Connecting the Dots - Xeroxinfo-hrconsulting.external.xerox.com/hubfs/Webinars/Connecting_the... ·...
Transcript of Connecting the Dots - Xeroxinfo-hrconsulting.external.xerox.com/hubfs/Webinars/Connecting_the... ·...
Xerox Proprietary
Our Presenter
2 August 29, 2016
Bruce Sherman, MD, FCCP, FACOEM Medical Director, Population Health ManagementXerox HR Services
Xerox Proprietary3 August 29, 2016
Workforce health as a business investment in human capital
Relationship of workforce wellbeing to health care cost containment
Importance and value of integrated services and data to foster workforce health and wellbeing
The private exchange as a means to achieve cost containment and health management objectives
Presentation
Outline
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• Triple Aim Goals
− Improved quality
− Better health outcomes
− Lower health care costs
• Lies in alignment of health management strategy with company business strategy
− Increased worker productivity
− Enhanced worker performance
− Increased company profitability
• Targeted offerings generate optimal value
What’s the value of a healthy workforce?
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Traditional View of Employee Value
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Value Work Output Cost
Responsible Department Operations Human Resources
ComponentsBusiness productivity
Supply chain management
Wages, health benefits, WC costs,
recruitment, talent, workforce planning…
Representative Metric
• Labor hours per unit
• Waste as % of total output
• Revenue per employee
• PEPY healthcare costs
• Employee engagement
• Turnover rate
ValueWork
OutputCost
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Evolution of Workforce Health as a Business Imperative
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Organizational Tactics Measurement Approach
Informal offerings Not monitored
Program-based offerings
(health impacts medical costs)
Program-specific metrics
(ROI)
Integrated health and productivity programs
(health impacts productivity)
Health & productivity metrics integration
(total cost/value)
Organizational policies and practices
influencing health
(health impacts revenue)
Comprehensive integration and reporting
(business/shareholder value)
Health as Employee
Responsibility
Health as Business Imperative
(Culture of Health)
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Higher Wellbeing is Associated with Improved Workplace Performance
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Community
Physical
Mental & Emotional
Social
Financial
Occupational
Wellbeing is More than Physical Health
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A Holistic Approach to Wellbeing has Business Impact
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Working PopulationThriving in physical only
(n=386)
Thriving in all 5 elements
(n=839)
Compared to adults who
are thriving in just
physical – those who are
thriving in all 5 elements:
Average unhealthy days per month 0.81 0.48 Have 41% less absenteeism
Involved in accident resulting in
Workers Compensation claim1.4% 0.5%
Are 65% less likely to be involved
in workplace accident
If job market improves, intent to
look for job with different employer
next 12 months
39.2% 7.3%Are 81% less likely to move when
the job market improves
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Workforce Wellbeing is Associated with Improved Business Performance
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TOP QUINTILE 2ND QUINTILE 3rd QUINTILE 4TH QUINTILE 5TH QUINTILE
Overall
Life
Evaluation
Emotional
Health
Physical
Health
Healthy
Behavior
Work
Environment
Basic
Access
% at Optimal
Income
68.4 60.9 76.4 78.1 62.6 46.9 85.5 41.7%
73.5 73.1 80.6 80.2 65.1 53.7 88.1 66.7%
72.4 70.4 79.7 82.4 66.3 49.5 86.0 64.5%
72.0 71.4 73.8 81.1 67.0 51.2 85.9 59.6%
72.0 69.6 78.6 78.1 65.6 52.6 88.6 39.2%
71.9 66.5 78.4 78.6 66.5 54.9 86.7 50.3%
71.8 64.5 79.1 81.5 64.9 53.9 86.9 69.2%
71.4 68.6 78.0 78.5 67.5 49.3 86.7 47.9%
