Workforce Health Strategies: A Multinational Perspective
Upcoming SlideShare
Loading in...5
×
 

Workforce Health Strategies: A Multinational Perspective

on

  • 1,908 views

Drawing on recent Towers Watson research, this presentation identifies trends, challenges and opportunities for multinational employers as they implement global wellness programs and health strategies ...

Drawing on recent Towers Watson research, this presentation identifies trends, challenges and opportunities for multinational employers as they implement global wellness programs and health strategies amidst a backdrop of mounting costs and a growing list of workforce health risks.

Statistics

Views

Total Views
1,908
Views on SlideShare
1,907
Embed Views
1

Actions

Likes
1
Downloads
42
Comments
0

1 Embed 1

http://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Workforce Health Strategies: A Multinational Perspective Workforce Health Strategies: A Multinational Perspective Presentation Transcript

    • Multinational Workforce Health Building a Sustainable Global Strategy Presentation by Francis Coleman and Nicole Serfontein May 18, 2011© 2011 Towers Watson. All rights reserved.
    • Today’s experts Nicole Serfontein Francis Coleman is a senior international is a director in Towers Watson’s consultant for Towers Watson, International Consulting Group based in Washington, D.C. and is based in the company’s Los Angeles office.Nicole has worked in New York, London and South Francis has more than 20 years of internationalAfrica, where she was a practicing attorney in the benefit experience and has served in a number ofcommercial and financial services industry. different management roles and assignments worldwide, including in the U.K., France, Greece,She co-leads global health care within the Eastern Europe and the U.S.International Consulting Group and has consulted on He holds a national role, leading global health carehealth insurance and related matters for many within the International Consulting Group and hasmultinational companies, government and plan extensive experience in global medical plan designtrustees. and funding.In prior work, she was appointed in 2003 by the Prior to joining Towers Watson, he was WorldwideMinister of Finance in South Africa to the South Director of a Pooling and Captive network providingAfrican Financial Services Board to draft and employee benefits solutions for over 100 countries.comment on regulations to the Financial Services This also included provision of medical plan designAdvisory Act. in over 40 countries worldwide.towerswatson.com 2 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Today’s discussion Multinational workforce health:  Global health strategies  Trends in wellness programs  Cost trends and management  Governancetowerswatson.com 3 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Global health continues to grow as an important business issue for multinationals.  Medical costs globally are projected to grow at double-digit levels for the next three to five years*  Public health systems are inadequate in many countries, and high-quality health care benefits and/or services can create a competitive advantage in the war for talent  Business leaders are increasingly recognizing the value of health and a consistent governance framework across geographies  Chronic conditions are increasing worldwide in prevalence and incidence levels  Health care regulation is growing in volume and complexity around the globe, forcing large multinationals to react  Multinational employers have, on average, 25 employee health programs across their operations** *Towers Watson 2011 Global Medical Trends survey.**Towers Watson 2009/10 Workforce Health Strategies: A Multinational Perspective survey. towerswatson.com 4 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • About the 2011 Multinational Workforce Health survey Multinational Workforce Health: Building a Sustainable Global Strategy Tracks detailed information about global employee health strategies, health programs and costs at multinational organizations 149 respondents Collectively, respondents employ 5.2 million employees Survey conducted in January and February 2011 and completed by senior benefits managers Employee Size Groups Industry Groups Wholesale and retail Public sector and education Energy and utilities Less than 2,000 Financial services 2,000 to 5,000 10,000+ Manufacturing General services 5,000 to 10,000 Health care IT and telecomtowerswatson.com 5 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Nearly half of multinational organizations plan to adopt a globalstrategy. Which best describes the global health strategy at your organization? A global strategy has been in place for five No global strategy or more years More multinationals and no plans to are adopting a adopt one global health care strategy. A global strategy In our 2010 survey, has been in place 26% of companies for less than five had a global health years