© 2015 CORENET GLOBAL

HOW WELL DO YOU KNOW WELLNESS?

By Craig Van Pelt

“Wellness is the number one trend in the world today”.1 That’s according to Deepak Chopra, former Chief of Staff at New

England Memorial Hospital and advocate for alternative medicine, who made the statement at the Meeting Professionals

International World Education Conference in the summer of 2014. It’s a bold statement, given the many important socio-

economic, political, financial and health issues that impact the world today. But regardless of where you rank wellness on

your personal list of world trends, there’s no doubt that the movement surrounding wellness—particularly wellness in the

workplace – impacts everyone on some level in a meaningful way.

The average work day for a U.S. full-time employee is now 8.7 hours, nearly 75% of which is spent at a place of work.2

These work and work-related activities take up the same approximate time as a person sleeps, eats and drinks each day.

What this means to a majority of workers is that their work space has a very real impact on the choices they make to

maintain a particular lifestyle. Because corporate real estate (CRE) professionals are often responsible for designing,

delivering and maintaining these spaces and the programs/services offered at many organizations, this is an opportunity

for CRE professionals to make a positive impact by thinking strategically and more fully understanding the implications of

wellness and ways to execute programs and initiatives in comprehensive and cost effective ways.

Delivering wellness-enabled work places requires understanding not only the benefits of well-designed physical spaces

and effective programs, but collaborating with other departments (e.g. IT, HR, finance, legal, procurement – to name just a

few) within the business to clearly define and assign responsibilities, while simultaneously evangelizing to leadership the

significance of these initiatives and the consequences of sitting idle. Because wellness programs touch so many different

parts of the operations of a business, CRE can lead by following best practices and providing the vision and broad

perspective needed for a holistic approach.

Examining Wellness

As momentum for this movement takes hold, it’s nearly impossible to examine a list of Megatrends3 without finding

healthcare or wellness. For instance, the World Economic Forum4 (WEC) annually canvases the knowledge,

observations and experiences of its Global Agenda Council Members to better understand and identify these megatrends.

Most recently, the WEC identified the growing importance of health in the economy as one of the Top 10 Trends of 2015.5

November 2015

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MEGATRENDS FOR 2015

In most developed countries, aging populations are continuing to increase healthcare costs. From a business perspective,

there will be continued pressure to increase profit and decrease healthcare costs. 6 As both employer-sponsored health

insurance premiums and worker contributions continue to rise, all parties have a mounting financial stake to maintain and

improve the health of employees.7

Other publications predicted the advancement in technology will make tracking health and wellness easier, with a

multitude of phone apps, smart watches and wearables monitoring progress.8 This information/data can help employers

observe progression, measure successes and identify areas that need improvement, although there is some speculation

that proliferation of wearable technology may blur the boundary between work and home life.9 Nevertheless, there will be

an increasing amount of data available, if utilized responsibly, efficiently and effectively, that can support both the

employer and employee better understand the needs to be addressed and the appropriate means to address these

needs. This customization and focused approach is the difference between deploying an ad hoc response to wellness

versus a tailored approach that can ultimately reduce costs and more successfully treat employees.

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Components of Wellness Given today’s 24/7 existence, the pressures of balancing careers, family, friends and other social and spiritual obligations

can be exhausting. This exhaustion and pressure can and does negatively impact many people. These same people

would probably define this as stress and accept it as normal part of living what many consider a successful life. However,

this notion is being challenged as more is learned about living a balanced life.

The National Wellness Institute has described six dimensions of wellness. These may be categorized as:

► Occupational: Identifies personal satisfaction and enrichment in one’s life through work.

► Physical: Recognizes the need for regular physical activity. Optimal wellness is met through a combination of good exercise/eating habits.

► Social: Encourages contributing to one’s environment and community through becoming more aware of your importance in society as well as the impact you have on multiple environments.

► Intellectual: Recognizes one’s creative, stimulating mental activities and expanding his or her knowledge and skills.

► Spiritual: Recognizes the search for meaning and purpose in human existence.

► Emotional: Encourages awareness and acceptance of one’s feelings including the degree to which one feels positive and enthusiastic about one’s self and life. What’s most surprising about these six dimensions of wellness is that physical health is only one part of the equation.

Good physical health does not necessarily equate to being “well.” There’s much more involved to achieving balance when

it comes to wellness.

