healthy culture healthy bottom line steven m. chevarria, ceo health and productivity practice leader...
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Healthy CultureHealthy Bottom line
Steven M. Chevarria, CEOHealth and Productivity Practice Leader
Pansalus Consulting, LLC
York Society for Human Resource ManagementSeptember 10, 2013
Healthy engaged people are safer, perform better & cost less
Making Wellness Work
Today’s Learning Objectives
1. Understand the benefits of aligning your corporate culture with your business strategy
2. Why wellness – benefit vs. investment
3. and Ultimately how to develop true financial cost strategies
Why Wellness
The Opportunity
The Solution
Making Wellness Work
Why Wellness
Making Wellness Work
Our Role as Human Resources Professionals is…• Contribute to the bottom line of an organization• Be a steward of culture & change• Strategic architects• Operational executor• Business alley-know the business direction of the
company
Why Wellness
Culture
Why Wellness
Culture affects…• Productivity • Absenteeism• Moral • Turnover• Employee health and safety• Health care costs, and • Business Profits
Why Wellness
Understanding the players
Why Wellness
Providing the “right”tools and resources
Why Wellness
EnvironmentSetting up the “right” conditions
Why Wellness
If nothing is wrong with our culture, why change?
Why Wellness
• The rising cost of chronic disease, direct costs and indirect costs (lost productivity) is affecting business’s bottom line.
• Productivity losses associated with employees with chronic disease are as much as 400% more costly than treating the disease itself.
• Loses in productivity include disability, unplanned absences, reduced workplace effectiveness, increased accidents, and negativity with regard to customer service and work quality.
PricewaterhouseCoopers analysis in conjunction with the World Economic forum as reported in wellnessjunction.com April 2009
Why Wellness
Health, Wellness and Safety
Why Wellness
• Obesity is correlated with injuries, illnesses and recovery
• Tobacco users take 3X as long to heal after a work related injury then non-tobacco users
• Chronic conditions such as diabetes, asthma, high cholesterol, and musculoskeletal disorders cost companies money in health care dollars and workers comp.
• Both health and safety are behavioral disciplines
Why Wellness
In addition to health care costs, poor health is a primary driver of workplace injuries and other productivity related costs.
Consider Workers’ Compensation - In the most definitive study of employee health on Workers’ Compensation costs, it was concluded that:
Why Wellness
There is a remarkable association between obesity and Workers’ Compensation costs. Some conclusions include:– Claims – 2x higher for obese and overweight workers– Lost workdays – 12x higher for obese and overweight workers– Medical Claims Costs – 6x higher for obese and overweight
workers– Indemnity Claims – 11x higher for obese and overweight workers
by Johns Hopkins School of Public Health and by Duke University
Why Wellness
Lost Work Days per Employee per Year
BMI less then 25 = Lean BMI over 30 = ObeseSource: Duke University Medical Center / downloaded from American Medical Association
Lean Obese02468
10121416
0.34
14.4
Why Wellness
Medical Cost per EE per Year Indemnity Claims Cost per EE per year
BMI less then 25 = Lean BMI over 30 = ObeseSource: Duke University Medical Center / downloaded from American Medical Association
Lean Obese$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$178
$3,620
Lean Obese$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
$128
$4,504
Why Wellness
Cost of Absenteeism, Healthcare, Worker’s Compensation Medical & Indemnity Claims per employee per year
TOTAL $16,492
TOTAL $5,485
Source: Duke University Medical Center / downloaded from American Medical Association
Lean Obese$0
$5,000
$10,000
$15,000
$20,000
$683 $1,546$4,496
$6,822$178
$3,620
$128
$4,504
Absenteeism Healthcare Medical Cost Indemnity Cost
Why Wellness
Clearly, improving employee health can be a primary Workers’ Compensation cost reduction
strategy.
Why Wellness
The prevalence of obesity among U.S. adults has increased over 61% in the past decade…its cost…>$2,500
per year for obese people.