strategy in place compared to 32% No global strategy, today. but plan to adopt one in next one to two yearstowerswatson.com 6 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Poor health habits of employees and reducing health care costs areorganizations’ top priorities, but they vary by region. Select the top three most important objectives of your organization’s current or planned global health strategy Demonstrate interest in employee well-being, 46% 69% employee resiliency/stress management 54% Contain/reduce the organization’s 42% 31% health care costs 59% 62% Provide competitive reward packages 23% 42% 54% Retain key talent 38% 36% Reduce the cost of work loss 23% 62% (i.e., absence, disability) 42% 35% Increase productivity 46% 30% 15% Improve on-the-job safety 23% 8% 15% Increase employee access to health care 8% 9% 0% Supplement public health system 0% 14% 0% Other 0% 3% Asia Pacific EMEA Americastowerswatson.com 7 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Organizations without a global health care strategy struggle to makethe business case. What have been the three biggest barriers to your organization adopting a global health strategy? Not a business priority at present 62% Lack of internal staffing 41% Lack of budget 38% Organization too decentralized 35% Health issues of employees vary too widely to 20% manage globally Lack of evidence to support a business case 16% Lack of senior leadership support 15% Unnecessary, as most public systems support 11% employees in their health and well-being Separate global health strategy not required as it is part of a broader global benefits structure 8% Desired health care vendors are not present (or don’t offer services/products needed) 6% Other 5%towerswatson.com 8 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Although lack of data and inadequate resources are the biggestbarriers to achieving global objectives, lack of senior leadership buy-in is also a significant barrier. To what extent are the following barriers to your organization achieving its global health care objectives? 38% Data is not available or reliable to 8% identify employee health risks 44% 13% Limited “local” support 33% (e.g., resources) 41% 40% Lack of an adequate budget at 25% corporate level 32% 33% Lack of an adequate budget at 31% regional/local level 30% Desired health care vendors are not 16% present (or don’t offer 15% services/products needed) 26% 15% Poorly communicated global strategy 8% 22% 21% Lack of senior leadership support 25% 15%Note: Percentages indicate responses of “to a very great/great extent.” Asia Pacific EMEA Americastowerswatson.com 9 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • For all multinationals, mental health and stress are the leadinghealth risks. In how many countries in which your company operates are the following health risk issues a priority of your organization’s current or planned global health strategy? Mental/stress issues 24% 21% 55% Chronic conditions 30% 31% 39% (e.g., diabetes, asthma, hypertension) Tobacco use 31% 35% 35%Surprisingly, 40% ofrespondents areseeing obesity as a Lack of physical activity 32% 36% 32%risk in only a few oftheir global operations. Disability 41% 29% 31% Obesity 40% 36% 23% Infectious diseases 52% 32% 16% Not at all/few countries Some countries All/most countriestowerswatson.com 10 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Global Health Programs Current Trends in Wellness and Other Programstowerswatson.com 11 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Medical benefits are the cornerstone of a global health strategy, butto most, so is wellness. Which of the following are core components to the global health strategy at your organization (or in planning such a strategy)? Medical benefits (in addition to or instead of public health care services) 89% Wellness/health promotion programs (e.g., preventive care/screenings, health 75% risk assessments, smoking cessation) Occupational health (e.g., job safety, risk 63% management) Reputational risks/branding (i.e., to build a global reputation as a good place to work, 54% demonstrate interest in employee well-being) Pandemic preparedness (e.g., evacuation 46% processes, communication systems)towerswatson.com 12 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • While supplemental health care programs are widely offered, lessthan half of multinationals in Asia and EMEA offer all their employeeswellness programs. To what extent does your organization offer the following programs? Employee Health Programs by Region Some Employees Most/All Employees Not Offered Covered Covered Medical/Health Benefits Asia Pacific 8% 14% 78% EMEA 6% 13% 81% Americas 3% 13% 84% Wellness/Health Promotion Programs Asia Pacific 33% 25% 42% EMEA 27% 27% 45% Americas 22% 21% 56% Pandemic Preparedness Asia Pacific 22% 13% 65% EMEA 13% 13% 74% Americas 9% 13% 78%towerswatson.com 13 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Preventive screenings and