aviva health of the workplace report - summer 2011

8/3/2019 Aviva Health of the Workplace Report - Summer 2011

1/32

The fifth Aviva Healthof the Workplace ReportSummer 2011


2/32

Contents

3 Foreword

4 Key trends identified in this years report

6 A focus on employees working lives

7 Employees health and wellbeing

10 Employees are trying to adopt healthy

behaviours

12 Key trends employees working lives

13 How are employers supporting health in theworkplace

16 Key trends employee benefits

17 Focus on Government policy and absence

management

18 Employee absence

21 Managing sickness absence

23 Key trends absence management24 Employer attitudes to workplace wellbeing

are changing

26 Employers priorities for the coming year

27 What does this mean?


3/32

Weve tracked employee behaviours and business leaders attitudes towards

workplace wellness in detail over the past five years. Our first report, published

in 2007, painted a picture of the challenges that employers were facing in

relation to sickness absence at the time. While solutions were already in place in

many cases, many were reactive and did little to prevent staff going off sick in

the first place.

Health of the Workplace 2 reported an increased appetite for workplace

wellbeing. The mood was positive and there was a real sense that the time

was right to embed this enthusiasm and move forwards by putting workable

solutions into place. However, when our third report was published a year

later, the economic landscape had changed dramatically. As the UK moved into

recession, around 60% of the business leaders we spoke to felt that investmentsin programmes focussing on employees health and wellbeing were a luxury that

few companies could afford.

Last years study showed that the workplace remains a challenging environment

in terms of preventative healthcare. While there was some cause for optimism,

many employers were still facing the same dilemma we saw in the previous

years report the need to balance the cost of any investment against financial

priorities for the business.

In this years report, were shining the light on workplace wellness once again

exploring whether or not the past years economic situation and Governmentinitiatives (such as the Fit Note and Sickness Absence Review) have changed

business leaders attitudes. We revisit some of the findings from our 2009

Health of the Workplace report published as the country entered recession

and compare them to attitudes from employers and employees taking part in

our 2011 study. The findings are both insightful and thought provoking.

Foreword

Now in its fifth year, Health of the Workplace is

Avivas annual study canvassing employer and

employee opinions on topical issues relating to health.

This information is then used to suggest solutions that

will help both employers and employees.

The fifth Aviva Health of the Workplace Report 3


4/32

Key trends identified

in this years report

4 The fifth Aviva Health of the Workplace Report

The workplace is still challenging for many

Employees are working longer hours than before the recession.

Employee health is suffering as a result many people are feeling stressed, tired and eating an unhealthy diet.

However, staff loyalty and morale is pretty good.

A supportive, friendly working environment is key to staff happiness.

Were seeing employers become more responsible towards the health of their workforce.

(For more details please see pages 6-12)

Employers are still offering a wide range of health-related employee benefits

Private medical insurance continues to be the most widely offered employee benefit. This is followed by

cycle to work schemes and occupational health support.

Very few employees have cancelled employee benefits in the past year although few have taken new benefits out.

Many employees are still not aware of the health benefits available to them demonstrating that employers

still have some way to go to effectively communicate their benefits.

Nearly one in five employers plan to increase their spend on health benefits in the coming year.

Many employers offer the health benefits theyve always offered.

Our research identifies a need for employers to consider their business needs when choosing their employee benefits.


Business leaders have little awareness of key Government initiatives

The majority of employers arent aware of the Governments Sickness Absence Review despite being key

stakeholders.

Nearly half of business leaders arent aware of Fit Notes over a third are unclear about how they affect

their business.

Over half of employees dont know what Fit Notes are. Less than one in ten say theyve helped them return

to work following sickness.

Business leaders would like more financial support from the Government to help them deal with sickness

absence and rehabilitation.

Consistent with our previous report, tax incentives continues to be the initiative business leaders say would

encourage them to introduce more health and wellbeing benefits.

(For more details please see page 17)


5/32

Sickness absence management procedures could be improved

Most employers are recording their sickness absence rates but few are using the data in an insightful way.

The average number of sick days employees take off work is 5.5 days per year. Very few employers know

how many of these days relate to stress or musculoskeletal conditions two of the main causes of sickness

absence in the UK.

In the main, sickness absence procedures appear to be reactive driven by HR policy rather than proactive.

That said, were seeing some evidence of early intervention with employers that adopt such approaches

reporting reductions in their sickness absence rates.

There are some simple steps employers can take to help improve the effectiveness of their sickness absence

policies. These include using their sickness absence data to inform their employee benefit choices.


Methodology

The Health of the Workplace research took place in July 2011. The study was conducted by a specialist research

agency who surveyed 2,000 employees and 2,000 employers from across a broad range of sectors.

Employers are increasingly recognising that the health of their workforce directlyrelates to productivity, motivation and morale

Business leaders are still facing the need to balance the cost of investing in employees health and

wellbeing with the financial priorities for the business.

Productivity remains the number one priority for the majority of businesses but around one in five

employers say that theyll invest more into employee health and wellbeing over the coming year.

Employers are now recognising the relationship between staff health, wellbeing and productivity, and

motivation and morale.

