Sustainable Wellness for a Vibrant Life SM Sustainable Wellness for a Vibrant Life Dana Wenter, Director Assessments and Program Implementation 5/16/2012 Good Health is Good Business SM Wellness as a Performance Maximizing Strategy

Sustainable Wellness for a Vibrant Life SM Agenda  Why wellness at the workplace?  Return-on-investment/Value-on-investment  How to maximize results  Next steps

Sustainable Wellness for a Vibrant Life SM Why worksite wellness?

Sustainable Wellness for a Vibrant Life SM Employee Health  62% overweight; 26% obese  48% not engaged in physical activity in the last thirty days  33% showed signs of clinical depression  28% experienced sleep problems that affected their job performance  43% experienced three or more indicators of stress  21% smoked Source: Families and Work Institute,

Sustainable Wellness for a Vibrant Life SM Dependent Health  Dependents account for 60% of employer healthcare costs  When one parent overweight, teen has 80% chance of being overweight  CDC predicts 1 in 3 children will become diabetic in their lifetime Source: WellSteps, University of Michigan, CDC

Sustainable Wellness for a Vibrant Life SM Worksites Influence Health Organizational and government policies Policy Community Attitudes, knowledge, beliefs Family, friends, colleagues/classmates Work/social/faith groups, built environment, schools, online groups Social Network People are more healthy when social norms and cultures result in increased access to resources that foster healthy choices Individual

Sustainable Wellness for a Vibrant Life SM Health is Contagious Friends and colleagues can make healthy or unhealthy behaviors the social norm

Sustainable Wellness for a Vibrant Life SM The Costs of Health  Direct healthcare costs  Absenteeism  Presenteeism

Sustainable Wellness for a Vibrant Life SM Direct Healthcare Costs  Health claims can consume over 50% of corporate profits  75% of costs related to employee lifestyle choices Source: Wellsteps, 2008 Mercer Report; CDC, 2006

Sustainable Wellness for a Vibrant Life SM Direct Healthcare Costs Average healthcare cost per employee family Source: Employer Health Benefits 2010 Annual Survey, Kaiser Family Foundation $1,619 $2,713 $3,997 $4,819 $8,167 $9,773 Worker Contribution Employer Contribution $6,438 $10,880 $13,770 68% Increase in Worker Contribution 47% Increase in Worker Contribution 147% Increase in Worker Contribution from 2000 to % Increase in Total Premium from 2000 to % Increase in Employer Contribution from 2000 to % Increase in Employer Contribution 20% Increase in Employer Contribution

Sustainable Wellness for a Vibrant Life SM Health insurance costs increases wipe out wage increases Source: Kaiser Family Foundation and Health Research and Education Trust, 2008 Direct Healthcare Costs

Sustainable Wellness for a Vibrant Life SM GM’s health care costs add $1,525 to the price of every GM vehicle Source: R Wagoner, Testimony before the House Financial Services Committee, 2008 Direct Healthcare Costs

Sustainable Wellness for a Vibrant Life SM Direct Costs due to Obesity Among Mayo Clinic employees, overweight and obese are more expensive than smokers $5,350 extra medical costs for overweight $1,275 extra medical costs for smokers Source: Health Affairs, March 2010; J Occ. & Env. Medicine, 2012

Sustainable Wellness for a Vibrant Life SM Absenteeism  $55 billion in sick day wages  Indirect costs Hiring temporary workers Disruption of work flow Source: WellSteps, Mercer Report, 2008

Sustainable Wellness for a Vibrant Life SM Absenteeism due to Obesity Source: Finkelstein, 2005 and 2010 $12.1 billion in lost wages due to illness from obesity  Obese men take 5.9 more sick days per year  Obese women take 9.4 more days per year

Sustainable Wellness for a Vibrant Life SM Absenteeism due to Dependents  Obese children have 20% greater school absence rates  Working adults with sick children reported cutting back at work 2-4 hours per illness  Hospitalizations and physician visits are 3.7 and 1.8 times higher for obese children Source: WellSteps, University of Michigan, CDC

Sustainable Wellness for a Vibrant Life SM Presenteeism 60% of costs related to worker illness comes from presenteeism Source: Goetzel, R., Long, S., Ozminkowski, R., Hawkins, K., Wang, S., Lynch, W. (2004).

Sustainable Wellness for a Vibrant Life SM Presenteeism  Presenteeism due to depression costs U.S. employers more than $35 billion a year  On-the-job pain (including back pain, headaches and arthritis) costs employers nearly $47 billion a year  Lockheed Martin Corp. estimates $34 million lost in presenteeism Source: Goetze et al., 2004; Lerner, Rogers, and Change, New England Medical Center

Sustainable Wellness for a Vibrant Life SM Return-on-Investment vs Value-on-Investment

Sustainable Wellness for a Vibrant Life SM ROI vs VOI “The cost of doing nothing is greater than the cost of doing something.” -Zero Trends  Return-on-Investment refers to hard costs  Value-on-Investment refers to soft costs

Sustainable Wellness for a Vibrant Life SM Return-on-Investment  No standard measurement Reduced medical costs Employee and dependent sick days  Expect losses in first year or two, with significant ROI by 5 th year Source: Health Affairs, 2010

Sustainable Wellness for a Vibrant Life SM Return-on-Investment Harvard University meta-analysis  ROI of $1 to $6; $3.27 in medical costs and $2.73 in absenteeism Review of 42 studies  Reduced costs by 25 to 30 percent within an average of 3.6 years Source: Health Affairs, 2010, The Art of Health Promotion, 2005.

