WORKPLACE WELLNESS WORKS: THE BUILDING BLOCKS TO …€¦ · health wealth career workplace...

H E A L T H W E A L T H C A R E E R

W O R K P L A C E W E L L N E S S W O R K S :T H E B U I L D I N G B L O C K S T OF I N D I N G T H E S T R A T E G YT H A T ' S R I G H T F O R Y O U RC O M P A N Y

5 JANUARY 2016

Leigh-Ann Ing, Senior AssociateMichael Petrucco, Principal

Toronto

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T O D AY ’ S S P E A K E R S

LEIGH-ANN INGSENIOR ASSOCIATE

MERCER

MICHAEL PETRUCCOPRINCIPALMERCER

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A G E N D A

• Why Wellness: The drivers

• What is workplace wellness?

• Wellness: The Canadian landscape

• Workplace wellness best practices– How to develop a wellness strategy using best practices

• Questions

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W H Y WE L L N E S S : T H E D R I V E R S

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W H A T I S D R I V I N G T H E I N T E R E S T I NW O R K P L A C E W E L L N E S S ?

1 Engaged employees

2 Canada’s unhealthy population

3 Increasing benefit plan costs

Several compelling reasons to invest in workplace wellness, including:

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• Employees who feel supported physically and psychologically at work are morelikely to provide better service. Sears Roebuck research, found that:

• Conference Board of Canada report “Making the Business Case” showed that 67per cent of Canadian workers viewed health and wellness programs as an indicatorof a good employer.

5 pointimprovement in

employeeattitudes

1.3 pointimprovement in

customersatisfaction

0.5 per centimprovement inrevenue growth

1 ENGAGED EMPLOYEES

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• Significant increase in chronic diseases due to aging and unhealthy lifestyles;

– Approximately 70% of all health care costs in Canada are due to chronicdisease.

– Chronic diseases are estimated to account for 89% of all deaths in Canada.

– Obesity rates have more than doubled in the last 15 years.

– Canada has the second highest prevalence of diabetes among its peercountries.

2 CANADA’S UNHEALTHY POPULATION

Source: The Conference Board of Canada, “Health.”

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Life &AD&D

8%

HealthCare39%

Dental30%

STD14%

LTD9%

5-10%5-10%

5-10%

7-10%

8-12%

3 INCREASING BENEFIT PLAN COSTS

TYPICAL BENEFIT PLAN COST DISTRIBUTIONAND TREND FACTORS BY COVERAGE


WHAT IS WORKPLACEW E L L N E S S ?

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W H A T I S W O R K P L A C E W E L L N E S S ?D E F I N I T I O N

• A strategic approach to creating high-performance organizations byestablishing the right conditions to generate high levels of employee engagement

• Connected to physical, mental and emotional health

• Primarily emphasizes the social and psychological dimensions of three inter-related elements:– The workplace– The work people do– The workforce

Source: Canada Public Service Agency

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T W O P R I M A R Y C O M P O N E N T S T H AT I M P A C T H E A LT HE N V I R O N M E N T A N D E M P L O Y E E B E H A V I O U R S

Source: IFTF, Center for Disease Control and Prevention

Access to care Genetics Environment BehaviourDeterminants 10% 20% 20% 50%

0%

10%

20%

30%

40%

50%

60%

DETERMINANTS OF HEALTH

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C O M P O N E N T 1 : E M P L O Y E E B E H A V I O U R SR I S K F A C T O R S

• Health Risk: Any factor that increases the chance of disease

• Lifestyle behaviours are modifiable risk factors, and can include:– Lack of exercise– Unhealthy eating habits– Lack of sleep– High body mass index– Poor stress management– Inappropriate use of alcohol/drugs– Smoking

• Number of risk factors and level of each risk factor (low, moderate, high) are directlycorrelated to probability of disease

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N U M B E R O F R I S K F A C T O R SI M P A C T S T H E B U S I N E S S

NUMBER OFRISKS

EXCESSABSENTEEISM

DAYS (%)

EXCESSPRODUCTIVITY

LOSS (%)

INCREASEDHEALTH CLAIMS

COST (%)