Six in ten employers say that a healthy workforce is more productive than an unhealthy one. Moreover, the

majority of employees say theyll work harder for an employer that invests in their health and wellbeing.

Around a third of employers plan to improve their workforces work/life balance in the coming year. A similar

amount wants to improve motivation and morale and one in five say that improving employee wellbeing is key.


5


6/32

Working hours

Although many of the business leaders we spoke to feel that

the work environment has improved over the past year, our

research shows that many employees are still facing challenges

in the workplace one of the greatest being the fact theres

too much to do and not enough time, or resource to do it.

Just under a third (30%) of employees are now having to work

longer hours with people working on average one and a half

hours extra a day. Around two in five (42%) works up to three

hours extra and just under one in five (26%) works three or

more additional hours a day.

A quarter of employees (25%) say that these additional hours

are due to an increase in workload. Although we hear much in

the media regarding redundancies and reduced headcounts, just

16% of employees said these were reasons why theyre having

to work harder than ever before. One in five (21%) say that

theyre putting in the extra time because they need the money

but a similar number say they simply want to create a good

impression (20%).

Just over a third of employees (37%) work their additional

hours in the evening with one in ten (11%) admitting thatthey work late at night if theyre unable to sleep. In comparison,

just over a quarter (28%) of employees come in early to get a

head start and 30% admit that they dont take lunch breaks.

Nearly one in five (16%) work at the weekends.

A focus on employees

working livesIn this section, we take a look at todays employees working lives,

behaviours and attitudes and investigate how they are affecting

their health. We also make comparisons with the findings from

our Health of the Workplace 3 study, published just as the country

entered into a recession.

30% of employees

say theyre havingto work longer hourssince the country cameout of recession.

Top 5 employee concerns

41%

34%

32%

40%

26%

1. Too much work

2. Worried about job security

3. Worried about the future

4. Worried about money

5. Stressful working life



7/32

2011 2009 2011 2009 2 011 2009 20 11 2009 2011 2009 2011 2009 2011 2009 2011 2009 2 011 2009 2011 20 09 2011 200 9

How do you cope with stress?

0%

5%

10%

15%

20%

25%

30%

35%

40%

19%

38%

19%

34%

32%

17%

13%

11% 11% 11%

7%6%

5%

3% 3%2% 2%

9%8%

13%

18% 18%

Source: Health of the Workplace 5, employee research

Talk to friends

Over-eat/poor diet

Drink more alcohol

Skip meals

Exercise more

Smoke moreSelf-medicate

More sick days

Speak to manager

Take drugs

Call a counselling helpline

51% of businessleaders think that stresswill be the biggestoccupational healthissue in 2011.

Employees health and wellbeing

Our research shows that todays working environment is still taking its toll on

employees health. Just over a quarter (27%) of employees admit that theyre

tired all the time and 23% say they feel really stressed. Moreover, one in five

people (20%) say that they worry about work in the evenings and weekends.

Given this situation its not surprising to see that stress-related illness is still a

cause for concern for many companies. One in five employees say they can see

that their colleagues are feeling the strain (20%) and over half the business

leaders we spoke to felt that stress-related illness will be the biggest occupational

health issue in 2011.

Moreover, this years research once again highlighted that the pressurised

workplace is causing people to adopt many of the unhealthy behaviours

identified in our 2009 study things like eating an unhealthy diet (19%),

drinking more alcohol (17%) and skipping meals (13%). Some of these

behaviours are driven by a lack of time others are simply behaviours that

people adopt to help them cope with a stressful situation. On a more positive

note, as the graph below shows, the amount of people over-eating, turning to

alcohol or smoking more to help them deal with stress have fallen since 2009 -

significantly in some cases. This shows that employees are taking more responsibility

for their own health - a trend we discuss further on page 10.

Top 5 employee concernsabout stress

1. Im feeling stressed 23%

2. My colleagues are stressed 20%

3. Theres not enough

understanding about stress

in our workplace 15%

4. Theres no provision for

dealing with stress 15%

5. Im worried I may

become stressed 13%

7


8/32

Employees are still working through lunch

Our research reveals that heavy workloads are causing employees to eat unhealthy snacks or skip meals altogether. Nearly 15% of

employees believe their health is affected because they are eating unhealthily at work.

Moreover, nearly a third of employees say that they are unlikely to take a lunch break, only a marginal improvement on the 37% who

were asked the same question in 2009. A quarter (25%) will only take a lunch break if they feel that their workload allows it, while

13% of employees skip meals altogether.

While this is a disturbing sign of the effect that heavy workloads can have on individuals, the good news is that employees and employers

do recognise the importance of lunch breaks and eating well. Nearly half (43%) the workers we spoke to are encouraged to take a

lunch break as employers recognise the value of a good work/life balance. But, for many, the food options provided in the workplace are

limited. Of the 45% of employers who offer food in the workplace, over a third (38%) admit to offering options that could be considered

unhealthy. As a result employees try to keep themselves healthy with around a third (30%) usually bringing in their own lunches.

