WORK-LIFE AND WELLNESS

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1 WORK-LIFE AND WELLNESS A Business Case Johnny Koortzen

2 Agenda Definition of wellbeing Rationale Business models Wellbeing solutions Implementation Trends

3 DEFINITION OF CORPORATE WELLBEING

4 Current Services Employee benefits plans Employee wellbeing programme Wellness programmes Occupational health programmes Risk / Disease management programmes Loyalty programmes Organisational and health consulting

5 Strategic Perspective Credibility Crisis Thrive Strategy Drive Survive Human Capability

6 Operational Perspective Company Employee Governance Risk Mgt. Psycho/social Physical/medical Resilience Quality of life Productivity Work/life Environment Integrated Health Management

7 Working definition Develop and implement work/life solutions which will improve: The competitiveness of employers by optimizing human capital The quality of life of employee s (and their families) by optimizing their wellbeing potential

8 RATIONALE CORPORATE COMPETITIVENESS

9 Rationale: Social responsibility Company s respond to society issues: Sustainability Poverty HIV/Aids Trauma Discrimination

10 Over-indebtedness: The Silent Crisis R15 billion micro lending book average interest rate of 157% per annum Over 4,000,000 South Africans have defaulted on credit payments Over 1,500,000 garnishee order deductions take place each month 25% of garnishee deductions result in the employee taking home less than that required to maintain themselves and their dependents 3000 debt judgments occur daily Employees earning less than R96K per annum are being immobilised through debt and related financial stress

11 HIV/Aids (Source: SA Bureau of Economic Research) Macro-economic costs to South Africa SA Economy GDP 0.5% smaller every year 2015 Overall economy 1.5% smaller by 2010 Overall economy 5.7% smaller by 2015 Demographic effect 10 million fewer people by 2010 HIV/Aids affects predominantly the economically active age-group HIV/Aids cripples before it kills Proliferation of Aids-orphans

12 Rationale: Human potential Return on human capital Resilience Innovation Hard working Loyalty Cost of human capital Absenteeism Employee benefit claims Industrial accidents

13 Work well model (Source: North-West University, Energy & Identification) Vigour 10 Distraction Engagement Cynicism Dedication Burnout Over-commitment 10 Exhaustion

14 Employee Wellbeing Programme Utilisation Statistics (Source: The Careways Group) Management support 8.9% Substance abuse 3.9% Work support 10.0% Life events 20.8% Family matters Mood related 9.7% 25.3% Volume Trauma 1.6% Health info 8.0% Finance 4.8% Legal 7.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

15 Presenteeism report (Harvard Business Review) Condition Prevalence Average productivity loss Aggregate annual loss Migraine 12% 4,9% $ 434 m Arthritis 19,7% 5,9% $ 866 m Chronic lower back pain 21,3% 5,5% $ 859 m Allergies or sinus trouble 59,8% 4,1% $ 1810 m Asthma 6,8% 5,2% $ 260 m GERD 15,2% 5,2% $ 583 m Dermatitis or other skin condition 16,1% 5,2% $ 611 m Flu in the past two weeks 17,5% 4,7% $ 607 m Depression 13,9% 7,6% $ 787 m

16 Rationale : Consumerism Awareness of consumer products and how others live Awareness of their voice and choice Search for a meaningful life Families Debt Emotional suffering

17 Rationale: Effective & Efficient Company s are best to address corporate and employee wellbeing Ideal environment to effect change Targeted solutions Economies of scale Negotiated best value for money Tax efficient

18 Outcomes to company s Company s are looking for competitiveness through: Improved corporate governance Improved productivity Improved morale Reduced staff turnover Reduced absenteeism Reduced benefit claims Reduced industrial accidents

19 BUSINESS MODELS

20 Business model: Consulting Packaging and target population Organisational development Management Solution & methodology Policy & procedure, as well as training & development initiatives Management empowerment Infrastructure Consultants

21 Business model: Wellbeing Provider Packaging & target population Outsourced wellbeing service Business-to-business offering for all employees and families Solution & methodology Wellbeing programmes for target groups Self-care and professional support Infrastructure Care Centre and networks of health professionals

22 Business model: Integrated Solution Level of employer involvement Internal to outsourced Target population Management and employees Families and communities Comprehensive and integrated solution Methodology: Best practice from different models Flexible fee structure

23 SOLUTIONS

24 Solution: Flexible Work Options (Source: Australian Survey 2005) Flexi-time 17% 27% 51% Work from home on an adhoc basis 21% 36% 41% Part time work Flexible starting and finishing times 28% 39% 59% 50% 61% 55% Government/public sector (n=116) Blue Collar "Hands on delivery" (n=88) White Collar/Service Intensive (n=100) Paid parental leave 43% 41% 69% Study leave 53% 60% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80%

