Delaware Employment Law Blog

How important is office space to employees?  Very important, apparently, according to this article discussing a "summer office swap" conducted at a Boston-area advertising agency.  During the summer months at this forward-thinking firm, nearly every employee switches office space based on a lottery system.

There were a small number of managers with offices, and regardless of how high their pick was, they could not keep an office. However, who did get the office appeared to depend on an elaborate bartering system, which resulted in more lowly office types offering services such as babysitting, car washing, and coffee retrieval in exchange for a seat in a coveted manager office.

The article is a good reminder of how important office space is to employees. More than a few employment discrimination lawsuits have been based, in part, on the office (or cubicle) an employee is assigned to.

In 2003, there was a Delaware case involving a plaintiff who filed a federal lawsuit which entailed, among other things, his objection to an office space “auction” at University of Delaware – where the best offices would go to the highest bidder and the money raised would go into a fund for use of the Department.

More recently, I had a case where among a plaintiff’s evidence of “retaliation,” were claims that she was given a “dirty, dusty cubical walls filled with dust mites.” And of course, who can forget the movie Office Space, and Milton, whose most prized possession was his Swingline stapler, and whose cubicle was continually moved until he was eventually wound up in a dimly lit basement among the boxes.

The legal profession is one of the last standouts where a good portion of the employees – lawyers and paralegals – typically have real offices with doors: associates have window offices, partners have bigger window offices, and paralegals have interior window-less offices. I know this is unusual for most of corporate America. But as the Boston Globe article illustrated, even among cubicles there is a hierarchy: those closest to the window, most shielded from foot traffic, etc.

Employers should keep in mind the importance of office space to employees, and what a difference small changes can make. In this era of layoffs and belt-tightening, there may be simple and relatively inexpensive ways to reward your employees and keep them happy: think about small ways their work environment can be improved. Many (indeed most) employers are not cut out for the “summer office swap” conducted by the Boston firm – if this was ever attempted in a law firm, I’m quite certain it would result in a revolt that would make the Pakistani lawyers revolt look tame. Nevertheless, consider what might work for your workplace: access to natural light, modest levels of privacy, can go a long way to build employee loyalty.

Nearly 60% of terminated or  laid off employees steal proprietary company data when leaving, says a new study released by the Ponemon Institute, an Arizona-based research company.  Most employees take hard copies or paper documents but they also admit to downloading and saving data and sending information as attachments to personal emails.

The study does not indicate whether this trend is on the rise but I’d venture to guess that it is, based only on my clients’ experiences.  It’s become very common for an employer to discover that an exiting employee emailed himself sensitive information prior to his exit.  The study reports that approximately 25% of the employees who admitted to taking data admitted that they were able to access the company’s network even after they’d left.  This is obviously the first step when preparing to terminate an employee—remove their access to all confidential data, whether in electronic or paper form.

It’s best to have IT turn off electronic access prior to the termination meeting.  And, at the same time, have them scan his emails to determine whether the employee has sent any emails in the last couple of weeks to his personal account, such as a G-Mail, Yahoo!, or AOL account.  And determine whether these emails contained any attachments.  If so, you should determine just what it is exactly that the employee forwarded in those emails before the termination meeting.

If the termination is a particularly contentious one (i.e., this is a “problem” employee), you should also consider whether you want to preserve all of the individual’s incoming and outgoing emails if you don’t have a system in place to do that automatically.  Users of the full version (i.e., not Reader) of Acrobat 9 can do this in a flash by converting all emails to a single PDF document.  Or you can forward all of the emails to an HR or other secure email account.  Should the employee later file a claim, his emails could very well be the key to your defense so don’t risk losing them.

The founder of the Ponemon Institute suggested that employees steal data because they think they are entitled to it as something they helped to create.  Other theories include that employees want to use the information in their portfolios or to otherwise help them seek other work.  Of course, the traditional school of thought says that employees steal to “get back” at the employer in response to the wrong they perceive has been done to them. Whatever the reason, employers cannot afford to take this lightly. Confidential and proprietary information belongs to the organization—not to the employee—so the organization must be diligent in preventing the loss of its rightly-owned data.

Delaware has the 17th highest rate of adult obesity in the country, with more than one in four adults classified as obese, according to a new report by the Trust for America’s Health and the Robert Wood Johnson Foundation. Employers bear many of the indirect costs of this obesity rate, including higher disability costs, more sick days, and increased workers’ compensation claims. The report indicated that Delaware’s obesity rate increased significantly in the past three years—a sign that current health and wellness policies aren’t cutting it.

So what can Delaware employers do? The study highlights three steps employers can take to promote healthier lifestyles:

· Provide workplace wellness programs and preventative care benefits

· Give employees a chance to take breaks for exercise during the work-day

· Offer coverage for wellness services such as nutrition counseling and weight management programs

Some companies have already rolled out in-house yoga classes, discounted gym memberships, and free massages for stress reduction. How those perks will weather the economic downturn is an open question. Other options? Employers can offer healthier food choices at company meetings and events, and improve selections at the office cafeteria.

