% 52% 53% Reduce presenteeism 33% 31% Other 3% 2% 2011 (n=442) 2014 (n=363) Total Rewards and Employee Well-Being Practices WorldatWork 13

16 Eligibility Figure 10: For the majority of your well-being programs, who is eligible to participate? (Check all that apply.) 2 All active employees 94% 90% Spouses or domestic partners Immediate family members 29% 30% 24% 21% Retired employees Select active employees Retired employee dependents Extended family members 7% 6% 6% 10% 3% 3% 2% 1% 2011 (n=444) 2014 (n=364) Figure 11: Are any of your well-being programs only available to select employees or groups? (Check all that apply.) We offer all programs to all employees 76% 75% Some programs are only available to exempt/salaried employees We have executive-only programs Some programs are only available to nonexempt/hourly employees Other 7% 11% 5% 10% 2% 3% 11% 9% 2011 (n=425) 2014 (n=345) 2 A statistically significantly lower number of participants cited all active employees as eligible to participate in the majority of well-being programs in 2014 (90%) compared to 2011 (94%). Total Rewards and Employee Well-Being Practices WorldatWork 14

17 Figure 12: To what degree does your organization support your workforce in defining their strong sense of self or purpose through their beliefs, principles, values and ethical judgments? (n=362) Degree of organizational support for the workforce On a scale of 0 to 7 Not at all to to to to to to to 7 13% 3% 5% 9% 18% 14% 20% 20% Strongly support Average value: 4.1 Programs and Initiatives Offered and Utilized Figure 13: Please rank the well-being programs your organization offers by employee usage. Lower program rankings indicate greater employee usage. Only programs indicated in Figure 6 were available for ranking by the participants. Health-Related Physical health-risk assessment (biometrics, physical fitness, etc.) (n=191) Physical fitness (exercising) (n=226) 4.6 Work-Life Balance 3.5 Flexible schedules (n=200) 3.9 Encourage time away from work (vacation, not plugged in) (n=196) Immunizations (n=237) 4.9 Community involvement programs (n=179) 5.0 Diet and nutrition (n=192) 6.3 Child-care assistance (n=83) 7.7 Disease management (n=174) 6.7 Work overload (n=8) 8.4 Mental/behavioral health coverage (n=209) 7.2 Caregiving assistance (n=32) 11.3 Behavioral/mental health-risk assessment (n=83) 7.8 Elder-care assistance (n=58) 11.7 Smoking cessation (n=202) 7.8 Retirement-Related Workplace Environment Financial education (n=202) 6.7 Workplace safety (n=202) 3.7 Financial advice (n=118) 6.9 Ergonomics (n=181) 6.8 Financial wellness (n=82) 9.1 Stress-Related EAP resource and referral (n=269) 5.5 Resiliency training (n=23) 7.1 Yoga (n=85) 8.2 Meditation/mindfulness training (n=28) 9.6 Skill-Building Education Wellness coaching (n=115) 7.6 Stress management (n=118) 8.1 Healthy workplace relationships (n=52) Total Rewards and Employee Well-Being Practices WorldatWork 15

18 Time management (n=93) 8.4 Behavioral modification (n=35) 11.1 Healthy personal relationships (n=28) 13.2 Parenting skills (n=32) 14.0 Figure 14: Does your organization feature well-being programs prominently in your employee attraction efforts? No 54% No 58% Yes 46% Yes 42% 2011 (n=427) 2014 (n=341) Figure 15: In your opinion, how do you see the well-being program(s) changing within your organization in the next two years? Considerable increase in well-being programs and activities offered 16% 13% Increase in well-being programs and activities offered 61% 61% No change 21% 24% Decrease in well-being programs and activities offered 2% 2% Considerable decrease in well-being programs and activities offered 0% 0% 2011 (n=428) 2014 (n=344) Total Rewards and Employee Well-Being Practices WorldatWork 16

