The fifth Aviva Health of the Workplace Report

Summer 2011

Contents

3 4 6 7

Foreword Key trends identified in this years report A focus on employees working lives 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 the workplace 16 Key trends employee benefits 17 Focus on Government policy and absence management 18 Employee absence 21 Managing sickness absence 23 Key trends absence management 24 Employer attitudes to workplace wellbeing are changing 26 Employers priorities for the coming year 27 What does this mean?

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.
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 investments in 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 Government initiatives (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.

The fifth Aviva Health of the Workplace Report

Key trends identified in this years 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.

(For more details please see pages 13-16)

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)

4 The fifth Aviva Health of the Workplace Report

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.

(For more details please see pages 18-23)

Employers are increasingly recognising that the health of their workforce directly relates 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.

(For more details please see pages 24-26)

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.

A focus on employees working lives

In 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.
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.
32%

Top 5 employee concerns

26% 41%

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 that they 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.

40% 34%

1. Too much work 2. Worried about job security 3. Worried about the future 4. Worried about money 5. Stressful working life

30% of employees say theyre having to work longer hours since the country came out of recession.

6 The fifth Aviva Health of the Workplace Report

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 concerns about stress

1. Im feeling stressed 2. My colleagues are stressed 3. Theres not enough understanding about stress in our workplace 4. Theres no provision for dealing with stress 5. Im worried I may become stressed 23% 20%

15%

15%

13%

51% of business leaders think that stress will be the biggest occupational health issue in 2011.
Talk to friends Over-eat/poor diet Drink more alcohol

How do you cope with stress?

40%
38%

35%
34%

30% 25% 20%

19% 19% 17%

32%

Skip meals Exercise more Smoke more Self-medicate More sick days Speak to manager Take drugs 18% 18% Call a counselling helpline

15% 10% 5% 0%

13% 11%

13% 11% 7% 11% 8% 6% 5% 3% 3%

2009

9%

2%
2011

2%
2009

2011

2009

2011

2009

2011

2009

2011

2009

2011

2009

2011

2009

2011

2009

2011

2009

2011

2009

2011

Source: Health of the Workplace 5, employee research

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 take a lunch break can offer many benets. Taking a break from your desk not only helps keep employees healthy but it may also help improve morale and productivity.
Dr Doug Wright, head of clinical development, Aviva UK Health

8 The fifth Aviva Health of the Workplace Report

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?

60%
Friendly workmates Good work/life balance
53%

Good morale in the office Supportive colleagues

47% 45%

50%

Good career prospects Inspirational boss Challenging role

39%

42% of business leaders say that the pressure is now off and morale is improving.

40%

Sympathetic boss Benefits package Knowing my employer cares

30%

Always finishing on time

27% 27% 27% 25% 25%

20%

21%

20%

10%

0%
Source: Health of the Workplace 5, employee research

Employees are trying to adopt healthy behaviours

Despite 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.

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 now theyre 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?

30%
Once or twice a week 28% More than three times a week I never exercise I used to exercise a lot but Im now too busy at work Much more than a year ago

25%

20%
19% 19%

15%

10%

11%

5%

5%

0%
Source: Health of the Workplace 5, employee research

10 The fifth Aviva Health of the Workplace Report

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?

30%
I dont drink None during the week No more than five units once or twice a week Over five units more than twice a week

25%

26%

20%
19% 18%

Over 5 units a night I binge drink at weekends and drink over 10 units a night Over ten units most nights I dont count

15%
13%

10%

10% 7%

5%

5% 2%

0%
Source: Health of the Workplace 5, employee research

11

Key trends employees working lives

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.

12 The fifth Aviva Health of the Workplace Report

How are employers supporting health in the workplace

Our 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.
Although the majority of employers (75%) say that they havent increased the amount 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.

Top 5 health benefits offered by employers

16% 23%

18% 21% 18%

1. Private medical insurance

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.

2. Cycle to work schemes 3. Occupational health support 4. Gym membership discounts 5. Counselling services

13

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%).

Which health benefits have you taken out in the past year?
40%
Private medical insurance Life insurance
36%

35% 30%

Critical illness Income protection Gym membership Cash plan

28%

Counselling services Help to give up smoking Flu jabs Other wellness benefits

25%

20%
17% 14% 14% 10% 10%

15%

10%

9% 7% 6%

5%

0%
Source: Health of the Workplace 5, employee research

72% of employees say that they havent cancelled any health benets in the past year.

14 The fifth Aviva Health of the Workplace Report

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 encourage employers to implement health and wellbeing initiatives?
40%
39%

Tax incentives Subsidised occupational health Better partnership with the NHS Better provision by the private sector Better evidence of return on investment A statutory (legal) duty to provide occupational health services
25% 22% 20% 18%

35% 30%

25%

More education on what is available and how it will help my company

20%

15%

17% 14%

10%

5%

0%
Source: Health of the Workplace 5, employer research

15

Key trends employee benefits

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 healthrelated 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.

