9.1. SR 03-18-2019 EOty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 9.1
Agenda Section Meeting Date Prepared by
Work Session March 18, 2019 Lauren Wipper, Human Resources Manager
Item Description Reviewed by
Health for Life Wellness Incentive Program Cal Portner, City Administrator
Reviewed by
Action Requested
Discussion
Background/Discussion
During the March 4, 2019,work session,we introduced the Healthy for Life Wellness Incentive Program.
During the meeting, some questions were raised by the Council.
■ How do we ensure employees are meeting the requirements of the program
■ Time commitment to administer the program
■ Preference to have program more similar to the police Wage Incentive Program
■ Adding a biometric feature
■ Justification for the policy/program
■ Too many items/can easily reach point threshold
This item was brought back to the City Council in work session to further address these items.
Financial Impact
Discussion only
Attachments
■ Healthy for Life Wellness Incentive Program Draft
■ Support for the Healthy for Life Wellness Incentive Program
■ Program elements with accountability
■ Health Care Provider Certification Form
■ Employee Participation Numbers
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAMIRE1
Healthy for Life Wellness Incentive Program
Purpose
The City of Elk River recognizes the importance of employee health. Healthy employees
provide benefits to the employee, employer, and the community as a whole. This voluntary
program was designed to improve employee health,reduce employee-related medical
expenses,and provide employees the opportunity to be paid consistent with our top peer
cities. The Healthy for Life Wellness Incentive Program acts as a bridge to competitiveness
with our peer group, aiding in recruitment and retention.
Goals
The desired rewards of the program are 1) improvements in health behaviors (i.e.,physical
activity, nutrition, stress reduction, sleep, etc.), 2) reduction in elevated health risks (i.e.,
cholesterol,glucose,blood pressure), 3) reduction in health care costs, and 4) increase in
productivity, job satisfaction,and lower absenteeism and presenteeism.
By combining the Healthy for Life Wage Incentive Program with the worksite Health
Rewards Wellness Program, the city can provide employees with considerable leadership
support for an effective workplace culture and help curb employee costs.
Policy
Eligible Employees
Employees that hold positions within the City of Elk River's Pay Plan are eligible to
participate. Employees must be performing successfully. If performance improvement needs
are identified during the year,the incentive will end until performance improves. New
employees may participate if there is sufficient time remaining before the deadline to
complete the elements of the program. Program elements and the incentive are the same
regardless of full-time or part-time status.
Program Requirements
Employees must complete the requirements as provided annually on the Healthy for Life
Wellness Incentive Program Scorecard by the deadline indicated. The Scorecard will include
a section of elements that every employee must complete as well as a section of elements the
employee can choose from to accumulate a required score. Employees must complete both
of these sections by the deadline to receive the incentive.
Program elements may change periodically. The City Council shall review and approve the
program elements annually.
Incentive
Employees that successfully complete the requirement of the program by the deadline will
receive a financial incentive the following year.The incentive is $XXXX paid out as $XX
each first and second pay period of each month. Employees leaving employment with the
city during the year are eligible only for the amount of incentive provided to them during
their employment.
(Title)
Policy History
Adopted by: On date Item #
City oElk) dPftft.
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Support for the Healthy for Life Wellness Incentive Program
Questions:
• What do I tell taxpaying citizens when talking about the increase in staff costs for taking a
Zumba class?
• Why am I paying more taxes for the wellness wage incentive program?
• How does the Council support this wage incentive program?
• What are the rewards or"return on investment" for having a WIP?
• What's the importance of this program?
Purpose of the Policy
The purpose of the "Healthy for Life Wellness Incentive Program"is to improve employee health,
reduce employee-related medical expenses, and provide employees the opportunity to be paid
consistent with our top peer cities. The desired rewards of the program are:
1. Improvements in healthy behaviors (i.e.,physical activity, nutrition, stress reduction, sleep,
etc.),
2. reduction in elevated health risks (i.e., cholesterol,glucose,blood pressure),
3. reduction in health care costs, and
4. increase in productivity and job satisfaction and lower absenteeism and presenteeism.
By combining the Healthy for Life Wellness Incentive Program (WIP) with the worksite Health
Rewards Wellness Program, the city can provide employees with considerable leadership support for
an effective workplace culture and help curb municipal taxes.
Recognition for the Need of the New Policy
In 2016, 2017 and 2018, the City of Elk River had an increase in health care claims experience.