19 Figure 15a: Please rank the following options from principal reason to least significant reason for this anticipated increase. Only participants that selected increase or considerable increase in Figure 15 received this question. Ranking Average n= Impact on health-care costs Increased productivity Competitive advantage Demand from employees Lower absenteeism Total Rewards and Employee Well-Being Practices WorldatWork 17

20 Effectiveness Figure 16: How do you measure the effectiveness of the well-being programs offered at your organization? (Check all that apply.) Participation rates 52% 58% Health-care costs Employee satisfaction surveys Employee awareness of programs Employee engagement scores Screening results Absenteeism rates Disability costs Turnover rates Employee focus groups Programs are too new to measure effectively Productivity Employee reported stress levels Other We don t measure 39% 37% 34% 31% 27% 22% 23% 22% 21% 17% 21% 16% 16% 16% 18% 14% 13% 9% 8% 8% 7% 6% 4% 3% 2% 30% 28% 2011 (n=426) 2014 (n=340) Figure 17: What have the measured effect of the well-being programs been? n Extremely negative/negative effect No effect or neutral Extremely positive/positive effect Employee satisfaction 102 1% 25% 75% Biometric screening 56 2% 25% 73% Employee engagement 75 0% 28% 72% Productivity 21 0% 29% 71% Total Rewards and Employee Well-Being Practices WorldatWork 18

21 Health-care costs 123 2% 33% 66% Absenteeism rates 54 0% 37% 63% Employee stress 14 7% 36% 57% Disability costs 53 2% 45% 53% Turnover rates 46 4% 52% 44% Support for Organizational Well-Being Programs Figure 18: If your organization were to no longer offer employee-sponsored health-care, which wellbeing programs would you keep and which would you drop? Health-Related n Keep program Drop program Don t know Physical fitness (exercising) % 9% 11% Immunizations % 16% 11% Diet and nutrition % 12% 15% Smoking cessation % 21% 16% Physical health-risk assessment (biometrics, physical fitness, etc.) % 25% 17% Mental/behavioral health coverage % 27% 18% Disease management % 29% 16% Behavioral/mental health-risk assessment 95 45% 25% 30% Stress-Related n Keep program Drop program Don t know EAP resource and referral % 5% 5% Yoga 91 54% 20% 26% Resiliency training 24 46% 29% 25% Meditation/mindfulness training 29 45% 21% 35% Retirement-Related n Keep program Drop program Don t know Financial education % 6% 10% Financial advice % 7% 12% Financial wellness 85 69% 9% 21% Workplace Environment n Keep program Drop program Don t know Workplace safety % 1% 4% Ergonomics % 5% 7% Work-Life Balance n Keep program Drop program Don t know Encourage time away from work (vacation, not plugged in) % 1% 7% Flexible schedules % 3% 5% Community involvement programs % 3% 7% Caregiving assistance 33 88% 3% 9% Child-care assistance 82 81% 9% 11% Elder-care assistance 56 73% 11% 16% Work overload 13 69% 0% 31% Skill-Building Education n Keep program Drop program Don t know Total Rewards and Employee Well-Being Practices WorldatWork 19

22 Time management 98 70% 11% 18% Stress management % 14% 22% Healthy workplace relationships 57 61% 14% 25% Health personal relationships 31 52% 19% 29% Wellness coaching % 26% 26% Behavioral modification 39 49% 18% 33% Parenting skills 32 41% 25% 34% Figure 19: For the following well-being programs/initiatives, does your organization offer an incentive for participation or penalties for nonparticipation to employees? (Note: if you incentivize and penalize programs, please select both the offer incentives and require penalties boxes.) Health-Related n Offer incentives Require penalties Neither incentivize nor penalize Physical health-risk assessment (biometrics, physical fitness, etc.) % 11% 25% Physical fitness (exercising) % 1% 57% Diet and nutrition % 1% 65% Smoking cessation % 17% 50% Behavioral/mental health-risk assessment 96 21% 3% 76% Disease management % 2% 81% Immunizations % 4% 83% Mental/behavioral health coverage 215 3% 0% 97% Stress-Related n Offer incentives Require penalties Neither incentivize nor penalize Yoga 89 20% 0% 80% Resiliency training 26 19% 0% 81% Meditation/mindfulness training 29 14% 0% 86% EAP resource and referral 257 4% 0% 97% Retirement-Related n Offer incentives Require penalties Neither incentivize nor penalize Financial wellness 85 9% 0% 91% Financial education 192 6% 0% 94% Financial advice 110 5% 0% 96% Workplace Environment n Offer incentives Require penalties Neither incentivize nor penalize Workplace safety % 7% 81% Ergonomics 173 4% 0% 97% Work-Life Balance n Offer incentives Require penalties Neither incentivize nor penalize Community involvement programs % 0% 77% Child-care assistance 81 10% 0% 90% Total Rewards and Employee Well-Being Practices WorldatWork 20

