Measuring Effectiveness of Health and Wellbeing Initiatives in Organisations The Health & Wellbeing Good Practice Award is delivered in Australia and New Zealand by a joint venture between Instep, Investors in People New Zealand and Investors in People Australia Five-Minute Self-Assessment of your Health & Wellbeing Strategy Yes/ Sort-of/ No Does your organisation have a strategy with measurable success criteria to improve Health & Wellbeing of its people? Does your organisation ensure it has the resources it needs to implement Health & Wellbeing plans? Are Health & Wellbeing plans accessible and fair for all people? Could managers describe strategies to support work-life balance that meet the needs of both your organisation and its people? Do managers understand the capabilities required to support Health & Wellbeing and are there plans to develop these? Is the Health & Wellbeing approach explained during recruitment and induction activities? Is there a culture where people receive timed and constructive feedback on their performance? Could people describe how they are given information and support in relation to Health & Wellbeing? Can senior managers explain the impact of Health & Wellbeing on improving the performance of your organisation? Overall is there a genuine commitment to improve the Health & Wellness of your people? 1 Contents 1. Who are the organisations involved in delivering the Health & Wellbeing Award? 3 2. Do health and wellbeing initiatives make any difference? What is the research saying? 4 3. Who is this booklet for? 7 4. What is the Health & Wellbeing Award? 9 5. Health & Wellbeing Good Practice Award Leaflet 11 6. Health & Wellbeing Good Practice Award Evidence Requirements 19 7. Health & Wellbeing Interactive 24 8. Case studies Large employer (2,200 employees) – Kimberly-Clark UK Medium employer (776 employees) – Bupa Cromwell Hospital Small employer (28 employees) – Old School House Day Nursery (early childhood centre) 32 34 36 2 Who are the organisations involved in delivering the Health & Wellbeing Award? The Health & Wellbeing Good Practice Award is a quality international standard that is research driven, evidence based and outcome focused. It is best described as neither a product nor a service but a framework. It uses a strategic framework that good employers look for to enhance wellness in their workplace. Indeed, the Award is the recognition of good practice against the standard to help organisations address the wide range of issues around health and wellbeing at work. In other words, it provides employers with a voluntary framework to use in planning, implementing and reviewing steps they can take which will improve the performance of their people through improving their health and wellbeing. The Health & Wellbeing Award is a useful business improvement tool focused on return on investment, engagement and productivity. With the Investors in People Standard, it is one amongst the few on the market that is measurable. This international standard measures the effectiveness of an organisation’s employee engagement, suggests remedial action to attain best practice and thus improves individual and organisational productivity. Instep Limited is a national behavioural healthcare company that helps companies and their employees to enhance performance by encouraging emotional and physical wellness. Instep works with around 250 New Zealand companies, providing consultancy to promote wellness in the workplace and counselling services to help identify and resolve performance problems. Investors in People NZ (IIPNZ) and Investors in People Australia Ltd (IIPA) provide consulting services to organisations with particular emphasis on people strategies and the alignment of these to the business strategies and plans. Using the Investors in People Standard as its point of difference, IIPNZ and IIPA are able to provide a full suite of services from diagnostic assessment through to intervention programmes such as leadership and management development. IIP has over 40,000 clients globally. IIPNZ, IIPA and Instep have formed a joint venture called Salusora to deliver the Health and Wellbeing Good Practice Award in Australia and New Zealand. 3 Do health and wellbeing initiatives make any difference? What is the research saying? Effective health & wellbeing programmes improve employee engagement and productivity. COSTS In New Zealand The increasing prevalence of mental illness and musculoskeletal problems has contributed to increases in the number of sickness and invalid benefit recipients. In 2007, 1 in 8 New Zealand households had no one in work. Over the year to March 2010, the number of Sickness Benefit recipients in New Zealand increased by 5,000 people, or 9 percent. Over the last five years (2005 until 2010) the number of working‐age clients receiving a Sickness Benefit increased from 44,000 to 56,000. The majority of people on the Sickness Benefit had psychological or psychiatric conditions; 41 percent