Encouraging employees to takea lunch break can offer manybenefits. Taking a break from

your desk not only helpskeep employees healthy butit may also help improve moraleand productivity.Dr Doug Wright, head of clinical development,

Aviva UK Health



9/32

9

Motivation and morale

Our findings show that many employees are finding their working lives challenging. A quarter of employees (25%) feel less positive

than they did a year ago and 24% say that theyre still unsettled despite the economic climate showing small signs of improvement.

However, like the economy itself, there are some green shoots that bode well for both employees and employers. One in five

(21%) of the employees we spoke to said they feel proud to work for their company and just over one in ten (14%) said that they

feel much more positive than they did a year ago. A similar amount (10%) were happy to say they felt a degree of loyalty to their

company, because their employer looked after them. Moreover, around one in five (18%) of employees said they put in the extra

hours because they enjoy work and dont want to let their customers down.

Consistent with last years research, friendly, supportive colleagues play a key role in employees happiness in the workplace. A good

work/life balance, good career prospects and a challenging role are also highly important. Employee benefits come further down in

the hierarchy suggesting that for many, the working environment is the most important factor in their happiness. Interestingly, our

research reveals that business leaders are increasingly adopting a more responsible approach to managing their workforce, which

should help further improve happiness levels within the workplace. We discuss this in more detail on page 24 of this report.

What makes you feel happy in the workplace?


0%

10%

20%

30%

40%

50%

60%

53%

2 7% 2 7% 2 7%

20%

25% 25%

21%

47%

45%

39%

Friendly workmates

Good work/life balance

Good morale in the officeSupportive colleagues

Good career prospects

Inspirational boss

Challenging role

Sympathetic boss

Benefits package

Knowing my employer cares

Always finishing on time

42% of businessleaders say that the

pressure is now off andmorale is improving.


10/32


Those who feel that theyve neglected their health over the past few years are also keen to make changes. One in

ten said that theyve focused on work over the past few years, but now its time to focus on their health.

Exercise

Our research shows that a significant number of people are undertaking regular exercise. While this is a step in the

right direction, work is the main barrier or excuse used for not doing more. Nearly one in five employees (18%)

say that they try to exercise but work comes first and 11% say that they used to do much more exercise but nowtheyre too busy with work. Just 5% of employees feel that they do more exercise now than in previous years.

How much exercise do you do?


0%

5%

10%

15%

20%

25%

30%

28%

5%

11%

19% 19%

Once or twice a week

More than three times a week

I never exercise

I used to exercise a lot but Imnow too busy at work

Much more than a year ago

Employees are trying to adopt

healthy behavioursDespite many employees still feeling stressed and unsupported at work,

our research reveals that some behaviours have changed since the start

of the recession. One in five employees (21%) feel that they have a good

work/life balance and just under a quarter (23%) say that they make sure

regular exercise is a part of their lifestyle. Over a third (35%) say that they

try to eat healthily and just 7% feel that they smoke too much a reflection,perhaps, on changing attitudes to this addictive habit.


11/32

Alcohol

Interestingly, our research reveals that people are paying more attention to the

amount of alcohol they drink. This suggests that the NHSs campaign to raise

awareness of the risks of drinking are hitting home. While 12% of employees

say that they drink to relieve stress, most say that they only drink moderately.

Over a quarter (26%) say that they drink no more than five units once or twice

during the week, while a similar amount (18%) say that they limit their drinking

to weekends. Only 5% feel that they have heavy drinking habits, and while

our research made no differentiation for religious bias 19% say they dont

drink at all.

How much alcohol do you drink?


0%

5%

10%

15%

20%

25%

30%

10%

19%

13%

5%

18%

26%

7%

2%

I dont drink

None during the week

No more than five units onceor twice a week

Over five units more than

twice a week

Over 5 units a night

I binge drink at weekends anddrink over 10 units a night

Over ten units most nights

I dont count

11


12/32

Although were on the road to recovery the workplace still remains

challenging for many employees.

19% say their employer expects them to work harder for longer.

30% of employees are now having to work longer hours.

On average employees work 1.5 hours extra a day. Two in five

(42%) work up to three hours extra a day.

63% work additional hours because they have too much work to

do and not enough time, or resource to do it.

27% of employees think the extra hours are making them tired,

23% say they feel stressed.

Despite the challenging environment staff loyalty remains high.

Friendly, supportive colleagues (53%) a good work/life balance

(47%) and good workplace morale (45%) are the main drivers

of employee happiness.

Were seeing employers adopt a more responsible approach to

managing their workforce.

Key trends

employees working lives



13/32

Although the majority of employers (75%) say that they havent increased theamount theyve spent on employee benefits over the past few years, nearly one

in five (17%) are planning to allocate more budget to employee benefits this

year. Just under a third (32%) of employers say theyre doing this to attract and

retain staff; around one in five (18%) say they recognise that a healthy workforce

is more productive and 15% say that its simply because they now have more

budget.

Purchased by around a quarter (23%) of employers, private medical insurance

is the most widely offered health-related benefit for the third year running. This

is followed by cycle to work schemes (21%) and occupational health support

(18%). Just over one in ten (13%) of businesses are protected by group risk

benefits such as group income protection and critical illness.

