As discussed in the last blog, wellness programs are increasingly common as health care costs rise. However, plan carefully in order to avoid missteps that can result from insufficient information or unintended discrimination. In your fast-paced, entrepreneurial environment, you want to reward desired behaviors, including healthy choices.
Do your homework before establishing a new plan or reviewing your existing plan. If you want to base incentives on an actual health outcome—like reduced blood pressure or cholesterol, follow the Department of Labor’s checklist. It guides you through a series of questions to help you determine if your plan is properly designed. If a plan requires a participant to meet a standard related to a health factor in order to obtain a reward, the reward itself must certain criteria.
However, if your plan discriminates in favor of an individual based on a health factor, that’s considered benign discrimination. This is acceptable because the program is offering a reward to individuals based on an adverse health factor. The benign discrimination exception is not available if the plan asks participants to meet a standard related to a health factor in order to get a reward.
Mistakes to watch out for:
1. Insufficient planning
As with any significant project, wellness initiatives must be planned. Be sure to establish goals and then structure a program to support the goals.
2. Not delivering what your employees want
Before planning, do some research. Find out what employees are interested in, perhaps by doing a survey, and find out what health risks you’d like to try to deal with, perhaps through health screenings or assessments.
3. Your plan is not comprehensive
A wellness plan should include basic components of encouraging exercise and education regarding healthy lifestyles.
4. Targeting only high-risk employees
It’s important to work with the healthy people as well, to help them stay healthy. Numerous studies suggest that focusing on the “seemingly healthy population (stressed, sleep deprived, with bad nutrition)” has the highest effect. This population, without specific focus, can start developing chronic diseases such as coronary heart disease or diabetes requiring very costly interventions.
5. No incentives
Answer your employees’ question, “What’s in it for me?”.
6. No budget
You can’t subsidize gym memberships or hire educators without a budget. But do get creative, start walking groups and look for businesses that can offer a service to your employees. They may be willing to do free seminars. Team up with other small companies to share costs and deliver larger “captive” audiences to tempt them with.
7. Lack of high-level support
Management needs to participate in addition to providing the funding. If it’s important to you; your employees will take the hint. Your participation should be visible and exemplary.
Additionally, the wellness programs should be one of the focus topics of regular employee all-hands meetings. The effectiveness of the program needs to be highlighted and the big achievers should be recognized and rewarded.
8. You don’t know if it’s working
Develop metrics that will help you to gauge what effect your program is having. The simplest metric is participation percentage. You’re less likely to continue a program if you don’t see a successful outcome.
Having an on line system that encourages engagement through education, goal setting, progress tracking, and purposeful social networking not only increases participation but also gathers valuable data on how the employee population is responding to the program.
On line systems such as SelfOptima’s Corporate Wellness Platform provide an engaging user experience while enabling you to keep track of participation as well as effectiveness of each program.
9. No on-going attention
No, it won’t run itself. You must continue to evaluate employee needs and results to keep the program relevant to your team. Once again, having an on line platform to support all the wellness programs/efforts significantly reduces the administrative overhead.
10. Offering only traditional medical insurance options According to the Employee Benefits Research Institute (EBRI), employees who choose high-deductible insurance plans and have Health Savings Accounts tend to use less health care and live healthier lifestyles. Though this statistic only points out correlation, high-deductible plans also save you money.
The Fine Print: Please check with your tax adviser as there may be tax implications for your company or your employees. In some cases, incentives may be taxed: gift certificates, cash, employer subsidies of gym memberships, and classes for general health improvement.
Finally, don’t forget why you should think about instituting a wellness program. According to a 2008 study by US Corporate Wellness, research demonstrates that by encouraging healthier choices, employers realize savings in terms of sick time, disability, health care, as well as recruiting and retention costs. You will enhance your employer brand and benefit from greater employee engagement.
Are you ready to get started? Get the right expertise, right now. www.RocketFuelHR.com
Rita Allen rallen@RocketFuelHR.com (650) 255-1839
Fan Tso Herbst fherbst@RocketFuelHR.com (650) 281-4518
Next up: Linking rewards to your culture
With thanks to:
junkfoodscience.blogspot.com
www.ebri.org
Carlson Shepherd, L. (2006, July 1). Employee Benefit News, 1.
www.uscorporatewellness.com
www.selfoptima.com
www.SHRM.org
www.BLR.com
www.USCorporateWellness.com
www.dol.gov