F as in Fat: How Obesity Policies Are Failing in America 2009, was released on July 1, 2009.  For a list of other blogs covering wellness and work-life balance, see our blogroll, including the 50 Best Blogs on Wellness, Women's Interests, and Work-Life Balance

*This guest post is by Summer Associate Christen Martosella. Christen will be entering her second year of law school at NYU in the Fall but, until then, she's busy making a great impression at YCS&T.  Thanks, Christen!

Bullying in the workplace has been on the employment radar for several years, now.  But what exactly bullying is, on the other hand, remains elusive and without a universal definition.  The American Psychological Association (APA), has provided a way to come close, though.

Each year, the APA sponsors the Psychologically Healthy Workplace Award program.  The award program recognizes employers who excel in five categories.  When a workplace can implement each of the five, it qualifies not just as a "good place to work," but as a psychologically healthy workplace.  

The five types of workplace practices that contribute to a psychologically healthy work environment include: (1) work-life balance; (2) employee involvement; (3) employee growth and development; (4) health and safety; and (5) employee recognition.  These factors mirror those most commonly cited as the most important drivers for employee engagement, as well. 

Employers interested in reducing health-care costs, improving quality and productivity, and positioning their organizations for recruitment and retention of the best employees can learn more at the APA's website.

Delaware Employment Law Blog is pleased to add the following 50 blogs to its "Best of" Blogroll.  The common premise among these blogs is the idea that well-rounded employees are happier employees and happier employees perform better for their employer, who, in turn, enjoys more success overall.  In other words--wellness and work-life balance are valuable principles, which should be considered high-ranking goals among employers.  

Here's the list, alphabetically:

1. About Working Moms
2. Alliance for Work-Life Progress
3. Business Week’s Working Parents Blog
4. Chief Home Officer
5. Corporate Voices
6. Corporate Voices for Working Families
7. Discovering Your Inner Samurai Blog
8. FunnyBusiness
9. Half Changed World
10. How She Really Does It
11. Hybrid Mom Insider
12. Institute for Women’s Leadership
13. Jugglezine
14. Kathy Lingle's Work-Life Blog
15. Moms Rising
16. Motherlode
17. Mothers Movement
18. Newly Corporate
19. On Balance
20. Progressive States
21. Sloan Network
22. Sue Magazine
23. The Anti 9-to-5 Guide
24. The Juggle
25. The Lattice Group
26. The Women’s Initiative Blog
27. The Work/Life Balancing Act
28. The WorkLife Monitor
29. Women for Hire
30. Women on Business
31. Women's Leadership Exchange Blog
32. Women's Rights Employment Law Blog
33. Work from Within
34. Work+Life Fit, Inc
35. Working Mother
36. Work-Life and Human Capital Solutions
37. WorkLife Law Blog
38. World at Work
39. YourOnRamp.com
40. Christina's Considerations
41. Corporate Wellness Quotes
42. Employee Corporate Wellness Programs
43. Employee Wellness USA
44. Employee/Corporate Wellness Programs
45. Meditation At Work Info
46. My Meditation Coach: Improve your workforce!
47. Wellergize
48. Wellness Corporate Insights
49. Wellness.com
50. Workplace Wellness

Employers are conscientious about safety and injury-prevention, regardless of the economic climate.  But when the economy is difficult, employers should keep an especially cautious eye out for fraudulent workers' comp claims.  There are three methods to prevent abusive workers' comp claims that every employer can utilize, regardless of size or industry.

To read more about how to best prevent laid off employees from bringing baseless comp claims, have a look at my guest post at the Workers' Comp Kit Blog. 

Previously I posted about my quest for the perfect economic office chair.  And, as everyone knows, nothing's more important than the perfect accessory.  When I do manage to find my dream chair, I now know the perfect accessory for it--the Herman Miller Laptop Stand. The Scooter Laptop Stand  provides comfortable and ergonomically correct keyboard and mouse support. The Scooter adjusts in height from 22" to 30" and has a tilt range of 20°. It can be purchased at Amazon for $379 and comes in Solid Cherry, Ash, and Ebony finishes.  

Walking while you work was the topic of an earlier post. This post stays within the same theme--how to be healthy at work--but with a different perspective--mine.  I have some thoughts of my own on this topic. 

For one, I would cherish the opportunity to move more through the day without sacrificing working time.  It's not the walking part, really, as much as it's the idea of not sitting that I find attractive.  Basically, anything that involves me not sitting would be of value.  Alternatively, sitting comfortably and without permanently wrecking my posture would be a heck of an idea.

Somehow, I've never gotten around to buying one and my back really pays the price for my indecisiveness.  What's stopping me?  There's just too many from which I could choose!  But that's not to say that I haven't given it a lot of thought.  Here's the rundown on my years of searching.

