Making Wellness Work - Employees Respond to Wellness Benefits and Stay on the Job
January 31, 2006 (Des Moines, Iowa) — Employees not only ask for wellness benefits but take advantage of employer offerings according to latest results from the Principal Financial Well-Being IndexSM. As employer wellness programs evolve, employees who are offered these programs are responding by participating at work in blood pressure checks (81%), cholesterol screenings (73%) and by taking online health screenings (72%). In addition, more than three-fourths (82%) of those who are offered health education tools utilize them, while two-thirds (68%) whose employers offer wellness seminars attend.
"Consistently employees rate health insurance as the most important work place benefit and at the same time say it's a benefit they would like to see their company improve," said Jerry Ripperger, director of consumer health for the Principal Financial Group®. "Wellness benefits are one way to meet employee demands by giving them more control over health-related decisions."
Since 2000, the Principal Financial Well-Being Index has surveyed employees at companies ranging from 10 to 1,000 employees and releases results quarterly through the Principal Financial Group and Harris Interactive®. This is the second year the survey has taken a closer look at wellness attitudes and behaviors.
Wellness - A Job Well Done
Beyond helping curb costs, wellness programs have yet another benefit to employers: employees who work harder and show more loyalty. Results from the Index revealed wellness contributes to harder working employees and employees who want to remain in their current job longer. Overall, 47 percent of workers surveyed agree that wellness benefits encourage them to work harder and even perform better while 48 percent said wellness offerings would encourage them to stay in their current employment situation.
In part this attitude may come from the fact that American workers recognize a financial incentive from participation. More than half (57%) of those surveyed believe wellness benefits are very or somewhat successful in reducing health care costs. When asked who benefits the most financially from reduced health care costs associated with wellness benefits, 55 percent ranked "my family and me," as the group who benefits the most, up from 48 percent in 2004.
Cost is a Factor, But Not the Most Important
Employees say access to health care providers is the most important factor in choosing a health plan, even more important than cost. Among the 42 percent of workers who have more than one health care plan to choose from, 31 percent cited the care network (doctors and facilities available in the plan) as the most motivational factor in their decision. This was followed by the monthly paycheck deduction, or employee cost, which 21 percent chose as the most motivational factor in selecting a particular health care plan.
"Cost is a large motivator in making employees more accountable for health care choices, but it's important to realize it is not the only factor," noted Ripperger. "Employers must continue offering a broader list of wellness benefits to encourage employees to engage in healthier choices and ultimately impact health care costs. "
Best Practices Guide Showcases Wellness at Work
Wellness is one of the central themes in this year's Innovation at Work: A Guide to Best Practices in Employee Benefits, which shares the strategies The Principal 10 Best Companies used to combat rising health care costs with creative benefits and largely by promoting healthier lifestyles. For example, Glatfelter Insurance Group with 447 employees and based in York, Pa., believes their robust wellness program, which includes a personal trainer, a fitness facility, health screenings, smoking cessation and weight management classes, is the key to managing costs. The annual health care cost per associate is 14 percent below the national average and absenteeism is 27 percent lower than the national average. Included in the guide are other real stories from employers, a health care checklist, and a benchmark chart for comparison to other companies across the country.
"As demonstrated by Glatfelter Insurance Group, it doesn't take a large company to make a big impact on employees through a variety of wellness benefits," said Ripperger. "Employees want choices and have shown their support by taking action, maintaining better health and staying on the job."
For more on the most recent Principal Financial Well-Being Index, visit http://www.principal.com/wellbeing/index.htm
Methodology
The Principal Financial Group, the nation's 401(k) leader, commissioned Harris Interactive® to conduct an online study of 1,213 full- and part-time employees (ages 18+) of small and mid-sized U.S. businesses (firm size 10 - 1,000) between November 7-17, 2005, about their attitudes and perceptions regarding their financial well-being and their current employee benefits. Data were weighted to be representative of the entire population of adult employees working for small to mid-sized U.S. businesses on the basis of age by gender, education, race/ethnicity, region income and propensity to be online. In theory, with a probability sample of this size, one can say with 95 percent certainty that the results have a sampling error of plus or minus 3 percentage points for the overall sample. Sampling error for the various sub-samples is higher and varies. This online sample was not a probability sample. This is one in a series of quarterly studies to identify and track changes in the workplace of small and mid-sized (growing) businesses. The first Principal Financial Well-Being IndexSM survey was conducted in the United States in 2000.
About The Principal 10 Best Companies Program
The Principal 10 Best Companies for Employee Financial Security is a nationwide program that searches for and recognizes small and medium-size companies that excel in providing for employee financial security. Entries for the 2005 search were accepted from February 1, 2005, through May 1, 2005. The program was open to any company with between five to 1,000 employees. To qualify, all entrants must have been based in the United States and have provided a broad range of employee benefits for at least five years. Qualifying companies must have, at a minimum, offered "traditional" employee benefits, such as those relating to retirement, health, life or disability. No entry fee was required, and employees of The Principal were not eligible to enter. Entry forms for the 2006 recognition program will be available on February 1, 2006. For more information, visit http://www.principal.com/theprincipal10best/index.htm
About Harris Interactive®
Harris Interactive Inc. (www.harrisinteractive.com), based in Rochester, New York, is the 13th largest and the fastest-growing market research firm in the world, most widely known for The Harris Poll® and for its pioneering leadership in the online market research industry. Long recognized by its clients for delivering insights that enable confident business decisions, the Company blends the science of innovative research with the art of strategic consulting to deliver knowledge that leads to measurable and enduring value.
Harris Interactive serves clients worldwide through its United States, Europe (www.harrisinteractive.com/europe) and Asia offices, its wholly-owned subsidiary Novatris in Paris, France (www.novatris.com), and through an independent global network of affiliate market research companies. EOE M/F/D/V
About The Principal Financial Group
The Principal Financial Group®
(The Principal®)1
is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $188.4 billion in assets under management2 and serves some 15.3 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
Insurance products and plan administrative services are provided by Principal Life Insurance Company, a member of the Principal Financial Group, Des Moines, IA 50392.
1) "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
2) As of September 30, 2005.
