June 2008 Ruxandra Băndilă Marketing & Business Development Director Working Towards Wellness* The Business Rationale *connectedthinking

June 2008Ruxandra BăndilăMarketing & Business Development Director

Working Towards Wellness*The Business Rationale

*connectedthinking

Agenda

People and Health

The Business Rationale

Wellness Programs

PricewaterhouseCoopersJune 2008

Slide 3

Growing Chronic Disease Epidemic • Responsible for 1/2 of all deaths in the world

• Will account for 2/3 of deaths in the next 25 years

• This is occurring despite the fact that chronic diseases are largely preventable

• Globalization has caused convergence with the increase in chronic disease to be even greater in emerging economies

Trend in death from chronic and communicable diseases

0%

20%

40%

60%

80%

100%

High Uppermiddle

Lowermiddle

Low

Sha

re o

f al

l dea

ths

2005

2015

2030

Source: World Health Organisation

Chronic-Disease-Related Deathsby Income Region

0%

10%

20%

30%

40%

50%

60%

70%

80%

2005 2015 2030

Milli

ons

of d

eath

s

Other causes

Chronic disease

People and Health


Slide 4

Poor Behaviors Drive Poor Health• More than 400 million people are obese and over 1 billion are

overweight globally. The number of obese people is expected to grow by 75% by 2015

- In the US, the obesity rate has grown from 15% to 32% in the past 25 years

- Half of all households in Brazil and 75% in Russia have at least one obese person

- Mexico has the second-highest prevalence of obesity among the countries of the Organization for Economic Cooperation and Development, after the United States

- The obesity rate in Britain is 23%, and there are now cities in China where the obesity rate is over 20%

• Risk factors such as smoking, alcohol use, obesity and hypertension are expensive, accounting for 1.5% of the gross domestic product in China and 2.1% in India

• In 2000, there were nearly 5 million smoking deaths worldwide

People and Health


Slide 5

Poor Health Impacts People - Our Most Important Asset

In the 21st century, people are a cornerstone for an organization’s success. Building and sustaining a culture of health and vitality pays dividends for an organization and its people.

People and Health


Slide 6

The Four Pillars of the Business Rationale for Wellness

• Productivity• Human Capital • Healthcare Costs • Sustainability



Slide 7

Productivity• Productivity losses associated

with poor health risks are as much as 400% of cost of treating chronic disease

• Includes unplanned absences, reduced workplace effectiveness, increased accidents and negative impacts on work quality or customer service

• Studies show that multiple health risk factors multiply the losses in productivity

• Stress and depression are intertwined with work & life environmental factors in impacting human capital effectiveness

Lost Productivity Related to Health Risks



Slide 8

Productivity

Absenteeism

Short-Term Disability

Presenteeism

Medical & Pharmacy

Long-Term Disability

Costs Associated with Health Risk



Slide 9

Human Capital

• Organizations invest an average of $290 in labour costs to generate $1,000 in revenue - Helping employees work longer and have more productive

lives, can protect this asset in the face of growing labour shortages globally

- An organization that shows that it values its workers is more likely to attract, retain and motivate employees

• The demand for talented people is increasing, and an ageing workforce is creating an additional drain on organizations’ workforces - China will be moving from an era of labour surplus into an

era of labour shortage as early as 2010 - Health & wellness is helping some organization distinguish

themselves as employers of choice



Slide 10

Healthcare Costs

• Chronic disease which is largely preventable is increasing burden on employers, individuals and social programmes- Impact on health systems, taxes and costs of coverage

• The risk factors that lead to chronic disease are cumulative, as are the costs associated with them - Metabolic syndrome, which includes a combination of

obesity and other health risks, is associated with a two to nine times higher prevalence of chronic diseases

• In the US, people with chronic disease account for more than 75% of the nation’s US$ 2 trillion in medical spending



Slide 11

Sustainability

• The epidemic of chronic disease – a product of both environment and behaviours – is a social phenomenon that is as equally prevalent and preventable as issues such as global warming, infectious diseases, poverty, terrorism, clean water and basic infrastructure

• As the economic burden of chronic disease grows, it could crowd out monies needed to improve other critical issues as well as to meet basic needs such as education and infrastructure in both industrialized and emerging economies



Slide 12

The Four Pillars of the Business Rationale for Wellness

• Productivity • Human Capital • Healthcare Costs • Sustainability

Value Proposition• Employee Vitality and

Engagement• Improved Organizational

Performance• Reduced Absenteeism• Enhanced Loyalty• Employer of Choice• Reduced Healthcare

Costs• Mitigated Burden on

Health System• Corporate Image &

Citizenship



Slide 13

Today Tomorrow• An increasing concern over talent acquisition and retention

• Lost productivity affects global competitiveness

• Spiraling health costs burden companies and societies

• Aging workforce seeks new and dynamic workplace experience

Defining the Strategy / Executing and Sustaining the Solution

• Build and maintain a high performing workforce

• Align incentives and resources supporting corporate culture of health

• Enhance workforce engagement and loyalty

• Improve productivity and functionality

• Improve health and reduce burden of health costs

Sustain a

Healthy Culture

Deploy Resources

and Support

Develop People

and Health

Strategy

Working Towards WellnessThe Path to a Healthy and Productive Organization

In the 21st century, people are a cornerstone for an organization's success. Building and sustaining a culture of health and vitality pays dividends for an organization and its people.



Slide 14

Wellness Programs

Requires a coordinated approach with 4 elements:

Wellness

Leadership• promote active leadership of senior management in wellness initiative

• target interventions based on unique characteristics of employee population• offer incentives to encourage participation and better outcomes• use targeted and ongoing mass communication

People

• collaborate with external parties through public-private partnerships

• establish evaluation and monitoring programmes to measure change,

outcomes and financial impact

Process

Culture• align wellness goals with business

strategy• create a supportive environment and

culture focused on wellness


Slide 15

38

53

82828389

10094

47

30

70

24

53

41

24 24

0

10

20

30

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50

60

70

80

90

100

Targeted andongoing masscommunication

Creating asupporting

environment andculture

Activeleadership of

seniormanagement

Evaluation andmentoring

Aligningw ellness goalsw ith business

strategy

Targetinginterventions

based on uniquecharacteristics

Use ofincentives toencourageparticipation

Collaborationw ith external

parties

Execution Framework (I)

Sum of important and very important categories Sum of diff icult and very diff icult categories

Wellness Programs

Importance and difficulty of execution framework


Slide 16

Employers bear increasing costs and can impact risk factors

Execution Framework (II)

Chronic disease is a growing burden

Corporate Wellness programmes are diverse

Applying a gold standard can lead to effective

• 60% of deaths worldwide

• Growing by 17% in next 10 years and fastest in low income countries

• Only 3% of health spending goes toward prevention in OECD countries

• Private health spending up; limited public health budgets

• Shared public/private impact

• Most large employers offer some kind of wellness programme

• Variation in corporate commitment, approach and impact

• Few have taken global approach

• Limited public/private coordination or collaboration

• Execution

• Active Leadership

• Business Alignment

• Supportive Environment

• Targeted interventions

• Health incentives

• Communication

• Public/Private Partnership

• Evaluation and monitoring

Wellness Programs

© 2008 PricewaterhouseCoopers LLP. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP (a Delaware limited liability partnership) or, as the context requires, other member firms of PricewaterhouseCoopers International Ltd., each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers LLP.

People are a cornerstone for an organization’s success. Building a culture of health and vitality pays dividends for an organization and its people.

Documents

June 2008 Ruxandra Băndilă Marketing & Business Development Director Working Towards Wellness* The Business Rationale *connectedthinking