Bringing Workforce Health & Productivity to the C-Suite

Source: Winning Ways: How to Gain C-Suite Support for Health & Productivity Improvement, Integrated Benefits Institute, 2008

Key Insights:

HR and benefits managers must understand the role and gain/pain points of C-Suite executives to create a compelling story in language relevant to the decision makers

Practical, accessible health and productivity modeling tools like IBI’s Health & Productivity Snapshot guide the demonstration of the full financial impact of poor health on the bottom line

Collaboration among colleagues, the company’s health / disability / absence management partners and the CFO can be key 

Effective measurement and results reporting must include simple, scientific and bottom-line-financial metrics

A corporate culture of health starts at the top Accountability, communication, commitment and preparation are critical to success A DVD on the process is available. Commentary is available in Notes view.

Purpose: Share insights relevant to employers of all sizes on how a Fortune 500 company approached its executive management to make health a key business strategy

Bringing Workforce Health & Productivity to the C-Suite

The Real Problem: The Full Cost of Poor Employee Health

Starting place:IBI’s Health & Productivity Snapshot

Absence Presenteeism

1.8 lost days per FTE/Year

6.2 lost days per FTE/Year

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

Source: Winning Ways: How to Gain C-Suite Support for Health & Productivity Improvement, Integrated Benefits Institute, 2008

Impact of Lost-Time Improvements on the Company’s EBIDTA*

$15

$30

$45

$0

$15

$30

$45

$ M

illi

on

s

1 Day 2 Days 3 Days

Saving one lost day/FTE = $15 MM to EBIDTA* from productivity gains

* Earnings Before Interest, Depreciation, Taxes and Amortization

Source: Winning Ways: How to Gain C-Suite Support for Health & Productivity Improvement, Integrated Benefits Institute, 2008

Revenue Equivalent of Lost-Time Improvements

$49.9

$99.0

$149.7

1 Day 2 Days 3 Days

Saving one lost day/FTE = same bottom-line impact as $50 MM in new revenueEquivalent

revenue growth ($ millions)

Source: Winning Ways: How to Gain C-Suite Support for Health & Productivity Improvement, Integrated Benefits Institute, 2008

The Bottom Line

Savings $15.0 MM  Wall-Street Multiple 10.7X Outstanding Shares 284.3 M Stock Price Value 56 cents/share  Principal Owner (56%) $90 MM

One Day of Productivity Improvement

Source: Winning Ways: How to Gain C-Suite Support for Health & Productivity Improvement, Integrated Benefits Institute, 2008

Winning Ways: How to Gain C-Suite Support for Health & Productivity Improvement

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