7. Rich plans with little employee cost-sharing Consumer-directed plan design promotes cost and quality transparency Plan Design / Consumerism Coverage for value to foster compliance with recommended treatment No structured strategy; generous cost share – 80%/20% Contribution Strategy Employees who actively manage their health will pay less Targeted percentage cost share aimed at above market – 78%/22% Health Care Decisions Passive, no relationship with a primary care provider Actively engaged in shared decision-making w/provider and managing health Health concierge to foster informed healthcare choices Consumer Engagement Current vs. Desired Future State Q2 2010 = REI pre-2009 = REI today = REI in 2-3 years
8. Wellness Approach Informal grass roots activities Program covers broad spectrum of well-being with rewards for good behavior Silo programs address limited aspects of health risks/conditions Demographic data only, rely on lagging indicators (claims) Workforce Health Metrics Complete dashboard of all key leading performance metrics and share with leadership Detailed, integrated data set (medical, health and disability) to design focused intervention Monitor benefits budget; measure administrative performance Monitor health risks to predict cost drivers, design broad interventions Enhance incentive (~$250) for self assessment tied to contribution Healthy Lifestyle credit given for seat belt use (mandated), physical activity Multiple incentives offered that address entire population (time off, discounts, 401K contribution, etc.) Incentives Expanded set of self-reported behaviors for Healthy Lifestyle credit Employee Wellness Current vs. Desired Future State Q2 2010 Q1 2010 Focus on personal self awareness of overall risk = REI pre-2009 = REI today = REI in 2-3 years
9. Leadership engaged in setting strategy and engaging employees Promoting healthy lifestyles not on the radar screen; little awareness of the impact on business Leadership visibility supports benefits objectives and promotes a culture of health Leadership Engagement around Health Leadership aware of health and wellness strategy and cost impact on the business Minimal communication about value of benefits Education and Communication Employee benefits portal allows personalized communication Use of multi-media communication and education tailored to audience Aware of strategy and programs, limited onsite programs Leaders model desired behavior Local leaders accountable for some key metrics; positive recognition for Wellness Champions Management Support Leaders vocally support but do not model behaviors Organizational Support Current vs. Desired Future State Informed decision support with plan coverage and cost comparison tools = REI pre-2009 = REI today = REI in 2-3 years
We remain a consumer cooperative today 2.5 million active members Mail order, online and physical store sales – integrated approach RSPU – order online and ship to store, return online order to store
Turnover is 45% at the part-time store level (much of it is planned) Turnover among retail managers is 9% Turnover at HQ is at 5% Working at REI is a “perfect storm”, the marriage between vocation and avocation for many employees A number of employees work PT at REI and hold down FT professional jobs elsewhere – lawyers, accountants Big challenge: racial diversity in the outdoor retailing industry
So when we did a SWOT analysis, we found a lot of strengths: broad cultural support, demographics on the flip side, our employees are not that savvy when it comes to using health care our opportunity is to leverage the fact that over 50% of our health care spend represents avoidable costs our spend is low compared to our peer group, but is rising above market
Turnover is 45% at the part-time store level (much of it is planned) Turnover among retail managers is 9% Turnover at HQ is at 5% Working at REI is a “perfect storm”, the marriage between vocation and avocation for many employees A number of employees work PT at REI and hold down FT professional jobs elsewhere – lawyers, accountants Big challenge: racial diversity in the outdoor retailing industry
We want employees to get/stay healthy and active but when they are injured or sick we want to make it easy for the to take time away and not feel their financial security is threatened When they do need to take a medical leave, better management will result in shorter duration Cost follows risk so improving health risk will ultimately lower our costs and trend