between 2005 and 2010. The next most common condition was musculo‐skeletal disorders with 15 percent of people on the Sickness Benefit suffering from this disorder. The number of clients receiving an Invalid’s Benefit at the end of March has increased each year, from 72,000 in 2005 to 85,000 in 2010. Due to the long‐term nature of conditions which people receiving Invalid’s Benefit have, very few people move from an Invalid’s Benefit into paid work or on to another benefit. In a study commissioned by the Southern Cross Medical Care Society, it was estimated that the total cost to employers from the poor health of employees is $2 billion per annum. This works out to be on average over $1500 per employee per annum. In Australia Over the period 2001-2010 there has been a 70% increase in requests for sickness certificates, independent of industrial relations changes and without a corresponding rise in morbidity. According to a Direct Health Solutions study of 120 Australian organisations, of which the majority were large employers: 4 - The average annual absence rate for 2009 was 4.0% or 9.3 days per employee, an increase of 0.7% from 2008 levels; - The cost of absence has increased from an average of $354 per absent day in 2008 to $370 per absent day in 2009. BENEFITS In the UK The Bupa Cromwell Hospital evaluated its return on investment for the health and wellbeing initiatives undertaken. From this evaluation the hospital could ascertain that factors related to the Investors in People Health and Wellbeing Award contributed to a reduction in staff turnover levels, which were down 7% to 14.6% in 2009. By focusing on both the health and wellbeing of its staff, Claridge’s Hotel has benefited from a 28% turnover of staff, whereas the industry norm is 60%; low long term sickness rates; the ability to attract staff; 88.3% staff satisfaction rate, which is much higher than the industry norm; and increased staff awareness of the benefits that are available to them. The American Institute for Foreign Study (AIFS) report that working towards the Investors in People Health and Wellbeing Good Practice Award has made staff turnover gone done from 18% three years ago to 10% over the last two years. Furthermore, sickness levels have remained low during this period with the employees taking on average just 2.5 days off per year. This compares very favourably to the UK average of 7.4 days per year. According to the organisation’s staff satisfaction survey, employee engagement levels have also improved by 2% over the last year. In the United States Healthy employees stay with your company. Organisations with highly effective wellness programmes report significantly (6 - 10%) lower turnover. Johnson & Johnson say that their wellness programmes have saved the company $250 million on health care costs over the last decade – a return of $2.71 for every dollar spent. H-E-B estimates that moving 10% of its employees from high- and medium-risk to low-risk status yields an ROI of 6 to 1. 5 A 2009 study by Dr. Ronald Loeppke and colleagues of absenteeism and presenteeism among 50,000 workers at 10 employers showed that lost productivity costs are 2.3 times higher than medical and pharmacy costs. In a seminal Dow Chemical study from 2002, of the average annual health costs for a Dow employee an estimated $6,721 were attributable to presenteeism, $2,278 to direct health care and $661 to absenteeism. Sources: - The Royal Australasian College of Physicians, Australasian Faculty of Occupational and Environmental Medicine Position Statement on Realising the Health Benefits of Work, Sydney 2010. - Leonard L. Berry, Ann M. Mirabito, and William B. Baun, What’s the Hard Return on Employee Wellness Programs?, Harvard Business Review, December 2010. Full articles are both available on www.insteplimited.com (see Further Readings). 6 Who is this booklet for? This Information Pack aims to provide organisations with all useful information they need to know about the new health and wellbeing standard from Investors in People, officially known as the Health and Wellbeing Good Practice Award (HWA), delivered in Australia and New Zealand by Salusora, a joint venture between Investors in People New Zealand, Investors in People Australia and Instep Limited. This international standard measures the effectiveness of your organisation’s employee engagement, suggests remedial action to attain best practice and thus improves individual and organisational productivity. To give you a quick overview: The HWA is a quality international standard developed by Investors In People and that is evidence-based It provides employers with a voluntary framework to use in planning, implementing and reviewing steps they can take which will improve the performance of their people through improving their health and wellbeing It focuses on employee engagement in relation to their health and wellbeing Mantra is “supportive managers, supportive teams” It may be seen as a stepping stone to full IIP Standard as 30% of the Evidence Requirements are covered in the HWA This Pack is organised into 4 headings: 1. The Health & Wellbeing Good Practice Award Leaflet In this resource you will learn more about health and wellbeing, the benefits to promote health and wellbeing good practice in the organisations, how the HWA works, what are its contents and how it is linked to the full Investors in People Standard. You will also find a link to the HWA website as well as different contacts at the HWA division of Instep (primary contact) and IIP if you have further questions. 