Companies are under attack! Not from rising energy costs, foreign competition, or regulatory pressure, but from a steady decrease in employee health & happiness. The "weight" of this problem is falling on the bottom lines of companies in the form of rapidly increasing costs and rapidly decreasing employee productivity and engagement. Once thought to be an involuntary benefit, Employee Wellness is now being discussed in corporate board rooms all over the world as a critical element of business strategy. HR is expected to understand and manage the risk associated with this problem and create a sustainability strategy that includes health & happiness. This eBook discussed the economics of this fight and how the war talent is now happening in the gym and cafeteria.
"The prevention of chronic diseases has beenchronically under funded. As we get older, fatter andless active, the weight of the world is falling on thebottom lines of the worlds largest companies in theform of reduced productivity, increased tax burdensand declining competitiveness." “Working Towards Wellness: The business rationale,” World Economic Forum in cooperation with PwC, 2008.
Your company is under attack.The threat isn’t coming from foreigncompetition, rising energy costs orregulatory uncertainty. It’s coming fromwithin—in the form of obese, sedentary,stressed, unproductive, disengaged andchronically ill employees. The ability tokeep employees happy and healthy is nowparamount to the success of everyorganization.Is your company up to the challenge?The time for employee wellness is now.The direct and indirect costs associatedwith unhealthy employees is so great that aneffective employee wellness program is nolonger a voluntary benefit or a “nice to have.”It’s a business strategy.
Is a balanced diet on yourbalanced scorecard?The caloric value of what’s on employees’ plates directly impacts theshareholder value you’re able to create. $150B lost productivity cost Obesity costs U.S. employers an estimated 150 billion in lost productivity. 2 450M more days missed Obese workers miss 450 million more days per year than healthy employees. 3 1/3 42% Employers pay 42% more in medical costs for obese more medical costs employees. 4 of Americans are obese 1 $300B cost of obesity Total economic cost of obesity (U.S & Canada) = $300B. 5
They don’t make compact fluorescent employees. 18% increase in electricity needed 32% increase in employer health to power this lightbulb in the costs during those same past 5 years. 6 five years. 7Two all beef patties, special sauce and nearly 2x the price increase of electricity!
Dilbert was not “big-boned.” Your organization is sitting still. Literally. Only 20% of today’s jobs require a moderate level of activity, as compared to 50% in the ‘60s. 8 Bus drivers Ticket takers women who sit for men who sit for (sitting) (standing) over 6hrs/day are over 6hrs/day areBus drivers are twice as likely to die of a heart attack as ticket takers. 10 94% 48% more likely to die.
Employee stressStress & depression & recession. Oh my.Employers pay 50% more per year in health costs for stressed employees. 11 Absenteeism Employee turnover Insurance Premiums Medical 77% Lawsuits Worker’s compensation Diminished productivity$300B of Americans are stressed at work. 12in stress-related costs to U.S. businesses each year. 11
The high cost of lowemployee engagement $370 BillionActively disengaged 13employees annuallycost the U.S. 27% 54% 58% 54% of employees are of disengaged of companies cite of employees plan actively engaged. 14 employees report low employee to leave when the that work has a engagement as the economy improves. 14 negative impact on biggest obstacle to their health. 15 behavior change. 16
The war for talent ishappening in the gym.Fortune’s “100 Best Companies to Work for” take employee health seriously. 17Shouldn’t you?Number of the 100 bestcompanies to work for 97 Regular on-site flu shotsthat offer... 94 Pre-tax flexible spending account 87 4 Regular on-site blood pressure screenings 87 9 97 0 3 10 8 83 Regular on-site cholesterol screenings 70 110 67 120 70 Subsidized off-site gym membership 130 40 30 140 67 On-site fitness center 20 10 0
It’s time to rethink your strategypyramid and elevate HR’s role. Ask yourself these three questions: 1. Are the results of your organization dependent on the aggregate performance of the individual employees? 2. Are happy & healthy employees more likely to perform at a high level? 3. Is HR’s role to maximize ROI on the company’s human capital and reduce financial risk? If the answers are “yes”...
...Maybe your strategypyramid should look like this. CorpWellness is a Business Unit business strategy. Functional / Departmental Employee Wellness
Endnotes1 “Adult Obesity,” Centers for Disease Control and Prevention, http://www.cdc. 10 Kuper, Simon, “The Man Who Invented Exercise,” FT Magazine, http://www.ft.gov/obesity/data/adult.html com/intl/cms/s/0/e6ff90ea-9da2-11de-9f4a-00144feabdc0.html#axzz1NOkg88os2 Willingham, Jacqueline G, “Managing Presenteeism and Disability to Improve 11 “The Cost and Removal of Workplace Stress,” The National Registry of Workers’Productivity,” Benefits & Compensation Digest, 45.12, Dec. 2008. Compensation Specialists, http://www.nrwcs.com/cost-of-workplace-stress3 “Unhealthy U.S. Workers’ Absenteeism Costs $153 Billion,”GALLUP, Inc., 17 12 “Survey Reveals 77% of Americans Stressed About Something At Work,”Oct. 2011, http://http://www.gallup.com/poll/150026/unhealthy-workers- Everest Career Education Network, 30 Mar. 2011, http://news.everest.edu/post/absenteeism-costs-153-billion.aspx 2011/03/survey-reveals-77-of-americans-stressed-about-something-at-work4 Miller, Melissa, “Obese Employees Costing Companies,”Southeast Missourian, 13 “Dilbert is Right, Says Gallup Study,” GALLUP Management Journal, 13 Apr.21 Sept. 2011, http://http://www.semissourian.com/story/1765329.html 2006, http://gmj.gallup.com/content/22381/dilbert-right-says-gallup-study.aspx5 “Obesity and its Relation to Mortality and Morbidity Costs,”Society of 14 Sheridan, Kevin, “Top 2011 Employee Engagement Trends,”Monster Thinking,Actuaries, Dec. 2010, http://www.soa.org/files/pdf/research-2011-obesity- 10 Jan. 2011, http://www.monsterthinking.com/2011/01/10/employee-relation-mortality.pdf engagement/6 Average prices for electricity, United States, October 2006-October 2011, 15 “Gallup Study: Unhappy Workers Are Unhealthy Too,” GALLUP ManagementMid-Atlantic Information Office, U.S. Department of Labor. Journal, 13 Jan. 2005, http://gmj.gallup.com/content/14545/gallup-study-http://www.soa.org/files/pdf/research-2011-obesity- unhappy-workers-unhealthy-too.aspxrelation-mortality.pdf 16 “Boosting Employee Wellness Participation Without Breaking the Bank,”7 Kaiser/HRET Employer Health Benefits 2011 Annual Survey. http://ehbs.kff.org/ Towers Watson, July 2010, http://www.towerswatson.com/research/23958 Parker-Pope, Tara, “Less Active at Work, Americans Pack on Pounds,” The 17 Erb, Marcus, “Wellness Programs at the Best Companies,”Great Place toNew York Times, 25 May 2011, http://well.blogs.nytimes.com/2011/05/25/less- Work Institute, http://www.greatplacetowork.com/publications-and-events/active-at-work-americans-have-packed-on-pounds/?ref=health blogs-and-news/714-wellness-programs-at-the-best-companies9 Butler, Kelley, “The One Thing in Your Office That’s Holding Back Your WellnessProgram,”Employee Benefit News, 27 Oct. 2011, http://ebn.benefitnews.com/blog/ebviews/wellness-programs-sedentary-work-health-effects-2719314-1.html Visit keas.com, call 415-537-7669, or email email@example.com