While there are outside influences regarding our health-risk pool, and luck,we can slow this trend by
changing health behaviors and reducing elevated health risks.
The philosophy is based on the premise that employee-related expenses such as medical costs and
absenteeism are greatly influenced by poor employee health. Much of poor health is driven by poor
lifestyle choices. Therefore, to impact employee-related expenses,wellness programming must focus
on the root causes of poor health,which are unhealthy behaviors.
Current and past city administrators, City Councils, supervisors, and HR made strategic decisions to
make a healthy workplace a priority. Salary plans and budgets were created to allow employees to
participate in a supporting wage incentive wellness program. Most medical insurance carriers provide
employees with disease management, a nurse hotline, and convenience care, and the city can provide
employees with an effective, supportive worksite wellness program.
The Healthy for Life WIP is an intervention to better reach staff by offering an opportunity for part
of their compensation to be affected by a comprehensive wellness program. The city recognizes
wellness as a key part to our overall city operations and has implemented a similar program with the
Elk River Police Patrol and Sergeant Unions. Licensed police personnel are encouraged to engage in
healthy behaviors and demonstrate fitness levels with a Wage Incentive Plan,which was
implemented in place of Longevity Steps utilized in many other departments. Those who choose to
participate are provided additional pay based upon their degree of participation.
Healthy for Life WIP is designed to help employees improve healthy behaviors and to make the
overall work culture more supportive of good health practices. The wellness program provides
employees with awareness, education,motivation, tools, strategies, supportive policies and social
support needed to adopt and maintain healthy behaviors and maximize employee engagement.
For every dollar the city spends on wellness programming, there is potential to save two to three
times more in health care costs and work productivity. Investment in employees'health and
wellness may significantly improve employee health and productivity and reduce employee health
care expenses.
city of
ver
Healthy for Life
Wellness Incentiv
Program Policy
Must Do Accountability
Health Risk Assessment-ShareCare-Your real age completion notification
Chapter 5 of Younger Next Year book checked out and written paragraph
Annual medical/preventative exam-between deadline and 1 yr prior form signed by dr
Either eye or dental preventative exam form signed by dr
Choose
Must complete at least one item from each category and also must reach 400 total points.
Physical Fitness Category
100 Fitness-Rec Sports League, Health Club,on your own program,combo,etc calendar,schedule,fitness tracker record,
-activity for 3 days/wk for at least 2 months mthly attendence submitted
50 Try new fitness class/program-should we add a required length??? registration document
Wellness Category
75 Food,sugar,or soda tracking for 1 month calendar submitted
75 NFP Challenges-at least 1 with every check in made NFP keeps track of participation
50 Health Rewards Program-at least 1 event sign in at event,registration
50 Try new wellness-related class/program-healthy eating,XXXXX registration document
50 Flu Shot for 2018/2019 flu season city event or form signed by dr
50 Enroll in smoking cecessation program registration document
Education Category
75 Participate in RetireWise-all 4 classes HR will be in attendance at classes
50 Read a book date,what book was about, how reading it
helps you have a healthier life
50 Try new class/program not related to Physical Fitness or Wellness- registration document
budgeting, retirement(not RetireWise),vegetable gardening
50 Participate in Healthier Tomorrow HR will be in attendance at classes
Community Service/Social Category
50 Volunteer: Meals on Wheels,donate blood,foodbank,etc... registration or signup
50 Participate in a community walk/run/bike copy of registration
50 Attend Employee Appreciation Luncheon checked in when arrive
Skills Category(Life skills not directly related to work, but skills valuable to We have provided classes like these in the
succeed at work and maintain a healthy balance in work and life that you past. We do not have a resouce for them
can learn through practice.) right now but would like to find another one.
Copping skills We can add this next year if a resource is
Anger management skills obtained.
Stress management skills
Time management skills
Empathy skills
City of
ElkHealthy for Life WIP Program
RiVer
Health Care Provider Certification Form
The City of Elk River has implemented a wellness program designated to encourage employees to make impactful health
choices. A component of the program is encouraging regular exams,such as an annual routine,annual wellness,or annual
preventive exam.
By signing and dating below,you are certifying that:
(patient name)has completed a:
Please check the box to indicate the type of exam:
OMedical Exam O Dental Exam O vision Exam
Health Care Provider Printed Name:
Health Care Provider Signature: Date of Exam:
Phone Number:
Employees shall return this completed form to KKeast@ElkRiverMN.gov
If you have questions,please call Human Resources at(763)635-1023
Rev.03/18/2019
City oElk) dPftft.
