The greatest wealth is health: Prioritizing workforce well-being as a prescription for business and economic prosperity - Healthy workforce | Cigna
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
The greatest wealth is health:
Prioritizing workforce well-being as a prescription
for business and economic prosperity
Key takeaways:
Reduced medical costs: Reduced absenteeism:
For every $1 spent on Employee engagement,
integrated care, a US linked to employers that
employer saves $6 in take a more active role
overall medical costs.1 in supporting health,
reduces absenteeism.2
In fact, a Gallup study
shows that highly
engaged workplaces saw
41% lower absenteeism.3
Boosted profitability and economic prosperity:
As a result, companies with high
employee engagement are 22%
more profitable, enabling companies
and employees alike to drive
greater US economic prosperity.3
COMMISSIONED BY
The greatest wealth is health:
2
Prioritizing workforce well-being as a prescription for business and economic prosperity
The business case for building an economy of mission-critical for employers to approach
well-being is strong. Not only does investing workforce well-being as a social, business and
in workforce well-being drive more value economic investment to be leveraged rather
than costs for US employers, but it enables than an expenditure to be justified. After all,
them to make a winning bet on sustainable for every $1 spent on integrated care, a US
business growth, and a resilient, prosperous employer saves $6 in overall medical costs.1
economy. As a result, it has never been more
For every $1 spent on integrated care, a US employer
saves $6 in overall medical costs
Employees also tend to be more engaged when Against this backdrop, the following case
working for companies that take a more active study examines two employee wellness
role in supporting employee health.2 Data programs that have successfully driven
shows that a 13.5% increase in employee well- tangible, measurable benefits for employees
being was associated with an average reduction and employers alike, and enabled robust
of 5.2% in medical costs per employee.4 business and wider economic outcomes.
Data shows that a 13.5% increase in employee well-being was associated
with an average reduction of 5.2% in medical costs per employee
1
Press M, Livesey C. Integrated Care Opens New Doors to Mental Health, Addiction Care, 2019.
Available from: https://www.statnews.com/2019/12/13/integrated-care-opens-new-doors-mental-health-addiction-care/.
2
Mitchell RJ, Oziminkowski RJ, Hartley SK. The Association Between Health Program Participation and Employee
Retention. J Occup. 2016;58(9):896-901.
3
Sorenson S. How Employee Engagement Drives Growth. Gallup, 2013.
Available from: https://www.gallup.com/workplace/236927/employee-engagement-drives-growth.aspx.
4
Guo X, Coberley C, Pope JE, et al. The Value of a Well-Being Improvement Strategy: Longitudinal Success across
Subjective and Objective Measures Observed in a Firm Adopting a Consumer-Driven Health Plan. J Occup. 2015;57(10):1055-62.
© The Economist Intelligence Unit Limited 2021
The greatest wealth is health:
3
Prioritizing workforce well-being as a prescription for business and economic prosperity
Proving the Value on Investment (VOI) of workforce
well-being on bottom line growth | Motorola
Headquartered in Schaumburg, Illinois, Motorola’s wellness strategy emphasizes
Motorola, Inc. is an American multinational preventive care, with a focus on enhancing
telecommunications company established in education and prevention, continuously
1928. Established in 1996, its Work/Life and evaluating wellness impact to achieve
Wellness Fund invests $6 million annually return on investment (ROI), attracting key
in the development of best-in-class work/ talent by advocating for a healthy culture
life and wellness programs for employees.5 and merging benefits with the Motorola
This fund was initiated in response to business to support their clients.
recognition of potential savings prompted
by an earlier health management program.
Healthy
+ + = VOI
culture
Continuously Education & Attracting
evaluating wellness prevention talent
Preventative programs offered include
disease management, cancer screenings, a
24/7 nurse telephone line, children’s aerobics 56,000+
and nutrition, and stress management. More
than 56,000 of Motorola’s US employees, Number of Motorola’s US
retirees, and family members benefit employees, retirees and family
from these programs, one component of members who benefited from
the rewards package that continuously preventative programs
evolves based on employees’ needs.6
5
GovGrantsHelp. Motorola Solutions Grant Assistance Program, 2021.
Available from: https://www.govgrantshelp.com/motorola-healthcare-grant-assistance/.
6
The Health Project. Motorola. 2021. Available from: http://thehealthproject.com/winner/motorola-global-wellness-initiatives/.
© The Economist Intelligence Unit Limited 2021The greatest wealth is health:
4
Prioritizing workforce well-being as a prescription for business and economic prosperity
There is a dedicated Motorola Wellness
Shared Service team, as well as wellness $6.5 million
site representatives throughout North Annual cost savings from
America who partner with the team to medical expenses
integrate wellness programs. Evidence-based
$10.5 million
programs reviewed by medical specialty
organizations are prioritized, and new
programs must prove they are adding value
Annual cost savings from
to the business and have national application.