Wellness and the Workplace

The largest scientific and professional organization of psychologists in the world, the American Psychological Association

(APA), is weighing in on healthy workplaces. A national opinion poll conducted by the APA found that two-thirds of both

men and women believe work has a significant impact on their stress level. This is a concern for employers because job

stress is estimated to cost U.S. industry $300 billion a year in absenteeism, diminished productivity, employee turnover

Source: National Wellness Institute

SIX DIMENSIONS OF WELLNESS

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and direct medical, legal and insurance fees.10 Forward-looking companies, led by corporate real estate professionals,

can see this as an opportunity to not only improve individual performance and attract and retain talent, but positively

impact the well-being of their employees. The APA has categorized psychologically healthy workplace practices into the

following five categories:

PSYCHOLOGICALLY HEALTHY WORKPLACE

The commonality of the APA’s psychologically healthy workplace is the focus on the individual. Based on these factors,

employers’ ability to include individuals in decision-making, acknowledging contributions and providing a safe and healthy

space for one to grow and develop both personally and professionally are essential parts in creating well-being.

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Additionally, according to the APA, the recognition of a work-life balance, whereby

understanding the demands of individuals, will result in a more productive workforce

for organizations looking to maximize their human capital.

A healthy workplace enables employee health and well-being while boosting

organizational performance and productivity. Corporate real estate professionals will

always be tied to structural capital, but human capital is the biggest driver of an

organization’s operations. Recent reports have provided evidence that health, work

behavior and the value of employees are linked.11 12

It can also add to the bottom line.13 After implementing a wellness program in the

mid-1990s, Johnson & Johnson estimated that wellness programs saved the

company $250 million on health care costs over a decade, with a return of $2.71 for

every dollar spent between 2002 and 2008. Effective wellness programs can also

increase morale, reduce health care costs and increase productivity – through

decreasing both absenteeism and presenteeism.14 Presenteeism – defined as

people who show up for work but underperform due to illness or stress – may be a

more significant impact to productivity than absenteeism.

Additional evidence is building that wellness and the physical workspace – combined

with the services and programs offered – are increasingly connected. One of the

organizations that has been exploring the relationship between workspaces and

people is Delos, which is bridging this gap through its WELL Building Standard. The

standard focuses on human health and wellness for structures and sets performance

requirements in seven categories that are relevant to occupant health in the built

environment – air, water, nourishment, light, fitness, comfort and mind. The first

such commercial structure to be certified as a WELL building (CBRE’s corporate

headquarters in Los Angeles) was awarded the 2014 CoreNet Global Innovators

Award. The building has more than 120 features ranging from lighting designed to

reflect natural circadian rhythms, hydration stations, live plants, exercise

opportunities, sit/stand work stations and desks built upon treadmills.

► Air quality through effective ventilation systems

► Thoughtful cleaning protocol using non-toxic cleaning agents

► Filtered water and regular testing of water quality

► Healthy food options

► Shading and diming light controls

► Dedicated physical activity spaces (e.g. fitness center)

► Ergonomic workspace options

► Sound reduction surfaces and sound barriers

► Programs to promote awareness about wellness

► Integrated workspace design to encourage collaboration and idea sharing

► Physical space design that aligns with the values of an organization

► Personal and professional development courses

► Free health screenings and “coaching” to help reach goals

► Incentives to encourage employee participation

► Rewards and reinforcement programs

EXAMPLES OF WORKPLACE WELLNESS INITIATIVES

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But the best designed, “healthiest” workplace can still be a toxic place to work if it

is managed poorly. Ineffective programs can also simply raise costs without a

noted improvement in the health or well-being of employees.15 Organizations

such as the Society for Human Resource Management (SHRM) Foundation are

leading the way by promoting employee well-being and strategies to improve the

health of employees through practical tools, techniques and resources. A

differentiator in this approach is recognizing wellness programs as a strategic

objective for the business, not simply an added benefit to employees. According

to recent research by the SHRM Foundation, employee health status directly

influences work behavior, attendance and performance.16 Effectively

implementing wellness programs creates the platform for a healthier and more

engaged workforce, which is critical in an increasingly competitive business

environment.17

Wellness Trends in Corporate Real Estate

In real estate terms, many have associated the “green movement” over a decade ago to the most recent wellness trend.