There's the classic Herman Miller Aeron chair.  Everyone knows that the Aeron is pretty hard to beat when it comes to function and design.  Being a lover of modern furniture, I can admire the Aeron even for the story of its creation--and if you haven't yet read the story, it's a great story of perseverance and dedication, of leadership and teamwork.  Good stuff.  The Executive Aeron can be purchased for approximately $1,300. 

 

Herman Miller also offers the Mirra ($829) and Celle ($629) chairs as less pricey Aeron alternatives. Both chairs come in a variety of colors, which is an advantage over the Aeron.  Color is important. 

 

 

 

 

 

 

 

 

 

 

I have to pass on the Aeron because, honestly, it's just not "pretty" enough for me.  Yes, mock me if you will, but at least I'm honest.  I appreciate the aesthetic but I need more glamour than the black mesh has to offer. 

The Freedom chair by Humanscale is next in the rotation.  The Freedom chair (with headrest, of course), also has plenty of design awards on its resume and is known as one of the best in the ergonomic category.  But, to its credit, it comes in a variety of colors and textures, including leather, which happens to be my preference.  At around $1,000, the chair is priced competitively.  The Liberty chair, priced for under $800, is Humanscale's task chair alternative. 

 

 

 

 

 

 

 

 

 

 

Next up is Steelcase--the maker of the Walkstation treadmill-desk combo that prompted this post.  Steelcase has plenty to offer in the way of ergonomic seating, the two most popular choices being the Leap and Think chairs.   Both are offered in various colors and both have a contemporary look, with the Think chair's sleek, linear design being my preference between the two.

  

 

 

 

 

 

 

 

 

 

 

 

I've been known to be open to new things so it's not surprising that I've given a lot of thought to the out-of-the-ordinary seating options.  For instance, the HAG Capisco saddle chair (in red, below, $690 - $1,200) dares to be different.  Even assuming that it's as comfortable as could be and the look was where I wanted to go, the whole "saddle" concept just doesn't work for me.  The idea is that you can sit in the chair backwards (why, I haven't the foggiest).  Sorry, I wear too many skirts to make this a realistic possibility.  I'll pass, although I do love the height-adjustable feature. In my ideal office, I would have a height-adjustable desk, making this feature quite important.  

 

 

 

 

 

 

 

 

 

 

 

 

 

The same principles go for the "stool" option but, in the interest of fairness, I'll list them anyway.   The Swopper Stool by Via (left, $600) is designed to force its user to keep their balance by engaging their abdomen muscles instead of letting us lazy office workers slump over in our traditionally terrible posture.   The HAG Balans Kneeling Chair (right) is even less likely to ever see the four walls of my office.  I've witnessed these in use and, unless you work at a health club or in another industry where you are expected to wear clothes designed for comfort, this option is just impractical.  My devotion to improved posture is not this strong.   

 

 

 

 

 

 

 

 

 

 

 

Now let's get to the serious contenders.  If and when I get around to breaking open the office-chair-piggy-bank, there are just two that make me stand up and cheer. 

First is the Steelcase Leap Worklounge Chair in Leather ($2,700-$3,400 depending on options).

It's beautiful.  And that's exactly why I like it.  It comes in white leather, which is my favorite upholstery option (practicality be damned).  There is also an optional ottoman but who has time to put their feet up?  We're working too hard to afford the chair!

 

 

And then there's the ultimate in luxury office seating, the Silver chair by Interstuhl.  Interstuhl is a German company and brings German precision to its line of couture office furniture.  I could say more but the pictures speak for themselves. 

 

 

 

Beauty is not cheap.  The base model in black will cost you around $4,500.  But why stop there?  If you're going to do luxurious, go all the way.  And Interstuhl has just the chair for satisfying the maximum luxury quotient.  

For a mere $65,500, you can be one of the lucky owners of the world's most expensive office chair.   You'll get not just the chair but the matching ottoman, as well, both of which are plated in 24-karat gold.

 

The chair has even had a few roles on the silver screen.  It was used as Al Pacino's chair in the movie Ocean's 13.  And, more recently, made a cameo in the latest Bond film, Quantum of Solace.

 

What are your resolutions for 2009? I predicted the top 5 workplace resolutions based on the popularity of various topics on the blog. One of the most popular topics in 2008 was Corporate Wellness.  There's no time like the present so why wait to get fit?  If you're ready to jump on the healthy-employee bandwagon, here's an interesting way to get started: the treadmill desk.  We've written before about this fascinating workplace wellness concept. 

The premise is this:  Healthy employees are productive employees.  To be healthy, employees need to move.  Moving employees aren't being productive.  It's a vicious circle. 

Until now, that is.

Steelcase is trying to change that with its Walkstation treadmill desk.  The Walkstation is, in a basic sense, a treadmill and an adjustable desk.  Using this nifty tool, employees can walk while they type, talk on the phone, or review documents.  Employees aren't asked to jog while working, though.  The treadmill runs at speeds of 0.3 - 2 mph. 

