CSR Issue Position Paper Workplace Wellness

1
CSR Issue Position PaperWorkplace Wellness

• David Beller
• P. Yang-Yang Chen
• Daniel Mandel

2
Table of Contents

• Overview
• Current Status
• Implementation Leading practices

3
Overview
4
Workplace Wellness

• A variety of measures to proactively encourage
  improved health outcomes, including education,
  services and incentives
• Companies are expanding their concept of health
  to include a broader sense of mental wellness
  with increasing focused on the prevention of
  health problems

5
Six dimensions of Wellness ?
6
The Business Case

• Reduced medical costs and disability costs.
• Reduced costs of employee healthcare benefits
  and avoided disability payments.
• Reduced Absenteeism.
• Studies show that programs can reduced missed
  days.
• Enhanced Productivity.
• Healthier workers are more productive.
• Enhanced Recruitment and Retention.
• Provide an incentive to remain with the
  current employer, and keep morale high.

7
The Business Case

• CSR
• Fair employee treatment
• Reputation
• Surveys

• COSTS
• Reduced medical and disability costs
• Reduced Absenteeism
• Enhanced Productivity

• RECRUITING / RETENTION
• Attract Talent
• Keep morale high
• Incentive to remain with the current employer
• Increased Loyalty

8
Key Drivers

• Increased healthcare costs
• The cost of health benefits rising 10-15 per
  year.
• Expanded definitions of health
• Including emotional and physical health with
  influences at home and work.
• Expanded healthcare options
• The mainstreaming of alternative medicine.

9
Key Drivers (cont)

• Globalization and employee diversity.
• Increased diversity of employees' ages, races,
  religions, and cultures, with a growing range of
  health and wellness issues.
• Increased focus on prevention.
• Proven effectiveness of preventive programs.
• Importance of weight management.
• Extensive social, personal and economic costs
  of obesity and overweight

10
Key Drivers (cont)

• Incentives designed to promote health.
• Emergence of economic incentives as a tool to
  encourage behavior change.
• Focus on mental health.
• The awareness about the scope and seriousness
  of mental health issues is growing.
• Changing issues in disability
• More companies are recognizing the need to
  accommodate employees undergoing treatment or
  recovering from disease and illness.

11
Examples

• SERVICES
• Screening programs
• Exercise Opportunities
• Counseling and Consultation
• Alternative health plans
• EDUCATION / PROMOTION
• Health education
• Encourage healthy diets
• Promote healthy-baby practices
• Resource library with books and articles on
  self-help topics
• Economic Incentives-- sharing of costs savings
  from health coverage

Source Business for Social Responsibility,
Health and Wellness Issues Brief
12
Current Status
13
Influences for Workplace Wellness

• Both regulation-driven and internally driven
• Foreign regulations
• United Kingdom The Management of Health and
  Safety at Work Regulations 1999 and Workplace
  (Health, Safety and Welfare) Regulations 1992
• Australia 1997 Workplace Health and Safety
  Regulation
• Canada Workplace Safety and Health Regulation
  2007
• Bidding on government contracts may require a
  workwell evaluation

14
Status of U.S. Regulations

• The U.S. has made less progress than other
  countries. U.S. governmental regulation has
  centered around safety rather than general
  workplace wellness.

For example, OSH and EPA regulations relate to
workplace safety (mostly in the construction
industry).
15
Public and Nonprofit Involvement

• The lack of U.S. regulation has not stopped many
  public and nonprofit organizations from becoming
  involved in advancing the issue
•  
• California Task Force on Youth and Workplace
  Wellness
• Launched by the State Legislature in 2002
• Mission Promote physical fitness and nutritional
  health in CAs schools and workplaces
• Goals include targets regarding the reduction of
  obesity rates
• Center for Disease Controls Worksite Wellness
  Initiative
• Designed as a resource for program planners in
  state and federal government
• Features a lactation support program, garden
  market, wellness committees, and discussion
  boards
• State Government Efforts
• Mississippi Department of Healths What is
  Workplace Wellness
• Massachusetts Department of Public Healths
  Wellness at Work Program

16
Whos designing the health promotion programs?

• Many large corporations have the necessary
  capacity and resources to provide workplace
  wellness programs for their employees
• However, smaller firms may lack the resources or
  expertise to do so
• Leading to a growing need to increase the
  availability of disease prevention and health
  promotion programs.