7 2. The Health & Wellbeing Good Practice Award Evidence Requirements The HWA is premised around the Plan-Do-Review and it relies on 50 Evidence Requirements that work as indicators of good practice. 3. Health & Wellbeing Interactive Available on the IIPUK website, the Health & Wellbeing Interactive intends to introduce the new section dedicated to the HWA. Once logged on the website, you have the possibility to complete the Self Check Diagnostic and get a clear picture of how well you are currently performing with health and wellbeing. Health & Wellbeing Interactive also enables you to access each of the key topics covered by the Award. You will learn more about why this focus is important and you are provided with some examples of how an Investors in People Assessor may explore the issue as part of the assessment of the Award. The library gathers a lot of articles related to health and wellbeing (e.g. how to manage stress, create a creativity culture, empower people…). It also includes several case studies that can help you to address workplace issues. Finally, the Good Practice Database compiles a huge number of examples of initiatives that are benefiting other employers. Note: the UK references will be over time replaced by NZ and Australian ones. 4. Case studies During the development of the Award, there are already over 440 organisations in the UK that have chosen additional health and wellbeing focus as part of their Investors in People Assessment. Three case studies that explain how employers from different sectors benefited from this new focus and how they used the process to continuous improve health and wellbeing are presented at the end of the Information Pack. These refer to organisations of different size: less than 50, between 50 and 1000 and over 1000 employees. You will also find additional case studies on www.healthwellbeingstandard.com. 8 What is the Health & Wellbeing Award? The Health & Wellbeing Good Practice Award is a quality international standard that is research driven and evidence based. It is best described as neither a product nor a service but a framework. It uses a strategic framework that good employers look for to enhance wellness in their workplace. Indeed, the Award is the recognition of good practice against the standard to help organisations address the wide range of issues around health and wellbeing at work. In other words, it provides employers with a voluntary framework to use in planning, implementing and reviewing steps they can take which will improve the performance of their people through improving their health and wellbeing. The Health & Wellbeing Award is a useful business improvement tool focused on return on investment, engagement and productivity. With the Investors in People Standard, it is one amongst the few on the market that is measurable. This international standard measures the effectiveness of an organisation’s employee engagement, suggests remedial action to attain best practice and thus improves individual and organisational productivity. It is made up of three underlying key principles, plan-do-review, each in turn supported by indicators of good practice – 10 in total. Those include 50 Evidence Requirements as well, which describe how practically good practices are measured. 10 indicators of good practice 9 This new Award focuses on five aspects that are central for increasing people’s wellness, engagement, productivity and thus performance: planning, supportive management, supportive culture, work-life balance and evaluation. Being assessed against the criteria and achieving the Health & Wellbeing Award involves a number of steps. You need first to undertake an organisational review in order to have a clear picture of how well your organisation is currently performing with health and wellbeing. After having identified areas of improvement, you have to build an action plan specifying how your organisation will be working towards developing health and wellbeing initiatives. Planning, implementing and evaluating good practice is to be done by considering all of the organisation members as their commitment is fundamental for success. Completion of the 50 Evidence Requirements leads you to be accredited as a Health & Wellbeing Good Practice organisation for 3 years. In summary, the Health & Wellbeing Award: - enables to measure organisations’ health and wellness against an international quality standard