Health doesn't come cheap, though.  A single Walkstation will set you back about $5,000.  According to Steelcase, employers are buying single units to be shared among several employees, who can reserve the unit for small periods during the workday.

I have some thoughts of my own on this topic.  For one, I would cherish the opportunity to move more through the day without sacrificing working time.  It's not the walking part, really, as much as it's the idea of not sitting that I find attractive.  Basically, anything that involves me not sitting would be of value. 

I'm also in touch with the fact that I am just not that coordinated.  The thought of me trying to walk on a treadmill in 4" heels while typing an e-mail to opposing counsel is funny to me, even funnier to anyone who's seen me try to walk and chew gum at the same time.  I think it's a disaster waiting to happen.  So what would be my preferred alternative?   Stay tuned to find out.

Bad bosses can kill you.  Even more so than factors such as whether the employee smokes, exercises, or has weight problems. The data comes from a four-year-long study in Switzerland and was published in the Journal of Occupational and Environmental Medicine.

Workers who were subject to inconsiderate and uncommunicative bosses were about 60% more likely to suffer a heart attack or other life-threatening cardiac condition.  Employees who had strong leaders as bosses, on the other hand, were roughly 40% less likely to suffer heart emergencies. 

Got boss troubles?  Check out these posts:

How Crazy Is Your Boss? No, really, how crazy?

15 Things that Jerks at Work Usually Do

Inside the Mind of a Super Jerk

5 Costs of Coworker Bullying

And In This Corner. . . Susan From Accounting. Office Rage in the Ring

Top 5 Lessons to Be Learned from the Jerk at Work

Workplace bullying

You Know You’re a Bad Manager When. . . Mutiny at the Post Office

Bosses Aren't the Only Workplace Toxins: What to do with toxic employees?

Employee Handbook Policy #502: Respectful Workplace

Everything You Needed to Know About Your Toxic Boss

Employers want healthy employees. Employee wellness programs are as hot as ever.  Employees who smoke, on the other hand, aren't very popular.  Employers point to well-known statistics to support a variety of smoke-free policies.  Many companies have implemented bans on hiring smokers.  Others have taken to charging a "smokers' premium" on health insurance.  Smokers' premiums are a surcharge added to the health-care premiums of smokers, typically between $15 and $30 extra per month. 

The idea of "punishing" employees for what they do in their non-working time does not sit well for some.  Others raise questions about enforcement--how will the employer know if the employee claims not to smoke but does so "socially" or even secretly.  Should closet smokers be able to avoid the smokers' premiums by hiding what they do outside of the office?  

Our future President may be sympathetic to this secret society of smokers.  He is, after all, a card-carrying member.  Obama has admitted to being a former smoker but, in an interview with Tom Brokaw on political talk show, Meet the Press, the President-Elect admitted that he's "fallen off the wagon" on more than one occasion and did not deny that he'd avoided Barbara Walter's questions about whether he'd kicked the habit for good. 

In light of his penchant for lighting up, will the country's next President really support the current employee wellness programs sweeping the nation? 

Employee wellness programs are great.  Employers like the cost reductions in insurance and related health-care costs.  Employees like to be able to shoot hoops at lunch or take a yoga class on-site after work.  But what about wellness while you work?  The idea of the treadmill-desk is one I've posted about before.   (See These Pumps Were Made for Walkin').  "Walkstations," as they're known, have been touted as the missing link between a truly obtainable harmony between wellness and the daily corporate grind.

Now, the makers of Trekdesk claim that the benefits of walking while you work are even more substantial.  According to a promotion for the company, you can walk your way to thinness by losing one to two pounds per week, or more, without dieting.  It can help you sleep through the night, help correct back problems, improve your mood, and even reverse and delay aging.  And, according to the manufacturer, “Walking has been shown to prevent colon, prostate and breast cancer along with a multitude of other diseases."  Hence, employees who walk will be helping to prevent cancer.  Pretty lofty claims.

In the end, I am more than a little skeptical of the validity of these expectations.  But, I'm not skeptical about the potential impact on productivity and general health that can result from regular exercise.  Not that I'm committing to the purchase of a TrekDesk quite yet--after all, there are no prices listed on the manufacturer's website.  But I'm willing to keep an open mind. when it comes to wellness.

Delaware's ING DIRECT's employee wellness strategy and approach has been discussed in earlier posts.  The background of the wellness program was the subject of Part I of this post.  In Part II, we reviewed the principals underlying the corporate health and wellness program that shape the company's various health-centric initiatives.  In this final part, we'll look at the Returns on Investment ING DIRECT has seen since first implementing its wellness program.

High-Energy Initiatives at The Energy Zone

At the core of the ING DIRECT wellness program is The Energy Zone. The Energy Zone, is the company’s on-site exercise facility, which opened in March 2005. The facility is expansive, sprawling across 10,000 square feet of the company’s Delaware location. The Energy Zone is fully equipped with all of the cardiovascular and strength-training equipment found in a membership-based health club, including full shower and locker room amenities. These conveniences represent substantial time savings for associates. In turn, employees, who pay just $10 per month in dues, are more motivated to participate, in part, because of the ease of access to the exercise infrastructure.