23 Encourage time away from work (vacation, not plugged in) 192 5% 1% 95% Flexible schedules 193 4% 0% 96% Elder-care assistance 59 3% 0% 97% Caregiving assistance 34 3% 0% 97% Work overload 14 0% 0% 100% Skill-Building Education n Offer incentives Require penalties Neither incentivize nor penalize Wellness coaching % 3% 71% Behavioral modification 42 22% 2% 78% Stress management % 0% 89% Time management 97 6% 0% 94% Healthy workplace relationships 57 4% 2% 95% Parenting skills 35 3% 0% 97% Healthy personal relationships 33 3% 0% 97% Figure 20: Using the rating scale below, how would you rate the overall acceptance and endorsement of employee well-being into the culture of your organization: (n=331) Degree of acceptance and endorsement of employee well-being Onascaleof0to4 Nonexistent to to to to 4 5% 13% 33% 31% 19% Deeply embedded Average value: 2.1 Figure 21: Do you communicate your well-being programs in a frequent and ongoing basis throughout the year? No 31% No 30% Yes 69% Yes 70% 2011 (n=411) 2014 (n=330) Total Rewards and Employee Well-Being Practices WorldatWork 21

24 Figure 22: Are your line managers and supervisors empowered to and responsible for supporting employees in participating in the well-being programs offered? No 43% No 43% Yes 57% Yes 58% 2011 (n=413) 2014 (n=327) Figure 23: Who in your organization (if anyone) is the primary champion or driver of the idea that wellbeing is a strategic and important imperative to the organization? Top HR executive 35% 43% Top Benefits/total rewards executive CEO or president 16% 19% 14% 17% All of senior management No one 7% 8% 6% 7% Employees Chief operating officer (COO) Board of directors Chief financial officer (CFO) 3% 3% 2% 2% 2% 1% 1% 1% Other 7% 6% 2011 (n=413) 2014 (n=327) Total Rewards and Employee Well-Being Practices WorldatWork 22

25 Figure 24: Which of the following best describes how senior management in your organization views employee well-being programs? (n=329) Degree of senior management s view of well-being programs On a scale of 0 to 7 No support to to to to to to to 7 High level of 3% 3% 9% 14% 21% 17% 18% 16% support Average value: 4.2 Total Rewards and Employee Well-Being Practices WorldatWork 23

