Products July 28, 2014

Enhanced Scorecard Benchmarks Wellness Programs

July 28, 2014 (PLANSPONSOR.com) – Mercer and the Health Enhancement Research Organization (HERO) have released a new version of the HERO Scorecard survey tool, which helps employers benchmark their wellness programs.
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Version 4.0 of the scorecard, which is available free of charge, allows employers to evaluate their employee health management efforts and to benchmark their program and outcomes against companies of similar sizes and industries.

While the scorecard must be completed online, a PDF version is available that can be used as a teaching tool or to prepare for completing the online version. After an organization’s information and data have been submitted to the online scorecard, they will receive a free report that compares the score of their program with the aggregate score of all respondents.

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The new version of the scorecard contains enhancements reflecting the evolution of health management programs and new research about what drives optimal outcomes, as well as enhancements to improve consistency, accuracy and clarity of the tool by updating the user interface and wording of the survey questions, according to a joint announcement from Mercer and HERO.

“Over the last five years, the wellness industry and our health care system have changed significantly, as has our knowledge base,” says Jerry Noyce, president and CEO of HERO, based in Edina, Minnesota. “The significantly enhanced scorecard reflects this, from the structure of the tool to the updated scoring system.”

Since its launch in 2009, more than 1,200 employers completed the previous Scorecard Version 3.0, giving HERO and Mercer the ability to monitor broader employer wellness trends. As a result, HERO has published 18 commentaries analyzing data collected through the Scorecard. Findings have included:

  • Allowing spouses to participate in key elements of wellness programs improves participation and outcomes;
  • Small employers with high-performing programs can produce results that are comparable to those of large employers;
  • Biometric screenings to alert employees to possible health risks and personal coaching are two of the fastest-growing elements in health management programs; and
  • Employers using financial incentives report significantly higher participation in these programs than those not offering incentives.

“The scorecard has become an invaluable program assessment tool for employers and wellness providers, alike, and the magnitude of the database has given us the ability to test the relationships between specific best practices and outcomes, “ says Steven Noeldner, Mercer partner and chair of the HERO Research Study Subcommittee, based in New York. “In addition, recent research showed a correlation between companies with high scorecard values and health care cost savings.”

More information about the HERO Scorecard survey tool can be found here.

Benefits July 28, 2014

Retirement Savings Confidence Needs a Boost

July 28, 2014 (PLANSPONSOR.com) – Defined contribution (DC) plan participants on both sides of the Atlantic are worried about retirement, according to research from State Street Global Advisors (SSgA).
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Under one-third of DC participants in three countries—the U.S., U.K. and Ireland—feel confident they will have enough saved through an employer-sponsored retirement plan to afford the lifestyle they want in retirement. The numbers are: just 31% of U.S. participants, 26% of U.K. participants and 17% of Irish participants expressing confidence in retirement preparedness, according to the “DC Transatlantic Survey” from SSgA.

The results show that DC participants see themselves as savers rather than investors, explains Nigel Aston, managing director and SSgA’s head of DC in the U.K, based in London. “Understanding this mindset is critical for providing the right kind of support to encourage increased contributions in workplace DC plans,” he says. “We’re seeing consistently high levels of discomfort around market volatility, so it is more important than ever to ensure that plans offer investments that address this concern. Default strategies that balance risk and return can help increase the effectiveness of long-term saving efforts.”

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Participants still lack investment knowledge, the survey indicated. Only 22% of respondents rate themselves as very or extremely knowledgeable about financial matters such as savings and investments. Lack of financial expertise may explain why just 27% of U.S. participants, 15% of U.K. participants and 10% of Irish participants are willing to take somewhat high-risk or high-risk investments to achieve better returns, Aston says.

“Many of our multinational clients are interested in aligning retirement plans across geographies,” said Fredrik Axsater, managing director and global head of DC at SSgA, based in Boston. “They are looking for research and ideas to help them build the best possible pension plans for their global employee network while operating within a unique regulatory environment specific to their region.”

One in five plan participants seeks help or advice on their employer-sponsored retirement plans from websites, advisers, online tools or their employer. The bulk of respondents in the three countries find retirement planning information from websites, advisers and financial publications most useful, ahead of guidance from the government and their employer.

The survey was conducted by TRC Market Research, on behalf of SSgA, in February and March. Survey respondents included 1,012 participants in the U.S., 1,000 in the U.K. and 150 in Ireland. Respondents were ages 22 to 65, working at least part time, and participating in their employer-sponsored DC plan.

The results of the survey can be found here.

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