Transcript Key Strategic Results - NBGH HP Conference S@W Slides

2013/2014 Staying@Work™ Survey
The Business Value of a Healthy Workforce
August 21, 2014
© 2014 Towers Watson. All rights
reserved.
CRITICS, AUDIENCES AND
EMPLOYERS ACROSS THE
COUNTRY
CAN’T STOP TWEETING ABOUT
THAT NEW MOVIE…
WITH THE REALLY
LONG
TITLE,
THAT TRUTHFULLY…
…ISN’T VERY CATCHY AT ALL.
WRITTEN, DIRECTED, PRODUCED,
AND
EVERY OTHER FUNCTIONED…
BY
@TOWERSWATSON
BASED ON A TRUE STORY OF
APPROXIMATELY 892 EMPLOYERS…
P
Warning!
{
Rated
P for…
Please. No laughing 
TITLED…
2013/2014
TOWERS WATSON/NATIONAL
BUSINESS GROUP ON
HEALTH EMPLOYER SURVEY
ON THE BUSINESS VALUE OF
A HEALTHY WORKFORCE:
SUMMARY OF KEY
FINDINGS.
THE SEQUEL.
FANS ACROSS THE
COUNTRY EXPLAIN THE
SURVEY’S TOP FINDINGS…
@Employee57
grumbles…
“Employees view lack of support and inadequate
staffing as leading causes of stress”
#StrawOnACamel’sBack
#Help—iNeedSomebody
#Help—NotJustAnybody
#needabreak
@TAKINGACTION48
Says show me the money...
“Incentives are becoming
increasingly popular”
#YouHadMeAt$
#You(andMoney)CompleteMe
@BMI_over35
comments…
“Adoption of outcomes-based incentives
continues to expand.”
#sodoesmywaistline
#cantstopwontstop
#iAteTheCarrot…andTheStick
@pradalover1990
Knows the best way to manage stress…
“The most prevalent way employees
reduce stress is by doing other
activities that distract them… like
shopping”
#TheDevilMadeMeDoIt
#SoDidStress
@TowersWatson
closes with…
“All the cool employers are going to see
this movie. You should too.”
#nopressure
#justsayin’
#thanksforwatching
#passtheSnowCaps
Our survey results are coming
to a theatre near you.
And by theatre, we mean the MBGH
2014 Annual Conference-Taking Care
of Business-Linking Wellness &
Health Benefits.
Stay Tuned
2013/2014 Staying@Work™ Survey
The Business Value of a Healthy Workforce
Presentation to Memphis Business Group on Health
August 21, 2014
© 2014 Towers Watson. All rights reserved.
About the Staying@Work survey
Respondents by Region
Inaugural global survey
North America
15 42
Countries/
markets
surveyed
Europe
%
9%
Employer respondents have
more than >10,000 full-time
workers
892
%
51
Latin America
35%
42%
Number of Full-time Workers
Employed by Respondents
Less than 1,000
18%
1,000 to 5,000
42%
Employers completed
the survey between
May and July 2013
in North America,
Latin America,
Europe and Asia
26%
5,000 to 9,999
10,000+
14%
Industry Groups
4%
of the respondents have their
workforces located in multiple
countries and respondents
operate in all major industry
sectors
Asia Pacific
14%
9% 8%
16%
28%
8%
10%
17%
Energy and Utilities
Financial Services
General Services
Health Care
IT and Telecom
Manufacturing
Public Sector and Education
Wholesale and Retail
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Top strategic priorities
Workplace Health Culture
70%
Health Engagement
63%
Educate Employees
44%
Awareness
29%
Physical Health
28%
0%
10%
20%
30%
40%
50%
60%
70%
94%
7 10
of respondents plan to have an
their health is a top priority of their health
80%
in
respondents say developing a workplace
culture where employees are responsible for
articulated health and
productivity strategy in the
and productivity programs.
next three years.
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Top lifestyle risk factors
15%
Yet only
of employers identify improving the emotional/mental health (i.e., lessening the
stress and anxiety) of employees as a top priority of their health and productivity programs.
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
21
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Stress disconnect and consequences
Top 3 causes of the #1 issue: workforce stress
Employer says
Employee says
1. Lack of work/life balance
2. Inadequate staffing
3. Expanding technology
1. Inadequate staffing
2. Low pay/pay increases
3. Unclear job expectations
The disconnect potentially risks employers diverting precious time and resources to fixing the wrong
problems, alienating employees and suffering the business consequences of increased
absence, presenteeism and unwanted turnover.
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
22
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Steps taken by employers to manage stress
United
States
Promotion of EAP
85%
Access to financial planning information/services
61%
Flexible working options
51%
Expanding EAP services and/or other stress management activities to dependents
46%
Education and awareness campaigns
40%
Stress management interventions (e.g., stress management workshops, yoga, tai chi)
39%
Training for managers
34%
Specialized training for employees
23%
External specialist/resources used to design and deliver program(s)
23%
Risk assessment/stress audits
22%
Anti-stress space
10%
Written guidelines on stress
7%
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
towerswatson.com
23
© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Provider strategies to improve quality/efficiency of care
Use value-based benefit designs
20%
6%
Use technologies to integrate biometrics with coaching
11%
10%
Offer incentive (or penalties) to providers to improve quality,
efficiency and health outcomes
11%
7%
Expand access to site-based services such as
traveling physician, nurse, registered dietician
Offer further access to behavioral health
services through virtual consulting sessions
Contract directly with physicians, hospitals and/or
ACOs/PCMH beyond what the health plan is offering
In place in 2013
Planned for 2014
20%
13%
6% 3%
26%
27%
26%
5%
5%
16%
20%
21%
Considering for 2015 or 2016
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Tougher requirements to earn incentives or avoid penalties (U.S.)