26 Additional Analysis Well Being Integration Continuum A well-being scale was developed based on answers to key questions in the survey. The intention is to analyze how organizations perceive employee well-being on a holistic level. By viewing well-being in a more holistic way, organizations may have a better understanding of what these programs and initiatives can do in creating an atmosphere of well-being for employees both at work and in their personal lives. Supporting the employee both at work and beyond can have positive results for the organization in terms of increased productivity, increased engagement levels, increased employee satisfaction and positive changes in employee behaviors. This differs from organizations that limit employee well-being to more traditional wellness offerings with the sole purpose of lowering health-care costs. Critical issues considered in the continuum scoring include: Number and types of well-being programs offered (42 points possible; programs considered innovative were allotted additional points over some traditional programs) Balance of programs offered (4 points possible) Organizational strategy when it comes to employee well-being (5 points possible) Eligibility for well-being programs (6 points possible) Organizational support for employees when it comes to defining a strong sense of self or purpose through beliefs, principles, values, and ethical judgments (3 points possible) The culture of well-being within the organization (4 points possible) Use of well-being in attraction of new employees (1 point possible) Senior management s view of well-being (3 points possible) Well-being communication (1 point possible) Line managers and supervisors authorized to support employees when participating in the well-being programs offered (1 point possible). The maximum number of points possible is 70. Organizations scoring between 1 and 34 on the continuum are considered to have traditional wellness while those scoring between 35 and 70 have integrated well-being. Figure 25: Well-being continuum (n=367) Traditional wellness, 61% Integrated wellbeing, 39% 2011 (n=418) Traditional wellness, 55% Integrated wellbeing, 45% 3 The Well-Being Continuum scoring in 2011 was only out of a maximum 68 points. An additional two points were added to the number and types of well-being programs offered category. Total Rewards and Employee Well-Being Practices WorldatWork 24

27 Figure 26: Number of programs offered and length of time well-being strategy has been in place Less than 1 year More than 1 year but less than 3 years 3 years but less than 5 years 5 or more years 2011 (n=242) 2014 (n=179) Figure 27: Well-being continuum and the measured effect of the well-being programs and indicators 5 Employee Engagement (n=75) Extremely negative/negative effect No effect or neutral Extremely positive/positive effect Traditional wellness 0% 46% 54% Integrated well-being 0% 20% 80% Health-care Costs (n=123) Traditional wellness 4% 42% 53% Integrated well-being 0% 27% 73% Disability Costs (n=53) Traditional wellness 6% 56% 38% Integrated well-being 0% 41% 60% Absenteeism Rates (n=54) Traditional wellness 0% 35% 65% Integrated well-being 0% 38% 62% Employee Satisfaction (n=102) Traditional wellness 4% 29% 68% Integrated well-being 0% 23% 77% Productivity (n=21) 4 Organizations with a well-being strategy in place for five or more years offer an average number of well-being programs at significantly higher rates (19) than organizations with a strategy in place for less than one year (13) and more than one year but less than three years (16). 5 Statistical significance difference testing was not conducted within groups due to responses less than 30. Total Rewards and Employee Well-Being Practices WorldatWork 25

28 Traditional wellness 0% 0% 100% Integrated well-being 0% 32% 68% Biometric Screening (n=56) Traditional wellness 0% 33% 67% Integrated well-being 2% 23% 75% Turnover Rates (n=46) Traditional wellness 11% 53% 37% Integrated well-being 0% 52% 48% Employee Stress (n= 14) Traditional wellness 0% 0% 100% Integrated well-being 8% 42% 50% Figure 28: Well-being continuum and voluntary turnover 6 Traditional wellness (n=194) 21% 27% 52% Integrated well-being (n=127) 17% 43% 39% Traditional wellness (n=223) 33% 32% 35% Integrated well-being (n=186) 30% 36% 34% 0% to 5% (low) 6% to 10% (medium) 11% to 15% (high) 6 Organizations with traditional wellness in 2014 have statistically significantly greater voluntary turnover for 11% to 15% (high) turnover (52%) than those in 2011 for 11% to 15% turnover (35%). Total Rewards and Employee Well-Being Practices WorldatWork 26

