Productivity, the Other Side of the Ledger - NHRMA 2018 … · Productivity, the Other Side of the ... Working longer does NOT equal greater productivity. Avg. Hours Per Worker vs

Productivity, the Other Side of the LedgerRICHARD POLAK AND TOM PARRY | 8 SEPTEMBER 2016

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Working longer does NOT equal greater productivityAvg. Hours Per Worker vs. GDP Per Capita

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000

MexicoTurkey

HungaryPolandRussia

ChileGreece

KoreaSpain

ItalyIsraelJapan

UKFrance

GermanyBelgiumFinlandIrelandAustria

NetherlandsCanada

USDenmarkSwedenAustralia

SwitzerlandNorway

Luxembourg

Avg. Hours Worked GDP Per Capita

Source: World Bank, OECD (1)0 500 1,000 1,500 2,000 2,500

NetherlandsGermany

NorwayDenmark

FranceBelgium

SwitzerlandSwedenAustria

LuxembourgSpain

FinlandAustralia

UKIcelandCanada

JapanItalyUS

TurkeyIsrael

HungaryPolandRussia

ChileGreece

KoreaMexico

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4

ProductivityAbsence Mgmt.

Wellbeing

Engagement

Technology

Optimizing Work Day

Key Components to Improved Productivity

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Number of employees engaged Gallup study

Engagement

5

13%

$450B

$3.14M

Cost of disengaged workers in annual lost productivity Gallup study

Savings in turnover costs/1,000 employees (based on case study)

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What is Engagement?We measure employee engagement using the items..

A willingness to put in more effort than expected Being proud to work for the organization A willingness to promote the organization as a great workplace Not recently considering other job opportunities Feeling a strong sense of job satisfaction Feeling your work strongly contributes to the organizations success Feeling compelled by the organizations mission

6

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Wellbeing

7

Harvard study of 100 peer-reviewed journal articles showed that Wellness programs can expect to yield an ROI of:

3.27:1 on health care cost reductions, and 2.73:1 on absence and related costs after about three years.

Physical Health

Social/Emotional

HealthFinancial Health

Career Health

Community Health

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8

TechnologyRe-engineered to optimize the work experience: Instant communication software (e.g., Skype for

business, Jabber, Slack, etc.) Cloud (for collaboration) Voice recognition software Virtual meetings Tablets (for customer presentations) Mobile optimization Social platforms (e.g., Chatter for Salesforce,

LinkedIn, etc.)

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Absenteeism

9

Unplanned absenteeism costs an estimated $2,650 per year for every salaried employee.

Other costs to the business include:

Low employee morale and resentment from the staffers who are left behind.

Breakdown of team collaboration and project management.

Safety issues creating hazards for understaffed departments.

Managers spending too much time focused on missing employees.

Poor customer service and product quality management.

Limited productivity due to low employee headcount creates an overwhelming work load.

Breakdown in respect for all company policies when employees are allowed to habitually abuse PTO and come into work late or not at all.

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Headset

Treadmill

Multiple monitors(20-30% increase)

Stand-up desk(10% increase)

Voice recognition software

Optimizing Your Workday

10

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Sample Metric of ROI Results

11

Description AssumptionsTime Saved

(minutes)

Increased Productivity

(minutes)Rate $ per

minuteIncreased Productivity ($)

Breakfast Stabilize and energy 30 30 3.33 $100

Exercise Stabilize and energy 30 30 3.33 $100

Transcription service for vm's 20 vm's/day 30 seconds/vm 10 3.33 $33

Voice Recognition Software 30 min/day 1 min/email x 35 35 3.33 $117Keyboard Shortcuts 15 min/day 15 15 3.33 $50Optimize Task List 30 min/day 30 30 3.33 $100Use a Password Manager 10 min/day 10 10 3.33 $33Improve typing speed 15 min/day 15 15 3.33 $50Avoid Distractions 30 min/day 30 30 3.33 $100Manage email 10 distractions x 5 50 50 3.33 $167Avoid multitasking Focus 30 30 3.33 $100

Get enough sleep Focus/productivity 30 30 3.33 $100Increase monitor size 26" monitor 30 30 3.33 $100Add another monitor Two 19" monitors 15 15 3.33 $50Nap for 10 minutes 10 min/day 30 30 3.33 $100

Assume $200/hour Total minutes = 390 Daily increase $1,300

# minutes = 1 hr 60 # work days/yr 240

Hours 6.5Annual

incr/person $312,000

# employees 1000Assumed % efficiency gained 75%

$234,000,000

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Thomas Parry, Ph.D.PresidentIntegrated Benefits Institute

Productivity: Finding the Business Value in Workforce Health

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Todays discussion How is the world changing for employers? Why?