And, once associates make their way to the fitness center, they can expect to have some company. The Energy Zone is staffed with a team of professionals dedicated to the promotion of health and wellness. The team offers members guidance on general fitness principles and the value of making healthy lifestyle choices. Nutrition counseling is available as an important auxiliary benefit to ensure associates are able to maximize their efforts in the gym. The Energy Zone staff is an enthusiastic group, implementing a number of interactive and motivational programs to get associates excited about wellness and to keep that enthusiasm in high gear on a long-term basis.

So how well has the Energy Zone worked? The gym sees, on average, approximately 150 employee-members per day. This number represents an increase in attendance by more than 70% since 2006. There is little seasonal fluctuation in attendance numbers. The Energy Zone’s attendance rate has virtually no decline in November and December—a time when the busy holiday season is historically linked to low attendance.

The Doctor Is In

What separates the ING DIRECT model from even most its highly regarded competitors is its on-site medical care. Employer-sponsored health clinics have experienced increased popularity over the last several years. And, as is not uncommon with this front-running company, ING DIRECT was one of the first large organizations to recognize the concept’s many values.

Until recently, the number of employers that provide on-site health clinics has been tiny. A recent study, though, found that 32% of all employers with more than 1,000 workers either have an on-site medical center or plan to build one by 2009. Again, ING DIRECT is far ahead of its peers.

The medical facility offered at ING DIRECT is available for associates on an appointment and walk-in basis. The facility is staffed by a board-certified family physician, and a registered nurse, both of whom are accessible to associates via phone and e-mail. The availability of on-site treatment for routine, as well as urgent issues, resulted in a direct and immediate savings of more than 1,300 working hours in 2006 alone.

Results and Returns

For many businesses considering a health and wellness offering, the lingering question remains, “Will it work?” Contributing to this question are a number of other questions such as, “How do we define success?” and “What will be the net gain?” All of these inquiries are legitimate and arise, and each arises in the context of keeping in mind the best interests of the business.

ING DIRECT has addressed the questions in a number of ways. First, ING DIRECT set clearly defined long-term objectives, such as reducing the cost of health care to its associates and to the productivity of the organization as a whole. With those objectives in mind, it was able to create a set of short-term goals, such as decreasing the number of tobacco users and increasing the amount of cardiovascular activity associates participate in on a regular basis. And, with these targets in mind, it set to work to get results.

And results have happened—far beyond the optimistic goals set by the program’s director, Don Baag, M.D. For example, one of Baag’s early initiatives was a campaign to decrease the percent of ING DIRECT employees who smoke by 5%. By all accounts, this is an admirable goal, and even more so in light of the fact that participation was entirely voluntary—no carrot or sticks required.

To measure the company’s effectiveness, a health survey was distributed to employees, who were selected at random at the beginning and end of the campaign. The results were remarkable. In a mere five months, the percent of employees who smoked decreased by 24%. Regardless of how “results” are defined, there can be no doubt that such a remarkable accomplishment is, by definition, a success.

The results of the wellness program also can be evaluated by referencing enrollment statistics. If associates are enthusiastic enough to enroll in continued short-term programs, they’re more likely to sustain a long-term lifestyle change. In this category, as well, the ING DIRECT wellness program sets the standard high. For example, in the first year it was offered, nearly 20% of employees participated in the company’s flu-shot program. Additionally, for employees who are not members of the on-site fitness center because of residency and traveling issues, ING DIRECT offers up to $40 per month in gym-fee reimbursement. Nearly 200 employees are enrolled in this program, which requires participants to provide proof of attendance at least eight times a month.

The Bloodborne Pathogens Standard (BPS), was issued by OSHA as a measure to protect employees who are at risk for exposure to viruses caused by bloodborne pathogens, such as HIV and Hepatitis.  For more background on what exactly the BPS requires employers to do, see our prior post on the Bloodborne Pathogens Standard.

In a recent decision by the Third Circuit Court of Appeals, the federal appellate court with jurisdiction over Delaware, Pennsylvania, and New Jersey, the procedures requirements of BPS were put under the spotlight—with interesting results.

In Secretary of Labor v. Beverly Healthcare-Hillview, the Third Circuit was asked to interpret what it means to provide the necessary testing “at no cost to the employee.” In that case, two employees suffered needlestick injuries while at work. They sought treatment after the shift at the hospital’s designated medical facility. They subsequently returned to the facility for periodic treatment as prescribed. All of the treatment occurred during their non-working time. Beverly paid the cost of the treatment but did not compensate the employees for the non-working time they spent in treatment.