The prevalence of Diabetes increased by almost 40% during the same period…its cost >$12,000 per year for
people suffering from Diabetes.
Why Wellness
Bad and getting worse!
Literally, we’re killing ourselves, but slowly and expensively
Why Wellness
Over 40% of premature deaths in this country are due to unhealthy lifestyle choices and behaviors.
70% of our nation's health care costs are caused by lifestyle related chronic diseases.
Costs of lost productivity due to poor employee health are as much as 3X the direct medical and disability costs.
Why Wellness
Frightening Business and Human Consequences
* Incremental Annual Health Care Costs - Source: University of Michigan Health Management Research Center Data Base
+
1 Health Risk Factor...$5,018*
3 Health Risk Factors…$8,071*
5 Health Risks Factors…$11,596*
7 Health Risks Factors…$15,209*
Workplace injuries,
disability, absenteeism,
presenteeism…and
diminished quality of life
Why Wellness
Employers bear the lion’s share of the health care cost burden for their employees, with health insurance
expenses now the fastest growing business cost component.
(Source: CDC)
Why Wellness
The reasons are simple:• Wellness is for the well people• Too passive, remote, and indirect • Too much reliance upon self-direction• Inflexible and program based• Not responsive to ever-changing personal needs and goals• Not comprehensive• Not timely• Not enough active, ongoing support and reinforcement• Not tailored enough to the company and individual needs• The culture doesn’t support the population’s behavior change
Why Doesn’t Wellness Work
There is hope because the primary driver of increasingly poor health is risky lifestyle behaviors like
poor nutrition, overeating, lack of exercise, and smoking which can all be prevented.
Why Wellness
Health and wellness is not a Human Resources problem
Why Wellness
It is a business problemand needs a business solution
Why Wellness
Why Wellness
The Opportunity
The Solution
Making Wellness Work
The Opportunity
Making Wellness Work
• What are some of the benefits of creating a safe and healthy culture?
• Improved Professional Image• Increased Productivity• Improved Morale• Reduced Turnover• Increased Recruitment Potential• Reduced Absenteeism• Lower Health Care Costs• Improved Employee Health• Increased Profit
The Opportunity
• Employee Satisfaction– How healthy people feel, affects their job satisfaction and
their productivity. And, how satisfied people are with their job affects their own health.
A 5% increase in employee satisfaction can result in a 1.3% increase in “customer impression” and a 0.8% revenue increase.
Sears Roebuck and Company (USA), 1998
The Opportunity
• What is the hard dollar savings of having a Healthy Employee?– Costs
• We understand all of these benefits but how do we measure them?– Track the “right” information
The Opportunity
Why Wellness
The Opportunity
The Solution
Making Wellness Work
The Solution
Making Wellness Work
Understanding the employees
The Solution
We can not force people to change their behavior.
Culture and behavior are much different then wellness
The Solution
Providing the “right”tools and resources
The Solution
Integrating Lifestyle and Safety
The Solution
EnvironmentSetting up the “right” conditions
The Solution
Prepare your people for success
The Solution
It starts with setting up the right culture.
…Safety
The Solution
How to start building a culture of health– Work with a behavior expert – in safety you work
with a environmental safety experts.– Conduct a culture audit – in safety we are
constantly completing audits/assessments.– Update your strategy
monthly/quarterly/annually and set a strategy that is projected between 3-5 years.
– Put the right initiatives in place.
The Solution
Bridging the gap between workplace safety and wellness has a number of benefits for
both employees and employers
Bottom Line
Most importantly, Healthy engaged people are safer,
perform better & cost less
Bottom Line
Thank you
Steven M. Chevarria, CEOHealth and Productivity Practice Leader
Pansalus Consulting, LLC
York Society for Human Resource Management
September 10, 2013
For more information please contact us at
Or online at
www.pansalus.com