16 The fifth Aviva Health of the Workplace Report

Focus on Government policy and absence management

Since 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.
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.

Top 5 things employers want from the Sickness Absence Review

19% 37% 20%

27%

36%

1. Financial support from the Government to deal with long-term sickness and re-integration into the workplace 2. A partnership with the Government to address the sickness absence challenge 3. Greater support and time put into understanding and supporting employees dealing with mental health issues 4. Greater support and time put into understanding and supporting employees with musculoskeletal injuries 5. Greater support from the NHS

33% of employers say that the introduction of Fit Notes hasnt affected their business.
17

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.

Top 5 causes of staff absence

1. Minor illness e.g. colds/flu 2. Stomach upset 29% 18% 11% 6% 6%

How much time have you taken off sick in the past year?
6% 11% 20%

3. Headaches 4. Stress

No time even though Ive been unwell No time - I havent been sick 1-5 days 1-2 weeks
22%

5. Musculoskeletal problems

Source: Health of the Workplace 5, employee research.

Over 2 weeks
Source: Health of the Workplace 5, employee research

39%

Employees attitudes to sickness absence

A 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.

18 The fifth Aviva Health of the Workplace Report

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.

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

30%
29%

Financial costs only Days lost We dont measure this Financial costs and lost productivity
24%

What is the current average absence rate in your office? (Days per year.)
0 1 day 2-5 days 6-10 days 3% 10% 48% 27% 7% 4%

25%

Negative impact on customer service

20% 20%

20%

15%

11-14 days 15+ days

10%

5%

6%

0%
Source: Health of the Workplace 5, employer research

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

Only 20% of employers measure the nancial costs of absence in terms of monetary out-lay and lost productivity
19

58% of employees agree that you cant effectively measure absence without knowing whats causing it.

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 the value 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.

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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.
Employers adopt a range of approaches to help them manage sickness absence. Typical examples include; encouraging employees to discuss any health issues early (25%), being understanding 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 an absence management policy?

4% 12% 23%

Number of sick days have decreased Better understanding of issues driving absence

16%

Counselling services have helped

22% 17%

Employee morale has improved Productivity has improved Customers are happier

21% of business leaders say their absence management policies have given them a better understanding of their workplace issues and enabled them to nd solutions to address them.

21

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 absence management 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.

Top 5 ways that employers help prevent absence

14% 29% 17%

1. Encouraging a good work/life balance 2. Absence management system that enables early intervention 3. Counselling services 4. Wellness policies

17%

26%

5. Health screenings

54% of employers say that if money was no object theyd put new absence management systems in place.

22 The fifth Aviva Health of the Workplace Report

Key trends absence management

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 sickness absence 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 time far 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.

23

Employer attitudes to workplace wellbeing are changing

This 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.
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.

Top 5 ways that employees say their employer looks after their health
18% 43% 19%

20% 27%

1. Encouraged to take a lunch break

Employers are beginning to recognise that health 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.

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 agree that now were out of recession they need to focus on employees health and wellbeing.

24 The fifth Aviva Health of the Workplace Report

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 powerful way to enhance performance and results, improve retention of key staff and contribute to corporate social responsibility.
Dr Doug Wright, head of clinical development, Aviva UK Health

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Employers priorities for the coming year

The good news is that our research reveals that this responsible attitude looks set to continue over the coming year.
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 improve employee wellbeing.

How do employers plan to meet their objectives?

13% 31%

What are your priorities for the coming year?

9% 1. Improving productivity 18%

14%

What are your priorities for the coming year?

36%
Improving productivity Improving motivation Improving employee
17%

2. Improving motivation
18%

36%

35% 20% 18% 18% 9%

18%

3. Improving employee wellbeing wellbeing

Implementing stress 4. Implementing stress management policies policies management

20% 5. Reducing sickness absence 35%

Encourage a good work/life balance Improve absence management policies Spend time understanding employees issues so that solutions can be introduced Introduce more health benefits Introduce more staff entertainment

Reducing sickness absence Meeting legislative requirements

6. Meeting legislative requirements

26 The fifth Aviva Health of the Workplace Report

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.
Over the past year its fair to say that while still volatile, the economic climate has taken 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.

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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 linemanager training to help them spot early warning signs that something is wrong.

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 could consider 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 selection of 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.

Employers need to use absence data more effectively

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 apathy could be causing employers to miss a trick.

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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 Aviva have 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 by identifying 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.

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Avivas products and services

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.

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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. Authorised and regulated by the Financial Services Authority. Aviva Health UK Limited, Head Office: Chilworth House Hampshire Corporate Park Templars Way Eastleigh Hampshire SO53 3RY. aviva.co.uk/health GEN4279 09/2011 Aviva plc