Motorola also offers a Health Advantage
disability expenses
Plan (HAP), a preventive healthcare plan that
supports screenings and healthy lifestyle
It also highlighted that participating employees
choices, which 74.79% of employees choose
saw a 2.5% increase in annual aggregate
over health maintenance organizations
healthcare costs contrasted by the 18% annual
(HMOs).6 Methodologies to assess program
aggregate increase for non-participants.
impact and ROI include cumulative
Overall, it revealed a total annual cost
health reports, cost savings, customer
savings of $6.5 million resulting from medical
satisfaction surveys, needs assessments,
expenses from lifestyle-related conditions
and rates of program participation.
such as obesity, hypertension, and stress.
Compared with non-participants, Motorola
$3.93 saved from every $1 invested saves nearly $10.5 million annually in disability
expenses for program participants compared
to non-participants.6 Motorola continues to
To measure the impact of their overall
reap the benefits of this work, and in turn,
investment in employee health and well-
has continued prioritizing employee health
being, the Motorola Wellness Initiatives
and well-being across their business.
team assessed US employees who
regularly used the on-site wellness center By offering a well-rounded wellness
or the reimbursement benefit for an plan to employees, their families, and
external fitness center. This study revealed retirees, Motorola has achieved tangible
that for every $1 invested in Wellness improvements in their workforce’s well-
benefits, Motorola saved $3.93, equating being, while reducing the financial burden
to $6,479,673 in savings in 2000.6 that stems from poor health measures.
© The Economist Intelligence Unit Limited 2021The greatest wealth is health:
5
Prioritizing workforce well-being as a prescription for business and economic prosperity
Unlocking business value through employee
wellness | American Cast Iron and Pipe Company
American Cast Iron and Pipe Company In 2016 – 10 years after the launch of
(American), an Alabama-based manufacturing WellBody – American reported a 4:1
firm, launched a wellness program for its ROI based on investing in physical
2,300 employees in 2006 called WellBody: therapy and safety programs, as well as
A Good Health Movement. This program savings from less physical therapy clinic
was launched, in part, due to recognition visits and absence due to injuries.
of work-related injuries as a barrier to
10 years after the launch –
employee well-being and as a barrier to
America reported a 4:1 ROI
business success. WellBody services include
access to registered dieticians, group fitness
classes, monthly wellness days, and required,
week-long safety training for new hires.
This program is comprised of four steps:
1) biometric screening,
American also reported a decline of 89.2%
from 2010-2016 in the number of injuries they
2) goal setting with
reported to Occupational Safety and Health
a health coach,
Administration (OSHA), as well as a decrease
in the total number of lost work time cases
3) participation in two wellness by 85.7%. Since 2013, 90% of American’s
campaigns each year, and employees who endured an injury were able
to return to their jobs without modifications
4) rewards, such as discounts on to their workload after receiving care.7
health plan premiums from
meeting health goals. This analysis revealed a total
cost saving of $678,187
To determine the program’s overall financial
impact, medical and pharmaceutical claims
were reviewed. This analysis revealed a
total cost savings – from both medical and
productivity costs related to absenteeism, or
missing work due to poor health – of $678,187.8
7
CDC. ‘The Right Way’: American Cast Iron Pipe Company, 2018. Available from:
https://www.cdc.gov/workplacehealthpromotion/initiatives/resource-center/pdf/WHRC-ACIPCO-Case-Study-508.pdf.
8
The Health Project. American Cast Iron Pipe Company. 2015.
Available from: https://thehealthproject.com/winner/american-cast-iron-pipe-company/.
© The Economist Intelligence Unit Limited 2021The greatest wealth is health:
6
Prioritizing workforce well-being as a prescription for business and economic prosperity
Actionable takeaways for US employers
Both Motorola’s and America’s programs improved wellness outcomes and a reduced
showcase the potential economic impact economic burden for the Motorola business.
of employee wellness programs on tangible
American has also seen measurable
business outcomes. As health is a critical
financial and productivity improvements
predictor of productivity, US employers
from its tailored employee wellness
are recognizing the increasingly evident
program. By implementing preventative
benefits of investing in employee wellness. policies in response to the high frequency
Over the past two decades, investing in of musculoskeletal injuries, American
simultaneously improved their employees’
targeted policies and programs has resulted
health while alleviating the economic toll
in significant financial gains for Motorola.
from such injuries on their business’ growth.
More specifically, supplying the resources
for preventative health measures enables To implement similarly effective wellness
Motorola’s employees to have more control programs, US employers should apply
over their own well-being, resulting in the following actionable steps:
INDENTIFY - MOBILIZE - COLLABORATE - IMPACT
• Identify and address the most significant barriers to business resiliency.
• Mobilize existing resources to mitigate the detrimental impact of poor
health and wellness to employee health and the bottom line.
• Foster collaborative partnerships with a diverse array of multidisciplinary stakeholders
to accelerate innovation and develop collective solutions to collective problems.
• Drive meaningful impacts on employees’ lives beyond their
workspace, while also achieving the business’ fullest potential.
© The Economist Intelligence Unit Limited 2021The greatest wealth is health:
7
Prioritizing workforce well-being as a prescription for business and economic prosperity
While every effort has been taken to verify the accuracy of this information,
The Economist Intelligence Unit Ltd. cannot accept any responsibility or liability
for reliance by any person on this report or any of the information, opinions or
conclusions set out in this report. The findings and views expressed in the report
do not necessarily reflect the views of the sponsor.
© The Economist Intelligence Unit Limited 2021You can also read