How do employers select their employee benefits?

Interestingly, our research reveals a real apathy from employers regarding their

employee benefits. When asked about their benefit choices, over a quarter (29%)

of employers admit that they offer the same benefits every year just because

theyve always offered them. Just under one in five (18%) say that the benefits

they offer are the ones their employees expect, while a similar number (16%)

introduce benefits on an adhoc basis.

Moreover, many employers arent considering whats driving their sickness

absence rates when selecting their health-related benefits. This means that their

benefits may not necessarily be giving their employees the support they need or delivering maximum value to the business.

With budgets being tight, its more important than ever for employers to see a

tangible return on investments (ROI). In fact, 54% of employers say that theyd

invest more money in health benefits if they could see a tangible ROI. We discuss

this in more detail later on in this report.

How are employers supporting

health in the workplaceOur research shows that nearly half (43%) of business leaders believe its

their responsibility to look after their employees health. Its not surprising to

see that many employers are already taking steps to make their workplace a

healthy, motivating and highly productive environment to be in.

Top 5 health benefits offeredby employers

23%

18%

18%

21%

16%

1. Private medical insurance

2. Cycle to work schemes

3. Occupational health support

4. Gym membership discounts

5. Counselling services

13


14/32

Take-up of health benefits in the past year

Considering that times are tough, its reassuring to see that more than a third of employers (36%) say that over

half of their workforce has taken out health-related benefits. Nearly a quarter of employers (23%) say that over

80% of their staff have taken out the health benefits they offer as part of their employee benefits package.

Private medical insurance proves to be the most popular benefit with employees, with just over a third of people

(36%) taking it out. Other popular benefits include life insurance (28%) and critical illness cover (17%).

72% of employeessay that they haventcancelled any healthbenefits in the past year.

Which health benefits have you taken out in the past year?


0%

5%

10%

15%

20%

25%

30%

35%

40%

9%10%10%

14%14%

17%

28%

36%

6%7%

Private medical insurance

Life insurance

Critical illness

Income protection

Gym membership

Cash plan

Counselling services

Help to give up smoking

Flu jabs

Other wellness benefits



15/32

Whats stopping more employees taking out health benefits?

A third (33%) of employees admit they havent opted for any of their companys health benefits simply because

they dont feel the need although one in ten (11%) say that they will take out benefits when they are older. Not

surprisingly, lack of disposable income (29%) also figures highly in the reasons employees give for not taking out

this type of benefit.

Interestingly, just under one in five (17%) say that they havent taken out their companys health benefits because they

arent really aware of what is offered. This is a trend that was also highlighted in our 2010 Health of the Workplace

report. Theres still some way for employers to go in effectively promoting employee benefits to employees.

What would encourage employers to invest more in health and wellbeing initiatives?

Our Health of the Workplace 5 research once again highlights that business leaders are facing the same dilemma as

in previous years: the need to balance the cost of investment in employee health and wellbeing with the financial

priorities for the businesses. This isnt helped by the fact theres still no fiscal incentive that encourages employers

to purchase health and wellbeing benefits.

When asked, however, tax incentives were the most popular option as an initiative that would encourage

employers to introduce more health and wellbeing benefits. This is consistent with the findings from our 2009

Health of the Workplace research.

Which of the following incentives do you believe would encourageemployers to implement health and wellbeing initiatives?

Source: Health of the Workplace 5, employer research

0%

5%

10%

15%

20%

25%

30%

35%

40%

14%

18%17%

20%

22%

25%

39%Tax incentives

Subsidised occupational health

Better partnership with the NHS

Better provision by the private sector

Better evidence of return oninvestment

A statutory (legal) duty to provideoccupational health services

More education on what is availableand how it will help my company

15


16/32

Private medical insurance continues to be the most widely

offered health benefit followed by cycle to work schemes

and occupational health support.

Private medical insurance has had the biggest take-up over

the past year.

23% of employers say that over 80% of their staff have

taken out health benefits.

18% of employers plan to increase their spend on health-

related benefits in 2011.

Lack of disposable income is one of the main reasons

employees dont take out health benefits. A third of

employees say that they havent opted for health benefits

because they dont need them.

Business leaders are still facing the dilemma to balance the

cost of investment in employee health and wellbeing with

the financial priorities for the business.

39% say that tax incentives would encourage them to invest

more in health and wellbeing initiatives.

Employees are purchasing employee benefits simply

because theyve always had them, rather than considering

purchasing benefits that would add the most value to their

business. One way that this could be facilitated is by using

absence data to help inform employee benefit choices.

54% of employers say that theyd invest more in

health-related benefits if they could see a tangible ROI.

Key trends

employee benefits



17/32

Worryingly, our research reveals a distinct lack of awareness of

Government policy amongst business leaders. The majority of

employers (85%) taking part in our research havent heard of

the Governments Sickness Absence Review. Moreover, nearly

half (46%) of business leaders dont know what Fit Notes are

and a further 36% are unclear about how they can help their

business. Just under a quarter of employers are unaware of the

Governments Welfare Reform Bill.

