From Sickcare to HealthCare: America's Best Companies Focus on Keepin

From Sickcare to HealthCare: America's Best Companies Focus on Keeping Employees Healthy; Health Screenings Play A Major Role

    Business Editors

    DES MOINES, Iowa--(BUSINESS WIRE)--Jan. 26, 2005--Health screenings at work - work. Employees not only appreciate having their health evaluated on the job, but they are changing their lifestyle habits as a result and feeling the benefit in their pocketbook. In fact, 48 percent of U.S. workers believe they and their families benefit most financially from wellness programs offered through their employer, compared to their employer or insurance provider.
    These findings are part of the most recent Principal Financial Well-Being Index(SM) - the first time the survey has examined wellness attitudes and behaviors. The national survey, sponsored by the Principal Financial Group,(R) also found:

--	78 percent of employees said if offered health screenings they would accept them.
--	84 percent of employees with access to health screenings participated.
--	Of the employees who participated in health screenings, 47 percent eat healthier, 45 percent exercise more and 42 percent think about healthier options more often.

    The Principal Financial Well-Being Index is released twice annually by Harris Interactive(R) and surveys 1,700 employees of companies ranging in size from 10 to 1,000 employees.
    "For many years, health care has really been 'sick care,' with employers providing insurance to help employees get back to work from an illness or injury," said Jerry Ripperger, director of consumer health for the Principal Financial Group. "Fortunately, there's an emerging trend where smart companies are investing to keep their employees healthy. It's not just the right thing to do from an altruistic stand point, it's a good business decision. The result is improved employee attendance, productivity and morale, which leads to improved customer satisfaction."
    The motivation for employees to participate in wellness benefit programs varied significantly by age. Younger employees (18-34) indicated that they would participate if they received an incentive or reward. Middle-aged and older employees (45-54 and over 55+) were motivated by a desire to live a longer, healthier life.
    The results come as no surprise to 10 outstanding companies recognized in 2004 for excellence in employee benefits. While the survey found only 9 percent of small and medium-sized businesses make health screenings available, all of The Principal 10 Best Companies for Employee Financial Security provide their employees some form of health screening.
    "The only thing an employer can do to reduce health care costs is to improve the health of the workforce," said Ruth Ross, risk management supervisor, Leupold & Stevens, Inc., winner, The Principal 10 Best --2004. (Selected by an independent panel of judges, The Principal 10 Best recognizes small and medium-sized businesses (five to 1,000 employees) from across the country for excellence in employee benefits programs.)
    The survey found that wellness benefits are more prevalent among mid-sized companies (501-1,000 employees), with 19 percent are offering such programs. Seven percent of smaller companies (10-500 employees) offer wellness benefits to their employees.
    Health screenings are a core component of the most effective wellness programs, according to Ripperger. Health screenings are not a one-time event, but rather often include ongoing testing.
    Ripperger added, "We have seen several innovative companies including health screenings as a crucial component of an effective wellness program. A healthy employee is a happier, more valuable employee."

    New Best Practices Guide Shows Companies How

    The topic of wellness is a significant healthcare theme in this year's Innovation at Work: A Guide to Best Practices in Employee Benefits, which shares the strategies The Principal 10 Best Companies used to cope with double-digit increases in healthcare premiums. The guide also highlights ways to help employers boost participation in their benefits programs and derive more value and appreciation for their investment in employee benefits. The 2005 edition of Innovation at Work: A Guide to Best Practices in Employee Benefits is available at no charge at www.principal.com/10best.
    Some of the other wellness initiatives employed by The Principal 10 Best Companies include:

    -- Paying employees to live healthier lifestyles.

    -- Providing on-site fitness facilities

    -- Helping pay for preventative care

    -- Sponsoring weight management programs

    -- Newsletters

    -- Providing flu shots

    -- Offering smoking cessation programs

    -- Paying for or subsidize on-site massages

    The Principal 10 Best Companies-2004 are: American Urological Association Education and Research, Inc., Linthicum Heights, Md.; American Society of Health-System Pharmacists, Bethesda, Md.; Clipper Belt Lacer Company, Grand Rapids, Mich.; Distilled Spirits Council of the United States, Inc., Washington, DC; ELTECH Systems Corporation, Chardon, Ohio; First National Bank of Greencastle, Greencastle, Pa.; Leupold & Stevens, Inc., Beaverton, Ore.; Pharmacists Mutual Insurance Company, Algona, Iowa; RATHBUN INSURANCE AGENCY, Lansing, Mich.; and USA Federal Credit Union, Auburn Hills, Mich.

    Methodology for The Principal Financial Well-Being Index

    The Principal commissioned Harris Interactive(R) to conduct online research with employees (ages 18+) of small and mid-sized U.S. businesses (firm size 10 - 1,000 employees) about their attitudes and perceptions regarding their financial well-being. Harris Interactive conducted The Principal Financial Well-Being Index survey with over 1,700 employees online from December 1 to December 9, 2004. With a probability sample of this size, one can say with 95 percent certainty that the results have a statistical precision of +/- 3 percentage points; however, this online sample was not a probability sample. "Propensity score" weighting was used to adjust for respondents' propensity to be online.

    About Harris Interactive

    Harris Interactive(R) (www.harrisinteractive.com) is a worldwide market research and consulting firm best known for The Harris Poll(R) and for pioneering the Internet method to conduct scientifically accurate market research. Headquartered in Rochester, New York, Harris Interactive combines proprietary methodologies and technology with expertise in predictive, custom and strategic research. The company conducts international research through wholly owned subsidiaries--London-based HI Europe (www.hieurope.com) and Tokyo-based Harris Interactive Japan--as well as through the Harris Interactive Global Network of local market- and opinion-research firms, and various U.S. offices.

    About The Principal 10 Best Companies for Employee Financial Security

    The Principal 10 Best Companies for Employee Financial Security is a nationwide program that searches for and recognizes small and medium-size companies that excel in providing for employee financial security. Entries for the 2004 search were accepted from Feb. 1, 2004, through May 1, 2004. The program was open to any company with between five to 1,000 employees. To qualify, all entrants must have been based in the United States and have provided a broad range of employee benefits for at least five years. Qualifying companies must have, at a minimum, offered "traditional" employee benefits, such as those relating to retirement, health, life or disability. No entry fee was required, and employees of The Principal were not eligible to enter. Entry forms for the 2005 recognition program will be available February 1, 2005. For more information, visit The Principal Web site at www.principal.com.

    About the Principal Financial Group

    The Principal Financial Group(R) (The Principal (R)) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $156.0 billion in assets under management and serves some 14.7 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

--30--HB/ms*

CONTACT: Principal Financial Group, Des Moines Rhonda Clark-Leyda, 515-247-6634 clark-leyda.Rhonda@principal.com or Terri Shell, 515-283-8858 shell.terri@principal.com

KEYWORD: IOWA INDUSTRY KEYWORD: INSURANCE HUMAN RESOURCES BANKING PRODUCT SOURCE: Principal Financial Group

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