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Enhancing the Well-being of our Employees             HERO Webinar                May 11, 2011
Learning Objectives• Identify 3 key factors that have led to L.L.Bean’s success  with their Wellness efforts.• Learn about...
Presentation Outline• L.L.Bean … company facts• Wellness Program … history/overview• Healthy Lifestyles … program componen...
L.L.Bean - Company Heritage• Founded in 1912 by      Leon Leonwood Bean• Maine Hunting Shoe• Product Quality & Customer Se...
L.L.Bean - Corporate Information• Freeport, Maine  (headquarters)• Global Organization• $1.5 billion annual sales• 5,000 y...
L.L.Bean - Corporate Information• $30,000,000 annual health costs• Self-insured• Average Age – 48• 66% Female
L.L.’s Golden Rule         “Sell good merchandise         at a reasonable profit,         treat your customers         lik...
Employee Wellness at L.L.BeanA business is in a unique and responsible position      to effectively enhance the well-being...
Safe & Healthy Living Core Value  We believe healthy people lead fuller, more productive    lives. Our employees and other...
Wellness Program History            • 12 Onsite Fitness Centers            • Health Education Classes            • Activit...
Employee Wellness Programs               Factors for Success• Health improvement programs Onsite Fitness Centers, Health E...
Program Impact - Smoking                                 L.L.Bean - Smoking Rates - 2009                          Smoking ...
Personal Impact - Smoking            As a result of L.L.Bean going            Tobacco Free in our buildings in            ...
2005 L.L.Bean                       Projected Health Care Trend                 Projected company medical cost more than d...
Healthy Lifestyles•   Comprehensive Health Risk Appraisal program aimed    at identifying health risks, educating particip...
Healthy Lifestyles Program Goals• Help employees and their   families achieve and maintain   good health• Help manage heal...
Healthy Lifestyles            Key Program Components• Onsite Health Screenings  Height, Weight, Blood Pressure, Cholestero...
Factors for SuccessCommunication• Group Meetings• Home Mailings• Company Intranet• E-mail• Newsletters• Posters• Leader/Ad...
Factors for Success
Program Information•   85% of employees electing medical coverage    participate in the Healthy Lifestyles Program•   4,00...
Healthy Lifestyles isn’t just a name …                    Because of the results from the required                     hea...
Health Risk Comparison                                         2007 – 2010                                               H...
Health Risk Results                         2007 – 2010     Health Risk        2007        2010    % ChangeSmoking        ...
Medical Claims Analysis - Return on Investment
Return on Investment
Medical Claims Analysis - Return on Investment
Return on Investment
2005 L.L.Bean                       Projected Health Care Trend                 Projected company medical cost more than d...
2009 & 2010 Total Medical Cost                                  Per Enrolled Employee$14,000$13,000                       ...
Total Medical Costs Per Enrolled Employee$16,000$15,000$14,000$13,000$12,000$11,000$10,000 $9,000 $8,000 $7,000 $6,000    ...
Causes of Favorable 2010 Results• Factors contributing to these results include:    Decreased utilization from the consum...
Healthy Lifestyles isn’t just a name …             “My husband went to a doctor for the              first time in 20 year...
Healthy Lifestyles 2010 Corporate Results                   LLB    CS       CS     CS         CS     BRHealth Risk       2...
Pilot Programs …So much to share …              so little time!
Returns Work Conditioning - Pilot ProgramGoal: To improve the health of an aging workforce       Production area employees...
Returns Work Conditioning – Results!• 55% of participants reduced their body mass index• 90% of participants increased the...
Pilot Program – Facilities “Journey to the Sea”                    Facilities:                    140 Employees (80% Male)...
Employee Outdoor Club                                     for our employees andEncouraging activity …                     ...
Questions?        Susan TuftsEmployee Wellness Manager      L.L.Bean, Inc.       207-552-4538    stufts@llbean.com
Koop Award Winner LL Bean
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Koop Award Winner LL Bean

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Transcript of "Koop Award Winner LL Bean"

  1. 1. Enhancing the Well-being of our Employees HERO Webinar May 11, 2011
  2. 2. Learning Objectives• Identify 3 key factors that have led to L.L.Bean’s success with their Wellness efforts.• Learn about key pilot programs that have been implemented and learn about their outcomes.• Obtain information pertaining to L.L.Bean’s Healthy Lifestyles Program and how the company achieved a 5.3:1 ROI.