Beverly was cited by OSHA for failing to provide the testing and treatment “at no cost to the employee.” The citation was appealed to an administrative judge and, subsequently, to the Third Circuit. The appellate court held that the language of the applicable BPS provision relating to “at no cost” was ambiguous, which gave the Secretary of Labor the authority to interpret the provision. OSHA interpreted the language to include compensation for travel time and non-working time when the employees sought follow-up care. In short, the court’s decision means that employers must compensate employees for time spent and costs expended while seeking post-incident evaluation and treatment.

The background of the ING DIRECT model for its employee wellness strategy and approach was the subject of Part I of this post.  In this part, we'll review the principals underlying the program that shape the company's various health-centric initiatives.

Philosophical Underpinnings

Baag reports that, although it can be tempting to follow the current wellness trends as many companies have, the ING DIRECT culture demands something different. And something better. The goal is to effectuate deep-rooted and sustainable behavioral change without intruding on personal privacy and without monetary incentives, at least overtly. This means that wellness will have to appeal to employees with minimal emphasis of the traditional ‘carrot and stick’ model, if at all.

The principal underlying ING DIRECT’s wellness program is, at the same time, both obvious and complex. The philosophy that motivates the course of the wellness program can be described as, “The cost of providing health care to the workforce is higher than ever but the price of an unhealthy workforce is even higher.”

This philosophy reveals the company’s established recognition that health-care absorbs a substantial portion of the resources that can be allocated to employees as benefits. This is not so unusual. What differentiates the ING DIRECT methodology, though, is an equally well-established recognition of the very real costs associated with employees who are not able to perform at their best level. In other words, the company employs an organizational appreciation for the power of full engagement. ING DIRECT’s goal, then, is to promote well-being among employees while still preserving the integrity of its low-cost business model.

Caution: Obstacles Ahead

And, as formidable as that challenge may seem just by itself, there is another ever-present obstacle--the modern health-care system. Baag is often left to pick up the pieces as ING DIRECT employees make their way through a system that inefficient, slow, and without sufficient value placed on the needs of the individual patients. The ING DIRECT wellness program plays a double role as its members are frequently called on to be advocates for employees--intervening on their behalf when needed.

In developing ING DIRECT’s program, Baag first looked at the business costs of the health-care crisis. He then turned to the root causes of that crisis to determine what factors had the greatest impact on the cost of health care. The wellness program directly targets those root causes.

It is no secret that the cost of employer-sponsored health plans has skyrocketed. In turn, many employers have had to pass some of this cost along to employees in the form of higher premiums, increased copays, and deductibles. But the cost of health care itself is not the only cost that businesses must absorb.

Productivity is directly affected by the health of the organization’s employees. Absenteeism is an obvious drain on resources. Equally destructive is the cost of “presenteeism,” which occurs when employees attend work but are less productive due to illness or mental duress. In other words, they’re showing up but not much more. According to some accounts, presenteeism accounts for 20-60% of the total economic health cost incurred by employers. And one study found that the loss of productivity due to illness and sub-par performance in 2003 was approximately $260 billion.

The culmination of this data was a health-care paradox. On the one hand, employers cannot afford to have anything less than a healthy workforce while, on the other hand, the current state of modern health care is unaffordable. The next step in Baag’s analysis was to identify the main factors that had caused the cost of health care to become so unattainable.

One of the most significant factors is the cost of chronic medical conditions. They account for nearly half of the total health care expenditures in the U.S. The preventable conditions that ING DIRECT chose to target included heart disease and stroke, diabetes, high blood pressure, work-related stress, obesity, and conditions caused by smoking.

In the next post, we will look in detail at the various measures ING DIRECT has implemented to help achieve its goal of workplace wellness. We will also evaluate the benefits ING DIRECT has been able to realize through its wellness program and whether its initiatives can be replicated by other employers.  In the meantime, you can have a look around some of the other wellness-related posts at the Delaware Employment Law Blog.

Employee health and wellness is spreading beyond corporate giants. Small businesses are joining together to share ideas and resources as part of a corporate-health strategy.  Health and wellness programs are attractive (or should be) to small employers for a variety of reasons. 

For one, smaller business are more vulnerable to attendance problems. It's a matter of statistics--when staffing is lean, an out-of-work employee can cause a chain reaction of problems that affect the entire organization.  Consequently, these businesses benefit from having a workforce that is less afflicted by health problems.

From a different perspective, wellness plans can be seen not only as a preventative step that benefits employers but also as an additional benefit to employees.  In tough economic times, employers are less likely to offer big bonuses or large annual increases.  Yet, employees value wellness programs, leading to increased employee retention and improved recruitment efforts.