vaccinations are the most common globalhealth and productivity programs. In the countries in which your company operates, to what extent does your organization offer (or plan to offer) the following health and productivity programs? In Most/ In Some Planning in Next Don’t Offer/ All Countries Countries Two Years Not Planning Health screenings 28% 57% 11% 4% Vaccinations 23% 56% 9% 12% Fitness (either onsite or subsidize 17% 51% 17% 16% membership) Mental health/stress management 17% 46% 23% 14% Healthy eating (cafeteria or vendor 13% 50% 18% 19% machine) Health risk assessment 8% 54% 23% 14% Disease management (for those with 6% 47% 23% 23% chronic conditions) Weight management (including 3% 47% 26% 24% counseling) Tobacco cessation 9% 39% 22% 30% Lifestyle coaching 4% 34% 32% 30%towerswatson.com 14 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Although wellness is gaining momentum, financial incentives are notas popular outside North America. Do you offer financial incentives in your global wellness programs in the following countries? Use of Wellness Incentives Offer Significant Offer Some Don’t Offer Don’t Offer Incentives Incentives Incentives Programs Global All countries 5% 17% 43% 36% Regions Asia Pacific 2% 11% 49% 37% EMEA 2% 12% 48% 38% Americas 12% 28% 29% 31% Economies Advanced 9% 21% 39% 31% Emerging 1% 12% 46% 40%towerswatson.com 15 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Global Health Strategies Cost Trends and Management Techniquestowerswatson.com 16 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • 2011 Global Medical Trends survey — Key findings In 95% of the countries included in the survey, the medical trend exceeded the rate of general inflation Growth of medical trend has slowed in emerging markets, whereas some of the more developed markets are seeing a greater increase compared to five years ago Almost three-quarters (72%) of survey respondents say they expect higher medical costs over the next five years The average medical trend for 2009 was 10.2% and is projected to be 10.5% in 2011 (Latin America, North America and Middle East/Africa have highest rates) The average rate of medical trend globally is two to three times the rate of general inflation Wellness service offerings are growing in prevalence and some form of wellness feature is now typical in all regions The Towers Watson 2011 Global Medical Trends survey was conducted in September and October 2010. The results are based on responses from 170 leading health insurers who provide medical insurance solutions to employers in 37 countries.towerswatson.com 17 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • The average global medical trend is two to three times therate of inflation Global Average Medical Trends: 2006 – 2011 2006 2009 2011 Asia Pacific China 15.2% 10.1% 9.4% India 22.0% 12.0% 12.3% Singapore 5.5% 7.4% 8.4% Europe France 5.6% 6.5% 8.4% Netherlands 6.0% 5.0% 5.5% U.K. 6.0% 9.3% 9.5% Latin America Brazil 9.2% 10.4% 11.0% Chile 5.8% 13.9% 18.3% Middle East and Africa South Africa 7.4% 12.5% 9.3% UAE 15.0% 10.3% 10.1% North America Canada 12.3% 12.5% 13.3%Source: Towers Watson 2011 Global Medical Trend survey report.towerswatson.com 18 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Cardiovascular disease and cancer are the leading causes of medicalclaims today, and expected to remain so over the next five years. What are the top three conditions that cause the highest prevalence of claims today, and what are your expectations over the next five years? 75% Cardiovascular 75% 63% Cancer 67% 33% Gastrointestinal 33% 32% Musculoskeletal/Back 29% 32% Respiratory 33% 25% Accident 25% 19% Other 17% 13% Mental health 14% 2% Substance abuse 2% Now In 5 YearsNote: Estimates are equally weighted by respondent.Source: Towers Watson 2011 Global Medical Trend survey reporttowerswatson.com 19 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Both inside and outside of U.S. operations, controlling costs is a toppriority over the next three years. What are your organization’s top priorities inside and outside the United States for improving employee health and well-being over the next three years? 49% Control costs of employee health programs 60% Address emerging health risks (e.g., obesity, 48% heart disease) 54% Use health programs as a tool to help attract 43% and retain top talent 25% Provide incentive programs to improve 33% employee health/wellness 43% 33% Increase quality of health care 22% 27% Reduce lost time (scheduled and unscheduled) 20% 22% Expand health coverage to more/all employees 13% 11% Improve pandemic preparedness 5% 11% Consolidate vendors 6% Other 2% 3% None of the above 1% 13%Note: Respondents asked to select their top three priorities. Outside the U.S. Inside the U.S.towerswatson.com 20 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Outside of their U.S. operations, multinationals are most worriedabout cost increases in China, the United Kingdom and Singapore. Other than