Global Health and Productivity Trends

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1 Global Health and Productivity Trends Webcast January 15, Towers Watson. All rights reserved.

2 Agenda Employer Viewpoint Global Survey Key Global Findings Differences by Country Employee Viewpoint Global Benefits Attitude Survey Key Global Findings on Health Aspects Differences by Country Focus on Stress Next Steps How to Use This Information towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 2

3 Today s presenters Francis Coleman Director of International Consulting Shelly Wolff Health Management Leader for U.S. East Division Henriette Coetzer, MD Global Medical Director 3 towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

4 Employer View 2014 Towers Watson. All rights reserved.

5 Global Survey 15 Countries/ Employer markets surveyed 892 Inaugural Global Survey 42 % respondents have more than >10,000 full-time workers Employers completed the survey between May and July 2013 in North America, Latin America, Europe and Asia LATAM 126 Participants 372 APAC Participants China Hong Kong India Malaysia Philippines Singapore 81 Brazil Mexico EMEA Participants France Italy Netherlands Spain U.K. 51 % of the respondents have their workforces located in multiple countries and respondents operate in all major industry sectors 313 Participants Canada U.S. North America towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 5

6 Key global findings Employers can make a difference Companies rank workplace culture and engagement as top priories of health and productivity programs Stress, obesity and lack of physical activity are the biggest lifestyle risk factors identified by employers in all regions Globally, the causes of poor health are remarkably similar; however, the tools, abilities and resources to address these causes vary greatly Companies want to differentiate health programs from competitors and customise approaches for workforce segments Lack of engagement is a key obstacle to changing employee behaviour use of health incentives is primarily a U.S. phenomenon Employers and employees have vastly different opinions on the causes of employee stress High-effectiveness organisations are doing a number of things differently, and their results are far better than their peers towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 6

7 Employers are taking the next step in H&P strategy as a key competitive advantage No Strategy Adopt Strategy Communicate and Deliver Differentiate H&P strategy Offered various programs but have not articulated an H&P strategy Articulated an H&P strategy with stated objectives and goals for each program Effectively communicated the value proposition behind the H&P program and delivered on its promises Customized for critical workforce segments and used organisational analytics to test program effectiveness U.S. 3% 50% 14% 18% 21% 16% 59% 14% 59% Canada Mexico Brazil Europe APAC 5% 63% 18% 10% 25% 13% 45% 6% 19% 49% 19% 15% 14% 17% 40% 8% 3% 48% 18% 9% 21% 15% 53% 24% 18% 47% 20% 17% 26% 13% 33% 8% 8% 55% 18% 10% 18% 16% 50% 10% 45% 40% 53% 33% 50% TODAY IN 3 YEARS towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 7

8 Health and Productivity: A core component of organisational health strategy Describe your organisation s view of health and productivity improvement. Asia Pacific Asia Pacific 58% 36% Europe Europe 54% 33% Latin America Brazil Mexico 43% 73% 42% 25% North America Canada United States 48% 49% 39% 42% It is essential to our organisational health strategy It plays a moderate role in our organisational health strategy towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 8

9 Stress, lack of physical activity and obesity are top lifestyle risk factors globally Top lifestyle risk factors Stress Lack of physical activity Obesity Tobacco use Presenteeism Poor nutrition Substance abuse Asia Pacific Europe Brazil Mexico Canada United States towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 9

10 Biggest obstacles to changing employee behaviour Lack of employee engagement and budget/staff What are the biggest obstacles to changing employee health behaviours? (Lack of ) Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 United States Employee Engagement Evidence on Returns Budget/Staff Incentives to Encourage Participation Senior Leader Support Canada Employee Engagement Budget/Staff Incentives to Encourage Participation Evidence on Returns Senior Leader Support Mexico Employee Engagement Budget/Staff Evidence on Returns Evidence on Best Practices Org Structure To Support Brazil Employee Engagement Incentives to Encourage Participation Senior Leader Support Org Structure To Support Budget/Staff Europe Budget/Staff Employee Engagement Evidence on Returns Regulatory China Budget/Staff Evidence on Returns Senior Leader Support Employee Engagement Incentives to Encourage Participation Evidence on Best Practices India Employee Engagement Evidence on Best Practices Incentives to Encourage Participation Evidence on Returns Actionable Data Southeast Asia Employee Engagement Evidence on Best Practices Budget/Staff Incentives to Encourage Participation Evidence on Returns towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 10

