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As the Scope of Corporate Well-Being Programs Continues to Expand, Large Employers Expected to Spend an Average of $3.6 Million in 2019

40% of Budget Earmarked for Employee Incentives;

Average Per-Employee Incentive Has More than Tripled Since 2009

33% of Employers Plan to Increase Financial Incentives Over the
Next 3-5 Years

56% of Employers Offer a Well-Being Program to their Global
Workforce

BOSTON–(BUSINESS WIRE)–Companies across the country are expected to spend an average of $3.6
million on well-being programs in 2019 to help create healthier and more
productive workforces, according to the 10th annual Health
and Well-Being Survey from Fidelity Investments® and the
National Business Group on Health®. The survey provides
insight into how companies are managing well-being programs, including
program budgets, measurement, strategic direction and corporate
objectives.

While there are various components to corporate well-being programs, the
study revealed that more than one-third (40%) of these budgets will be
applied to financial incentives that encourage employees, and their
spouses/domestic partners, to participate in these programs. The average
per-employee incentive decreased slightly to $762 for 2019, down from
$784 in 2018, but is still nearly three times the average employee
incentive of $260 reported in 2009. In addition, the percentage of
employers offering incentives to spouses and domestic partners increased
to 58% in 2019, up from 54% in 2018, while the average incentive for
spouses/domestic partners increased to $601, up from $596 in 2018.

While many employers (57%) provide financial incentives to employees by
reducing their health care plan premiums, more than a third (34%) of
employers provides incentives by funding an employee’s health care
account, such as a health savings account (HSA).

Overall, employers are expected to continue to focus on financial
incentives as a key benefit within well-being platforms in the future,
as 33% of employers indicated they plan to continue to increase the
amount of financial incentives for employees over the next 3-5 years.

Employers Recognize Interconnectedness in Well-Being Programs Beyond
Physical Health

While programs focused on physical health
remain the most popular offering on well-being platforms, employers
continue to recognize the interrelationship between physical, financial,
work and life well-being.

For example, recent research1 from Fidelity indicates that
employees who need help with their financial well-being are
significantly less likely to be physically healthy and more likely to
report feeling frequently stressed or anxious — which can impact job
performance and productivity. In addition, employees with low job
satisfaction also tend to feel burned out at work and miss an average of
nine days each year. However, employees who engage in some kind of
regular community involvement, such as volunteering on a weekly basis,
are more likely to have lower stress and greater life satisfaction,
which can enhance workplace productivity.

As a result, employers continue to focus on providing programs focused
on well-being beyond physical health, including emotional/mental health
(92%), financial health (88%), community involvement (69%), social
connectedness (54%) and job satisfaction (43%).

“More employers view their investments in health and well-being as
integral to deploying the most engaged, productive and competitive
workforce possible,” said Brian Marcotte, President and CEO, National
Business Group on Health. “Their focus is holistic, with physical health
being a component rather than the only priority. Employers recognize
that their employees have different needs and want to engage in
different ways. Financial and emotional stress, for example, are major
detractors from work performance and employers are doubling down on
these areas.”

Well-Being Programs Continue to Expand Globally, but Tailored to
Local Workforce

Employers with a multinational workforce are
increasingly interested in developing a consistent benefits platform for
their employees across different geographies, and many companies have
taken steps to offer well-being programs to their global workforce. More
than half (56%) of employers surveyed offer well-being programs to their
global employees, an increase from 44% in 2018, and another 14% are
considering extending their well-being program to workers in multiple
geographies by next year. However, only 34% of employers have a global
strategy in place, while half (50%) let local markets focus on
well-being as needed.

In addition, the overall objectives of well-being programs still vary by
region. According to the survey, two of the top objectives of well-being
programs in the U.S. are to manage health care costs (82%) and improve
employee productivity/reduce absenteeism (59%), while the top objectives
globally are to improve employee engagement/performance (82%) and align
employees with the corporate culture (72%).

“As more employers recognize the relationship between employee
well-being and productivity, well-being programs have taken on an
increasingly meaningful role in employers’ business strategies. However,
as the benefits landscape continues to evolve, employers need to ensure
they are designing their programs to meet the changing needs of their
workforce,” said Robert Kennedy, senior vice president, Fidelity
Workplace Consulting. “Implementing programs that take a total
well-being approach, designing programs for a global workforce and
aligning well-being programs with the company’s health care strategy are
just a few of the steps employers can take to ensure their well-being
program continues to deliver maximum benefit to their organization.”

About the Survey
The 10th
annual survey on corporate Health & Well-Being from Fidelity Investments®
and the National Business Group on Health® includes responses
from 164 jumbo, large and mid-sized organizations. The online survey was
fielded during October 2018 and January 2019 among National Business
Group on Health members and clients of Fidelity Investments.

About the National Business Group on Health
The
National Business Group on Health is the nation’s only non-profit
organization devoted exclusively to representing large employers’
perspective on national health policy issues and helping companies
optimize business performance through health improvement, innovation and
health care management. The Business Group leads initiatives to address
the most relevant health care issues facing employers today and enables
human resource and benefit leaders to learn, share and leverage best
practices from the most progressive companies. Business Group members,
which include 75 Fortune 100 companies, provide health coverage for more
than 50 million U.S. workers, retirees and their families. For more
information, visit www.businessgrouphealth.org.

About Fidelity Investments
Fidelity’s
mission is to inspire better futures and deliver better outcomes for the
customers and businesses we serve. With assets under administration of
$7.4 trillion, including managed assets of $2.6 trillion as of March 31,
2019, we focus on meeting the unique needs of a diverse set of
customers: helping more than 30 million people invest their own life
savings, 22,000 businesses manage employee benefit programs, as well as
providing more than 13,500 financial advisory firms with investment and
technology solutions to invest their own clients’ money. Privately held
for more than 70 years, Fidelity employs more than 40,000 associates who
are focused on the long-term success of our customers. For more
information about Fidelity Investments, visit https://www.fidelity.com/about.

Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem
Street, Smithfield, RI 02917

Fidelity Investments Institutional Services Company, Inc.,
500
Salem Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC,
200 Seaport
Boulevard, Boston, MA 02110

883102.1.0

© 2019 FMR LLC. All rights reserved.

1 Fidelity Investments Total Well-Being Research online
survey of 9,315 active Fidelity 401(k) and 403(b) participants from
across the United States. The survey was conducted by Greenwald and
Associates, an independent third-party research firm, on behalf of
Fidelity in September 2017.

Contacts

Follow us on Twitter @FidelityNews

Corporate
Communications
(617) 563-5800
[email protected]

Mike
Shamrell
(617) 563-1996
[email protected]

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