71.2 67.7 80.0 81.7 64.4 49.1 84.5 51.4%
70.6 60.7 76.5 80.2 66.5 51.9 85.4 44.9%
70.6 65.8 79.6 77.6 62.6 54.4 86.0 41.6%
70.0 63.9 76.2 80.3 63.6 48.5 87.4 55.6%
69.7 58.0 76.5 78.4 68.4 53.2 83.6 63.6%
69.6 62.5 75.0 79.0 65.0 50.0 86.0 56.2%
69.2 64.7 77.5 76.8 62.6 46.0 87.9 51.8%
69.1 60.8 76.8 78.1 61.9 52.2 85.0 39.3%
68.6 61.6 75.5 76.8 65.2 46.4 86.2 51.8%
68.6 59.6 76.3 80.3 66.4 44.4 84.8 41.6%
68.1 59.9 77.9 78.9 61.5 45.3 85.0 40.8%
67.8 58.0 75.7 78.1 63.9 43.4 87.7 57.2%
66.3 58.3 74.7 76.4 59.2 46.0 83.3 31.7%
66.2 52.4 75.0 76.9 61.1 45.4 86.5 37.9%
65.8 59.1 76.4 75.8 53.4 45.6 84.2 28.4%
65.7 57.3 71.9 76.8 61.7 40.1 84.2 36.6%
65.5 56.8 76.3 76.7 56.8 43.2 83.4 28.3%
64.5 52.5 71.0 75.3 60.2 42.4 83.8 26.8%
% Optimal Income(Internal Corporate Measure)
Business Unit Wellbeing Scores
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The Opportunity Exists for Organizations to Actively Promote Wellbeing
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12% of employees strongly agree
that they have substantially higher
overall wellbeing because of their
employer.
A vast majority of employees see
their job as a detriment to their
overall wellbeing.
Organizational
wellbeing lies in
encouraging employees
to do what is in their
best interest.
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Wellness/Wellbeing is Central to Employee Engagement
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1. Senior management sincerely interested in employee wellbeing
2. Improved my skills and capabilities over the last year
3. Organization’s reputation for social responsibility
5. Organization quickly resolves customer concerns
4. Input into decision making in my department
6. Set high personal standards
7. Have excellent career advancement opportunities
8. Enjoy challenging work assignments that broaden skills
9. Good relationship with supervisor
10. Organization encourages innovative thinking
Top 10 Drivers of
Employee Engagement
Globally
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Work unit outcomes comparing top quartile engagement to bottom quartile.
Employee Engagement Affects Key Business Outcomes
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-37%
-25%
-65%
-28%
-49%
-41%
10%
21% 22%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Perc
en
t d
iffe
ren
ce
Source: http://businessjournal.gallup.com/content/163130/employee-engagement-drives-growth.aspx
Absenteeism
High-Turn
over Orgs.
Low-Turn
over Orgs. Shrinkage
Safety
Incidents
Quality
(Defects)
Customer
Satisfaction
Productivity Profitability
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Stock Price Trend of Companies with a Culture of Health
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0
5,000
10,000
15,000
20,000
25,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Portfolio Worth (6/30) S&P 500
Source: Fabius, Thayer, Konicki, et al. The link between workforce health and safety and the health of the bottom line. JOEM. 2013.
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A Conceptual Framework for Workforce Health and Wellbeing
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Individual
Well-being
Individual
Performance
Organizational
Performance
Inputs
Well-being Status
• Physical
• Emotional
• Financial
• Social
• Personality Attributes
Workplace Practices
• Performance Measures
• Performance Incentives
• Leave Management
• Benefits Design
• Organizational Structure
Work Factors
• Work Relationships
• Role in Organization
• Career Development
• Work-life Interactions
Workplace
Culture
• Well-being Status
• Health Care Costs
• Presenteeism
• Absence
• Engagement
• Skill Level
• Work Output
• Work Quality and Safety
• Customer Satisfaction
• Workforce Engagement
• Workforce Output & Quality
• Customer Retention
• Innovation
• Revenue
• Profitability
Consequences
Source: Sherman B, Lynch W. Connecting the dots: Examining the link between workforce health and business performance. Am J Manag Care, 2014; 20(2):115-120.