Not surprisingly, employees also have a lack of knowledge of

the initiatives. Just over half (54%) of employees admit that

they dont know what Fit Notes are and 25% say that they

havent made a difference to them. Just 9% say theyve helped

them make the transition back into the workplace 7% are less

positive, saying that Fit Notes are designed to put more pressure

on them to get back to work. Interestingly, 5% of employees

admit that their GP still signs them off work although this

could be for genuine medical reasons.

Focus on Government policy

and absence managementSince Dame Carol Blacks 2008 report Working for a healthier

tomorrow, weve seen far more focus on employers to take

responsibility for the health, safety and welfare of their staff.

Initiatives such as the introduction of Fit Notes, the Public Health

Responsibility Deal and the Sickness Absence Review continue this trend.

Top 5 things employers wantfrom the Sickness Absence Review

37%

27%

20%

36%

19%

1. Financial support from the Governmentto deal with long-term sickness andre-integration into the workplace

2. A partnership with the Government toaddress the sickness absence challenge

3. Greater support and time put intounderstanding and supporting employeesdealing with mental health issues

4. Greater support and time put intounderstanding and supporting employeeswith musculoskeletal injuries

5. Greater support from the NHS

33% of employers say that

the introduction of Fit Noteshasnt affected their business.

17


18/32

Employee Absence

More than three in five (65%) employers say that their sickness absence

rates have fallen in the past year. Just 8% say that theyve seen an

increase in the amount of days that their employees are taking off sick.

While 18% put this down to the improvement in the economy, one in five (20%)

business leaders say that theyve seen an increase in presenteeism employees

returning to work despite not being in the best of health. This is a view that is

supported by our employee research.

Employees attitudes to sickness absenceA quarter (25%) of employees say that the economic environment hasnt

affected their opinion of sickness absence and if they are ill theyll still take time

off work. However, around one in five (21%) employees say that they feel that

there is a great stigma around workplace absence. Its therefore not surprising

that our research reveals that two in five (37%) employees are struggling into

work even when they are unwell. Just under one in five (16%) say that they

make the extra effort to get into work because their colleagues need them.

How much time have you taken off sick in the past year?

20%

22%

39%

11%

6%

No time even though Ive been unwell

No time - I havent been sick

1-5 days

1-2 weeks

Over 2 weeks


Top 5 causes of staff absence

1. Minor illness e.g. colds/flu 29%

2. Stomach upset 18%

3. Headaches 11%

4. Stress 6%

5. Musculoskeletal problems 6%

Source: Health of the Workplace 5, employee research.



19/32

Monitoring absence rates

Our research reveals that most business leaders do monitor their sickness absence rates in some

way but 14% dont have any formal absence management system in place. The average

sickness absence rate across the whole sample is 5.5 days which compares to an average of

6.5 days identified in the most recent absence and workplace health report published by the CBI/

Pfizer1. Over three quarters of employers (76%) say that their companys average sickness absence

rate falls between 2 and 10 days.

While one in five (20%) employers say that they dont measure the cost of absence to their

business, nearly a quarter (24%) say that they measure days lost and 29% say they purely

measure the financial cost. One in five measure both the financial cost in terms of financial out-lay

(sick pay, wages etc) and lost productivity.

Only 20% of employers measure the

financial costs of absence in terms ofmonetary out-lay and lost productivity

How do you measure the cost of absence to your business?

Source: Health of the Workplace 5 , employer research

0%

5%

10%

15%

20%

25%

30%

20%20%

24%

29%

6%

Financial costs only

Days lost

We dont measure this

Financial costs and lostproductivity

Negative impact oncustomer service

1 Healthy Returns? Absence and workplace health survey 2011, CBI/Pfizer 2011.

What is the current averageabsence rate in your office?(Days per year.)

0 3%

1 day 10%

2-5 days 48%

6-10 days 27%

11-14 days 7%

15+ days 4%

19


20/32

How do employers use their absence data?Employers use their absence data in a variety of ways. Just over a quarter (26%) say that they

report the results to HR and the same amount record staff absence and deal with individual cases

as appropriate. One in ten (13%) uses the output purely to manage HR issues and the same

amount captures the data but doesnt do anything with it.

Just 8% of employers say that they make changes to their benefits and wellbeing policies using

the absence data they capture. Its therefore not surprising that 28% of employers say they

havent seen any benefits from having an absence management system in place. Moreover, when

asked about their benefit choices, nearly a third (29%) of employers admit that they offer the

same benefits every year because theyve always offered them.

This highlights that many employers are purchasing benefits without actually considering thevalue they offer to both their employees and their business. By choosing benefits that help tackle

the main causes of their sickness absence, employers can help maximise the return they get from

their spend. In the current economic climate, thats more essential than ever. In fact, 54% of

employers taking part in our study say that theyd invest more money in health benefits if they

could see a tangible return on investment. We discuss this topic further in our summary on

page 28 of this report.

58% of employees agree thatyou cant effectively measureabsence without knowing whatscausing it.



21/32

Employers adopt a range of approaches to help them manage

sickness absence. Typical examples include; encouraging

employees to discuss any health issues early (25%), beingunderstanding of employee ill health and working with

individuals to manage their issues (30%) and offering

rehabilitation support to help employees return to the

workplace as soon as possible (14%).