More specifically, is wellness a long-term trend that will become an accepted, and in fact, expected part of conducting

CRE business now and in the future, similar to the green movement? Trends have been described as large, measured

shifts that influence both our values and behaviors. The wellness movement meets this criterion. Wellness has moved

beyond a concept and fad into the consciousness of our everyday vocabulary, but not necessarily directly associated with

corporate real estate.

Although wellness is certainly on the radar screen for many organizations, based on a review of predicted trends for

corporate real estate, the wellness topic is not necessarily seen as a top priority. In fact, the topic of wellness was not

mentioned in many corporate real estate trend reports we researched. However, many of the CRE strategic priorities and

objectives directly reference the desired outcomes of successful wellness initiatives. Further, taking a step back and

examining the issue from a broader perspective, the fingerprints of the wellness movement on business are everywhere.

Time.com predicted that there will be more workplace wellness programs as one of their Biggest Workplace and Career

Predictions for 2015, citing “a healthier workforce is a more productive one”.18 Forbes.com envisaged that “recruiting with

work/life balance” was one of their top business trends that will drive success in in 2015.19

The goal of wellness programs is to positively impact employee health which directly influences work behavior,

attendance and performance. In fact, highly effective programs have been shown to decrease turnover rate.20 This is a

WORKPLACE WELLNESS DEFINED “An organized, employer-sponsored program that is designed to support employees (and, sometimes their families) as they adopt and sustain behaviors that reduce health risks, improve quality of life , enhance personal effectiveness, and benefit the organization’s bottom line.”

-Berry, Mirabito and Baun, 2010

Harvard Business Review

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crucial factor. The Global Corporate Real Estate Trends 2015 report published by JLL reported that the demands on the

senior leadership of corporate real estate are increasing. One of the increasing demands noted by the JLL survey –

consisting of 544 CRE executives from more than 350 companies and 36 countries –was the attraction and retention of

talent, which 56% indicated was increasing in demand. The same study found that only 21% of the CRE professionals

were responsible for social performance tracking (e.g. health and well-being).21 Reports have shown that an increasing

number of people want to work for an organization that supports a work/life balance and is concerned with the health and

well-being of their employees.22

Armed with this information, there appears to be a gap between the CRE professional’s limited responsibility for tracking

wellness and their increasing demand to attract and retain talent, which is implicit in implementing and measuring effective

wellness programs and initiatives. Consequently, this is an opportunity for CRE professionals to take a leadership role

within organizations and continue to add more value.

The Emerging Trends in Real Estate 2015 report produced by PwC and the Urban Land Institute ranked wellness/health

features in buildings as being of moderate importance.23 The fact that this issue ranked near the bottom is of less

significance than the fact it is on the list, ranking above green buildings and risks from extreme weather. The list also

includes such core real estate drivers as construction costs, land costs and vacancy rates. Acceptance of wellness as a

real estate issue builds credibility and awareness.

IMPORTANCE OF ISSUES FOR REAL ESTATE

1 2 3 4 5

Risks from extreme weatherGreen buildings

WELLNESS/health features in buildingsDeleveraging

Affordable/workforce housingNIMBYism

CMBS market recoveryFuture home prices

Transportation fundingRefinancing

Infrastructure funding/developmentVacancy rates

Land costsConstruction costs

Importance of Issues for Real Estate in 2015:Real estate/development issues

1 5432No

ImportanceModerate

ImportanceConsiderable Importance

Great Importance

Source: Emerging trends in Real Estate 2015, PwC and the Urban Land Institute, page 8. Based on U.S. respondents only

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A CoreNet Global survey of its membership in 2015 found that 80

percent of respondents believe corporate wellness initiatives

represent a “significant trend”, while only 20 percent indicated they

were a “passing fad”. Further, the survey found that 62 percent of

the participants reported that their companies had instituted

wellness initiatives in the last six months. Another CoreNet

Global/Johnson Controls study in 2014 found that an overwhelming

97% believe a strategy on health, wellness and well-being brings

additional value for the business. This study found that increased

productivity, employee satisfaction and engagement are the main

business values for wellness.24

Addressing the question of what will the future workplace look like

and how can corporate real estate professionals play their part will

be paramount as business evolves. A report prepared by CBRE

entitled Fast Forward 2013: The future of work and workplace

examined the ideas, trends and behaviors of tomorrow’s

professionals.25 A similar theme was identified – the attraction and

retention of talent will be the number one competitive advantage in

2030. A paradigm shift is taking place in which employees will opt

to work with you, as opposed to working for you. This holistic

approach is a core part of a healthy workplace. The report – which

conducted interviews and surveys – found that experts, leaders and

youths all expressed the need for workplaces in 2030 to support

well-being. As a result, these demands will influence both building

and workplace design. The central theme behind this push will be

the recognition that a workplace should create business value. The

report finds that as the wellness movement develops, there will be

a strong blend between personal and professional lives. Because

of these dynamics, workers will want to have the flexibility and the

options to live a more fulfilling life with more healthy choices within

an environment that encourages and supports a well-rounded and

happier person.