11 Regional highlights Brazil has many of the same issues as the US, including an expensive healthcare system where employers pay a significant proportion of the cost, and similar lifestyle issues Brazilians rate effectiveness of health programs higher than all other regions Mexico also closely mirrors the US in terms of lifestyle factors, and even though company medical plans are less comprehensive and may only focus on major medical and hospitalization services, cost is becoming an issue The importance of H&P to employers in Asia is comparable to US Obesity ranks high (#3), even though national obesity rates are lower in Asian countries in relative terms China is unique in many aspects; fewer companies link H&P to strategic value, and tobacco is in top 3 lifestyle risks Although employers recognise the need for a more strategic approach, Europe has fewer employer provided health and well-being programmes European employers tend to focus first on compliance and workplace safety rules, and less on developing a broader strategy linked to business values Organisations in Europe report improving employee emotional/mental health (i.e., lessening stress and anxiety) as the second priority, followed by improving employee health engagement towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 11

12 Employee View 2014 Towers Watson. All rights reserved.

13 Towers Watson s Global Benefits Attitude Survey: An employee view on health and productivity Comprehensive global survey of employees at large organizations in 12 countries 1,000 to 2,000 participants in each country (5,000+ in US) Average age of participants by country was Includes questions complementing employer views in S@W on: Workplace stress Employer s role in employee s health and well-being Use and importance of wellness incentives and barriers to program participation Emphasis on understanding the link between workplace initiatives for physical/emotional health and employee engagement and productivity Core health and productivity themes include: Physical health conditions of individual and family Work and non-work drivers of stress Common lifestyle risk factors Benefit preferences (risk aversion in designs) Comfort levels with the expanded role of ERs in health Perspectives on culture of health Incentive designs and importance for program participation Motivations regarding health engagement Psycho-social values around health Control/ownership of health decisions and readiness for change towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 13

14 Employees have not connected to wellness programs The wellness initiatives offered by my employer have encouraged me to live a healthier lifestyle. US & Canada Europe 16% 31% Latin Am. 35% Asia Pac 39% Source: Towers Watson s Global Benefits Attitude Survey, towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 14

15 Weak recognition of the steps companies are taking to cultivate a healthy workplace Only about 2 in 5 employees say their employer promotes a healthy work environment (37%) and provides regular communication that promotes the importance of a healthy lifestyle (40%) GLOBAL RESULTS My employer promotes a healthy work environment My company provides regular communication China, India, Mexico Australia, Brazil, Canada, Chile, US Germany, Japan, Netherlands, UK 40 % or more % Less than 30 % Brazil, Canada, China, India, Mexico, US Australia, Chile Germany, Japan, Netherlands, UK Source: Towers Watson s Global Benefits Attitude Survey, towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 15

16 Employees agree that their employer has a role in encouraging healthier lifestyles Please indicate your degree of agreement towards each of the following by selecting the option closest to the one you prefer. Agree Neutral Agree Employers should take an active role in encouraging their employees to live healthy lifestyles Global Results 40% 49% 11% It is not the role of an employer to encourage their employees to live healthy lifestyles Asia Pacific 44% 45% 11% Europe 31% 57% 12% Latin America 46% 40% 14% North America 39% 51% 10% Source: Towers Watson s Global Benefits Attitude Survey, towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 16

17 Top reasons employees are not participating in wellness activities What are the main reasons you have not participated in a wellness activity? Americas Asia Pacific Europe Canada United States Brazil Chile Mexico Australia China India Japan Germany Netherlands UK Manage my health on my own Too busy No activities offered at my employer It s not a priority right now I m healthy and don t need to participate Source: Towers Watson s Global Benefits Attitude Survey, towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 17

18 Employees use new technologies to support their health and well-being Do you use the internet tools or mobile apps to help you manage your health and well-being? If so, do the internet tools or mobile apps help you manage your health and well-being? Percentage Use Percentage Indicating Effective Brazil 70% 75% India 63% China 47% Chile 45% Mexico 40% US 40% Canada 33% Australia 27% UK 25% Netherlands 24% Germany 22% Japan 19% Source: Towers Watson s Global Benefits Attitude Survey, % 62% 71% 69% 70% 72% 69% 72% 81% 80% 79% towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 18

19 Top sources of work-related stress What are the top causes of work-related stress in your job? Americas Asia Pacific Europe Canada United States Brazil Chile Mexico Australia China India Japan Germany Netherlands UK Inadequate staffing (lack of support) Low pay (or low increases in pay) Unclear or conflicting job expectations Organizational culture, including lack of teamwork Lack of work/life balance Source: Towers Watson s Global Benefits Attitude Survey, towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 19

