Companies are under attack! Not from rising energy costs, foreign competition, or regulatory pressure, but from a steady decrease in employee health & happiness. The "weight" of this problem is falling on the bottom lines of companies in the form of rapidly increasing costs and rapidly decreasing employee productivity and engagement. Once thought to be an involuntary benefit, Employee Wellness is now being discussed in corporate board rooms all over the world as a critical element of business strategy. HR is expected to understand and manage the risk associated with this problem and create a sustainability strategy that includes health & happiness. This eBook discussed the economics of this fight and how the war talent is now happening in the gym and cafeteria.

1. Wellness as a
Business Strategy
presented by

2. "The prevention of chronic diseases has been
chronically under funded. As we get older, fatter and
less active, the weight of the world is falling on the
bottom lines of the world's largest companies in the
form of reduced productivity, increased tax burdens
and declining competitiveness."
“Working Towards Wellness: The business rationale,”
World Economic Forum in cooperation with PwC, 2008.

3. Your company is under attack.
The threat isn’t coming from foreign
competition, rising energy costs or
regulatory uncertainty. It’s coming from
within—in the form of obese, sedentary,
stressed, unproductive, disengaged and
chronically ill employees. The ability to
keep employees happy and healthy is now
paramount to the success of every
organization.
Is your company up to the challenge?
The time for employee wellness is now.
The direct and indirect costs associated
with unhealthy employees is so great that an
effective employee wellness program is no
longer a voluntary benefit or a “nice to have.”
It’s a business strategy.

4. Is a balanced diet on your
balanced scorecard?
The caloric value of what’s on employees’ plates directly impacts the
shareholder value you’re able to create.
$150B
lost productivity cost
Obesity costs U.S. employers
an estimated 150 billion in
lost productivity. 2
450M
more days missed
Obese workers miss 450
million more days per year
than healthy employees. 3
1/3 42% Employers pay 42% more in
medical costs for obese
more medical costs employees. 4
of Americans are
obese 1
$300B
cost of obesity
Total economic cost of
obesity (U.S & Canada) =
$300B. 5

5. They don’t make compact
fluorescent employees.
18%
increase in electricity needed
32%
increase in employer health
to power this lightbulb in the costs during those same
past 5 years. 6 five years. 7
Two all beef patties, special sauce and nearly 2x the price increase of electricity!

6. Dilbert was not “big-boned.”
Your organization is sitting still. Literally.
Only
20%
of today’s jobs require a
moderate level of activity, as
compared to 50% in the ‘60s. 8
Bus drivers Ticket takers women who sit for men who sit for
(sitting) (standing) over 6hrs/day are over 6hrs/day are
Bus drivers are twice as likely to die
of a heart attack as ticket takers. 10 94% 48%
more likely to die.

7. Employee stress
Stress & depression & recession. Oh my.
Employers pay 50% more
per year in health costs for stressed employees. 11
Absenteeism Employee turnover
Insurance Premiums Medical
77%
Lawsuits Worker’s compensation
Diminished productivity
$300B
of Americans
are stressed
at work. 12
in stress-related costs to U.S. businesses each year. 11

8. The high cost of low
employee engagement
$370 Billion
Actively disengaged 13
employees annually
cost the U.S.
27% 54% 58% 54%
of employees are of disengaged of companies cite of employees plan
actively engaged. 14 employees report low employee to leave when the
that work has a engagement as the economy improves. 14
negative impact on biggest obstacle to
their health. 15 behavior change. 16

9. The war for talent is
happening in the gym.
Fortune’s “100 Best Companies to Work for” take employee health seriously. 17
Shouldn’t you?
Number of the 100 best
companies to work for 97 Regular on-site flu shots
that offer...
94 Pre-tax flexible spending account
87 4
Regular on-site blood pressure screenings
87 9 97 0
3 10
8
83 Regular on-site cholesterol screenings
70 110
67 120
70 Subsidized off-site gym membership
130
40
30 140
67 On-site fitness center 20
10 0

10. It’s time to rethink your strategy
pyramid and elevate HR’s role.
Ask yourself these three questions:
1. Are the results of your organization dependent on the
aggregate performance of the individual employees?
2. Are happy & healthy employees more likely
to perform at a high level?
3. Is HR’s role to maximize ROI on the company’s human capital
and reduce financial risk?
If the answers are “yes”...