Just over one in five (22%) employers have seen their number

of sick days decrease as a result of having an absence

management system in place, 16% have seen employee morale

improve and 12% say that productivity has increased.

Have you seen the benefits of having anabsence management policy?

23%

22%

17%

16%

12%

4%Number of sick dayshave decreased

Better understanding ofissues driving absence

Counselling serviceshave helped

Employee moralehas improved

Productivity has improved

Customers are happier

21% of business leaders saytheir absence managementpolicies have given them a betterunderstanding of their workplaceissues and enabled them to findsolutions to address them.

Managing sickness absence

While employers dont appear to be using their absence data effectively,

on a more positive note, our research shows that the majority of business

leaders recognise the importance of managing sickness absence

just 11% say that they dont think it is necessary to have absence

management policies in place.

21


22/32

Top 5 ways that employers helpprevent absence

26%17%

17%

29%

14%1. Encouraging a good

work/life balance

2. Absence managementsystem that enablesearly intervention

3. Counselling services4. Wellness policies

5. Health screenings

54% of employers saythat if money was noobject theyd put newabsence managementsystems in place.

Employers are becoming more proactive

Our research reveals that many employers are now taking a

proactive approach to managing sickness absence. Over a

quarter (27%) of employers say that they have an absence

system that helps them intervene promptly to help employees

back into the workplace as quickly as possible. This is

particularly important for conditions such as stress, which can

benefit from early identification and treatment. In addition,

businesses that adopt a proactive approach to absencemanagement are reaping rewards around one in five (18%)

employers say that theyve seen their sickness absence rates fall

as a result of putting proactive measures into place.



23/32

28% of employers believe that they have good absence

management systems in place.

Although 86% of employers measure absence, the data

tends to be reported rather than used to inform employee

benefit choices.

Very few employers can estimate the amount of sicknessabsence caused by stress and musculoskeletal issues.

Employers are becoming more proactive with 27% having

a system that enables them to intervene early and offer

prompt support. Just under a fifth have seen their sickness

absence rates fall as a result.

Lack of budget appears to be the main reason employers

arent investing more in sickness absence management

support services yet, evidence suggests that robust

sickness absence systems can deliver a ROI that over timefar outweighs the cost of introducing the initiative.

54% of employers say if money was no object theyd

put new absence management systems in place.

Therefore, there is a real need to educate employers on

how to use their absence management data to make

informed employee benefit choices that add real value

to both their employees and their business.

Key trends

absence management

23


24/32

Over half of employers (53%) believe that investment in

employees health and wellbeing is more essential now than

ever before. This is a view shared by 69% of employees who

say that their employer should spend more on health and

wellbeing to keep them fit and healthy in these tough times.

Our third Health of the Workplace report published as the

country was entering recession revealed that nearly 70% of

employers felt that investment in employee health and wellbeing

was a luxury that few businesses could afford. This figure

has now fallen by 12 percentage points to 58% suggesting

that companies may be putting an increased focus on their

employees health and wellbeing. This is a view supported by the

fact that 18% of employers say that they intend to increase their

budgets for health-related benefits this year.

Employers are beginning to recognise thathealth and productivity go hand in hand

Perhaps more interesting is the recognition from employers

that the health of their workforce has a direct effect on their

companys bottom line. Over two in five (42%) employers

say that a good work/life balance helps increase morale and

productivity and 39% say that a supportive atmosphere is key.

Employer attitudes to workplace

wellbeing are changingThis years research reveals that the challenging economic situation

may be having a positive effect on employer behaviours in relation to

the health of their workforce. Nearly three quarters (73%) of business

leaders admit that the impact of the recession has made them recognise

the importance of looking after their employees health and wellbeing.

Top 5 ways that employeessay their employer looks aftertheir health

43%

20%

19%

27%

18%

1. Encouraged to take a lunch break

2. Encouraged to have a good work/life balance

3. Offered subsidised gym membership

4. Counselling services

5. Healthy food in the canteen

49% of business leaders agreethat now were out of recessionthey need to focus on employeeshealth and wellbeing.



25/32

Communication is key

Employers also acknowledge the importance of having an open and honest relationship with their

employees 30% recognise the benefits of having an open door policy so that employees know

that they can address issues. Similarly, 28% say that its important that lines of communication are

kept open so that employees know how the company is doing.

While productivity is still a key concern for 17% of business leaders, over a third of employers

(34%) say that they feel a responsibility to their workforce, not just in relation to their productivity

but also to their wellbeing.

Over six in ten employers (63%) believe that a healthy workforce is more productive than an

unhealthy one a rise of ten percentage points from last years research. This is a view shared by

over three quarters of employees (78%) who believe that productivity is directly related to their

level of health. Moreover, six in ten (61%) employees say that theyd work harder for an employer

that invests in their health and wellbeing.

Improving employee health is a powerfulway to enhance performance and results,

improve retention of key staff and contributeto corporate social responsibility.Dr Doug Wright, head of clinical development, Aviva UK Health

25


26/32

While productivity is still a key concern for over a third of employers (36%),

employee wellbeing continues to be a high business priority.