  3. 3. Presentation Outline• L.L.Bean … company facts• Wellness Program … history/overview• Healthy Lifestyles … program components/results Impact on Health Risks Importance of Health Screenings Impact on Health Costs Lifestyle changes• Pilot Programs
  4. 4. L.L.Bean - Company Heritage• Founded in 1912 by Leon Leonwood Bean• Maine Hunting Shoe• Product Quality & Customer Service• 24 hours a day, 365 days a year• Core Values – Outdoor Heritage, Integrity, Service, Respect, Perseverance, Safe and Healthy Living
  5. 5. L.L.Bean - Corporate Information• Freeport, Maine (headquarters)• Global Organization• $1.5 billion annual sales• 5,000 year round employees (10,000 employees during peak)
  6. 6. L.L.Bean - Corporate Information• $30,000,000 annual health costs• Self-insured• Average Age – 48• 66% Female
  7. 7. L.L.’s Golden Rule “Sell good merchandise at a reasonable profit, treat your customers like human beings, and they will always come back for more.” -Leon Leonwood Bean
  8. 8. Employee Wellness at L.L.BeanA business is in a unique and responsible position to effectively enhance the well-being of its employees” - Leon Gorman, 1982
  9. 9. Safe & Healthy Living Core Value We believe healthy people lead fuller, more productive lives. Our employees and other stakeholders should feel their association with L.L.Bean contributes to their health and well-being.
  10. 10. Wellness Program History • 12 Onsite Fitness Centers • Health Education Classes • Activity Classes • Tobacco Free Campuses • Healthy Foods in Cafeteria and Vending • Employee Outdoor Club
  11. 11. Employee Wellness Programs Factors for Success• Health improvement programs Onsite Fitness Centers, Health Education & Activity Classes, Health Risk Appraisal Program, Health Newsletters, Employee Assistance Programs, Stretch Break Programs• Corporate Environment Tobacco Free Campuses, OSHA-VPP Certification, Healthy Cafeteria/Vending offerings, Employee Outdoor Club• Corporate Culture Outdoor Oriented Company, Core Value Supporting Health & Safety, strong leadership support and employee involvement
  12. 12. Program Impact - Smoking L.L.Bean - Smoking Rates - 2009 Smoking rooms eliminated 25 Tobacco free campuses 20% who smoke 15 10 5 0 1986 1993 1995 1998 2000 2002 2004 2007 2009 Maine 2009
  13. 13. Personal Impact - Smoking As a result of L.L.Bean going Tobacco Free in our buildings in 1994, Val stopped smoking. Soon after she started working out at a local gym. She signed up for spinning classes and eventually started teaching them. Val met her husband at the gym, he started taking her class and the rest is history … a life changed!
  14. 14. 2005 L.L.Bean Projected Health Care Trend Projected company medical cost more than doubles in 4 years $40 $34.5MM $30Millions $20 $14.7MM $10 FY 05 FY 06 FY 07 FY 08 FY 09
  15. 15. Healthy Lifestyles• Comprehensive Health Risk Appraisal program aimed at identifying health risks, educating participants, and providing support to improve health• Joint effort between Benefits and Employee Wellness introduced to employees in 2006• Participants pay significantly reduced rates for their health insurance 70/30 for participants 55/45 for non-participants
  16. 16. Healthy Lifestyles Program Goals• Help employees and their families achieve and maintain good health• Help manage health cost increases to keep healthcare affordable for both L.L.Bean and employees• Identify current health risks in an effort to prevent future illness and disease
  17. 17. Healthy Lifestyles Key Program Components• Onsite Health Screenings Height, Weight, Blood Pressure, Cholesterol, Glucose• Health Questionnaire WebMD• Health Coaching Telephonic - WebMD
  18. 18. Factors for SuccessCommunication• Group Meetings• Home Mailings• Company Intranet• E-mail• Newsletters• Posters• Leader/Admin Communications• Surveys
  19. 19. Factors for Success
  20. 20. Program Information• 85% of employees electing medical coverage participate in the Healthy Lifestyles Program• 4,000 employees and spouses/domestic partners enrolled• 3,883 (98%) employees and spouses/domestic partners met all program requirements• The majority of the participants who provided feedback on the program had a positive experience
  21. 21. Healthy Lifestyles isn’t just a name … Because of the results from the required health screening my husband went to his doctor for the first time in 20 years. Since then he has been on medication to reduce his blood pressure and cholesterol. He has managed his glucose to a normal level and is no longer at risk for diabetes. I think this initial screening saved his life.