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Representative Business Metrics
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Industry Individual Business Performance Metrics Aggregate Business Performance Metrics
All industries• Supervisor performance evaluation
• Workplace accident rate
• Employee engagement
• Voluntary turnover rate
• OSHA injury rate and WC costs
• Net income
• Customer satisfaction
Insurance• Average handling time of claims
• Net written premium amount
• Number of new insurance policies
• Average insurance policy size
• Average handling time of claims
• Net written premium
• Number of new insurance policies
Manufacturing• Quantity of merchandise produced
• Value of merchandise produced
• Occupational injury prevalence
• Throughput/work unit
• Defects per million opportunities
• Production plan variance
• Man-hour per equivalent unit
Retail • Shelf stocking efficiency
• Sales transactions per selling hour
• Comp stores sales growth year over year
• Customer satisfaction
• Profit per customer visit
• Sales per selling hour
Call center• First call resolution rate
• Average time to answer calls
• Calls handled per hour
• First call resolution rate
• Contact quality
• Customer satisfaction
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• Leading and intermediate indicators are directional
• Lack of favorable leading indicator trends should be concerning
Timeline to Demonstration of Value Varies by Metric Category
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Leading Indicators Intermediate Indicators Lagging Indicators
Health care utilization
(Condition management)
Health care utilization
(preventive care services)Health care costs
Program participation rates Clinical outcomes Absence
Patient engagement Population health/health risk profile Presenteeism / Performance
Patient experience and satisfaction Medication adherence
PCPCC. Patient-Centered Medical Home Performance Metrics for Employers, 2011.
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Transitioning from Return on Investment to Value on Investment…
18 August 29, 2016
Stakeholder group Business opportunity
Business level
C-Suite
HR personnel
Employees
Shift from benefits cost containment to focus on bottom line impact
Workforce human capital as organizational investment
More strategic role as managers of workforce human capital
Benefits refocused on wellbeing, fostering greater engagement
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Employers Take Charge – and Make the Connection Between Health and Business Measures
19 August 29, 2016
Company Linking Health and Performance
Caterpillar Business unit wellbeing – achievement of business financial goals
Walmart Employee wellbeing – same-store revenue
Target Employee wellbeing – customer satisfaction
O’Neal Industries Employee health – supervisor performance rating
Bank of America Call center staff wellbeing – customer satisfaction
Comcast Call center staff resilience – customer satisfaction
Goodyear Tire Plant-level health status – work quality
In all cases, favorable
relationship between
workforce health and
measures of business
performance.
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A Look to the Future…
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Technology advances:
next-generation data
warehouses integrating both
medical/pharmacy claims with
HR data sources.
Comprehensive analytics:
optimization of health benefits
offerings based on workforce
engagement and other
business impacts.
Thought leadership:
evaluation of health benefits
offerings in the context of
employee engagement and
performance scores.
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Data Integration to Drive Clinical and Business Outcomes Capital Management
22
Truven
Data
Warehouse
and
Analytics
Program Evaluation
Vendor Performance &
Quality Management
Benefit Planning & Design
Health, Productivity, &
Performance Mgmt.
Financial Management
Regulatory Compliance
Eligibility
Medical
Pharmacy
Care Management
Health Risk Assessment
Biometric Testing
User Experience
Program Outcomes
Business Metrics
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• Workforce health can be viewed as a business investment in human capital
• Effective attention to workforce wellbeing can have substantial business impact
• Employees need to see value in available health management tools and resources for them to be successful
• Wellbeing and consumerism engagement are foundational elements for health care cost trend management
Summary
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Xerox Proprietary24 August 29, 2016
Bruce Sherman, MD, FCCP, FACOEMMedical Director, Population Health [email protected]
Questions