29 Participating Organizations Advantage Sales & Marketing Agnico Eagle Mines Limited Air Canada Alaska Airlines Alaska Communications Alberta Motor Association Alcatel-Lucent AMAG Pharmaceuticals American Bar Association ANSYS Inc. Ariens Co. Astron Solutions Aux Sable Baker Hughes Banner Health Bellstar Hotels and Resorts BICSI Bill Barrett Corp. Blue Cross & Blue Shield of Rhode Island Blue Cross Blue Shield of Arizona Blue Diamond Growers BlueLinx Corp. BP Bridgepoint Education British Sugar Brown Industrial Inc. Brownells Inc. CACI International Canadian Blood Services Canadian Payments Association Capital Metropolitan Transportation Authority Carlson Dettmann Consulting LLC Casino Pauma Central 1 Credit Union Ciena Corp. CIMA+ City of Seattle Cleveland Clinic CNI CO-OP Financial Services Community Hospital Corp. Consolidated Communications COPT Crowe Horwath LLP CSA Group CTI Foods Curtiss-Wright Daymon Worldwide DuPont Eastern Alliance Insurance Co. Eby-Brown Edmonton Kenworth Ltd. Elbit Systems of America Emergency Medical Care Inc. Employers Council Employers Resource Association EPCOR Erie Insurance Evraz Experimental Aircraft Association EZCORP Inc. Federal Express Canada Ltd. Federal Reserve Bank of Richmond FedEx Express Canada Ltd. Fike Corp. Firmenich Inc. Freudenberg North America George Mason University George Washington University Goodman Manufacturing Grand & Toy Ltd. Grand River Hospital Grande Hackensack University Medical Center Helios HR LLC Helmerich & Payne Inc. Henry Schein Hess Corp. Hilltop National Bank Hunter Douglas Inc. ICW Group IM Flash Technologies Immanuel Innovative Compensation and Benefits Concepts Inspirus Inter-Coastal Electronics Inc. Investors Community Bank John Wiley & Sons Singapore Pte Ltd K+S Potash Canada Kingston General Hospital KVH Industries Inc. LAMMICO Lehigh Valley Health Network Lexicon Pharmaceuticals Inc. LifeBridge Health Linbeck Lincoln Investment Planning Lions Clubs International Livingston International Inc. LPK Maersk Oil Maricopa Integrated Health System Total Rewards and Employee Well-Being Practices WorldatWork 27

30 MARTA Masonite International Corp. Matrix Service Co. McDonald's Korea McGraw Hill Financial MGMA MIT Lincoln Laboratory Molina Healthcare Inc. Monitise MVP Health-care NAB NASDAQ National Pen NatureWorks Nautilus Inc. Nolan Financial Nordson Corp. North American Science Associates NorthStar Financial Services Group LLC Novartis NOVEC Nu Skin Enterprises NW Permanente Office Depot Ohio National Financial Services Omaha Public Power District Oman Telecommunication Co. ON Semiconductor OpenText Oswego Health Otterbein Homes Palmetto Health Peabody Essex Museum Pessin Katz Law, P.A. PETRONAS Piedmont EMC Pinnacle Health System Piramal Enterprises Limited PNC Financial Services Group Points Athabasca Contracting LP Press Ganey Associates Prime Therapeutics LLC Principal Financial Group Project HOPE PROS Inc. QBE Raiffeisen-Landesbank Steiermark AG Rakuten.com Red Hat Renewable Energy Systems Americas Inc. Riverside Medical Center Road Scholar Rockwater Energy Solutions Inc. RSA Rytec Corp. Safer Foundation Schindler Elevator Corp. Searles Valley Minerals Shale-Inland Shell Oil Co. Silver Star Brands Singtel Optus Smith & Nephew Solar Turbines SolarWinds St. Lawrence Seaway Management Corp. Staples Canada State Auto Insurance State of Colorado Sunbelt Rentals Swarovski Teck Resources Texas Mutual Insurance Co. TG The Advisory Board Co. The Andersons Inc. The Kansas City Southern Railway Co. The Marcus Corp. The Royal College of Physicians and Surgeons of Canada The University of Texas Health Science Center San Antonio The YMCA of Greater Rochester Thomson Reuters Toshiba America Inc. Town of Gilbert, Ariz. Town of Hilton Head Island TransAlta Corp. Trupanion Umeme UnitedLex Corp. Univar University of Dayton University of Missouri Urban Science Vail Resorts Vantage West Credit Union Vitamix Volunteers of America Volvo Group North America VRG Inc. Waukesha County Wells Enterprises Inc. Western Compensation & Benefits Consultants Woodmen of the World Worldpay US Inc. Total Rewards and Employee Well-Being Practices WorldatWork 28