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Conclusions

The wellness movement is gaining momentum. Its impact and import can be found and observed in many different forms

– ranging from the quality of air we breathe to the better understanding we have about the importance of mental health.

The changing face of health and healthcare can be seen in the choices we are offered, the environment that surrounds us

and the technology we use to track and measure our well-being. It comes as no surprise that these factors are

overlapping into our workplaces, since this is where many of us spend such a large percentage of our time. Employers

should capitalize on these opportunities as a differentiator, not only because it will benefit the employees, but because

wellness programs that positively impact employee health directly influence work behavior, attendance, performance and

the bottom line.

Corporate real estate leaders can use this opportunity to be proactive – instead of reactive – and deliver strategic value to

their organizations. Wellness programs will be a corporate mandate for many organizations as the competition for talent

continues to intensify. These programs will be manifested in both the built environment and the associated physical

amenities, along with preventative health monitoring and treatment. Fostering an engaged workforce through

encouragement and support (both personally and professionally) will be an essential part of a holistic approach that

creates a productive and fulfilled workforce.

Corporate real estate is uniquely positioned due to its role in providing facilities and designing and delivering the

workspaces that nurture and promote health and well-being. Understanding the role and responsibility that employers

have for their employees’ overall wellness is the first step in creating a synergetic relationship that builds trust and loyalty.

If this understanding is embedded in the decision-making process of an organization, the context of Dr. Chopra’s bold

statement regarding the importance of wellness, is not simply hyperbole, but a recognition and acknowledgement of the

role wellness plays in everyone’s life. Now is the time for CRE professionals to pick up this torch and light the way for their

organizations.

CoreNet Global is the world’s leading association for corporate real estate (CRE) and workplace professionals, service providers and economic developers. Over 9,500 members, who include 70% of the Fortune 100 and nearly half of the Forbes Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally.

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Helpful Wellness Resources http://gethealthapp.com/ http://www.nationalwellness.org/ http://www.rand.org/pubs/research_reports/RR254.html#download http://www.rand.org/topics/workplace-wellness-programs.html https://www.apaexcellence.org/resources/creatingahealthyworkplace/ http://www.heart.org/HEARTORG/GettingHealthy/WorkplaceWellness/WorkplaceWellnessResources/Workplace-Wellness-Resources_UCM_460461_SubHomePage.jsp http://www.shrm.org/Research/SurveyFindings/Articles/Documents/2015-Employee-Benefits.pdf https://hbr.org/2014/03/what-great-corporate-wellness-programs-do/ https://www.bc.edu/.../case_MetLife_Health-Wellness.pdf ----------------------------------------------------------------------------------

“Employees are tired of sacrificing so much of their lives for their employers. They want a better way to

balance work, family, and a sense of personal purpose. In fact, 70% of workers in the U.S. – and 87% of workers worldwide – are not fully engaged and personally invested in their work. And as that number continues to increase, the rate of innovation,

productivity, and real outcomes that drive the business forward will only get smaller.”

Dutton, S. “3 Converging Trends that are Changing the Future of Work.”

November 17, 2014. Digitalist.com

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References & End Notes

1 Meeting Professional International’s World Education Conference, Minneapolis, MN. August 3, 2014.

2 Bureau of Labor Statistics, U.S. Department of Labor, American Time Use Survey. (2014 results released in June 2015)

Accessed October 2015 from: http://www.bls.gov/tus/

3 Megatrends may be defined as global, sustained and macro-economic forces of development that impacts business,

economy, society, cultures and personal lives thereby defining our future world and its increasing pace of change.

4 The World Economic Forum is the International Institution for Public-Private Cooperation to shape the global, regional,

national and industry agendas.

