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June 2008 Ruxandra Băndilă Marketing & Business Development Director Working Towards Wellness* The Business Rationale *connectedthinking.

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Presentation on theme: "June 2008 Ruxandra Băndilă Marketing & Business Development Director Working Towards Wellness* The Business Rationale *connectedthinking."— Presentation transcript:

1 June 2008 Ruxandra Băndilă Marketing & Business Development Director Working Towards Wellness* The Business Rationale *connectedthinking

2 Agenda People and Health The Business Rationale Wellness Programs

3 PricewaterhouseCoopers June 2008 Slide 3 Growing Chronic Disease Epidemic Responsible for 1/2 of all deaths in the world Will account for 2/3 of deaths in the next 25 years This is occurring despite the fact that chronic diseases are largely preventable Globalization has caused convergence with the increase in chronic disease to be even greater in emerging economies Trend in death from chronic and communicable diseases Source: World Health Organisation Chronic-Disease-Related Deaths by Income Region People and Health

4 PricewaterhouseCoopers June 2008 Slide 4 Poor Behaviors Drive Poor Health More than 400 million people are obese and over 1 billion are overweight globally. The number of obese people is expected to grow by 75% by In the US, the obesity rate has grown from 15% to 32% in the past 25 years -Half of all households in Brazil and 75% in Russia have at least one obese person -Mexico has the second-highest prevalence of obesity among the countries of the Organization for Economic Cooperation and Development, after the United States -The obesity rate in Britain is 23%, and there are now cities in China where the obesity rate is over 20% Risk factors such as smoking, alcohol use, obesity and hypertension are expensive, accounting for 1.5% of the gross domestic product in China and 2.1% in India In 2000, there were nearly 5 million smoking deaths worldwide People and Health

5 PricewaterhouseCoopers June 2008 Slide 5 Poor Health Impacts People - Our Most Important Asset In the 21 st century, people are a cornerstone for an organizations success. Building and sustaining a culture of health and vitality pays dividends for an organization and its people. People and Health

6 PricewaterhouseCoopers June 2008 Slide 6 The Four Pillars of the Business Rationale for Wellness Productivity Human Capital Healthcare Costs Sustainability The Business Rationale

7 PricewaterhouseCoopers June 2008 Slide 7 Productivity Productivity losses associated with poor health risks are as much as 400% of cost of treating chronic disease Includes unplanned absences, reduced workplace effectiveness, increased accidents and negative impacts on work quality or customer service Studies show that multiple health risk factors multiply the losses in productivity Stress and depression are intertwined with work & life environmental factors in impacting human capital effectiveness Lost Productivity Related to Health Risks The Business Rationale

8 PricewaterhouseCoopers June 2008 Slide 8 Productivity Costs Associated with Health Risk The Business Rationale

9 PricewaterhouseCoopers June 2008 Slide 9 Human Capital Organizations invest an average of $290 in labour costs to generate $1,000 in revenue -Helping employees work longer and have more productive lives, can protect this asset in the face of growing labour shortages globally -An organization that shows that it values its workers is more likely to attract, retain and motivate employees The demand for talented people is increasing, and an ageing workforce is creating an additional drain on organizations workforces -China will be moving from an era of labour surplus into an era of labour shortage as early as Health & wellness is helping some organization distinguish themselves as employers of choice The Business Rationale

10 PricewaterhouseCoopers June 2008 Slide 10 Healthcare Costs Chronic disease which is largely preventable is increasing burden on employers, individuals and social programmes -Impact on health systems, taxes and costs of coverage The risk factors that lead to chronic disease are cumulative, as are the costs associated with them -Metabolic syndrome, which includes a combination of obesity and other health risks, is associated with a two to nine times higher prevalence of chronic diseases In the US, people with chronic disease account for more than 75% of the nations US$ 2 trillion in medical spending The Business Rationale

11 PricewaterhouseCoopers June 2008 Slide 11 Sustainability The epidemic of chronic disease – a product of both environment and behaviours – is a social phenomenon that is as equally prevalent and preventable as issues such as global warming, infectious diseases, poverty, terrorism, clean water and basic infrastructure As the economic burden of chronic disease grows, it could crowd out monies needed to improve other critical issues as well as to meet basic needs such as education and infrastructure in both industrialized and emerging economies The Business Rationale

12 PricewaterhouseCoopers June 2008 Slide 12 The Four Pillars of the Business Rationale for Wellness Productivity Human Capital Healthcare Costs Sustainability Value Proposition Employee Vitality and Engagement Improved Organizational Performance Reduced Absenteeism Enhanced Loyalty Employer of Choice Reduced Healthcare Costs Mitigated Burden on Health System Corporate Image & Citizenship The Business Rationale

13 PricewaterhouseCoopers June 2008 Slide 13 Today Tomorrow An increasing concern over talent acquisition and retention Lost productivity affects global competitiveness Spiraling health costs burden companies and societies Aging workforce seeks new and dynamic workplace experience Defining the Strategy / Executing and Sustaining the Solution Build and maintain a high performing workforce Align incentives and resources supporting corporate culture of health Enhance workforce engagement and loyalty Improve productivity and functionality Improve health and reduce burden of health costs Sustain a Healthy Culture Deploy Resource s and Support Develop People and Health Strategy Working Towards Wellness The Path to a Healthy and Productive Organization In the 21st century, people are a cornerstone for an organization's success. Building and sustaining a culture of health and vitality pays dividends for an organization and its people. The Business Rationale

14 PricewaterhouseCoopers June 2008 Slide 14 Wellness Programs Requires a coordinated approach with 4 elements: Wellness Leadership promote active leadership of senior management in wellness initiative target interventions based on unique characteristics of employee population offer incentives to encourage participation and better outcomes use targeted and ongoing mass communication People collaborate with external parties through public-private partnerships establish evaluation and monitoring programmes to measure change, outcomes and financial impact Process Culture align wellness goals with business strategy create a supportive environment and culture focused on wellness

15 PricewaterhouseCoopers June 2008 Slide 15 Execution Framework (I) Wellness Programs Importance and difficulty of execution framework

16 PricewaterhouseCoopers June 2008 Slide 16 Employers bear increasing costs and can impact risk factors Execution Framework (II) Chronic disease is a growing burden Corporate Wellness programmes are diverse Applying a gold standard can lead to effective 60% of deaths worldwide Growing by 17% in next 10 years and fastest in low income countries Only 3% of health spending goes toward prevention in OECD countries Private health spending up; limited public health budgets Shared public/private impact Most large employers offer some kind of wellness programme Variation in corporate commitment, approach and impact Few have taken global approach Limited public/private coordination or collaboration Execution Active Leadership Business Alignment Supportive Environment Targeted interventions Health incentives Communication Public/Private Partnership Evaluation and monitoring Wellness Programs

17 © 2008 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, other member firms of PricewaterhouseCoopers International Ltd., each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers LLP. People are a cornerstone for an organizations success. Building a culture of health and vitality pays dividends for an organization and its people.


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