Just over a third (35%) of business leaders say that theyd like to improve staff

motivation and morale and one in five (20%) say that they want to improveemployee wellbeing.

How do employers planto meet their objectives?

31%

17%

14%

18%

13%

Encourage a good work/life balance

Improve absence management policies

Spend time understanding employeesissues so that solutions can be introduced

Introduce more health benefits

Introduce more staff entertainment

Employers priorities

for the coming yearThe good news is that our research reveals that this

responsible attitude looks set to continue over the coming year.

What are your priorities for the coming year?

36%

35%20%

18%

18%

9%

Improving productivity

Improving motivation

Improving employeewellbeing

Implementing stressmanagement policies

Reducing sickness absence

Meeting legislativerequirements

What are your priorities for the coming year?

1. Improving productivity 36%

2. Improving motivation 35%

3. Improving employee wellbeing 20%

4. Implementing stress management policies 18%

5. Reducing sickness absence 18%

6. Meeting legislative requirements 9%



27/32

Over the past year its fair to say that while still volatile, the economic climate hastaken a turn for the better. The views from the business leaders taking part in our

study also suggest that the worst is over and, for many, the road to fiscal recovery

is in sight. Its unknown whether this perception has changed in recent weeks,

as we hear of even more challenging times to come, but certainly at the time we

conducted our research the signs were promising.

Our research reveals a new, caring environment. Employees are loyal to their

employers; they are proud to work for their companies and are committed to

helping their colleagues and keeping their customers satisfied. At the same

time, it appears as though business leaders are now more likely to recognise the

relationship between a healthy, happy workforce and productivity. In truth, it is

uncommon to have one without the other.

Business leaders plans and priorities reflect this new-found responsibility to

their employees health. Nearly one in five employers say theyre going to invest

more into health-related benefits over the coming year in a bid to help improve

employee wellbeing; over a third say they want to improve staff motivation and

morale. They aim to achieve these objectives by encouraging a better work/

life balance, improving absence management policies and spending more time

understanding employees issues so that they can introduce appropriate solutions.

This is great news, health and wellbeing experts have long recognised the

connection between a happy, healthy workforce and productivity, motivation and

morale. In fact, the NICE public health guidance 13 workplace business case

shows that physical activity programmes at work have been found to reduce

absenteeism by up to 20 per cent, while well-designed workplace wellness

programmes can increase employee job satisfaction and reduce staff turn-over

by between 10 and 25 per cent2. Our experience working with corporate clients

also demonstrates the tangible returns available if the right health and wellbeing

strategies are in place.

While business leaders are slightly more optimistic about the future than

employees at present, the future looks fairly bright. If employers do what they

say and focus on their employees health and wellbeing over the coming year

and we dont slip back into recession we hope that well uncover a much

healthier, happier workforce in our next Health of the Workplace report.

2. Promoting Physical Activity in the Workplace, Business Case. NICE public health guidance, May 2008.

What does this mean?

This years research highlights that the workplace is still a challenging

environment for employers, as well as employees. People are working

longer hours and still adopting many of the unhealthy behaviours that

weve seen in our previous research skipping lunch breaks, eating

unhealthily and missing out on exercise because of work pressures.

However, there are a few signs that the situation could be improving.

27


28/32

Lessons to be learnt

Its good to see that business leaders are recognising the

importance of employee health and wellbeing. Many employers

have introduced initiatives that not only help keep their

employees healthy, but where they do go off sick also help

with rehabilitation, making a quicker return to the workplace

possible. While this is a positive step, our research reveals that

many employers could further improve the effectiveness of their

sickness absence management strategies.

A prime example is those employers who say that they monitor

their absence data but dont do anything meaningful with it.

This in itself presents an opportunity for employers numerous

benefits could be realised simply by using the data they capture

in a more insightful way. Take those who record absence

data and report it to HR for example: on paper this may look

positive, however, our research suggests that this insight is used

to help companies react to issues that already exist (using HR

policies), rather than putting solutions in place to treat those

issues at source.

While not specifically discussed in this report, many companys

drug and alcohol policies are also a prime example of this

trend. Experience from our occupational health function shows

that all too often employees with addiction and mental health

issues find themselves going through a HR process, sometimes

involving a disciplinary action. However, a more effective

solution could be the introduction of support processes that

would help identify and tackle problems before they become

such serious issues.

This can be facilitated through initiatives such as the

introduction of an employee assistance programme, an absence

management system that red flags specific conditions and line-

manager training to help them spot early warning signs that

something is wrong.

Employers need to use absence data moreeffectively

While its good news to hear that many business leaders

are capturing their absence data effectively, our research

also highlights that very few employers are then using this

information to inform their employee benefit choices. Instead,

many business leaders are simply purchasing the same benefits

theyve always offered their workforce. Worryingly, this apathycould be causing employers to miss a trick.

Our experience shows that numerous benefits can be realised if

employers take the time to understand what it is thats driving

their companys sickness absence rates and then choose solutions

that tackle the issues head on. While this may sound onerous,

the rewards could be significant. Moreover, theres a wide range

of specialist support available for employers to draw upon.