  UC Irvines Health Promotion Center seeks to
develop 5 health promotion programs targeted for
CA small and medium-sized businesses employing
between 2 to 500 workers.  
17
Growing Consultancy Business

• As firms go off site for their wellness training
  needs, consultancies are starting to make a
  profitable business out of helping companies
  implement workplace health programs.
• Consultants services center around assistance
  with assessment, implementation, and evaluation
  of wellness program
• In addition, these firms also provide lecture
  series, training, handbooks
•  
• Nonprofits can also serve as a great resource for
  providing examples of good programs.

18
What does a model wellness program look like?

• Its important to take an integrative approach to
  employee wellness.
• Any comprehensive workplace wellness program
  ideally consists of three key components
• Prevention
• Recognition
• Assistance

• And may require creating a more comprehensive
  program which includes
• Employee lifestyle change
• Clinical prevention services for employees and
  their dependents
• Ergonomics
• Occupational safety
• Organizational climate/social support
• Worksite violence prevention
• Compliance with occupational safety and health
  regulations

19
Steps for increasing the success of a workplace
wellness program
20
According to the "Healthy People 2010" Report,
produced by a consortium of health officials from
federal, state, and local governments joined with
community groups, academics, and others

• By 2010, 75 of U.S. employers will offer a
  comprehensive employee health promotion program
  that includes the following elements
• Health education skills development and
  lifestyle behavior changes along with information
  dissemination and awareness building, preferably
  tailored to employees interests and needs.
• Supportive social and physical environments
  includes an organizations expectations regarding
  healthy behaviors and implementation of policies
  that promote health and reduce risk of disease.
• Integration of the worksite program in an
  organizations structure.
• Linkage to related programs, such as employee
  assistance programs and programs to help
  employees balance work and family.
• Screening programs, ideally linked to medical
  care to ensure follow-up and appropriate
  treatment as necessary.
• Follow-up interventions used for supporting
  individual behavior change.
• An evaluation and improvement process to help
  enhance the programs effectiveness and
  efficiency.

21
Workplace Wellness Awards

• Whos recognizing corporations efforts to
  incorporate workplace wellness?
• C. Everett Koop National Health Award
• Awarded annually by the Health Project 2010
• Recognizes employee programs that reduce
  healthcare costs by encouraging healthy behavior
• Recent corporate award winners include Citigroup,
  FedEx, Johnson Johnson, Northeast Utilities,
  and Union Pacific Railroad
•  
• Corporate Health and Productivity Management
  Awards
• Awarded annually by the Institute for Health and
  Productivity Management
• Recognizes employers leadership in demonstrating
  improved relationships between health and
  productivity through intervention initiatives,
  cultural and environmental changes, and
  measurement of outcomes
• Past winners include DaimlerChrysler, IBM, and
  Motorola
•  
• Secretarys Innovations in Prevention AwardsU.S.
  Department of Health and Human Services
• Series launched by the Secretary of Health and
  Human Services in 2003
• Recognize businesses and organizations that are
  leading efforts to promote healthy lifestyles in
  their communities
• Past award recipients include Johnson Johnson
  and Union Pacific Railroad
•  
• Wellness Councils of America Well Workplace
  Awards

22
Implementation

• Leading Practices

23
COMPANY EXAMPLES
24
Google
Industry Technology Revenues 10.6
billion Employees 9,000 ?

• EXERCISE
• On site gym
• Swimming spa
• Subsidized exercise classes
• On site massage (low co-payment)
• FOOD - NUTRITION
• Free gourmet food
• Says co-founder Sergey Brin "The cafés have
  always been pretty healthy, but the snacks are
  not, and the efforts to fix that have been
  remarkably challenging.
• HEALTH CARE
• For employee and family
• On-site physician and dental care
• Maternity and Paternity leave
• OTHER
• Child Care Center
• Source www.google.com/intl/en/about.html