  22. 22. Health Risk Comparison 2007 – 2010 Health Risk Comparison 2007 - 2010 40 30 % at risk 20 10 0 Smo king Blo o d Cho les tero l Gluco s e >125 Obes ity Sedentary P res s ure >240 Lifes tyle >140/90 2007 2008 2009 2 0 102007 Health Screening Data - 2008 & 2009 Self-Reported Data - 2010 Health Screening Data
  23. 23. Health Risk Results 2007 – 2010 Health Risk 2007 2010 % ChangeSmoking 12% 7%  42%Cholesterol 14.4% 11.3%  22% (240 or >)Glucose 5.6% 4.6%  18% (125 or >)Sedentary Lifestyle 19.4% 6.6%  66%High Blood Pressure 21% 21.8%  4% (> 140/90)Obesity 31.7% 34.5%  9% (BMI > 30)
  24. 24. Medical Claims Analysis - Return on Investment
  25. 25. Return on Investment
  26. 26. Medical Claims Analysis - Return on Investment
  27. 27. Return on Investment
  28. 28. 2005 L.L.Bean Projected Health Care Trend Projected company medical cost more than doubles in 4 years $40 $34.5MM $30Millions 2010 $20 $14.7MM $10 FY 05 FY 06 FY 07 FY 08 FY 09
  29. 29. 2009 & 2010 Total Medical Cost Per Enrolled Employee$14,000$13,000 L.L.Bean $13,176$12,000 $12,314 Maine (MHMC)$11,000 Mercer Northeast$10,000 Mercer National (1K-5K) $9,933 $9,000 Mercer Wholesale/Retail $9,522 $9,129 $9,215 $8,000 $8,693 $7,000  L.L.Bean continues to $7,557 compare very favorably $7,068 $6,000 - total medical cost per $6,619 $5,000 enrolled employee $4,000  All benchmarks $3,000 increased $2,000 in 2010 differing from L.L.Bean’s substantial $1,000 decrease (+7% to +9% $0 trend vs. L.L.Bean’s - 17%) 2009 2010
  30. 30. Total Medical Costs Per Enrolled Employee$16,000$15,000$14,000$13,000$12,000$11,000$10,000 $9,000 $8,000 $7,000 $6,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Projected +10% Projected +7.5% Projected +5% Actual
  31. 31. Causes of Favorable 2010 Results• Factors contributing to these results include:  Decreased utilization from the consumer effects of the deductible plan vs. the co-pay plan  Realizing longer term impacts of L.L.Bean’s wellness, health promotion and education efforts  Lower claim activity due to the economic downturn  Lower than expected catastrophic claim activity• L.L.Bean utilization statistics are well below Aetna’s book of business  Preventive care utilization is substantially above the norm
  32. 32. Healthy Lifestyles isn’t just a name … “My husband went to a doctor for the first time in 20 years” “I stopped smoking” “I lost 100 lbs.”“I lost 100 lbs too!” “I lost 32lbs, lowered my blood pressure, and don’t need to take medication anymore!”
