Challenges Today’s Corporations Face Employers Care About Employee Health In this session Challenges Today’s Corporations Face –Landscape today –Pressures on Corporate America –Corporate Response –Creating Workplace Wellness 2 Landscape Today: Mounting Costs and Concern 3 Landscape Today: Improve Health Costs “At Dow, our analysis shows that prevention can improve both our direct and indirect health-related costs. Our profit potential is inextricably linked to the capability and performance of our Andrew N. Liveris, employees.” President and CEO The Dow Chemical Company 4 Pressures on Corporate America Statistics • 60% of Business Roundtable CEOs cited healthcare costs as their number one cost pressure for the second year in a row •In 2000, employee healthcare costs represented 40% of pretax profits • Productivity losses related to health problems cost U.S. employers an estimated $225.8 billion annually • Almost half of 1,400 chief financial officers surveyed said they expected healthcare costs to account for the biggest increase in the costs of doing business in the next 12 months •Starbucks will spend more on health insurance for its employees this year than on raw materials needed to brew its coffee • Obesity costs American companies $12.7 billion each year •An overweight employee annually costs their employer an additional $450 to $2,500 in medical expenses and absences. Pressures on Corporate America: Competition In a Global Economy “The fact is the soaring cost of health care in America cannot be sustained over the long term by any business that offers health benefits to its employees. And every day that we do not work together to solve this challenge is a day that our country becomes less competitive in the global Lee Scott economy.” President and CEO Wal-Mart 6 Pressures on Corporate America Statistics • Americans now work 164 more hours per year than 20 years ago. • People are becoming less active due to advances in automated transportation, technology at home and more passive life pursuits. • The average annual healthcare cost per person in the U.S. exceeds $3,000 • 33% of adults under 65 with household incomes of less than $75,000 report not having enough money to pay for medical costs It does not have to be this way • Preventable illnesses make up approximately 70% of the entire burden of illness and associated costs in the U.S. • At least 25% of healthcare costs incurred by working adults are attributed to modifiable health risks such as diet and exercise. Corporate Response: Creating Workplace Wellness The following chart represents trends in corporate response to the rising cost of healthcare: Consumer Driven Cost - Shifting Public Policy Health Plans Wellness Programs • Employees pay higher • Lobby lawmakers to • High-deductible medical • 33% of companies said that deductibles, premiums impact legislation to plan coupled with an they are placing a greater and co-payment fees control healthcare employer-funded emphasis on improving costs reimbursement account employee health through • 62% of large employers for each employee wellness programs and said they would keep 33% are considering it. costs down by shifting • Intended to encourage increases to employees more cost-conscious • Incentives personal healthcare • Doesn’t contain costs • Onsite Screenings decisions and alienates employees • Employee Assistance and unions • Account for about 2% of Programs all healthcare coverage in the U.S. • Online, interactive tools • Communications i.e. newsletter • Healthy vending machine choices Corporate Response: Makes good business sense “We believe that programs that help reduce health risks can yield valuable benefits. It is clear that encouraging a healthy lifestyle makes good business sense.” John Rowe, MD Chairman Aetna, Inc. 9 Case for Workplace Wellness Today • On average, companies report a $3.50-to-$1 savings-to-cost-ratio in reduced absenteeism and healthcare costs • Reducing just one health risk increases a person’s productivity on the job by 9% and reduces absenteeism by 2% • An organization saves approximately $350 per employee per year by keeping healthy employees at low risk • 79% of employees think companies should encourage healthy lifestyles • 80% of executives believe that corporations have a responsibility to promote wellness among employees • Number of working Americans who get “no exercise” is 2 times higher among those who have no access to workplace fitness programs Creating Workplace Wellness Can’t do it alone “Like most corporations, Xerox is too familiar with the specter of ever-increasing health care costs. But companies can’t solve the problem alone. … We believe continued education… will ultimately translate to lower costs for