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Employee Participation for the 2018 and 2019 To-date Health Rewards Events
31 Wellness Boost Challenge
27 Flu Shot Clinic
35 Bean Bag Toss Tournament and Safety Training
3 5K Training— 12 signed up, 3 ran 5K
2 Target Shooting Range
12 Self-Defense Class
19 InBody Analysis
27 NFP Frosty Challenge (Maintain Don't Gain)
40 NFP Water Drinking Challenge
7 Blood Drive—held with ERMU, does not include ERMU employees
Employee Participation for the Employee Recognition Luncheons
2016 - 107
2017 - 109
2018 - 105
Healthy for Life WIP Program
2019 Tracking Card
f lcLnd-n 4 fiery.
DRAFT
To participate in the Healthy for Life Wage Incentive Program to receive $XXXX.00 added to your pay in 2020, you must obtain a minimum
of 400 points from the list below by XXXXX XX, 2019. To qualify, you must complete Section One, then from Section Two, you must
accumulate a total of 400 points. You must complete at least one activity from each "category" in Section Two. If you have questions,
please contact HR or call ext. 1023.
Section One - Required Activities
Tn rvuan6. ..n.. RAI ICT nn _n I.... .1 ..... n...... —L A..:_.
Health Risk Assessment - ShareCare - Your Real Agecompletion
notification
Chapter 5 of Younger Next Year
book checked out and written paragraph
Annual medical exam - between deadline and 1 yr prior
provider certification form
Either annual dental or eye exam
provider certification form
Section Two - Additional Activities You Get to Choose
Choose at least one wellness activity from each category Accountability
Phvsical Fitness Cateeory
10C
5C
75
75
5C
5C
5C
5C
75
5C
50
5C
Points
Fitness- Rec Sports League, Health Club, on your own program, combo,
etc - 3 days/wk for at least 2 months
submit a calendar
100
Try new fitness class/program
registration document 0
Wellness Cateeory
Food, sugar, or soda tracking for 1 month
submit a calendar
0
NFP Challenges- at least 1 with every check-in completed
NFP's record of participation
75
Health Rewards Program - at least 1 event
sign in at event, registration
50
Try new wellness -related class/program - eating
registration document
0
Smoking cessasion class/program
registration document
0
Flu Shot for 2018/2019 flu season
city event or form signed by provider
50
Education Cateeory
Participate in RetireWise - all 4 classes
HR will be in attendance at classes 75
Read a book
date, what book was about, how reading it 0
helps you have a hearlthier life
Try new class/program not related to fitness or wellness
registration document 0
Participate in "Healthier Tomorrow" NFP presentation
sign in at event 50
Community Service/Social Category
i0 Volunteer: Meals on Wheels, donate blood, foodbank, etc... registration or signup 0
i0 Partici ate in a community walk/run/bike copy of registration 0
i0 Attend Employee Appreciation Luncheon jarrival checked -in 50
Total Points (must equal at least 400 to qualify for pay incentive) 4$�
Must submit documentation for completion.
Name: Date:
Congratulationsl You did It! Please submit this Tracking Sheet along with your supporting documentation to Human Resources no later
than 4:30 PM on XXXXX X, 20XX or it will NOT be processed and you will forgo the wage incentive for 2020.
Wage incentive eligibility per policy.
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When designing our pay plan we built it to the average of our competitive peers, leaving a gap
between our top pay and the top of our competitive peers of approximately 1.5% to accommodate a
wellness component.
If all 105 eligible employees (non-union with positions in the pay plan and Local 49) completed the
program and we used 1.5% of gross pay as the incentive, the total cost would be $108,500.
Incentives per employee would vary from $636.64 to more than $2,000. Increased hourly rates
would also be included in the overtime calculation.
Because all employees will be completing the same program and we desire all employees to be
equally healthy, we used the potential total to come up with a per -employee average number. Using
the potential maximum total ($108,500) and dividing it by the number of eligible employees (105) is
$1,033 per eligible employee. This could be paid out bi-weekly each 1" and 2"d payroll (skipping the
two 3'd monthly payrolls during the year). Finding an even number to do that would be $43 per
payout making a total annual incentive per employee of $1,032.
There is no way to know how many of the eligible employees will complete the program. As well,
employees leaving during the following year would not receive the full year's payout.
This formula was developed on the basis of the 1.5% pay incentive which is based on the gap
between our top pay and our competitive peer's top pay.