  33. 33. Healthy Lifestyles 2010 Corporate Results LLB CS CS CS CS BRHealth Risk 2010 NP Peck W’ville Bangor Mfg OFC Returns Facilities Office Finance I.S. HR/HSW Retail OutletsTotalParticipants 3,530 324 226 129 112 166 640 203 142 495 125 324 125 413 114Smoking 7.3 6.4 8.3 7.1 10.5 12.7 11.2 9.6 4.0 10.8 4.0 4.3 1.7 5.5Hypertension 21.8 18.3 28.8 20.2 19.8 22.4 28.9 22.2 32.4 17.0 16.0 22.7 16.0 17.0 14.9Pre-Hypertension 51.6 52.5 46.5 55.8 55.0 54.6 50.3 55.2 47.9 49.1 54.4 51.9 56.0 53.8 50.0Cholesterol240 or > 11.3 12.4 11.2 14.1 11.6 12.9 12.1 13.8 6.4 8.1 12.1 10.6 9.7 13.8 8.8Cholesterol200 - 239 30.9 31.0 36.8 31.3 28.6 35.6 30.5 30.0 33.3 30.2 25.8 29.2 27.4 31.6 32.5BMI > 30 34.4 36.3 44.7 51.2 64.3 47.6 35.0 36.9 34.5 18.2 40.0 31.2 28.8 29.3 36.0BMI 25 - 30 35.8 38.2 35.8 30.2 21.4 31.7 35.6 37.5 41.6 35.8 36.0 35.2 40.0 37.5 34.2BMI < 25 29.8 25.5 19.5 18.6 14.3 20.7 29.4 25.6 23.9 46.0 24.0 33.6 31.2 33.2 29.8Poor Diet 44.4 41.6 48.6 60.3 57.3 48.4 41.2 50.7 34.7 36.7 43.9 37.7 43.1 44.0Exercise< 90 min./wk. 22.1 21.6 31.7 34.0 28.2 25.0 25.3 16.4 13.2 16.7 18.9 15.2 22.2 22.0Glucose > 125(Diabetic) 4.6 6.5 4.9 6.25 10.7 3.7 4.6 6.4 5.0 3.3 4.8 4.4 0.8 4.1 0.9Glucose (100-125 - Impaired) 15.7 14.0 17.0 15.6 17.9 17.8 18.3 23.7 18.4 8.9 13.7 11.5 17.7 16.8 15.8EmotionalHealth 12.1 15.2 14.1 16.7 11.3 14.4 12.9 7.5 6.9 10.0 8.5 12.3 13.2 16.5Stress 43.6 44.6 49.7 47.4 37.1 47.2 40.6 41.8 36.6 43.3 42.7 49.3 43.1 41.3Alcohol Use 4.9 5.1 5.5 3.8 7.3 6.3 9.4 4.1 2.5 1.7 4.6 1.4 4.5 7.3
  34. 34. Pilot Programs …So much to share … so little time!
  35. 35. Returns Work Conditioning - Pilot ProgramGoal: To improve the health of an aging workforce Production area employees … heavy physical job demandsQuestion: If we pay employees to exercise, will they change behaviors and improve their health? Will they maintain the changes over time? • Developed 12 week exercise program, 3 x week, 45 minute sessions • Employees participated on company time • Exercise group & control group • 12 Participants – 75% over age 50, 73% female • Both groups pre and post tested, six-month follow up
  36. 36. Returns Work Conditioning – Results!• 55% of participants reduced their body mass index• 90% of participants increased their physical activity• 91 % of participants increased muscular strength (the number of push-ups) by the end of the program (avg. improved by 50%)• 91% of participants increased muscular endurance (number of curl-ups) by the end of the program (avg. improved by 50%) Customer Service employees who participated in the exerciseclass increased productivity 18.5% over the 12 week period. The control groups productivity remained the same. 6 month follow-up … exercise group continued to improve, control group did not.
  37. 37. Pilot Program – Facilities “Journey to the Sea” Facilities: 140 Employees (80% Male) Year long health improvement program 4 Core Activities Blood Pressure Monitoring Nutrition Class Basic First Aid Stress Management 20 Electives (choose 6) Hiking, Biking, Running, Exercise Classes, Fitness Room Use, Outdoor Club Activities, Kayaking, Walking, Community Service
  38. 38. Employee Outdoor Club for our employees andEncouraging activity … their families!
  39. 39. Questions? Susan TuftsEmployee Wellness Manager L.L.Bean, Inc. 207-552-4538 stufts@llbean.com
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