5 Accessed October 2015 from: http://reports.weforum.org/outlook-global-agenda-2015/top-10-trends-of-2015/

6 The Great Eight Trillion Dollar Trends to 2020. Bain & Company. (2011). Accessed October 2015 from:

www.bain.com/.../BAIN_BRIEF_8MacroTrends.pdf

7 2014 Employer Health Benefits Survey. (2014). September 2014. The Henry J. Kaiser Family Foundation. Accessed

October 2015 from: http://kff.org/report-section/ehbs-2014-summary-of-findings/

8 Accessed October 2015 from: http://www.businessinsider.com/andreessen-horowitz-startup-trends-2015-1?op=1

9 Accessed October 2015 from: http://www.businessnewsdaily.com/7616-top-workplace-trends.html

10 Accessed October 2015 from: https://www.apaexcellence.org/resources/creatingahealthyworkplace/

11 Soeren, et al. Workplace Wellness Programs Study. Santa Monica. Rand Corporation. (2013). Accessed October 2015

from: http://www.rand.org/pubs/research_reports/RR254.html#download

12 Lebowitz Rossi, H. “5 hallmarks of successful corporate wellness programs.” April 13, 2015. Fortune.com. Accessed

October 2015 from: http://fortune.com/2015/04/13/corporate-wellness/

13 Chapman, Larry S., (2012) “Meta-Evaluation of Worksite Health Promotion Economic Return Studies: 2012 Update”.

American Journal of Health Promotion: March/April 2012, Vol. 26, No. 4, pp. TAHP-1-TAHP-12. Accessed October

2015 from: http://chapmaninstitute.com/articles/05_TAHP_26_4_Meta_Evaluation_2012.pdf

14 Berry, L., Mrabito, A. and Baun, W., “What’s the Hard Return on Employee Wellness Programs?” Harvard Business

Review. (December 2010). Accessed October 2015 from: https://hbr.org/2010/12/whats-the-hard-return-on-

employee-wellness-programs

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15 Accessed October 2015 from: http://www.nytimes.com/2014/09/12/upshot/do-workplace-wellness-programs-work-

usually-not.html?_r=0

16 Chenoweth, D. Promoting Employee Well-Being: Wellness strategies to improve health, performance and the bottom

line. Society for Human Resource Management Foundation. (2011). Accessed October 2015 from:

http://www.shrm.org/about/foundation/products/pages/healthwellbeingepg.aspx

17 It should be noted that wellness programs may vary greatly by geography. Multi-national companies will have to be prepared to understand cultures and variations in care and treatment for different locations around the globe. Boston College developed a case study on the global approach of wellness programs. 18 Nemko, Marty. “The Biggest Workplace and Career Predictions for 2015.” December 30, 2015. Time.com. Accessed

October 2015 from: http://time.com/3649892/work-career-trends-2015/

19 Altman, Ian. “Top 10 Business Trends That Will Drive Success in 2015.” December 9, 2014. Forbes.com. Accessed

October 2015 from: http://www.forbes.com/sites/ianaltman/2014/12/09/455/

20 Berry, L., Mrabito, A. and Baun, W., “What’s the Hard Return on Employee Wellness Programs?” Harvard Business

Review. (December 2010). Accessed October 2015 from: https://hbr.org/2010/12/whats-the-hard-return-on-

employee-wellness-programs

21 Elevate to Excellence: Global Corporate Real Estate Trends 2015. (2015). JLL. Accessed October 2015 from:

http://www.jllapsites.com/research/elevating-to-excellence-global-corporate-real-estate-trends-2015/

22 Valet, Vicky. “More than Two-Thirds of U.S. Employers Currently Offer Wellness Programs, Study Says.” July 8, 2015.

Forbes.com. Accessed October 2015 from: http://www.forbes.com/sites/vickyvalet/2015/07/08/more-than-two-thirds-

of-u-s-employers-currently-offer-wellness-programs-study-says/

23 Emerging Trends in Real Estate 2015. (2015). PwC and the Urban Land Institute. Accessed October 2015 from

http://uli.org/research/centers-initiatives/center-for-capital-markets/emerging-trends-in-real-estate/

24 Accessed October 2015 from:

https://resources.corenetglobal.org/knowledgecenteronline/SearchByTopicAndResource.aspx?ID=1739

25 Fast Forward: The future of work and the workplace. (October 2014). CBRE. Accessed October 2015 from:

http://www.cbre.com/Research-Reports/Future-of-Work