Although small-businesses may be fairly new to the employee-wellness scene, the idea is not a new one.  For additional reading on employee-wellness programs, see these earlier posts:

1. State Employees Will Go From Fat to Fit--Or Else

2. Health vs. Privacy: Employers Continue to Juggle Both

3. What Does It Take to Be "Best Place to Work"?

4. Three Days of the Bar Exam and the Next Great Wellness Benefit

5. These Pumps Were Made for Walkin'

6. Are Employers Getting Pushy About Weight Loss?

7. Employers Should Know that Cancer Screening Saves Lives . . . And Money

8. More Employers Giving the Gift of Wellness--via gift cards

9. Employee Blogs as Part of Corporate Wellness Programs?

10. Employees, Prepare to Get Healthy, Like It Or Not!

11. DelaWELL, Delaware’s Health-Management Program, Wins NASPE Award

12. DOL Offers Compliance Checklist for Wellness Programs

13. Are Today's Wellness Programs Running Out of Steam?

14. A Role Model for Wellness Programs: ING Direct

OSHA's Bloodborne Pathogens Standard is common to many of you.  Workers in a variety of different occupations are at risk of exposure to bloodborne pathogens, which also includes exposure to Hepatitis B, Hepatitis C, and HIV/AIDS.  Employees in healthcare, housekeeping, health clubs and gyms, dentistry, funeral homes, law enforcement, and first-aid and emergency responders are some of the most commonly affected. 

OSHA issued the Bloodborne Pathogens Standard ("BPS"), in 1991.  BPS was intended to protect workers from the risk of exposure to bloodborne Pathogens and, in turn, to the associated viruses.  In 2001, in response to the Needlestick Safety and Prevention Act, OSHA revised the BPS. The revised standard addressed the need to select safer needle devices and the importance of involving employees in making those selections.  The updated standard also imposes recordkeeping requirements for injuries relating to contaminated sharps.

Pursuant to BPS, employers must identify the job duties or tasks and the job classifications where occupational exposure to blood occurs.  The list must be put into writing and it must not take into consideration whether the employee would likely be wearing personal protective clothing and equipment.  Then, armed with that information, employers must create and implement standards and procedures for evaluating the risk involved in the identified circumstances.  The plan must be accessible to employees and available to OSHA.  The written plan must be revaluated annually, or earlier if conditions require.

In addition to the recordkeeping and procedures-based requirements, BPS also imposes requirements relating to the rights of employees.  Employees must be given training in accordance with BPS requirements.  They are also entitled to receive certain notices, and access to the policies that are being implemented and reviewed.  All employees who risk exposure to hepatitis B must be offered vaccination. 

Finally, BPS also mandates certain procedures in the event of an exposure incident.  Employees must be provided with a post-exposure evaluation and follow-up must be provided to all employees who have had an exposure incident. The follow-up testing must be provided at no cost to the employee. 

Delaware is one of several states that have implemented wellness and prevention programs.  State employee wellness programs are often launched as pilots for broader health initiatives and as examples of best practices that it is hoped the private sector will follow. 

DelaWELL, Delaware’s pilot wellness program, was designed to set an example for private employers to follow, as well as to demonstrate the possible ROI.  Delaware employer, ING DIRECT, is unusual in that it adopted its own wellness program shortly after Delaware first began its wellness program. ING DIRECT saw so much intrinsic value in the wellness philosophy that it began to implement a full-fledged wellness campaign long before the state program could return any substantial ROI data.

In this multi-part post, we’ll look at the ING DIRECT program as a model for other businesses who are considering making the wellness investment.  In this post, we will focus on guiding principles that have directed the program’s priorities and initiatives, the real-world data that was used in assessing the potential value of the program, and goals the program is hoped will obtain.

Next, we’ll look to the various facets of the wellness program as it has come to be developed, an assessment of those initiatives, and the direction the program can be expected to take over the next several years. Undoubtedly, ING DIRECT has taken its own distinct path in implementing its deeply rooted wellness philosophy. As a frontrunner in the area of workplace wellness, other state employers can gain valuable insight from the ING DIRECT example.

ING DIRECT’s Arrival in America

ING DIRECT was born in Canada in 1997, a subsidiary of Dutch giant, ING Group. In 2000, several executives came to the U.S. to replicate the Internet bank’s Canadian success. By late 2003, ING DIRECT USA had acquired 1.5 million customers and had grown to employee more than 800 people. Realizing the potential implications of such sudden growth, CEO Arkadi Kuhlmann directed the company’s efforts towards creating a culture that valued work-life balance.

Kuhlmann’s strategy was influenced by The Power of Full Engagement, by Jim Loehr, Ed.D. In his best-selling book, Loehr advocates that individuals must manage their energy--not their time--in order to reach their full potential. Only by focusing on sustained performance can individuals maximize their health, happiness, and work-life balance. For Kuhlmann, the connection between a healthy workforce and a productive workforce was an easy one to make and he set off to create a working environment that would support this connection.

The Doctor Is In

In 2004, Kuhlmann approached Don Baag, M.D., with his ideas. Kuhlmann described his vision--to have a doctor-in-residence on the ING DIRECT campus--not just to tend to the daily healthcare needs of employees, but to address the overall health of the corporate culture. And just how was Baag to implement such an esoteric strategy? With a wellness program.