20 Focus on Stress 2014 Towers Watson. All rights reserved.

21 Why focus on stress and mental well-being? Employers in Towers Watson s recent global Staying@Work survey identified stress as the #1 lifestyle risk across all regions surveyed Stress costs employers billions and impacts all other wellness behaviors Stressed workers incur healthcare costs 50% higher than the norm 60% of lost workdays each year can be attributed to stress Stress drives and sustains other lifestyle behaviors such as inactivity and poor nutritional choices: Workers with the most severe levels of job stress have a 68% higher risk of developing heart disease, and men who experience moderate or extreme job stress were twice as likely to smoke as other workers All stress is not bad: Balanced stress drives exceptional performance Effective coping skills and resiliency are key to maintaining business momentum in a challenging environment towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 21

22 But employers and employees are not aligned on causes of stress Employee view: Support me Pay me Direct me Employer View Employee View Lack of work/life balance (excessive workloads and/or long hours) 1 5 Inadequate staffing (lack of support, uneven workload or performance in group) 2 1 Technologies that expand availability during nonworking hours (e.g., mobiles, notebooks) 3 10 Unclear or conflicting job expectations 4 3 Fears about job loss, too much change 5 7 Lack of supervisor support, feedback and not living up to their word 6 6 Fears about benefit reduction/loss (e.g., lower value or loss of health care coverage, reduction in retirement benefits) Organizational culture, including lack of teamwork, tendency to avoid accountability and assign blame to others Low pay (or low increases in pay) 9 2 Lack of technology, equipment and tools to do the job 10 8 Note: Companies responding 3, 4 or 5 on a 5-point extent scale. Employees given a choice of their top three sources of stress. Source Of Employee Data: 2013 Towers Watson Global Benefits Attitude Survey (GBAS) completed by 5,070 U.S. workers at companies with 1,000 or more employees. towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 22

23 Comprehensive and localised approaches are needed Work-related stressors may contribute significantly to employees stress burden, but employers need to assess and understand what those stressors are To set up for success, minimizing stress needs to be engineered into the organization To sustain balance and momentum, programs should be offered that are multi-faceted, addressing stress and building resilience at the individual level while monitoring and continually evaluating work related stressors at the organizational level Organizational Design and Work Environment Recruiting for resiliency, optimizing organizational design and work processes Employee Pathway Supporting individuals to manage stress and build resiliency towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 23

24 Stress management and resilience building: Short-term coping vs. long-term capacity building Stress Management Yoga Diaphragmatic Breathing Mindfulness Progressive Muscle Relaxation Autogenic Training Relaxation Response Biofeedback Guided Imagery Transcendental Meditation Mental Resilience Confidence Building Hope and Optimism Purposefulness Adaptability Social Support Explanatory Style Thinking Errors Reframing Perspective Taking Merit Finding Physical Activity towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 24

25 Approaches should be culturally resonant Individualistic Cultures (e.g., US, Australia, Great Britain) Individualistic Cultures Resilience building promoted as primary intervention Stress management techniques offered as a supplement to resilience building Cultural Customization Neutral Cultures Resilience building and stress management both offered as interventions; prioritization may reflect personality-based differences Collectivist Cultures Collectivist Cultures (e.g., Indonesia, Taiwan, Singapore) Interventions focus on stress management techniques (e.g., yoga, breathing exercises, mindfulness, meditation) Resilience building modules offered as supplement towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 25

26 Next Steps How to Use this Information 2014 Towers Watson. All rights reserved.

27 Key implications to consider 1. Voice of the Consumer. Understanding the specific needs and cultural differences across your workforce 2. Address the disconnect around stress. Employer View vs. Employee View 3. A work in progress. Employees have yet to fully connect with their employers as a go-to place to help improve their lifestyle habits, but few resist their employer getting more involved 4. Manager support. To effectively reinforce messages 5. Time is of the essence. Lack of time in work day and evolving culture 6. Moving into the digital age. Strong evidence for emerging technologies towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 27

28 Tools to help Employer Scorecard Diagnostic and benchmarking tool for identifying tactics/programs that are key differentiators of H&P effectiveness ( Best Practices ) XYZ XYZ Employee Surveys Assess and benchmark opinions of support for a culture of health Measure employee engagement, including perceived well-being, and identify top drivers Link employee opinions to health outcomes and business results Global Health & Well-being Forums Available throughout the year in different regions Asia Pacific upcoming in February 2014 (India, China, Singapore, Hong Kong) Member website for ongoing networking towerswatson.com 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 28

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