SHRM Survey Findings: 2016 Strategic Benefits—
Wellness Initiatives
November 30, 2016
Introduction and Definitions
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.
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Key Findings
•
•
•
•
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 threefourths 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 twothirds (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.
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Key Findings (continued)
•
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%).
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What Do These Findings Mean for the HR Profession?
•
•
•
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.
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What Do These Findings Mean for the HR Profession? (continued)
•
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.
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Key Findings
Wellness Initiatives
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Wellness Initiatives Offered and Change in Investment
Organizations that offer wellness programs,
wellness resources or wellness services to
employees
Change in organization’s investment in
employee wellness initiatives this fiscal year
compared with last fiscal year
36%
40%
41%
37%
43%
Increased
68%
69%
Yes
62%
59%
56%
60%
54%
76%
Remained the same
72%
70%
2016 (n = 613, 410)
2015 (n = 384, 259)
2014 (n = 348, 262)
2013 (n = 405, 290)
2012 (n = 437, 302)
Note: Respondents who indicated they were “not sure” were
excluded from this analysis. Only “yes” responses are shown.
Decreased
2%
1%
3%
3%
3%
Note: Respondents whose organizations had wellness initiatives in place
were asked this question.
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Return on Investment and Cost Savings from Wellness Initiatives
Organizations that conducted analyses to determine the return on investment (ROI) and/or
cost savings from its wellness initiatives (during the previous fiscal year)
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
13%
16%
7%
7%
2016 (n = 320)
2015 (n = 201)
3%
4%
77%
72%
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.
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Cost Savings from Wellness Initiatives
Type of cost savings from wellness initiatives
Decrease in health care costs
48%
Decrease in unplanned absences
42%
Increased work productivity
Other
30%
13%
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.
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Whatindo
these findings
mean
for theInitiatives
HR profession?
Change
Employee
Participation
in Wellness
Changes in employee participation in organization’s wellness initiatives (between the previous
fiscal year and the year prior)
47%
52%
53%
56%
54%
Increased
49%
44%
42%
40%
40%
Remained the same
Decreased
4%
4%
5%
4%
6%
2016 (n = 341)
2015 (n = 206)
2014 (n = 221)
2013 (n = 222)
2012 (n = 226)
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.
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Effectiveness of Wellness Initiatives in Reducing the Costs of Health Care
and Improving the Overall Physical Health of Employees
Reducing the costs of health care
Very effective
Somewhat effective
Not very effective
Not at all effective
7%
8%
10%
11%
10%
Improving the overall physical health of
employees
Very effective
58%
69%
62%
60%
58%
29% 2015
17%
22%
22%
32%
6%
7%
6%
7%
1%
64%
71%
71%
66%
74%
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)
8%
11%
7%
10%
12%
Not at all effective
23% 2012
14%
18%
20%
13%
4%
4%
4%
3%
2%
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.
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Effectiveness of Wellness Initiatives in Improving Overall Engagement of
Employees
Very effective
9%
Somewhat effective
65%
Not very effective
Not at all effective
22%
4%
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.
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Wellness Incentives or Rewards
60%
Provide
wellness
incentives
or rewards
59%
67%
2016 (n = 393)
2015 (n = 243)
2014 (n = 251)
2013 (n = 268)
2012 (n = 284)
56%
57%
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.
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Effectiveness of Wellness Incentives or Rewards in Increasing Employee
Participation
27%
36%
25%
20%
31%
Very effective
61%
55%
60%
62%
55%
Somewhat effective
Not very effective
Not at all effective
Differences between high-tech companies and
all other organizations
10%
9%
14%
16%
13%
2%
0%
1%
2%
1%
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.
2016 (n = 176)
2015 (n = 135)
2014 (n = 154)
2013 (n = 140)
2012 (n = 140)
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.
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Basis for Wellness Incentives/Rewards
Participatory
1
80%
Activity-based, health-contingent
2
wellness program
Outcome-based, health-contingent
3
wellness program
56%
28%
1Participatory:
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.
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)
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Types of Wellness Incentives or Rewards Offered in Previous Year
38%
45%
Reduction in health care premium
37%
37%
Gift cards
Company gift items, such as t-shirts, mugs
and gym bags
26%
25%
Recognition in a company newsletter,
intranet, etc.
26%
20%
25%
Bonus/cash*
15%
Contribution to HSA/HRA*
Time off from work
Other
2016 (n = 234)
7%
7%
2015 (n = 143)
11%
15%
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
Demographics
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Demographics: Organization Industry
Percentage
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.
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Demographics:
Key Fin
Organization Industry (continued)
Percentage
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.
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Demographics:
Key Fin
Organization Sector
Privately owned for-profit
58%
Nonprofit
19%
Publicly owned for-profit
Government
Other
15%
5%
2%
Note: n = 565. Percentages may not total 100% due to rounding.
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Demographics:
Key Fin
Organization Staff Size
1 to 99 employees
33%
100 to 499 employees
34%
500 to 2,499 employees
19%
2,500 to 24,999 employees
25,000 or more employees
10%
4%
n = 550
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Key
Demographics:
Fin
Other
Does your organization have U.S.-based
operations (business units) only, or does
it operate multinationally?
U.S.-based operations only
71%
Multinational operations
29%
n = 567
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%
n = 571
What is the HR department/function for
which you responded throughout this
survey?
Corporate (companywide)
79%
Business unit/division
14%
Facility/location
7%
n = 378
Is your organization a single-unit organization or a
multi-unit organization?
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%
Note: n = 376. Percentages may not total 100% due to rounding.
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SHRM
Survey
Findings:
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
Survey
Methodology
» 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
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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
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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.
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