An apple a day keeps the doctor away. Some construction firms also might say it helps them retain their best employees, reduce their health care and workers’ compensation premiums, and improve company morale.
A couple of years ago, PCL Construction Services, Inc., headquartered in Denver, started a company-wide initiative to provide healthy snack alternatives in its office vending machines and at its jobsites across the country.
While the option to choose a banana or trail mix over potato chips might not seem like a big deal, the healthy eating program is just one small part of the company’s bigger goal: having happier, healthier employees.
The company also covers the costs of gym memberships, local 5K runs and marathons, H1N1 and flu vaccines, and annual onsite health screenings. Its Denver office even supported the purchase of a ping-pong table, paid for by employee tournaments organized outside of working hours.
It’s no surprise PCL, an employee-owned company, has been on Fortune magazine’s “100 Best Companies to Work For” list for five consecutive years, ranking 31st in 2010.
Businesses are chosen based on an extensive employee survey that addresses management credibility, job satisfaction and camaraderie, and a “culture audit” that evaluates benefits programs, hiring and diversity.
To make its health and wellness initiative a national success, PCL’s human resources staff tries not to call it a “program,” which implies a separation from normal business practices. Instead, the goal is to make health and wellness part of the everyday culture.
With the guidance of a nutritionist and human resources advisor Diana Canzona-Hindman, PCL identified four Keys to Wellness: physical well-being; social and community well-being; financial well-being; and mental and emotional well-being.
Employee wellness goes beyond standard benefits like health care and vision coverage. “We really wanted to focus on the whole person,” Canzona-Hindman says. “If you can incorporate all of these different pieces, you’re going to achieve your goal of a healthy work environment. It has to be part of the culture, not an add-on.”
PCL attributes its people-focused culture to the fact that the company is employee-owned. “With that, you have a family-like community, a sense of pride, camaraderie and teamwork that filters into everything you do,” Canzona-Hindman says.
All programs are completely voluntary, but 100 percent of employees choose to participate in at least one initiative, whether they join a cycling team, attend a lunch-and-learn session on financial management, or participate in Wear Red Day for heart disease awareness.
Each district has its own committee dedicated to motivating employees. In Seattle, it’s the “Happy and Healthy” committee. In Orlando, it’s the “Fit and Fun” committee.
A Little Bit Goes a Long WayWhen budgets are tight, wellness programs are often the first to go. But PCL has seen so much enthusiasm—and return on investment—that company leaders continue to financially support and promote the Keys to Wellness initiative, with no cuts planned for 2010.
Part of the budget includes reimbursing employees $200 a year for their exercise enrollment costs.
“It’s only $200, but you would have thought we gave them $1,000,” Canzona-Hindman says of the gym discount, which PCL launched in 2007. “It’s that little bit that motivates everyone. We got instantaneous email replies after we announced it.”
Employees of
Ledcor Construction, San Diego, also are taking advantage of free membership to L.A. Fitness, just one perk of the company’s employee wellness program. Employees must visit the gym a minimum of six times a month to maintain their free membership. With the gym across the street from the company’s new office park location, Ledcor encourages its employees to work out during their lunch breaks.
Ledcor began offering the fitness benefit in 2008, in addition to its initiative to replace chips, candy and cookies with fruits and vegetables, and swap its soda machine with a reverse osmosis water treatment system.
“At first people griped about the apples and bananas, but now everyone loves it,” says Russell Hamilton, general manager of the San Diego office.
Ledcor’s regional U.S. offices in Chicago; Dallas; Honolulu; Kelowna, Hawaii; Las Vegas; Napa, Calif.; Reno, Nev.; and Seattle, and its four Canadian offices, each developed their own ways to encourage wellness.
What makes the programs work, Hamilton explains, is the fact that employees inspired the change; it was not a corporate mandate.
“It stemmed from within the company,” he says. “All it took was a grassroots effort by employees to get the company to implement healthy lifestyle choices, and we listened to their ideas.”
The changes were made at little to no cost. “It hasn’t required a big investment, and as far as I’m concerned, it’s worth it to have employees who are more productive; they’re happy and they’re healthy. I would encourage every company to do something like this,” Hamilton says.
Also, Ledcor’s wellness program is flexible and open to employee suggestions, allowing the program to be molded to fit the needs of its employees.
In 2008, 80 percent of employees rated Ledcor as an “above average” or “best” employer, and 94 percent said they would recommend working at Ledcor to their friends.
Wellness as a Cost-SaverThe value-added benefit, aside from genuine appreciation by employees, is a more productive workforce with fewer injuries and less absenteeism from work.
PCL’s most successful wellness initiative is its onsite health screening program, which is managed by a private vendor. In 2009, more than half of the employees chose to undergo a voluntary health assessment, offered either at their office or at their jobsite.
PCL considers the cost of a screening ($165 per employee) a modest investment that ultimately benefits the company and the longevity of its employee-owners.
“When you start an active wellness initiative in the company, you can reduce health care costs,” Canzona-Hindman says. “Employees who have health risks can get on track and stay on track, and that lowers our health care costs in the long run.”
The response has been overwhelmingly positive. One district accounting manager even wrote to human resources to thank the company for the screening that discovered he has Type 2 diabetes, which is treatable with medication.
