Life’s brighter under the sun.

Making the connection: Workplace wellness programs & employee engagementHealthy Outcomes ConferenceApril 2008

Violette Lareau, XeroxDoug Smeall, Sun Life Financial Lori Casselman, Buffett & Company

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The ‘profits of prevention’

1.Costs follow health risks— in both directions

2.Absenteeism, presenteeism & productivity tied to health risks

3. It pays to keep healthy people healthy4.Even small increases in physical activity

can produce results 5.Gains in employee engagement

can be tied to wellness programs

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Costs follow health risks

Annual medical charges for

different ages and health risk

groups

19-3435-44

45-5455-64

65-7475+

Low Risk

Non-Participant

Medium Risk

High Risk

0

2000

4000

6000

8000

Low Risk

Non-Participant

Medium Risk

High Risk

Source: D. Edington. Emerging Research: A View From One Research Centre

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Absenteeism

University of Michigan study

• Workplace health promotion shown to decrease absenteeism:

• 10.5% in first year of implemented program

• 14% in second year

• Translates into $1.22 - $1.63 savings per dollar invested

Schultz et al. (2002) Influence of participation in a worksite health promotion program on disability days. Health promotion participation and disability,.

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It pays to keep healthy people healthy

Source: Musich, Schultz, Burton, Edington (2004).

Overview of disease management approaches. Disease management and

outcomes.0

3000

6000

9000

Time period

Healt

hcare

costs (USD)

Serious Disease

Minor Disease

No DiseaseHealth promotion opportunity

Medical & caremanagementopportunity

Disease management opportunity

0

3000

6000

9000

Serious Disease

Minor Disease

No Disease

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Even small increases in physical activity can bring results

Study of walkers:

• Short bout versus long bout achieved similar fitness gains in oxygen capacity

• Body mass and waist circumference decreased substantially among short bout walkers

Source: Murphy, MH and Hardman, AE. “Training effects of short and long bouts of brisk walking in sedentary woman”.

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Gains in employee engagement and wellness programs

Scale Year 1

Year 2

Baseline LFL HSO LFL HSO

Organizational commitment

74.8 77.0 74.1 79.3 75.8

Job involvement 62.9 63.4 63.8 65.1 64.6

Growth opportunities 63.0 62.5 61.3 63.5 62.6

Supervision 66.7 66.2 63.8 67.2 64.1

Working conditions 72.6 74.6 67.6 76.0 70.1

Job competence 77.9 77.9 76.5 80.3 79.4

Respect from family, friends

73.5 74.2 73.1 75.4 73.6

Relations with co-workers 64.6 66.2 63.5 66.0 65.2

Pay and fringe benefits 65.6 66.2 61.6 71.9 68.9

Job security 71.7 72.9 69.4 72.1 69.6Journal of Occupational Medicine (Volume 32, No. 10, October 1990)

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Program evaluation:Impact of wellness initiatives on an organization

Source: Buck Consultants (October 2007). Working Well: A global survey of health promotion and workplace wellness

strategies.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Increased retention ofemployees (reduced turnover)

Improved worker productivity

Improved workplace safety

Reduced employee absencesdue to sickness or disability

Reduced Population health riskscores

Improved workforce morale/ jobsatisfaction

Improved organization image 21% 31% 20% 23%5%

21% 32% 26% 19%2%

17% 30% 16% 32%4%

12% 34% 25% 27%3%

13% 31% 23% 31%2%

9% 35% 23% 30%2%

11% 28% 28% 32%1%

Improved organizationimage

Improved morale /Job satisfaction

Reduced populationhealth risk scores

Reduced employee absencesdue to sickness or disability

Improved workerproductivity

Improved employeeretention (reduced turnover)

Improved workplacesafety

Major impact No impact

Life’s brighter under the sun.

The Xerox Canada journey towards a healthy workplace

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About Xerox Canada

• 3,800 employees located across Canada

• Diverse population

• Multi-generational

• 35% virtual

• Call centers on east coast

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Wellness at Xerox: Why? (Business case)

Escalating costs:

• Health care benefits

• Mental health issues / stress

• Absenteeism / presenteeism

• Aging population

Productivity:

14,000 lost days in 2005!

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Wellness at Xerox: Why? (Business case)

• Prevention makes a lot of sense

• Employer of choice necessary to attract & retain talent

• Multi-generational appeal

• Wellness is more than fitness

Expected ROIover time:

3:1 minimum based on

published studies

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Xerox Cares - Program intentions

• Create a healthy organizational culture to attract and retain talent

• Engage employees in achieving wellness for themselves and their families

• Encourage and support their efforts

• Remove barriers:

• Lack of reliable information on health issues

• Too much information / too many conflicting sources

• Need accessible ways to get going: small, inexpensive steps

• No time to read about it

• Lack of motivation

• No family doctor available for regular assessment

• Hate to workout

• Reduce health risks

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Xerox Cares - Leadership engagement

• Business case and proposal presented to small group of VPs

• 3:1 ROI based on three-year program commitment

• Proposal:

• Assess current overall Xerox Cares portfolio, align and leverage EAP, disability management, benefits, etc.