focuses on people engagement and productivity helps to identify the elements of shortfall and find the disconnects for best practice assists cultural change 10 11 12 13 14 15 16 Content overlap with IIP Standard 15 of 50 evidence requirements PLAN 01 Health & wellbeing strategy 02 Health & wellbeing resources DO REVIEW 03 04 05 06 07 08 People management strategies Leadership & management strategies Management effectiveness Recognition & reward Involvement & empowerment Effective health & wellbeing 9 of 30 =30% | 6 of 11 = 55% 09 10 Performance measurement | Continuous improvement 0 of 9 17 HOW CAN I FIND OUT MORE? Visit www.healthwellbeingstandard.com to learn more about the Health & Wellbeing Good Practice Award Need more information or have further questions? Please get in touch with us: Allison Wallerand [email protected] (+64) 04 382 8071 Matthew Beattie [email protected] (+64) 04 382 8071 Investors in People New Zealand [email protected] (+64) 09 360 4025 (+61) 1300 79 8480 Investors in People Australia [email protected] (+61) 1300 798 480 For Information: Investors in People UK [email protected] (+44) 020 7881 8966 “ www.investorsinpeople.co.uk/healthandwellbeing 18 19 20 21 22 23 INTRODUCING HEALTH AND WELLBEING INTERACTIVE This new free to use tool is available from the Investors in People website. The resource will provide new and existing clients with the opportunity to read about the Health and Wellbeing Good Practice Award, complete Self Check diagnostic, access Good Practice downloads and consider the Good Practice Guide. Over time, the UK case studies and references to UK based experiences will be replaced by NZ and Australian examples. www.investorsinpeople.co.uk/healthandwellbeing 24 SELF CHECK DIAGNOSTIC OVERVIEW The Self Check Diagnostic is based around the main focus of the Health and Wellbeing Good Practice Award. Consisting of 20 multiple choice statements, the Self Check will provide new and existing clients with an indication of how they might perform in an Award assessment. Users can take the Self Check as many times as you like and a diagnostic report detailing the correct answers and rationale is available. www.investorsinpeople.co.uk/healthandwellbeing 25 HEALTH AND WELLBEING TOPICS OVERVIEW The focus of the Good Practice Award has been presented across five key workplace health and wellbeing topics. As well as displaying the self check diagnostic results based around these topics, Health and Wellbeing Interactive also enables users to access each of the key topic to learn more about the Award and access good practice downloads. www.investorsinpeople.co.uk/healthandwellbeing 26 TOPIC SECTION OVERVIEW Each of the five main Health and Wellbeing Topics provides more information about why this focus is important, as well as giving some examples of how an Investors in People Assessor may explore the issue as part of the assessment of the Award. Each topic section also includes a number of downloads detailing good practice, templates and top tips for employers. www.investorsinpeople.co.uk/healthandwellbeing 27 ADDITIONAL DOCUMENTS OVERVIEW In addition to the main topics, Health and Wellbeing Interactive includes access to other resources that can help users to address workplace issues. There are also Case Studies from some of the employers who have already focused on health and wellbeing as part of their recent Investors in People assessment. www.investorsinpeople.co.uk/healthandwellbeing 28 ALL DOCUMENTS OVERVIEW Health and Wellbeing Interactive includes over 60 free downloads to help users. The tool can be easily updated with additional downloads as more and more clients choose to focus more on health and wellbeing as part of their Investors in People assessment. www.investorsinpeople.co.uk/healthandwellbeing 29 GOOD PRACTICE DATABASE OVERVIEW Health and Wellbeing Interactive is also the new home for the Good Practice Database that provides users with over 100 examples of initiatives that are benefiting other employers, at this stage mainly in the UK. These examples can be easily filtered by the user around different health and wellbeing issues. 30 www.investorsinpeople.co.uk/healthandwellbeing From improving employee engagement and productivity to enabling your workforce to be ready to embrace change, the new Health & Wellbeing Good Practice Award will help you get sustained performance from your people. “ People assume that a health and wellbeing strategy is going to cost money but it doesn’t have to. One of the great things about our Investors in People assessor was that he gave us lots of advice on simple things we could do that people would value but don’t cost a lot of money to run. There is also a lot of very good information on Investors in People’s website including cost effective H&W activities that can make a real difference. ElaineWard,DirectorofFinanceandAssistant ChiefExecutive, GloucestershireWildlifeTrust “ 31 32 33 34 35 36 37
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