In addition to the health screening, the company’s wellness culture incorporates injury prevention as an item on the daily jobsite safety checklist.
Workers are asked to participate in a 10-minute stretching regimen to help keep muscles limber and avoid back strains and other aches and pains. In the past year, the Stretch and Flex program actually reduced the company’s jobsite injury rate—inspiring PCL’s office workers to take up daily stretching as well.
Greener, Healthier Communities Pioneer Construction, Grand Rapids, Mich., has an all-encompassing approach to wellness. The company believes wellness stems from a collaborative team environment that supports both personal and professional development, as well as safety, community service and sustainable work practices.
“We strive to create an inspiring and engaging workplace culture that attracts and retains the most talented and creative professionals in the construction industry,” says Chris Beckering, director of business development at Pioneer Construction. “Community involvement is a cornerstone of our corporate culture, so we provide opportunities for and encourage our team members to give back their time and talent.”
Pioneer Construction has a proactive safety program that rewards safe construction practices and behaviors while maintaining high levels of accountability. Associated Builders and Contractors’ (ABC) Western Michigan Chapter awarded the company its Construction Safety Award of Excellence in 2009.
The focus on wellness also extends to sustainable practices.
“Our sustainable practices around the office foster environmental stewardship and a collective pride in our efforts to reduce waste, energy consumption and inefficiency,” says Tim Schowalter, president of Pioneer Construction. The company recently was named ABC’s first
Green Certified Contractor in the Midwest has been and one of Engineering News-Record’s “Top 100 Green Builders in America” for two consecutive years. Companies earn ABC’s green certification through an extensive application process that assesses their efforts toward creating sustainable workplaces both on and off the jobsite. (For more information, visit
www.greenconstructionatwork.com.)
Pioneer Construction’s focus on wellness and sustainability pays off in the form of positive relationships with customers and subcontractors.
“Our commitment to a sustainable workplace culture and the passion of our team members demonstrates to our clients that we are walking the walk,” Beckering says. “Our expertise with LEED-certified building programs and sustainable construction practices provides a distinct competitive advantage when these considerations are of importance to prospective clients.”
In other words, healthy workplaces can help contractors win more work.
“Our subcontracting partners enjoy working with us and provide aggressive bids because they know our jobsites will be clean, safe and well-supervised. This adds to our value proposition in an increasingly competitive marketplace,” Beckering says.
The Big Picture
With layoffs and slowdowns a reality in 2010, it’s more important than ever to maintain a positive work environment for employees who may be left carrying the workload of two or more individuals, or who may be feeling anxiety about fewer projects coming down the pipeline.
While not all companies have wiggle room in the budget to cover the cost of gym memberships, many improvements—like promoting healthier foods, recycling programs or community service—are free.
The investment of resources ultimately results in better employee retention rates. At Pioneer Construction, many employees have been with the company for 10, 20 and 30-plus years.
“We believe there is no better testament to our positive workplace culture than the exceptional average tenure for a company of our size,” Schowalter says. “Our greatest assets are our intellectual capital and human resources. The success of our team relies upon the skilled hands and creative minds of our team members. We have seen a direct return on our investments in innovative health, safety and wellness programs.”
How employers communicate with, compensate and listen to their most talented staff will affect their loyalty when hiring and recruitment picks up in the long term. Experts say employees who don’t feel supported by their employer are bound to seek out other opportunities.
Contractor Compensation Quarterly (CCQ), which reports on construction benefits and wages, recently reported layoffs and impending departures will significantly impact future recruiting, retention and motivation. In its December 2009 issue, CCQ cites a grim survey by
Right Management of 900 workers that revealed 60 percent of employees intend to leave their current positions when the economy improves, and 21 percent are considering leaving if the right opportunity arises.
Although it’s just one survey, the fact that approximately 80 percent of employees are dissatisfied with their current workplaces should be cause for concern in the construction industry.
In another poll by consulting firm
Business and Legal Resources, half of the employers surveyed stated they believe the top factor currently keeping their highest performing employees from leaving is the fact that no one else is hiring.
The implication is that a majority of discontented employees will leave for better opportunities as soon as they come around.
A wellness strategy is a powerful counterpoint. Right Management’s report, “The Wellness Imperative: Creating More Effective Organizations,” demonstrates how wellness is a positive driver of employee engagement, productivity and performance. The study showed:
- employees are eight times more likely to be engaged when wellness is a priority in the workplace;
- an organization is four times more likely to lose its talent if its employees take an unfavorable view of its promotion of wellness; and
- when wellness is a priority, employees are three and a half times more likely to report being encouraged to be creative and innovative.
Employers that take extra steps to add value and appreciation for their employees—even in small, low-cost ways—will be better positioned with talent for the long term.
Tim Schowalter, president of Pioneer Construction, Grand Rapids, Mich., offers some advice for forward-thinking companies: “First and foremost, maintain a profitable business operation so you can provide employment security. Second, reward employees financially and with recognition for going above and beyond the call of duty.”
For average construction wage and benefits information collected by CCQ, visit www.pas1.com/ccq/ccq.html. To download “The Wellness Imperative” report by Right Management, visit www.manpower.com/research/research.cfm.