• Source best partners to add more value

• Invest in pilot to assess health risk of the population

• Review results and invest in three-year plan

• Prepare full-blown launch of Xerox Cares

• Communicate: Posters, face to face and online meetings

• If not wellness…. then what?

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Xerox Cares - Leadership event

• Annual business planning meeting for all Xerox VPs (17)

• Interactive two-day offsite, given two hours to present/engage

• Fitness activities built in (outdoor adventure walk, yoga)

• Resource materials (Wellness kit) & track suits

• Key opportunity to:

• Educate group on planned wellness approach

• Engage leaders as active supporters of program activities

• Gather feedback

• Vital to establish support before implementing program

• We gave this group regular updates

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Wellness at Xerox Canada: 3 steps

1. Assess our population’s health risks

2. Develop initiatives throughout the year to reduce and contain health risk in supportive environment

3. Measure success

Make participationeasy, non-threatening…and fun!

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Step 1: Health Risk Assessment

BWell Cardiovascular Risk Assessment pilot program

• RN screens participants in a 15-minute appointment

• Measures blood pressure, total cholesterol, random glucose, BMI and body fat

• Take away: personal scores and educational info on risk factors

• Participants can be re-assessed each year

LifeWorks / Checkpoint HRA:

• Lifestyle – comprehensive risk assessment

• Can use the numbers received in the BWell assessment

• Access online

• Incentive / contest to get it going

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Step 1: Health Risk Assessment

• Risk factors identified year one (three pilot clinics):

• Smoking (19%)

• Systolic blood pressure (29%)

• Diastolic blood pressure (17%)

• Cholesterol (17%)

• Glucose (9%)

Other risks identified in EAP report and OHS:

• #1 reason for STD: Psychological

• #1 EAP presenting issue: Stress and work-life balance

72% fell into moderate to high risk category forbody composition

and/or BMI

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Activity Outcomes

2006

2007

BWell assessment Cardiovascular risk established

Bwell quarterly newsletter

Information at their fingertips

Spring challenge:Fitness

Motivation: FitnessCreate new habits in 30 days

Fall challenge:Nutrition & wellness

Motivation: Nutrition Create new habits in 30 days

Weight management and nutrition clinics

Interactive onsite info session

Stress managementlunch & learn

Manage psychological stress,build resilience

Ergonomics in the office Better posture, less strains & pains

Flu shots Flu prevention, reduced

absenteeism

Step 2: Develop targeted initiatives

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3. Measure success

Participation

Employee engagement

Cost avoidance

Return on investment (ROI)

Direct cost containment

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3. Measure success

Participation

• Challenges engaged over 40% of the population

• CV assessment: 25%

• Online assessment: 30%

• Lunch and Learn: 15%

• Website: 60% (2288 unique users)

Employee engagement

• 2007 Best 50 Employers Survey (Hewitt): 38th from 49th previously

• Xerox 2007 EES internal survey:

• 83% would recommend Xerox as a good employer

• 86% are proud to work for Xerox

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3. Measure success: Cost avoidance

• 450 repeat participants

• 152 (38%) improved on four or more risk factors

• Weight loss

• 209 people (53%) improved

• 34 moved into a healthy zone

• 21 stopped smoking

2007 ROI2:1 after only one

full year into the program!

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3. Measure success: Cost avoidance

From non-healthy to healthy zone

Cost avoidance

BMI / Body fat 26 $11,566.10

Cholesterol 82 $55,865.78

Blood glucose 59 $43,719.00

Blood pressure 107 $26,868.77

Smoking 21 $71,316.00

Cost avoidance second time participant (398) $209,335.65

Cost avoidance third time participant (52 - East Coast) $21,227.71

Total $230,563.36

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Employee feedback

“I’d like to thank Xerox for giving us the opportunity to bond together during the fitness challenge. The emails that passed back and forth as different members shared what exercise they were doing brought us so close together that we forgot for a little while the huge geography that separates us.”

“We put our health on the backburner (or just take it completely off the stove) to look after other ‘responsibilities’. But what’s more important than our health? When you think about it this way, those ‘responsibilities’ don't seem quite as important. The BWell Fitness Challenge helped us realize this.”

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Lesson learned

• Recognize you need the help of experts at the outset

• Build a good business case that aligns with your corporate objectives

• Engage your top leaders to actively support

• Consider your culture and work with it and your different segments

• Have a structured approach and measurable outcomes

• Develop a network of champions / coordinators

• Get a commitment for at least three years

• Engage remote locations and virtual employees early on

• Make it easy: small steps work

• Sustaining momentum requires focus, planning and a good process

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Leadership feedback

“This was the best investment we have made...”

“This is really helping to engage our people in the workplace.” – Manager, Xerox east coast

“We need to push the envelope to continue to find even more ways to bring this program to all employees, as it is so valuable.”

Life’s brighter under the sun.

Two key wellness elements

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BWell Wellness website

Sample BWell website

• Fully-customized product developed, based on input from Xerox

• One-stop-shop for health and wellness

• Hosted online:

• Available for family members, too

• All tools related to wellness program linked through site

• Excellent communication vehicle

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BWell Challenges Sample BWell Challenge

Life’s brighter under the sun.

Thank you!