Intrigued by the opportunity to directly impact an entire workforce on a permanent level, Baag agreed. Kuhlmann offered no instruction or specific strategy--just to create a department that’s entire focus would be on the well-being of employees in whatever format Baag saw fit. Baag had never before developed a corporate wellness program. In fact, he’d never worked in a company that had one. But the absence of prior experience is not out of place in the ING DIRECT culture, which has found great success by innovating new experiences instead of copying the experiences of others.

To Be Continued . . . But, for now, here are some earlier Employer Wellness posts:

1. State Employees Will Go From Fat to Fit--Or Else

2. Health vs. Privacy: Employers Continue to Juggle Both

3. What Does It Take to Be "Best Place to Work"?

4. Three Days of the Bar Exam and the Next Great Wellness Benefit

5. These Pumps Were Made for Walkin'

6. Are Employers Getting Pushy About Weight Loss?

7. Employers Should Know that Cancer Screening Saves Lives . . . And Money

8. More Employers Giving the Gift of Wellness--via gift cards

9. Employee Blogs as Part of Corporate Wellness Programs?

10. Employees, Prepare to Get Healthy, Like It Or Not!

11. DelaWELL, Delaware’s Health-Management Program for Public Sector Employees, Wins National NASPE Award

12. DOL Offers Compliance Checklist for Wellness Programs

13. Are Today's Wellness Programs Running Out of Steam?

Get Fit or Get Fired? No, but if you're employed by the State of Alabama, you'll have to pay higher insurance premiums.

Fat employees, beware. The State of Alabama has issued an official “crackdown” on unfit employees. That’s right. The state has issued a get-fit mandate. Employees have one year to “see the light,” so to speak. Either get moving towards thin or face a bulging health-care premium. Employees who fail to trim their waistlines will pay $25 a month for insurance that will be free to their leaner coworkers.

Alabama is the first state that has elected a “stick” approach to motivating employees to get healthy. There are a few states that offer rewards (i.e., carrots), to employees who make healthy lifestyle changes. Like many other employers, both public and private, Alabama already charges a premium to employees who smoke.

So what exactly is required? According to the New York Times article, Extra Pounds Means Insurance Fees for Ala. Workers, beginning in January 2010, state workers will be required to undergo health screenings—or face a monetary penalty if they refuse. If the screening reveals problems with blood pressure, cholesterol, or obesity, they are given one year to shape up or ship out. At a follow-up screening after twelve months, they won’t face the $25 charge.

And what will qualify employees for a passing grade when they take the screening test next year? Employees with a Body Mass Index (BMI) lower than 34 will be exempt from the “obesity charge.” A BMI of 30 is considered the threshold for obesity. And if you fail the screening? Other than being required to “make progress,” the State has not yet determined exactly how “progress” will be defined.

Maybe the most obvious question is just how the State of Alabama thinks that its out-of-shape employees, many of whom have been battling their weight, cholesterol, or other health issues for years, will suddenly develop the motivation, knowledge, and skills to make these changes. Deeply rooted lifestyle changes are not made because of an HR initiative.

If I sound cynical, it’s because I am. When employers stopped hiring smokers and charging employees who smoked, I was skeptical. Although there are obvious and undisputable benefits to a tobacco-free workforce, I worried that the proffered motivation was a bit too “glossy” to be true.

I also wondered how long it would be until there weren’t enough smokers left to make them a valuable target. At that point, what group would be the next to be targeted? I suspected it would be obese or overweight employees. It seems my prediction has come to fruition. At least for overweight government employees in a state where 30.3% of citizens are obese.

Wellness is a good thing. No one would debate the idea that a healthy workforce is a desirable workforce. What is questionable, though, is the role that an employer should play in “helping” its workforce to get healthy (and stay that way). Issues of employee privacy and paternalism are raised when employers begin “punishing” employees for what the employer considers to be unhealthy behavior. In a society where the line between work and home grows more blurry by the day, many have concerns that employers may be going to far when they regulate what its employees do during their off-duty, non-working time.

I’ve written many times before on initiatives to encourage workers to quit smoking and the “sticks” that may follow if they fail. I’ve also written about the recent surge in businesses that impose a “culture of thinness” on their employees. The popularity of wellness initiatives has caught on more quickly than you can say “Supersize.” Currently, 46% of employers offer incentive-based wellness plans and that number is expected to grow to 70% by 2009.

CNNMoney.com reports on an interesting story about one employer’s hard-line approach to achieving a healthy workforce. In “Lose Weight or Else!,” Mina Kimes discusses the wellness approach of Lincoln Industries. The metal-finishing company’s CEO, Marc LeBaron, brags about the company’s 100% participation rate—participation is mandatory.

Lincoln employees can take advantage of weekly yoga classes, gym memberships, and health seminars. And if they stick with it, they receive a $25 monthly discount on insurance premiums and a yearly cash reward of $160. But would your employees be as enthusiastic if they were required to get a quarterly checkup for body fat and blood pressure? Only 12% of employees reported that they are in favor of employer involvement in health care.