The first step to understanding a companys needs is to review its

existing absence data to help identify the factors driving sickness

absence rates. If the data isnt adequate, employers couldconsider introducing an automated telephone and web-based

service for recording and reporting absence. Such a system can

record the incidence of absence and provide tailored reporting

that enables effective tracking, benchmarking and management

of absence. Other diagnostic options include employee surveys

that capture current health needs as well as future health issues

that have not yet impacted on absence or productivity.

A joined-up approach

Once the problem areas are fully understood then targeted

solutions can be chosen and implemented. Ideally the selectionof benefits should include those that tackle the root cause of

the problem and help prevent staff going off sick as well as

solutions designed to treat illness and rehabilitate employees

if they do become unwell. Over time, the right selection of

benefits could make a significant difference in both short-term

and long-term absence.

However, to be truly effective the right leadership also needs

to be in place. Workplace wellness needs to start at the top

and staff should be fully engaged in the process and aware of

the benefits and support available to them. This years research

once again shows that many employees arent taking advantage

of health benefits because they dont know what support is

available highlighting that employers still have some way to

go to effectively communicate their benefits.

Our own experience has taught us that one of the most

effective ways to do this is through an annual benefits and

rewards roadshow. Each Aviva employee also receives an

annual rewards statement, highlighting the benefits theyve

selected and their associated value.



29/32

Step change in thinking

However, perhaps one of the most striking things that our

research reveals is the sheer number of business leaders that arent

aware of the Governments Sickness Absence Review despite

them being fundamental to the successful delivery of its objectives.

The good news is that many have already introduced initiatives

that should go some way to support the Reviews objectives but,

as weve seen, further improvements could be made.

The Governments extensive review of the welfare system

represents a step-change in thinking. It is no longer focusing on

tackling issues such as the financial cost of long-term sickness

in isolation. Instead, it is taking a more cohesive approach by

looking at what is driving the issues and considering solutions to

tackle them.

Forward thinking health and protection providers such as Avivahave long recognised the benefit of adopting such an approach.

Our experience and indeed this research, shows that companies

are increasingly looking for needs-based solutions that offer

a tangible return on investment. We believe that this can be

delivered through tailored complimentary benefits packages

that not only identify and tackle the issues but also help prevent

them occurring in the first place.

Aviva is working hard to understand and substantiate the value

of complementing insurance benefits such as group income

protection and private medical insurance with occupational

health benefits that help prevent long-term absence byidentifying and tackling the root cause of the problem.

We have already seen improvements in absence rates and

costs within companies that implement absence management

interventions to monitor, record and address sickness absence

issues and believe that more employers should be encouraged to

adopt such an approach. It is only once issues are understood,that interventions can be put in place to tackle them.

Working together

Every company is unique so theres no one size fits all solution.

However, what is clear is that there is a real need for a more

sophisticated approach to occupational health and wellbeing in

the UK. The state welfare system should not exist in isolation.

We believe that the state, employers, employees, healthcare

professionals and insurers all have a role to play in tackling

the countrys sickness absence bill. With the right incentives

and timely interventions, theres a real opportunity to make

significant savings and also stop the financial stress and

emotional pressures being placed on many of our workers.

As a leading provider of health, wellbeing and rehabilitation

solutions we are committed to raising the profile of health

and protection products to consumers and employers. We aim

to demonstrate the invaluable role they can play in not only

providing financial assistance, but by also giving people access

to rehabilitation support not readily available from the state.

29


30/32

At Aviva we understand the needs of our clients are varied and

evolving, and we continue to provide innovative solutions to

meet these changing needs. With the economic climate looking

challenging for some time to come, many employers are looking

to affect the one area which they retain control over costs.

This is why we have developed a whole range of products to

help meet our clients needs and budgets.

The link between health, performance and productivity has

been well documented, which is why our offering provides a

varied and modular menu of health and wellbeing products:

Protection a range of products providing private medical

insurance, group risk and cash plan products to assist employers

to mitigate against short and long-term absence and help

employees return to work as soon as possible.

Wellness a range of preventative health products and services

that aim to identify potential employee health risks early on and

enable employers to put in place a range of options that can

help keep employees in good health.

Absence modular solutions that allow employers to quickly

and simply ease the strain of employee absence on their

business and which can work as part of a broader solution that

includes existing occupational health programmes.

Being part of Aviva, the UKs largest insurer rated AA- by

Standard & Poors to reflect our business position, operating

performance, capitalisation and financial flexibility means

businesses can rely on our strength and experience. We believe

the calibre of our teams and the passion of our people to

deliver excellent customer service is why we continue to grow

our business. We are committed to providing our clients with

the tools and support they need.

Avivas products and services



31/32


32/32

Aviva Health UK Limited. Registered in England Number 2464270.

Registered Office 8 Surrey Street Norwich NR1 3NG.

This insurance is underwritten by Aviva Insurance UK Limited. Registered in England Number 99122,Registered Office 8 Surrey Street Norwich NR1 3NG.

aviva health of the workplace report - summer 2011

Documents