What does workforce health REALLY mean to employers?

Can CFOs get it?

How do we deal with measurement and the business case for health?

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The world is changing The rise of consumerism New health/risk financing and delivery

mechanisms A broadening view of health Market consolidation The breakdown of industry segmentation Rapidly changing technology and resulting

data challenges The need to demonstrate health value to

senior leaders

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Employer journey: moving beyond costs to outcomes

Healthcare as cost of doing business Changing plan designs to control costs Managing health risks to dampen healthcare

cost trend Broadening outcomes to include absence,

disability and performance Integrating other factors: EE engagement,

health culture, financial wellness, wellbeing

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Whats at Risk Economically for Employers?

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Case profile: an example 10,000 life manufacturer

Workforce

71% male

54% between 35-54

48% operators, 13% skilled crafts

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Its all about medical costs

Chart1

1

0

0

0

Series 1

Sheet1

Series 1

Medical1

0

0

0

To resize chart data range, drag lower right corner of range.

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Its about medical and pharmacy costs

Chart1

0.81

0.19

0

0

0

Series 1

Sheet1

Series 1

Medical0.81

Pharmacy0.19

0

0

0


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We should include wage replacements

Chart1

0.64

0.15

0.21

0

0

Series 1

Sheet1

Series 1

Medical0.64

Pharmacy0.15

Wage replacements0.21

0

0


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And the other impacts of absence

Chart1

0.53

0.13

0.2

0.09

0

Series 1

Sheet1

Series 1

Medical0.53

Pharmacy0.13


LP - absence0.09

0


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What about reduced EE performance?

Chart1

0.5

0.11

0.17

0.08

0.14

Medical is just HALF of the total costs of health

Series 1

Sheet1

Series 1

Medical0.5

Pharmacy0.11


LP - absence0.08

LP - performance0.14


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Research - going beyond medical & pharmacy to absence and presenteeism

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000C

ost p

er 1

000

EEs

Medical Pharmacy Absence lost prod Presenteeism lost prod

Chart1

553382472996057186490

1669929599294151865

338413225910179677095

12575430536813046922

80821548682869132582

9482382788617982430

15754278767256688576

1485853620298505618

11671128063599924694

15726365517269546818

Medical

Pharmacy

Absence lost prod

Presenteeism lost prod

Cost per 1000 EEs

Sheet1

DepressionObesityArthritisBack/Neck PainAnxietyGERDAllergyOther cancerOther chronic painHypertension

Medical553381669933841125754808294821575414858511671115726

Pharmacy247292953225930531548638278278763620280636551

Absence lost prod960579929410179668130828698617972566298503599972695

Presenteeism lost prod1864901518657709546922132582824308857656182469446818

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Co-morbidity and lost time

Chart1

0.11.5

1.43.5

3.14.7

4.47.5

5.96.8

6.67.6

811.5

8.717.8

14.714.7

27.59.9

Absence lost time

Presenteeism lost time

# of chronic conditions

Lost days

Sheet1

12345678910+

Absence lost time0.11.43.14.45.96.688.714.727.5

Presenteeism lost time1.53.54.77.56.87.611.517.814.79.9

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Low Prevalence, High Cost Diseases

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Health Conditions Evaluated

Urinary and bladder conditions

Diabetes

Ulcers

Cancer

Skin cancer

Coronary artery disease

COPD

Osteoporosis

Congestive heart failure

Rheumatoid arthritis

Viral hepatitis

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The Whole Picture of Lost Time$27,837

$21,812$19,956

$19,179$15,678

$14,146$13,164

$11,782$11,356

$8,818$5,867 Ave. total costs = $12,200

Chart1

2644.753939.2321964242282.7996608571

3723.3871881.2080762923213.8148934286

4671.8452651.7971170744032.4696414286

3619.8435038.0809695233124.4416294286

4869.6094090.8828035184203.1682254286

4878.3815056.595306834210.7397145714

4825.0686688.6718626774164.7229794286

7763.0854714.8105674266700.6513671429

5802.1069146.1294773645008.0463502857

7302.5098206.4906954856303.1084825714

7001.08814792.4736373286042.9390994286

STD

LTD

Lost Productivity

Ave. total cost

Sheet1

STDLTDLost Productivity

$2,644.8$939.2$2,282.8

Skin cancer$3,723.4$1,881.2$3,213.8

Ulcer$4,671.8$2,651.8$4,032.5

COPD$3,619.8$5,038.1$3,124.4

Coronary artery disease$4,869.6$4,090.9$4,203.2

Osteoporosis$4,878.4$5,056.6$4,210.7

Diabetes$4,825.1$6,688.7$4,164.7

Cancer$7,763.1$4,714.8$6,700.7

Congestive heart failure$5,802.1$9,146.1$5,008.0

Viral hepatitis$7,302.5$8,206.5$6,303.1

Rheumatoid arthritis$7,001.1$14,792.5$6,042.9

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So Its Not Just about Healthcare Cost Do CFOs Get It?

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Results from the Integrated Benefits Institutes Latest CFO survey

Finding the Value in Health

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Key highlights CFOs are integrally involved in

benefits strategy/decisions CFO focus goes well beyond

controlling healthcare costs CFOs want to achieve broad

organizational goals And those translate into consistent

strategies/plan designs Measurement is a challenge

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CFOs are involved

Chart1

0.15

0.28

0.14

0.43

Equal partner

All/most decisions

Limited to budget decisions

Little/no involvement

Column1

Sheet1

Column1

Little/no involvement0.15

Limited to budget approval0.28

All/most decisions0.14

Equal partner0.43


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Since ACA

An Emphasis on Engaging Employees in their Health

Increased Cost-Sharing50%EEs premium share

Out-of-pocket amounts

High-deductible plans

45%44%

Enhanced wellness programs

Premiums linked to lifestyle Wellness financial

incentives

52%41%

31%

Balanced with

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CFOs most important goals since ACA

Chart1

0.020.050.09

0.020.020.07

0.020.090.12

0.090.180.2

0.10.160.23

0.150.180.11

0.150.120.1

0.440.190.1

First

Second

Third

Sheet1

FirstSecondThird

Business process0.020.050.09

Improve service0.020.020.07

Improve productivity0.020.090.12

Manage health0.090.180.2

Help consumers0.10.160.23

Comply w/ regs0.150.180.11

Attract talent0.150.120.1

Control cost0.440.190.1

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For every 10 CFOs who say controlling costs is most important

4 say helping enrollees become healthier, better consumers of care

4 say attracting, retaining talent or improving productivity 1 says improving customer service or business performance

9 Other CFOs Report Another Goal as the Most Important

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Human capital

Business performance

Enrollee health

Connecting goals to actions

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CFOs that Emphasize Human Capital Are Less Likely to

increase high-deductible plans

increase out-of-pocket costs

raise employee premiums

eliminate coverage

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CFOs that Emphasize Employee Health Are

Less likely to offer high-deductible plans

More likely to:

increase wellness programs

link premiums to lifestyle choice

offer wellness financial incentives

offer value-based benefits

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CFOs that Focus on Business Performance Are

Less likely to: increase employee out-of-pocket costs raise employee premiums

More likely to enhance: disability benefits specialty pharma coverage

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Assessing the performance of benefits programs

Chart1

0.05

0.05

0.06

0.08

0.11

0.14

0.23

Series 1

Sheet1

Series 1

Track absence0.05

Track health status0.05

Calculate ROI0.06

Recruitment/retention0.08

EE program satisfaction0.11

EE program participation0.14

Any assessment at all0.23

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Health and business performance94%

Chart1

0.10.43

0.10.35

0.210.63

0.210.62

0.560.38

83%

45%

53%

84%

Agree strongly

Agree

Sheet1

Agree stronglyAgree

Linking performance to business metrics would help make better decisions0.10.43

Health-related job performance needs to be linked to business results0.10.35

EE healthis an important factor in absence0.210.63

EE health is important to EE performance0.210.62

EE performance is critical to business success0.560.38

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MGM Mirage Case Study

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Estimating lost productivity at MGM

1.8 lost days per FTE/Year

6.2 lost days per FTE/Year

Lost worktime = 8 days per FTE/Year or $2,598 per FTE/Year in Lost Productivity

Chart1

1.8

6.2

Sheet1

AbsencePresenteeism

1.86.2

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Lost-time improvements impact on EBIDTA Reducing 1 lost day/FTE =

$15 MM to EBIDTA* from Productivity Gains

*Earnings before Interest, Depreciation, Taxes and Amortization

Chart1

15

30

45

East

$ Millions

Sheet1

1 Day2 Days3 Days

East153045

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The bottom line

Savings $15.0 MM

Wall-Street Multiple 10.7X

Outstanding Shares 284.3 M

Gain in Stock Price $ .56/share

One Day of Productivity Improvement

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Communicating the Right Data to CFOs

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Key workforce health dimensions* Financial (cost) Program

participation Biometric

screening Health risks Utilization

* Thomas Parry and Bruce Sherman, A Pragmatic Approach for Employers to Improve Measurement in Workforce Health and Productivity, Population Health Management, Vol. 15, No. 2, 2012

Preventive care Chronic

conditions Lost worktime Lost productivity Employee

engagement

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Dimensions & dashboard metricsDimension Summary Metric

Financial Program cost/EE

Program participation EEs participating/All EEs

Biometrics EEs reaching target/All EEs

Health risks # of health risks/EE

Utilization # EEs getting care/All EEs

Preventive care # EEs getting screened/All EEs

Chronic conditions # EEs w/ chronic conditions/All EEs

Lost worktime # of lost workdays/EE

Lost productivity Lost productivity $/EE

Employee engagement Engagement score/EE

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Telling the story to senior leadersLeading Indicators

Treatment Indicators

Lagging Indicators

Health risks

Biometrics

Chronic condition prevalence Preventive care

EE engagement

Health services utilization

Program participation

Financial

Lost worktime

Lost productivity

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Thinking Differently About Outcomes

EmployeeHealth &

Wellbeing

Top-Line Value

Bottom -Line Costs

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EmployeeHealth &

Wellbeing

Healthcare Costs

Excess Labor Costs

Absence/ disability

Wage Replacement

Payments

Health and bottom-line costs

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Employee Health &

Wellbeing

Employee Job

SatisfactionEmployee

Job Performance

Customer Satisfaction

Core Business Processes

Customer buying

behavior

Corporate Financial

Performance

Excess Labor Costs

Health and top-line value

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Health, human capital and business

Chart1

0.6976744186

0.511627907

0.5

0.2558139535

0.1046511628

0.8953488372

0.6976744186

0.5697674419

0.3720930233

0.2093023256

0.1860465116

0.1162790698

0.0697674419

0.0348837209

0.9651162791

0.7674418605

0.7325581395

0.6511627907

0.5348837209

0.4534883721

0.2906976744

0.2674418605

Raw output

% of respondents reporting use of a performance metric

CategoryHuman Capital Performance MetricsValidTotalPercentageVarianceSDSECI

Business objectivesAny608670%0.21092482420.45926552690.04952387540.0970667958

Revenues448651%0.24986479180.49986477350.05390180480.1056475373

Profitability438650%0.250.50.05391638660.1056761177

Shareholder Value228626%0.19037317470.43631774510.04704935250.0922167308

Store/unit sales98610%0.09369929690.30610340890.03300797950.0646956398

Business outputAny778690%0.09369929690.30610340890.03300797950.0646956398

Customer/patient satisfaction608670%0.21092482420.45926552690.04952387540.0970667958

Compliance with regulations498657%0.24513250410.4951085780.0533889310.1046423048

Service Errors328637%0.23363980530.48336301610.05212237450.102159854

Product throughput188621%0.16549486210.40681059730.04386751490.0859803292

Patient readmissions168619%0.15143320710.38914419840.04196249810.0822464963

Product defects108612%0.10275824770.32055927330.03456679540.067750919

Inventory turnover6867%0.06489994590.25475467790.02747090340.0538429707

Students performing at grade level3863%0.03366684690.18348527720.01978572630.0387800235

Human capital mgmt.Any838697%0.03366684690.18348527720.01978572630.0387800235

Employee satisfaction668677%0.17847485130.42246284010.04555533960.0892884657

Employee turnover638673%0.19591671170.44262479790.04772945940.0935497405

HR costs per employee568665%0.22714981070.47660236120.05139335430.1007309745

Absences468653%0.2487831260.49878164160.05378500760.105418615

Supervisor evaluations398645%0.24783666850.49783196810.05368260170.1052178994

Overtime258629%0.20619253650.45408428350.04896516760.0959717284

Accident costs238627%0.19591671170.44262479790.04772945940.0935497405

Raw output

Venn-ish

Management, output& objectives58

Management & output18

Management only6

Management & objectives1

Output & objectives1

No measures2

86

Venn-ish

Company can measure ...

Link data

IBIFLHCC

YES3053541%

NO2172833%

DK2032327%

711586100%

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AMEX - improvements in customer service and workforce health risk

Chart1

2.2

4.3

Series 1

% Difference in Customer Service Scores

Sheet1

Series 1

Low vs. Medium Risk2.2

Low vs. High Risk4.3


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Goodyear - an unhealthy workforce does poorer quality work

Compelling opportunities exist to more closely link health and business goals

1.5

2

2.5

3

3.5

4

4.5

$4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000

Was

te P

rodu

ctio

n as

% o

f Fin

al S

tock

Va

lue

PEPY medical/drug costPEPY Medical and Drug Costs

Was

te P

rodu

ctio

n as

%

of F

inal

Sto

ck V

alue

Sherman B, Lynch W. Am J Managed Care, 2014.

For every $1000

reduction in healthcare

costs, output increases by

$2000

Chart2

2.01

4.16

3.22

2.88

3.51

PEPY medical/drug cost

Waste Production as % of Final Stock Value

Sheet1

Time Period

Employee Status Group Medstat

SubsetPatients MedNet Pay MedNet Pay Per Pat MedNet Pay PEPY Med and RxNet Pay PMPY Med and RxSubset2005-062006-07

Allied plants1,001$2,677,826$2,675$5,989$2,484Allied plants$2,484$1,767

Tire Manufacturing35,113$90,280,195$2,571$7,556$2,819Tire Manufacturing$2,819$2,908

Retail11,146$24,217,743$2,173$4,605$2,112Retail$2,112$2,234

Veyance facilities7,446$20,040,163$2,691$7,820$2,988Veyance$2,988$3,305

Chemical plants1,857$5,803,612$3,125$8,993$3,339Chemical plants$3,339$4,095

Time PeriodTime Period

Employee Status Group MedstatEmployee Status Group Medstat

SubsetPatients MedNet Pay MedNet Pay Per Pat MedNet Pay PEPY Med and RxNet Pay PMPY Med and RxSubsetNet Pay PMPY Med and Rx

Allied plants901$1,524,666$1,692$4,141$1,767Allied plants% change

Tire Manufacturing33,724$87,893,260$2,606$7,725$2,908Tire Manufacturing3.16%

Retail10,520$24,082,735$2,289$4,700$2,234Retail10.58%

Veyance facilities5,654$16,664,405$2,947$8,543$3,305Veyance facilities5.81%

Chemical plants1,704$6,590,042$3,867$10,638$4,095Chemical plants-28.87%

Time PeriodTime Period22.64%

Employee Status Group MedstatEmployee Status Group Medstat

SubsetPatients MedNet Pay MedNet Pay Per Pat MedNet Pay PEPY Med and RxNet Pay PMPY Med and RxSubsetNet Pay PMPY Med and Rx

Tire Manufacturing-4%-2.64%1.37%2.23%3.16%Tire Manufacturing

Veyance facilities-24%-16.84%9.51%9.24%10.58%Veyance facilities

Retail-6%-0.56%5.36%2.07%5.81%Retail

Allied plants-10%-43.06%-36.74%-30.85%-28.87%Allied plants

Chemical plants-8%13.55%23.75%18.28%22.64%Chemical plants

Sheet1

2005-06

2006-07

Net Pay PMPY Med and Rx

Sheet2

Time PeriodJul 2005 - Jun 2006

Employee Status Group MedstatActive

SubsetAll Data

FactAKRONDANVILLEGADSDENK/S FAYETTEVILLELAWTONTOPEKAUNION CITYTotal

Patients Med7,2895,8483,3022,7145,7374,1016,05335,044

Net Pay Med$16,117,184$11,343,681$7,160,948$7,347,650$19,335,303$9,684,657$18,666,277$89,655,700

Net Pay Per Pat Med$2,211$1,940$2,169$2,707$3,370$2,362$3,084$2,558

Net Pay PEPY Med and Rx$6,412$5,977$6,841$7,179$9,677$7,234$9,400$7,564

Net Pay PMPY Med and Rx$2,576$2,151$2,701$2,764$3,413$2,553$3,480$2,822



SubsetAll Data


Patients Med6,8195,6463,0032,5185,7913,7905,92533,492

Net Pay Med$16,181,277$11,410,892$6,822,659$7,993,575$18,101,898$9,249,120$17,610,854$87,370,276

Net Pay Per Pat Med$2,373$2,021$2,272$3,175$3,126$2,440$2,972$2,609

Net Pay PEPY Med and Rx$6,837$6,173$6,962$8,234$9,266$7,534$9,198$7,742

Net Pay PMPY Med and Rx$2,755$2,233$2,786$3,257$3,335$2,672$3,421$2,916

Time Period% Change


SubsetAll Data


Patients Med-6%-3%-9%-7%1%-8%-2%-4%

Net Pay Med0.40%0.59%-4.72%8.79%-6.38%-4.50%-5.65%-2.55%

Net Pay Per Pat Med7.32%4.19%4.76%17.26%-7.25%3.34%-3.62%1.97%

Net Pay PEPY Med and Rx6.64%3.29%1.77%14.70%-4.25%4.15%-2.15%2.36%

Net Pay PMPY Med and Rx6.93%3.79%3.15%17.82%-2.28%4.66%-1.70%3.30%

AKRONDANVILLEGADSDENFAYETTEVILLELAWTONTOPEKAUNION CITYAverage

2005-06$2,576$2,151$2,701$2,764$3,413$2,553$3,480$2,822

2006-07$2,755$2,233$2,786$3,257$3,335$2,672$3,421$2,916

Sheet2

2005-06

2006-07

Net Pay PMPY Med and Rx

Sheet3



SubsetAll Data

FactBAYPORTBEAUMONTHOUSTONNIAGARA FALLSTotal

Patients Med {Rank}11111

Patients Med641,09768971,857

Net Pay Med$460,253$2,975,896$2,326,811$40,652$5,803,612

Net Pay Per Pat Med$7,191$2,713$3,377$5,807$3,125

Net Pay PEPY Med and Rx$17,421$8,561$8,803$9,985$8,993

Net Pay PMPY Med and Rx$6,831$2,987$3,543$4,389$3,339



SubsetAll Data

FactBAYPORTBEAUMONTHOUSTONNIAGRA FALLSTotal

Patients Med {Rank}22222

Patients Med6399264361,704

Net Pay Med$469,581$3,214,841$2,874,070$31,549$6,590,042

Net Pay Per Pat Med$7,454$3,241$4,470$5,258$3,867

Net Pay PEPY Med and Rx$20,423$9,727$10,943$9,480$10,638

Net Pay PMPY Med and Rx$8,086$3,498$4,584$5,245$4,095

Time Period% Change


SubsetAll Data

FactBAYPORTBEAUMONTHOUSTONNIAGRA FALLSTotal

Patients Med {Rank}100%100%100%100%100%

Patients Med-2%-10%-7%-14%-8%

Net Pay Med2.03%8.03%23.52%-22.39%13.55%

Net Pay Per Pat Med3.65%19.46%32.36%-9.46%23.75%

Net Pay PEPY Med and Rx17.23%13.62%24.31%-5.05%18.28%

Net Pay PMPY Med and Rx18.37%17.13%29.37%19.51%22.64%

Sheet4

DANVILLEGADSDENK/S FAYETTEVILLETOPEKAUNION CITY

PEPY$6,173$9,962$8,234$7,534$9,198

Waste as % of FSV2.014.163.222.883.51

DANVILLEGADSDENK/S FAYETTEVILLETOPEKAUNION CITY

$2,233$2,786$3,257$2,672$3,421

Waste as % of FSV2.014.163.222.883.51

Sheet4

PEPY medical/drug cost

Waste as % of final stock value

Sheet5

DANVILLEGADSDENK/S FAYETTEVILLELAWTONTOPEKAUNION CITY

WC claims costs$1,554$737$2,308$1,512$1,421$3,292

Waste as % of FSV2.014.163.222.222.883.51

Union City989$8,894,334.685403622$3,291.99

Fayetteville8386,567,368.215689722$2,308.50

Replacement613$4,837,308.62

Danville5984,162,150.795355388$1,554.38

Union City989$8,894,334.68Lawton6563,544,108.784688407$1,511.86

Fayetteville8386,567,368.21Tyler505$3,141,780.192027021$3,099.90

Replacement613$4,837,308.62Topeka485$2,435,434.273428507$1,420.70

Danville5984,162,150.79Buffalo4492,396,714.492892067$1,657.44

Lawton6563,544,108.78Wingfoot163$1,654,406.64

Tyler505$3,141,780.19Gadsden2841,164,307.873158837$737.18

Topeka485$2,435,434.27Akron/Tech Center150$781,645.381150373$1,358.94

Buffalo4492,396,714.49

Wingfoot163$1,654,406.64

Gadsden2841,164,307.87

Akron/Tech Center150$781,645.38

Spartanburg26$548,615.27

Asheboro84$286,261.24

Statesville33$226,096.96

Houston93193,609.68

Niagara Falls1474,238.61

Social Circle22$23,673.01

Kingman511,169.88

Beaumont257,956.46

San Angelo7$1,909.41

Atlanta81,142.48

Radford91,098.73

EPD495$1,024,826.44

Total6,551$41,980,158

Avg $/claim$6,408

14GBSDCN#

Next Steps

55

1. Engage senior leadership2. Communicate the impact on the

bottom line3. Talk to your Consultant4. Develop a plan! For example

1. Collect data: revenue per person, retirement data, termination rates, turnover rate; data history for past 3-5 years

2. Conduct Engagement Survey

3. Conduct Focus Groups

4. Evaluate top performers in what makes them most productive

5. Analyze data and report on results

6. Implement Productivity program

7. Measurement/metrics

Best Practices

ProductivityAbsence Mgmt.

Wellbeing

Engagement

Technology

Optimizing Work Day

14GBSDCN#

Richard PolakExecutive Vice President

Arthur J. Gallagher & Co.

Thomas ParryPresidentIntegrated Benefits Institute

For more information

[email protected]

[email protected]

55

Slide Number 1Productivity, the Other Side of the LedgerWorking longer does NOT equal greater productivityAvg. Hours Per Worker vs. GDP Per CapitaKey Components to Improved ProductivityEngagementSlide Number 6WellbeingTechnologyAbsenteeismOptimizing Your WorkdaySample Metric of ROI ResultsSlide Number 12Todays discussionThe world is changingEmployer journey: moving beyond costs to outcomesWhats at Risk Economically for Employers?Case profile: an exampleIts all about medical costsIts about medical and pharmacy costsWe should include wage replacements And the other impacts of absence What about reduced EE performance?Research - going beyond medical & pharmacy to absence and presenteeismCo-morbidity and lost timeLow Prevalence, High Cost DiseasesHealth Conditions EvaluatedThe Whole Picture of Lost TimeSo Its Not Just about Healthcare Cost Do CFOs Get It?Results from the Integrated Benefits Institutes Latest CFO surveyKey highlightsCFOs are involvedSlide Number 32CFOs most important goals since ACASlide Number 34Slide Number 35CFOs that Emphasize Human Capital Are Less Likely to CFOs that Emphasize Employee Health Are CFOs that Focus on Business Performance Are Assessing the performance of benefits programsHealth and business performanceMGM Mirage Case StudyEstimating lost productivity at MGMLost-time improvements impact on EBIDTA The bottom lineCommunicating the Right Data to CFOsKey workforce health dimensions*Dimensions & dashboard metrics Telling the story to senior leadersThinking Differently About OutcomesHealth and bottom-line costsHealth and top-line valueHealth, human capital and business AMEX - improvements in customer service and workforce health riskGoodyear - an unhealthy workforce does poorer quality workNext StepsFor more information

Documents

Productivity, the Other Side of the Ledger - NHRMA 2018 … · Productivity, the Other Side of the ... Working longer does NOT equal greater productivity. Avg. Hours Per Worker vs