25
Clif Bar
Industry Food Revenues 100 million Employees
approx. 200

• Wellness program addresses employees physical,
  emotional, even spiritual needs
• EXERCISE
• On site gym (20 fitness classes per week during
  working hours)
• On site yoga and dance studio
• Personal trainers
• 97 participation rate 2.5 hrs per week (2003)
• FOOD - NUTRITION
• Free salads 2-3 days a week
• Caterer cooks dinners and deliver to workplace
• HEALT CARE
• Health screens
• Subsidized Massages
• Source Raising the Bar Integrity and Passion in
  Life and Business

26
Novo Nordisk
Industry Pharmaceutical Revenues 6.86
billion Employees 23,000

• NovoSund Program that looks at how an employee
  can adopt or maintain a healthy lifestyle
• Leisure centers At low cost for employees
• Works to ensure that employees can maintain a
  natural balance between work and leisure time
• Nutrition policy currently being developed by a
  cross-organizational working group. Room for
  cultural variation and ensure equal access to a
  selection of healthy food throughout the company
• Promotion of various sports events
• Pilot study to investigate the nature of stress
  and how to deal with it proactively.
• Completed a study of health checks and personal
  health advice among 1000 employees
• The employees who have health checks and receive
  personal health advice improve their health
  significantly. The largest health improvement
  was measured in the fitness test.
• Source www.novanordisk.com

27
More examples

• MICROSOFT
• Weight management benefit (employees already get
  free medical coverage). Company picks up 80 of
  the tab--up to 6,000--for a comprehensive,
  clinical weight-loss program.
• Benefit includes up to a year's worth of sessions
  with a personal trainer, behavioral and
  nutritional counseling, support groups, and
  medical supervision.
• 61,100 pounds have vanished from the bodies of
  2,152 employees since 2002.
• Cecily Hall, Microsoft's director of U.S.
  benefits, says the company has already realized a
  one-to-one return on investment since the program
  began in 2002. "These people are coming off of
  prescription drugs, they're seeing their primary
  care physician less, and not having as much
  hospitalization."
• Source More Micro, Less Soft, Nov. 2006,
  Business Week

28
More examples (cont)

• JOHNSON AND JOHNSON
• Programs
• Smoking cessation, employee assistance, health
  profiles, alcohol and drug and abuse, and on-site
  fitness facilities and personal trainers at many
  locations
• 90 percent of eligible employees participate in
  the companys Health Risk Assessments, which
  entitles them to credits of US500 worth of
  health benefits.
• Benefits
• The program reduces its overall healthcare costs
  by US9-10 million a year.
• Source Health and Wellness Issues Brief,
  Business for Social Responsibility

29
More examples (cont)

• MOTOROLA
• All new programs funded under the program must be
  business value-added, demonstrate a return on
  investment and have national application
• Global long-term wellness strategy that includes
  the companys Health Advantage Plan (HAP) medical
  plan, which supports proactive patient/physician
  partnerships, screenings and positive lifestyle
  choices (100 coverage)
• Approximately 75 percent of eligible employees
  choose to participate in HAP instead of
  Motorolas basic HMO and indemnity plans. To
  remain eligible for HAP, employees must complete
  a health screening once every two years
• Programs are implemented by Motorolas Wellness
  Shared Service managed by a team of 35 full-time
  and 18 part-time employees
• Source Health and Wellness Issues Brief,
  Business for Social Responsibility

30
Position Position

• Workplace wellness efforts are a promising form
  of corporate social responsibility serving the
  double bottom line by producing monetary value
  for corporations as well as social values for
  employees and others.
• U.S. companies have been slow to implement
  workplace wellness programs.
• By studying best practices and tapping into the
  research of nonprofits and relevant
  organizations, companies can design programs
  which fit their business models.

31
Risks

• Nanny corporations
• Privacy Issues
• Going too broad sacrifice other HR services
• Self-esteem and stigmatization
• Limits diversity of employees

32
Resources

• Business for Social Responsibility, Health and
  Wellness Issues Brief (https//www.bsr.org/CSRRes
  ources/IssueBriefDetail.cfm?DocumentID50304)
• The Institute for Health and Productivity
  Management (www.ihpm.org)
• Healthy People 2010 objectives (www.healthypeople.
  gov/)
• http//www.wellnesstaskforce.org/