The ability to understand and respond to employees is critical if organizations are to remain competitive in a shrinking labor market.  A Nashville-based AE firm established in 1955, Barge Waggoner Sumner & Cannon, Inc. (BWSC), recognized that an evidence based management philosophy was essential to meet the challenge of creating an internal structure that would support a second 50 years of success. BWSC brought in a Corporate Development Director, Denis Blackwelder, to facilitate this initiative. His first step was to focus on employee satisfaction in key areas.

Blackwelder needed deep analysis and customized tools that would pinpoint areas of concern and provide actionable data. He partnered with The Work Institute, first to establish baseline information on the entire population and then to attain pulse intelligence based on 1/12 of the employee population every month. 

BWSC and The Work Institute rolled out the first set of incumbent survey questions in August 2003, BWSC asked its employees about the overall healthcare package, compensation, supervisor performance, ethical practices and several other key issues. 

The Work Institute (TWI) provided quick and easy access to Actionable Intelligence Data for Barge Waggoner Sumner & Cannon. This data enabled BWSC to make strategic HR/HRD decisions that were empirically supported and cost effective and to evaluate the effectiveness of those interventions.
 
In-Depth Questions

For six months, BWSC worked with TWI to survey attitudes throughout the company. Employee participation in the survey was extremely high and has remained high since. (In 2003, the response rate was 81.6%; 2004 was 65.8%; and 2005 was 70.4%.)

By late 2003, data revealed that the focus of Blackwelder’s efforts should be on the benefits program.  It was clear that the current program was not meeting the needs of the BWSC employees. Employees were asked to rate the benefit package using Excellent, Very Good, Good, Fair, or Poor. The survey revealed that 36.8% percent of their employees rated the healthcare program as “fair” or “poor” and only 9% percent rated the healthcare program as “excellent.”  This level of dissatisfaction with benefits was distracting employees from being as productive as possible while at work, which was affecting the organization’s overall productivity and profitability.

Working with TWI, BWSC systematically assessed their benefit plan and used open-ended questions as a way for employees to tell BWSC what was wrong. This format provided a platform that was able to tap elements such as value, perception and satisfaction. For example, respondents were not only asked to rate the program, they were asked “Why?” If a respondent offered multiple reasons, he or she was asked to identify which reason was most important.  The Work Institute also gathered verbatim responses to these probing questions, such as these:

The communication thing is not good either. When I called the local office, they didn't know who to send me to. So, they gave me the corporate number. At the main office they said they didn't handle things in our area. That just made me feel like I was getting the run-around.

The health provider they have doesn't seem to care or understand.

Survey Expansion

This initial feedback prompted BWSC to revise the survey and asked employees to identify which aspects of the benefit plan they were dissatisfied with. For example, BWSC asked if they would prefer to reduce their coverage in one area if it meant improving coverage in another. For example, BWSC learned that employees were willing to accept an increase in premium payments if it meant better access to vision care. BWSC also discovered considerable interest in direct-payment cards for prescription drugs. 

Using the survey responses, Blackwelder identified major issues and began to address them.  First, the benefit program represented a major cost to BWSC because of utilization patterns and poor cost-sharing protocols. Second, communication between the insurance carriers, BWSC Human Resources and the employees was not effective. Finally, an unusually high number of customer service and claim resolution issues that were distracting employees and causing problems with productivity.  The dissatisfaction level was affecting employee satisfaction, retention and engagement.

Actions and Savings Resulting from the Survey

With all the survey data analyzed, BWSC began developing its current benefit program.  BWSC responded by switching carriers and implementing cost sharing with employees, realizing immediate savings of approximately $80,000 in the process. BWSC now offers three healthcare plans:  a base plan, a buy-up plan (richer benefits), and a consumer driven health plan (CDHP). Employees in the CDHP plan received education about managing their healthcare costs. Incentives were provided to employees to participate in the plan by making it available at no cost to employees with individual coverage and providing them with a Health Savings Account of $500 for individual coverage and $1,000 for family coverage. BWSC conducted benefit meetings in each location, bringing in representatives from the new carrier who walked employees through the options of various plans. The new healthcare plans and the intentional communications program BWCS used to introduce them yielded results. By 2005, employee dissatisfaction had falled to less than 8%. 

        These changes were continually evaluated survey and verbatim responses illustrate employees satisfaction.  Examples included comments such as:

  The health insurance provides excellent coverage; I have a family, wife and son, and coverage for them is good.

            The insurance carrier is very cooperative and customer friendly.

Comparatively speaking, there is little hassle with this carrier.          

A Continuing Focus on Health

As a result of its work with TWI, BWSC determined to focus on wellness as a cost-saving method. To encourage wellness, BWSC designated October as Wellness Month.  During this month employees are encouraged to get physical exams. BWSC covers the co-pay with a gift card. When female employees get mammograms, BWSC sends them pink M&M’s and a card.  Wellness month continues to be held in October, with new incentives added each year.  In addition to the annual wellness month, HR posts articles on the BWSC Intranet each Monday addressing overall wellness and healthcare savings.

Today, Barge Waggoner Sumner & Cannon continues to partner with The Work Institute, using ongoing interviews and surveys to guide the company to powerful, cost-effective decisions that impact employee productivity and retention.