25 Solutions: Executive Wellbeing Needs assessments and audits (know your baseline!) Audit Policy and Practices Programme Development, Key Objectives and actions Business Plans Orientation EXCO Management Prevention Comprehensive assessments Wellbeing training programmes Awareness campaigns Care & Support Psycho-social counselling/support Exercise and Diet programmes Ongoing counselling to At- Risk individuals Evaluation and monitoring

26 Solutions: Employee Wellbeing Needs assessments and audits (know your baseline!) Culture and lifestyle / behavioural risk assessments, Audit Policy and Practices Programme Development, Key Objectives and actions Business Plans Orientation EXCO Management Employees Prevention Wellbeing workshops Awareness campaigns Online prescription strength information Care & Support Psycho-social counselling/support Medical and physical counselling Financial & legal counselling Evaluation and monitoring

27 Solutions: HIV/Aids Needs assessments and audits (know your baseline!) KAP Surveys, Prevalence Studies, HIV Financial Impact Studies (Actuarial Study), Audit Policy and Practices Programme Development, Key Objectives and actions Business Plans Training EXCO Management HIV/Aids Steering Comm. Peer educators Employees awareness campaigns Induction Prevention Condom dist. Training programmes Awareness campaigns Universal risk reduction STI Mgt majority of ee s not infected, openness and non-discrimination Care & Support VCT Wellness Clinics STI treatment Psycho-social counselling/support Clinical intervention pre- ART (vitamins, vaccinations, treatment of O.Is ART Community based care programmes: Care Givers, Hospice and Networking Evaluation and Monitoring : HIV/Aids audit and Health care audit

28 Solutions: Over-indebted Programme Needs assessments and audits (know your baseline!) Garnishee order audit, financial impact, Audit Policy and Practices Programme Development, Key Objectives and actions Business Plans Training EXCO Management Human Resources Employees awareness campaigns Induction Prevention Financial literacy training programmes Retrenchment training Retirement training Awareness campaigns Care & Support Debt scrutinising Budgetting Psycho-social counselling/support Evaluation and monitoring

29 Solutions: Components Business plan Management empowerment and consulting Intervention Screenings / surveys Information / education Counselling Outcomes monitoring

30 IMPLEMENTATION

31 Implementation Process Consulting Quality Promotion Support Access

32 Implementation: Care Centre 24/365 availability Health professional staff All official languages Quality management procedures Employee focus Risk assessment Health information Telecare F2F (workshops and consulting) Referral Management focus Performance and risk management Health decision making Risk assessment Telecare F2F (workshops and consulting) Referral

33 Implementation: Customer Relationship Programme development and customisation Policy & procedure development Communication programme Implementation and monitoring Reporting Management consultation

34 Implementation: Networks

35 Implementation: Networks Accreditation and profiling Multi-disciplinary wellbeing networks Continuous quality improvement processes Provider and employee administration Accessing and payment processing

36 OPPORTUNITITES

37 Growing Market Driving forces add to the growing market Global competitiveness Risk management Knowledgebase economies Consumerism Major role players support the process Government Private sector Employee / consumer bodies

38 Incentivised Programmes based on the Insurance Business Model Packaging and target population Loyalty programme as add-on to insurance product The insured Solution & Methodology Risk management Financial incentives to the insured to participate in programme Infrastructure Discounted networks of wellbeing and lifestyle related services and products

39 Consumer Directed Healthcare Model (CDH) Consumer-directed health plans and health savings accounts provide financial incentives for patients to manage their own care Shared decision-making is accepted as the most effective model for major health decisions Patient-centred care has gained widespread endorsement from all healthcare professions The mantra of the patient safety movement has become nothing about me without me.

40 CDH: Prescription-Strength Information (Source: Healthwise) Decision-focused, actionable Evidence-based & complete In-depth review by experts No commercial influence Referenced and up-to-date Beyond HON-Quality accredited (URAC) Easy to use (plain language)

41 CDH: e-health (Source: Healthwise) Improve health status by supporting healthy lifestyles, improving health decisions and enhancing care quality Reduce health care costs by improving efficiencies in the healthcare system and prevention Empower people to take greater control of their health by supporting better informed health decisions and self care Enhance clinical care and public health services by facilitating health professional practice and communication Reduce health disparities by applying new approaches to improve the health of underserved populations

42 Human Capital Management recognise that 95% of its assets drive out the front gate every evening. Leaders consider it their job to bring them back the next morning Source: Harvard Business Review

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