2013
2014*
2015/2016**
Reward locations that achieve high levels of health engagement
7%
15%
36%
Apply rewards (or penalties) and/or requirements under your wellness and health
management program to employees and spouses alike
28%
36%
62%
Design incentives to deliver frequent and smaller amounts throughout the year
20%
32%
46%
Design programs to measure and reward individuals for making progress toward a
healthy lifestyle (e.g., reward progress toward achieving physical activity of 150 minutes
per week, smoke-free status)
17%
28%
66%
Require employees to complete requirements of wellness and health management
activities (beyond simply enrolling in a program) in order to receive reward (or avoid
penalty)
39%
49%
77%
Require employees to take specific steps in order to be eligible for other financial
incentives for wellness and health management activities (i.e., gateway approach)
32%
44%
70%
Require employees to take specific steps to receive any subsidized coverage under your
health plan
16%
19%
39%
Require employees to take specific steps to enroll in your health plan
11%
13%
28%
Require employees who get certain types of medical procedures without first seeking
additional input (e.g., second opinion services) to pay a higher cost share
4%
6%
22%
Program design components
Requirements
*Estimates are based on companies “planning” to adopt the tactic in 2014.
**Estimates are based on companies considering the tactic for 2015/2016.
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
towerswatson.com
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Most incentivized programs
% using any
financial
incentive
% using a
penalty
Mean/Median
($s)
Health risk assessment/appraisal
88%
11%
270/125
Biometric screening
85%
11%
327/175
Tobacco-cessation programs
54%
14%
249/125
Worksite diet/exercise activities
47%
0%
182/75
Weight management programs
47%
1%
166/75
Lifestyle behavior coaching
programs (telephonic)
46%
2%
158/75
Onsite health coaching and
condition management
42%
2%
160/125
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Outcomes-based incentives (U.S.)
Reward (or penalize) based on tobacco-use status
2015/2016**
Annual financial incentive amount under
outcomes-based incentive programs (U.S.)
71
2014*
Mean
54
25th Percentile
Median
75th Percentile
$700
2013
42
2011
0
20
650
$600
32
40
60
80
$500
Reward (or penalize) based on biometric
outcomes other than tobacco-use status (e.g.,
health-contingent targets such as BMI, blood
pressure, cholesterol levels)
$400
$300
2015/2016**
68
2014*
425
417
423
325
275
$200
26
$100
2013
150
16
2011
$0
12
0
20
125
Tobacco-use status
40
60
80
Biometric outcomes other than
tobacco-use status (if achieve all
targets under the program)
Notes: Based on U.S. companies. 2011 is based on 2011/2012 Staying@Work Survey.
* Estimates are based on companies “planning” to adopt the tactic in 2014.
27
** Estimates are based on companies considering the tactic for 2015/2016.
© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
towerswatson.com
Taking action: High-effectiveness organizations adopt a holistic view
of health and productivity
Company leadership, organizational priorities and culture
support workforce health and productivity goals
Provide customized approaches for different workforce
segments
Involve and address the role of the manager in changing
workforce health outcomes
Define health and productivity more broadly to include
physical, psychological and emotional aspects of health
Use health, health risk behaviors and absence and
disability to make program decisions
Source: Towers Watson 2013/2014 Staying@Work Survey
towerswatson.com
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Survey results of companies with the most effective health and
productivity programs
Financial/Productivity
Health Risks
1.5 1.3 26%
22%
47%
>$1,600
18%
34%
Fewer cases with
hypertension
(>130/89)
percentage points
lower medical
trends
fewer days
(per employee per year)
in total absence
Lower medical costs per employee
Lower BMI (>30)
higher revenue
per employee*
Fewer
Diabetics/High
Glucose Risk
(>100 with fasting)
Fewer users of Tobacco
Note: *Based on Global results
Source: Towers Watson/National Business Group on Health 2013/2014 Staying@Work Survey
towerswatson.com
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Key considerations for building a culture of health and well-being
1
Health is a top priority for the large majority of employees, but many are
failing to engage with employer initiatives
•
2
Target communication to specific needs of employees
Employees are receptive to their company taking an active role, but do
not feel employers’ are taking active steps to support their health and
well-being
•
Get managers and senior leaders more involved
Overcoming inertia
3
•
Cultivate healthy social norms through onsite activities and by leveraging new
technologies and social apps
The role of incentives
4
•
Financial incentives are supportive of activity but there are limits – not a
primary motivator and are more important to those already
Engagement with health and well-being
5
•
Not just a health ‘issue’, relates to broader issues of worker engagement and
company performance
30
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Thanks!
Link to survey:
http://www.towerswatson.com/en/Insights/IC-Types/Survey-Research-Results/2014/02/stayingatwork-reportbusiness-value-of-a-healthy-workforce
31
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© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.