0 Risks 0 0 0

1 Risk 0.6 1.9 31.7

2 Risks 1.2 4.4 66.7

3 Risks 1.9 7.5 103.2

4 Risks 2.2 9.1 149.8

5 Risks 2.5 13 195.6

6+ Risks 3.1+ 14.5+ 252.0+

Source: Burton et al., WellSource, & University of Michigan,

55% ofCanadians

45% ofCanadians

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T H E U L T I M A T E G O A LH E L P E M P L O Y E E S I M P R O V E / M A I N T A I N T H E I R H E A L T H

• Help those who are well (0 - 2 risk factors), stay well

• Help those who are at risk (moderate/high), reduce the risk level

• Help those who are ill/disabled, better manage their illness

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C O M P O N E N T 2 : E N V I R O N M E N TA S S E S S I N G W O R K P L A C E C U L T U R E

FAIRNESS & SUPPORT

• I am satisfied with the fairnessand respect I receive on the job

• My supervisor supports me ingetting my work done

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P S Y C H O L O G I C A L H E A L T H & S A F E T Y S T A N D A R DF O R C A N A D I A N W O R K P L A C E S

• Employers have legal duty to provide safe work environment− Part II Canada Labour Code

• New voluntary standard launched Jan/13 by Mental Health Commission of Canada

• Purpose: to shift organizational culture towards psychological health & safety norm

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C U L T U R E I M P A C T S E M P L O Y E E H E A L T H

Unhealthywork

cultureHigh effort, low reward

High demand, low control

2 to 3x mental health problems

2 to 3x conflicts

5x certain cancers

3x back pain

3x heart problems

2x substance abuse

2 to 3x injuries

2 to 3x infections

Source: Dr Martin Shain


W E L L N E S S : T H E C AN AD I A NL AN D S C AP E

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N A T I O N A L W E L L N E S S S U R V E Y

72%

90%

2011

2013

Percentage of employers offering at least one wellness initiative

Source: 2013 and 2011 Sun Life-Buffett National Wellness Survey

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W H A T W E L L N E S S I N I T I A T I V E S E M P L O Y E R SO F F E R A N D W H Y

12%

14%

23%

24%

26%

27%

27%

28%

36%

49%

Subsidized External EducationPrograms

Work/Family Life BalancePrograms

Involve Employees in theOrganizaton of Work

Employee Recognition

Flu Shot Program

Involve Employees in WorkScheduling

Time Off in Lieu of Overtime

Staff Appreciation Events

First Aid/CPR Courses

Flexible Work Programs

What

Source: 2013 Sun Life-Buffett National Wellness Survey

Why

11%

15%

16%

22%

30%

33%

34%

37%

37%

51%

Prescription Drug CostContainment

Group Benefit Plan Containment

Employee Engagement

It Aligns with our OrganizationalValues

Decreased Absenteeism

Improve Organizational Culture

Improve Productivity

Employee Retention

Improve Employee Mental Health

Improve Employee Physical Health

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B E S T P R A C T I C E M A K E S A D I F F E R E N C EI M P A C T O N R I S K R E D U C T I O N

Lifestyle RiskImprovement

LowEffectiveness

MediumEffectiveness

HighEffectiveness

Ratio Highvs. Low

Tobacco use 12% 30% 41% 3.3Physical activity 13% 26% 48% 3.5Weight/BMI 10% 18% 33% 3.2Nutrition 7% 19% 30% 4.2Stress 8% 12% 20% 2.5Note: Based on 290 respondents. Percentages represent respondents indicating 4 or 5 on a 5-point Likert scale with the highest response(5) being “Change for the better” and the middle response (3) being “Stay the same.”

Source: 2011/2012 Staying@Work Survey Report

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W O R K P L A C E W E L L N E S S R E T U R N O NI N V E S T M E N T ( R O I ) F O R E V E R Y $ 1 S P E N T …

• $3.36 ROI– 2014 Harvard University meta-analysis of 100

wellness studies

• Companies saved $3.27 in medicalcosts and $2.73 in absenteeism costs– Health Affairs 2010 study

• Telus workplace wellness programachieved $3.80 ROI

• Desjardins received between $1.50and $3 ROI– Watson Wyatt and ACTI-MENU

Dollars Saved/Dollars SpentBank of America $5.96/$1General Mills $3.50/$1Prudential Insurance $2.90/$1WI School District Insurance $4.47/$1PacBell $3.10/$1BC Hydro $2.74/$1