the United States, in which countries are you most concerned about cost increases in your company-sponsored health care benefits? China 36% United Kingdom 30% Singapore 29% India 21% Canada 18% Brazil 12% Hong Kong 12% Mexico 10% Germany 9% Australia 8% Malaysia 8% Japan 7%Note: Respondents were asked to select their top three countries.towerswatson.com 21 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • The cost of employee health programs for over half of multinationalsin the Americas was 10% of total payroll. What was the approximate total cost to provide employee health programs, as a percentage of payroll, in the following countries? Total Health Care Costs as a Percentage Of Payroll Less than 2% 2% to 4% 5% to 9% 10% to 14% 15% to 19% 20% or more Global All countries 24% 13% 21% 21% 10% 12% Regions Asia Pacific 30% 13% 18% 20% 7% 11% EMEA 25% 18% 23% 15% 13% 8% Americas 11% 9% 27% 26% 12% 15% Economies Advanced 16% 18% 18% 26% 9% 13% Emerging 34% 6% 25% 15% 10% 10%Note: Excludes responses of “don’t know.”towerswatson.com 22 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Within their U.S. operations, more than half of multinationals areresponding to cost increases through cost sharing. Identify the three most successful tactics your organization has used inside and outside the United States to keep cost increases down for company-sponsored health care plans Cost management (i.e., plan design changes in 46% deductibles/copays/coinsurance) 66% 39% Employees sharing in premium/health service costs 59% Limiting types of dependents covered 35% or paid for by the company 10% 28% Using provider networks 44% Leveraging regional vendors (i.e., consolidating coverage 26% with regional/global vendors) 11% 26% Prevention/wellness strategies 30% 10% Providing onsite health services 6% Emotional well-being support 9% (e.g., employee assistance programs) 3% 9% Absence and disability management 6% 5% Switch to self-insurance funding 15% 9% None of the above 10% Outside the U.S. Inside the U.S.towerswatson.com 23 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Global Health Strategies Global Governancetowerswatson.com 24 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Many employers miss an opportunity to develop a healthy workplaceculture by not having senior leaders “walk the talk.” To what extent are senior leaders and other managers involved in the global health care strategy and/or health care decisions at your organization? Senior leadership visibly supports the 48% 29% 23% importance of a healthy work environment Senior leadership allocates adequate budget for health and productivity 41% 38% 21% programs Senior leadership includes employee health and productivity in our 68% 20% 12% organizational goals or value statement Managers and/or senior leaders receive regular reports with health and productivity 75% 15% 9% program utilization metrics Not at all/slight extent Moderate extent Very great/great extenttowerswatson.com 25 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Multinationals will increasingly rely on centralized decision makingfor their health care benefits over the next three years. At what level have decisions been made for the following issues related to health care benefits over the last three years? How do you expect decisions to be made in the next three years? Data management and program evaluation 48% +28pt 20% Selection of insurers or third-party administrators 49% +27pt 22% Health risk appraisals 39% +27pt 12% Prevention/wellness program offerings 45% +26pt 19% Selection of brokers/consultants 47% +22pt 25% Plan offerings 47% +21pt 26% Plan design changes 47% +21pt 26% Funding decisions 46% +18pt 28% Employee cost sharing 35% +17pt 18% 36% Eligibility decisions +16pt 20% 29% Plan communication 13% +16pt Next three years Last three yearstowerswatson.com 26 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • The survey’s key findings suggest that: Employee health is a growing worldwide concern for many multinational organizations coupled with rising health care costs and trend Reasons for a greater emphasis on workforce health vary significantly by region:  Asia — the focus is the need to compete for top talent  U.S. — cost containment continues to be the primary concern  EMEA — multinationals are interested in reducing absenteeism and improving productivity Companies that have a health strategy are not communicating it broadly enough with local leaders and employees Sponsorship by senior leadership is critical for the success of a global health strategy Wellness programs are offered by nearly three-quarters of companies and have been growing in popularitytowerswatson.com 27 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
    • Contact detailsMichael Broomheadmichael.broomhead@towerswatson.comFrancis Colemanfrancis.coleman@towerswatson.comNicole Serfonteinnicole.serfontein@towerswatson.comtowerswatson.com 28 © 2011 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.