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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. Ve r 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. Ve r 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. 4t(y_ q. i l!q 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.