us all – and better health for Anne M Mulcahy our people.” Chairman and CEO Xerox Corporation 11 Inactivity Is The Problem. So What’s The Solution? The Start! movement is here to motivate and encourage all Americans to take up walking and other healthy habits as part of their daily routine all year around, and to live longer, stronger heart-healthy lives. The Start! Movement The Movement: Start! The Goals: Increase Physical Activity to Prevent Heart Disease and Stroke in Americans Start! has the tools to help employers make employee wellness a priority. Start! Heart Walk Start! Fit -Friendly MySt art! Online Companies Tracking Tool Employer Tools: CEO Events St art! Walking at St art! Walking Work Day Program 14 MyStart! Online • MyStart! Online is a online fitness and nutrition program that allows your employees to track their daily activ ities – Track physical activ ity such as walking, biking, etc. – Track daily caloric intake – Daily tips and weekly articles MySt art! Online – Recipes Tracking Tool – Monthly newsletters Start! Walking Program • Through our Start! Walking Program, your company can setup “walking routes” around the workplace. – Employees can take breaks alone or with walking buddies to walk the route. – Different routes for different needs St art! Walking • Outdoor, indoor, physically challenging Program – Tracking tools for your employees – Celebration ev ents, and Lifestyle Change Awards to help your employees stay motiv ated Start! Heart Walk • Start! Heart Walk is the American Heart Association’s signature fundraiser currently in ov er 450 cities nationwide. • Employers can create company teams that walk at the ev ent and raise funds for research. – Surv eys show that ov er 90 percent of employees Start! Heart Walk feel proud of companies that support an important outside cause – Supporting the Heart Walk can help enhance community relations – Giv ing back to the community can also boost productivity, employee morale, job satisfaction and loyalty Start! CEO Events • Start! CEO Ev ents are local ev ents that bring leadership of local employers together in order to show support of the Start! mov ement. – Leaders can learn more about the Start! mov ement CEO Events and all the ways to use it for the company. – Leaders can learn how to become local sponsors of the mov ement and the local Start! Heart Walk. Start! Walking at Work Day – April 25, 2007 St art! Walking at Join others across the nation as they wear their sneakers to work on April Work Day 25, 2007 and pledge to start a healthier lifestyle as part of this annual ev ent. Bringing start! Walking At Work Day to your workplace is easy. All you have to do is: • Get your senior leaders involved. Hav ing key leaders participate sends a clear signal to staff that your organization supports start!. • Save the date. Reserv e time on your senior leaders’ calendars on April 25. Did you know that you could gain two hours of life expectancy for ev ery hour of regular, v igorous exercise? Hosting your walk or rally at 2:41 highlights that fact and prov ides a much needed afternoon break! • Spread the word. Promote your start! Walking At Work Day using posters in the workplace, contests and interactiv e activ ities. Our Start! Walking At Work Day packet will giv e you the tools you need. Contact your local American Heart Association representativ e on how to get your packet. Start! Fit-Friendly Companies Recognition Program Start! Fit -Friendly Companies • The American Heart Association is recognizing employers who champion the health of their employees and work to create a culture of physical activ ity and health in the workplace. • Companies who are recognized receiv e immediate benefits such as: – Consult ation on CPR/AED (aut omat ed external defibrillator) programs – Recognit ion on t he American Heart Associat ion’s program Web sit e – Local-level recognit ion by t he American Heart Associat ion at local events and in communication materials support ing the recognition program – The right t o use t he program’s annual recognit ion seal for int ernal communications to employees (e.g., int ranet company newsletters, break room post ers) and ext ernal communications related specifically t o recruit ment (e.g., employment section of t he company Web sit e, recruit ing tools for job fairs) – An official recognition letter sent by t he American Heart Association – A recognit ion plaque t o display at t he worksite To learn more about the Start! movement, visit the Web site at www.americanheart.org/start Or Get help from our local representatives by going to www.americanheart.org and using our zip code finder to locate the office closest to you.
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