Sustainable Wellness for a Vibrant Life SM Value-on-Investment These are the intangible benefits  Worker productivity  Worker commitment to company  Improved company culture

Sustainable Wellness for a Vibrant Life SM Value-on-Investment Workers at their peak performance combined with supportive company culture:  Business process innovation  Individual and organizational competencies  New kinds and levels of leadership

Sustainable Wellness for a Vibrant Life SM “Priceless”  Worksite CSA: $50 a month  Employee gym memberships: $1,000 a month  Lunch-time walking groups: $0 Loyal, creative, productive workers: priceless

Sustainable Wellness for a Vibrant Life SM How to Maximize Results

Sustainable Wellness for a Vibrant Life SM Best results  Make it evidence-based  Fit the company culture  Comprehensive programming  Target the high-risk  Keep the healthy, healthy

Sustainable Wellness for a Vibrant Life SM Evidence-based  No hard-and-fast standards  Lots of research/evidence Case studies Research

Sustainable Wellness for a Vibrant Life SM Transaction Results Analysis Operational Linkage Metrics Ongoing Program Support ConnectWell’s Process of Wellness Design Program Implementation Program Planning Initial Assessment Evaluation of Results

Sustainable Wellness for a Vibrant Life SM Organizational culture Employee needs Environmental influences on healthy choices Transaction Results Analysis Operational Linkage Metrics Ongoing Program Support Wellness Design Program Implementation Program Planning Initial Assessment Evaluation of Results

Sustainable Wellness for a Vibrant Life SM Transaction Results Analysis Operational Linkage Metrics Ongoing Program Support Wellness Design Program Implementation Program Planning Initial Assessment Evaluation of Results Best practices Clear goals/ objectives Collaboration with management and department heads

Sustainable Wellness for a Vibrant Life SM Transaction Results Analysis Operational Linkage Metrics Ongoing Program Support Wellness Design Program Implementation Program Planning Initial Assessment Evaluation of Results Awareness Small group interventions Management training Cultural changes across organization

Sustainable Wellness for a Vibrant Life SM Transaction Results Analysis Operational Linkage Metrics Ongoing Program Support Wellness Design Program Implementation Program Planning Initial Assessment Evaluation of Results On-going data collection Qualitative and quantitative results Results applied to implementation strategies

Sustainable Wellness for a Vibrant Life SM Best results  Make it evidence-based  Fit the company culture  Comprehensive programming  Target the high-risk  Keep the healthy, healthy

Sustainable Wellness for a Vibrant Life SM Healthy Work Culture

Sustainable Wellness for a Vibrant Life SM Healthy Work Culture Don’t focus on healthcare costs; focus on disease prevention and productivity  Get leadership involved  Create activities that promote health and foster camaraderie  Give incentives and rewards  Change the environment

Sustainable Wellness for a Vibrant Life SM Best results  Make it evidence-based  Fit the company culture  Comprehensive programming  Target the high-risk  Keep the healthy, healthy

Sustainable Wellness for a Vibrant Life SM Healthy Organization Framework

Sustainable Wellness for a Vibrant Life SM Policies Effective wellness policies enable organizations to support healthy behavior 

Sustainable Wellness for a Vibrant Life SM Environment Improving the environment impacts large groups of individuals and facilitates adoption and maintenance of healthy behaviors

Sustainable Wellness for a Vibrant Life SM Programs Evidence-based programs aim to increase awareness, provide education, and motivate participants to adopt healthy behaviors

Sustainable Wellness for a Vibrant Life SM Incentives Well-designed incentives build motivation and participation by offering individuals external rewards for making healthy lifestyle choices 

Sustainable Wellness for a Vibrant Life SM Culture A healthy worksite culture is one that establishes healthy social norms

Sustainable Wellness for a Vibrant Life SM Best results  Make it evidence-based  Fit the company culture  Comprehensive programming  Target the high-risk  Keep the healthy, healthy

Sustainable Wellness for a Vibrant Life SM Targeted Programs Eating for a Vibrant Life Activity for a Vibrant Life Balance & Stress Management for a Vibrant Life

Sustainable Wellness for a Vibrant Life SM Best results  Make it evidence-based  Fit the company culture  Comprehensive programming  Target the high-risk  Keep the healthy, healthy

Sustainable Wellness for a Vibrant Life SM Keep the healthy, healthy  On-going health education and engagement  Social networking  Team competitions  Make healthy the norm  Offer healthy resources

Sustainable Wellness for a Vibrant Life SM Comprehensive programming fosters healthy choices in and outside of work

Sustainable Wellness for a Vibrant Life SM Next Steps for your Organization  Assess what you’ve got in place now  Talk with leadership  Talk with consultants, including your health plan carrier  Set goals  Create wellness committee; enlist wellness champions

Sustainable Wellness for a Vibrant Life SM Thank you Dana Wenter Director, Assessments and Program Implementation phone: (925) web: blog: facebook: