Responsibility Deal health at work network - Partnership Forum - Wednesday 21 November 2012

Public Health Responsibility Deal

Health at Work Network Partnership Forum

Wednesday 21 November 2012


Siân Williams

Royal College of Physicians London

An evidence-based approach to

improving workforce health

and engagement

Health and Work Development Unit

NICE guidance for the workplace

• obesity

• physical activity

• smoking cessation

• long term sickness absence

• mental wellbeing

An evidence-based approach to improving

workforce health and engagement

Does the trust actively promote healthy

food choices , for example using signs,

pricing and positioning of products to

encourage healthy choices in:

National (282 trusts)

-------------------------------------

Number %

Staff restaurant 173 61

Hospitality 142 50

Vending machines 90 32

Shops for staff and clients 86 31

National (282 trusts)

-------------------------------------

Number %

Does the trust offer overweight and obese

staff multicomponent interventions

86 31

If yes is the person providing the

programme trained in obesity management

64/86 74

Minimum score Maximum score

Summary score

An evidence-based approach to improving

workforce health and engagement


Bridget Juniper Mike Tyler

Work and Well-Being Ltd Lockton Companies LLP

Employee Health & Well-Being

What are you REALLY paying out?

Introductions

• Dr Bridget Juniper - Work and Well-Being Ltd

• Mike Tyler – Lockton Companies LLP

Points to Cover

• Absence - The need for numbers

• What do we mean by a healthy workplace?

• Running the numbers – Worked Example

• Balanced Scorecard for Health & Well-Being

Absence - The Need for Numbers

If you cannot measure it, you cannot improve it (Lord Kelvin)

Numbers inform decisions

Track improvements

Currency of budget holders

What is Health?

“Health is a state of complete physical, mental and social well-being and

not merely the absence of disease or infirmity’(1948)

How does work impact on the overall well-being of staff?

Work and Well-Being Ltd workandwellbeing.com

Cost Burden - Absence

Sickness Absence Data

• Incidence, frequency, reasons

Direct Costs

• Salary costs

• National Insurance contributions

• Bonuses/overtime

• Pension contributions

Indirect costs

• Management time

• Lost business

• Penalties

• Temporary cover

• Impact on other staff

• Approx 10% of salary and NI

Cost Burden - AbsenceLost time rate

Person days lost to absence x 100 Total days available during period

Frequency rateNumber of spells of absence x 100

Total number of staff during period

Bradford Factor

Bradford Score = S² x DS is the total number of spells (instances) of absence of an individual over a set

period

D is the total number of days of absence of that individual over the same set period

Cost Burden - Presenteeism

Lost health-related work productivity

Non – productive employees

Absence cost multiplier of 1 - 7

Cost Burden - Attrition

• Attrition rate (c15%)

• Proportion due to

impaired well-being?

• Cost of replacement:

– 18 months salary for

senior managers

– 6 months salary for

hourly paid

Worked Example

Worked Example – Remedial Health

Costs

Worked Example – Preventative

Health Costs

Absence has steadily

risen over past 3 years

Employee Health and Well-Being Dashboard

Cost Burden - Absence

Absence Numbers Absence Costs

Total absence = Total absence = Total absence = Total absence = ££££1,240,644 or 1,240,644 or 1,240,644 or 1,240,644 or ££££963 per employee963 per employee963 per employee963 per employee

Worked Example – Absence,

Presenteeism and Attrition

Absence:

£1,240,644

85 % short term

Presenteeism:

£2,481,288

(x 2 multiplier used)

Attrition:

£807,300

(60% of total cost)

Worked Example – The Final

Reckoning

A, P&A

£4,529,232

£5,361,650

£5,361,650 = 15% of salary costs or £4162 p/employee

Is the Balance OK?

• What is your overall aim ?– Performance

– Benevolence

– Attracting talent

• Based on the evidence, where will you make the best return?– Remedial vs Preventative?

– Enhancing performance of those attending work?

– Expediting RTWs and rehabilitation?

– Reducing absence levels (STA or LTA)?

– Improving retention?

– Other ‘An ounce of prevention is worth a pound of cure’

Return on Investment - Absence

• If reduce absence to 1.43% from 1.79% currently

– Absence cost = £991,129 (down from £1,240,644)

ROI = Gain from investment – Cost of investment

Cost of investment

£249,514 – £50,000

£50,000

ROI = 3.99

Return on Investment

• If reduce Presenteeism costs by 20%

£496,256 - £50,000

£50,000

ROI = 8.92

The cost of waiting for people to get sick far

exceeds the cost of helping healthy people to

stay healthy

Balanced Scorecards• Developed to recognise businesses are complex but there is a

need to have a robust framework that works at multiple units of

analysis in a consistent way.

• Forces congruence and requires quality measures with

definition of success.

Learning & Growth

•Employee capabilities

•Information Sysytems

•Motivation & empowerment

Internal Processes

•Improve existing processes

•Develop new processes

Customer

•Satisfaction

•Loyalty

•Market share

Financial

•Revenue growth& mix

•Productivity

•Asset utilisation

Balanced Employee Health

Scorecards CORPORATE LEVEL

Learning & Growth




Internal Processes



Customer

•Satisfaction

•Loyalty

•Market share

Financial


•Productivity


BUSINESS UNIT LEVEL

Learning & Growth




Internal Processes



Customer

•Satisfaction

•Loyalty

•Market share

Financial


•Productivity


HEALTH SCORECARD

Working ExampleGuiding Principles

• Provide a healthy safe and

positive environment

• Engage employees at work

• Focus on improving their

performance

• Promote a culture of well – being

• Deliver a range or programmes

and tools to encourage

improvements in overall health

and resilience

• Provide a network of well-being

champions

• Focus on preventative health

management

HEALTH SCORECARD

SUPPLIERS

Supply of data

Quality of data

Satisfaction levels

PROCESSES

Compliance with

routines

Accident rates

Safety record

Promotion of health

initiatives

EMPLOYEES

Turnover

Satisfaction scores

Absence rates

Bradford Scores

FINANCIAL

Cost of programmes

Employers liability

costs

Inflation of costs

Further Information

[email protected]

[email protected]


Zoe Eccleston

Pepsico

Health and Wellness at PepsiCo

Encouraging a Life-style approach to health and wellbeing

The UK Government's Vision

We want to create a society where the positive links

between work and health are recognised by all, where

everyone aspires to a healthy and fulfilling working life,

and where health conditions and disabilities are not a

bar to enjoying the benefits of work

Improving health and work: changing lives

UK Government Response to the Black review, 2008

3 critical factors

• Health Action Teams

• Integrated Occupational Heath Teams

• Employees recognise their responsibility to engage with their

health

Purpose of our health and wellbeing

Protection and surveillance

of specific occupational health conditions

Returning to work

• Musculoskeletal disorders

• Mental health conditions

Staying in work – 3 programmes to reduce

4 common health conditions

responsible for 50% of preventable deaths

Nutrition

Exercise

Smoking cessation

Cardio

Stroke

Diabetes

Cancer

Encouraging

good health

Preventing

health

conditions

Our model

• “One life, your choice” our internal campaign encourages

employees to start by making one change to positively

affect their health and build on this

• The programme aims to provide a culture at work that

reinforces positive health behaviours

• Occupational health working with Health Action Teams (HAT) when engaged and enthusiastic are the best crossroads of the employer-employee-health journey

Programme aims

Employees interested in their own health

Employees educated and doing something to improve it

Sustained results supported by recognised, trusted partners

Improved health statistics

One life your choice

4 main themes

Smoking

Diet and Hydration

Exercise

Mental resilience

Delivered by

Engagement

Educated choice

Support

Sustained behaviour change

Programme evaluation

• We recognise major short-term changes are hard to achieve

• Our focus is on realistic and sustainable change in the mid to long-term

• We know this will require significant management support and we are committed to that

We assess impact & investigate effectiveness on business indicators:

• Absenteeism

• Engagement

• Productivity

[email protected]

Documents

Responsibility Deal health at work network - Partnership Forum - Wednesday 21 November 2012