11. ...Maybe your strategy
pyramid should look like this. Corp
Wellness is a Business Unit
business
strategy. Functional / Departmental
Employee Wellness

12. Endnotes
1 “Adult Obesity,” Centers for Disease Control and Prevention, http://www.cdc. 10 Kuper, Simon, “The Man Who Invented Exercise,” FT Magazine, http://www.ft.
gov/obesity/data/adult.html com/intl/cms/s/0/e6ff90ea-9da2-11de-9f4a-00144feabdc0.html#axzz1NOkg88os
2 Willingham, Jacqueline G, “Managing Presenteeism and Disability to Improve 11 “The Cost and Removal of Workplace Stress,” The National Registry of Workers’
Productivity,” Benefits & Compensation Digest, 45.12, Dec. 2008. Compensation Specialists, http://www.nrwcs.com/cost-of-workplace-stress
3 “Unhealthy U.S. Workers’ Absenteeism Costs $153 Billion,”GALLUP, Inc., 17 12 “Survey Reveals 77% of Americans Stressed About Something At Work,”
Oct. 2011, http://http://www.gallup.com/poll/150026/unhealthy-workers- Everest Career Education Network, 30 Mar. 2011, http://news.everest.edu/post/
absenteeism-costs-153-billion.aspx 2011/03/survey-reveals-77-of-americans-stressed-about-something-at-work
4 Miller, Melissa, “Obese Employees Costing Companies,”Southeast Missourian, 13 “Dilbert is Right, Says Gallup Study,” GALLUP Management Journal, 13 Apr.
21 Sept. 2011, http://http://www.semissourian.com/story/1765329.html 2006, http://gmj.gallup.com/content/22381/dilbert-right-says-gallup-study.aspx
5 “Obesity and its Relation to Mortality and Morbidity Costs,”Society of 14 Sheridan, Kevin, “Top 2011 Employee Engagement Trends,”Monster Thinking,
Actuaries, Dec. 2010, http://www.soa.org/files/pdf/research-2011-obesity- 10 Jan. 2011, http://www.monsterthinking.com/2011/01/10/employee-
relation-mortality.pdf engagement/
6 Average prices for electricity, United States, October 2006-October 2011, 15 “Gallup Study: Unhappy Workers Are Unhealthy Too,” GALLUP Management
Mid-Atlantic Information Office, U.S. Department of Labor. Journal, 13 Jan. 2005, http://gmj.gallup.com/content/14545/gallup-study-
http://www.soa.org/files/pdf/research-2011-obesity- unhappy-workers-unhealthy-too.aspx
relation-mortality.pdf
16 “Boosting Employee Wellness Participation Without Breaking the Bank,”
7 Kaiser/HRET Employer Health Benefits 2011 Annual Survey. http://ehbs.kff.org/ Towers Watson, July 2010, http://www.towerswatson.com/research/2395
8 Parker-Pope, Tara, “Less Active at Work, Americans Pack on Pounds,” The 17 Erb, Marcus, “Wellness Programs at the Best Companies,”Great Place to
New York Times, 25 May 2011, http://well.blogs.nytimes.com/2011/05/25/less- Work Institute, http://www.greatplacetowork.com/publications-and-events/
active-at-work-americans-have-packed-on-pounds/?ref=health blogs-and-news/714-wellness-programs-at-the-best-companies
9 Butler, Kelley, “The One Thing in Your Office That’s Holding Back Your Wellness
Program,”Employee Benefit News, 27 Oct. 2011, http://ebn.benefitnews.com/blog/
ebviews/wellness-programs-sedentary-work-health-effects-2719314-1.html
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