Source: Public Health Agency of Canada; Lydia Makrides; CanadianAssociation of Cardiac Rehabilitation

SUMMARY OF ROI(as reported by employers)

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R E A L I T Y

• Most employers not utilizing a best practice approach to wellness– 14% of employers are conducting health risk assessments– 85% do not measure the health status of employees– 9% are evaluating their wellness programs

• Top barriers to initiating wellness initiatives were:– 28% report lack of budget– 21% report lack of staff– 19% report little knowledge of wellness– 19% report inability to quantify results

Source: 2013 Sun Life-Buffett National Wellness Survey


D E V E L O P I N G W E L L N E S SS T R AT E G Y U S I N G BE S TP R AC T I C E S

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C O M P O N E N T S O F A “ B E S T P R A C T I C E ”S T R A T E G Y Leadership

Commitment &Management

Support

ComprehensiveProgram Design

IntegratedIncentives

StrategicCommunications

Dedicated StaffHealth Risk

Assessment &BiometricScreening

Multiple ProgramModalities

VendorIntegration

Monitor andEvaluate

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S E T T I N G T H E S T A G ET Y I N G O B J E C T I V E S T O B U S I N E S S G O A L

Business GoalReduce healthcare costs

Program Goals1. Improve employee health to avoid disease and disability2. Develop a healthy culture

Program Objectives (based on HRA results)1. By 2015, 50% of the employee population will have less than

3 health risk factors2. By 2015, Culture score will be at least + 0.50

Activities to meet those objectives

Metrics to measure success

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1. Position Company as a healthy workplace with employees, customers and the community.2. Help Company employees maintain and enhance their health.3. Develop an environment that encourages and supports healthy work/life habits.

1. Cost Containment 2. Healthy Culture 3. Competitive Edge

1st YearBuild

2nd YearExecute & Engage

3rd YearEnhance & Evaluate

Metrics: 1st year Metrics: 2nd year Metrics: 3rd year

E X A M P L E O F A T H R E E - Y E A R W E L L N E S SS T R A T E G Y

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STAGE OBJECTIVE PROGRAM ELEMENTSAwareness • To raise awareness of health

risks in general

• To raise awareness of personalrisk factors and considermaking changes

• Communication campaign

• Health Risk Assessment

• Biometric Screening Clinics

Prepare to change • To commit to making changesto priority health risk

• Health consult: individualwellness plan

• Register in specific programsTake action • To learn and practice skills to

reduce health risk• Specific health

coaching/challenges

• Behaviour change programsMaintain healthybehaviours

• To permanently incorporatenew healthy behaviour intolifestyle

• Healthy culture

• Supportive environments

C H A N G I N G I N D I V I D U A L H E A L T H B E H A V I O U R SS T A G E S O F C H A N G E T H E O R Y

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P L A N N I N G F O R S U C C E S SI N C E N T I V E S

• 65% of employees with neutral ornegative attitudes toward work-based health improvement programsreported the following incentiveswould encourage their participation:– cash cards– gift cards– health spending account

contributions– merchandise-based rewards

Source: 2007 UnitedHealthcare National Accounts client study

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S U C C E S S F A C T O R S

1. Attract and retain employees in wellness program to make long-term behaviourchange

2. Attract enough employees into wellness program to impact organization

3. Customize program to overcome barriers in each workplace

4. Be innovative and creative while following sound behaviour change theory andpractice

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M E R C E R ’ S R O L E I N W E L L N E S S

For all your workplace wellness needs;

• Develop wellness strategy to meet your business needs

• Wellness ROI: Business case development

• Leadership presentations

• Conduct vendor search for wellness providers

• Manage implementation of the program

• Audit existing wellness program against best practices

FREE WELLNESS CONSULTATION: HRPA registrants are eligible for aFree Consultation on Wellness.

Contact Michael Petrucco, [email protected]

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Q & A A N D C O N T A C T S

Leigh-Ann Ing, Health & Productivity [email protected]

Michael Petrucco, [email protected]

SUBSCRIBE TO MERCER EMAILS:If you wish to receive legislative and industry updates, event invitations, publications andother notifications from Mercer via email, please contact [email protected]

WORKPLACE WELLNESS WORKS: THE BUILDING BLOCKS TO …€¦ · health wealth career workplace...

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