27
1 CONFIDENTIAL Employee Productivity: Absenteeism and Presenteeism A DMEC webinar, May 18, 2017 26.25.158.1 (5/17) Disability insurance plans/policies are offered and/or underwritten by Aetna Life Insurance Company (Aetna).

Employee Productivity: Absenteeism and Presenteeismdmec.org/wp-content/uploads/17_0518_Presentation_final_pdf.pdf · Employee Productivity: Absenteeism and Presenteeism A DMEC webinar,

  • Upload
    dodien

  • View
    247

  • Download
    0

Embed Size (px)

Citation preview

1CONFIDENTIAL

Employee Productivity:Absenteeism and Presenteeism

A DMEC webinar, May 18, 2017

26.25.158.1 (5/17)

Disability insurance plans/policies are offered and/or

underwritten by Aetna Life Insurance Company (Aetna).

2CONFIDENTIAL

Agenda

Defining absenteeism and presenteeism

The implications to employee

productivity

A new way of thinking

Liz’s story

Action for employers

Summary

3CONFIDENTIAL

Learning Objectives

Learn about absenteeism and presenteeism

Understand the implications of how absenteeism and

presenteeism impact employee productivity and the bottom line

Gain more insights into what drives these “productivity zappers”

4CONFIDENTIAL

Definitions

To be on the same page, here are the dictionary definitions:

Absenteeism: “a tendency to be away from work or school

without a good reason: the practice or habit of being absent

from work or school.”

Presenteeism: “the practice of coming to work despite illness,

injury, anxiety, etc., often resulting in reduced productivity.”

Source: Dictionary.com

5CONFIDENTIAL5

Lost productivity

Child care issues, a sick child, or an adult who needs care

6CONFIDENTIAL6

Lost productivity

Family and financial issues can cause stress

resulting in lower productivity.

7CONFIDENTIAL7

Lost productivity

Not feeling 100% - or even 80% well - but still going to work

impacts productivity.

Healthy

employees

take up to

40%

fewer sick

days per year

Merrill, Ray M. PhD, MPH; Aldana, Steven G. PhD; Pope, James E. MD; Anderson, David R. PhD, LP; Coberley, Carter R. PhD; Grossmeier, Jessica J.

PhD; Whitmer, R. William MBA; HERO Research Study Subcommittee. Self-Rated Job Performance and Absenteeism According to Employee

Engagement, Health Behaviors, and Physical Health. Journal of Occupational Environmental Medicine. January 2013; Volume (55): 10-18.

Available at http://journals.lww.com/joem/Abstract/2013/01000/Self_Rated_Job_Performance_and_Absenteeism.3.aspx. Accessed November 25, 2015.

8CONFIDENTIAL8

What are the financial implications of lost productivity for an employer?

Direct and indirect costs

Impact to colleagues

Lost revenue opportunities

Barrier to growth and expansion

Optimizing employees’ health enhances their productivity

9CONFIDENTIAL9

What are the national financial implications of lost productivity?

Poor health costs the U.S. economy $576B a year.

Of that, $227B is lost productivity because of

absenteeism and presenteeism

Poor Health Costs U.S. Economy $576 Billion According to the Integrated Benefits Institute. PR Newswire. September 12, 2012.

Available at http://www.prnewswire.com/news-releases/poor-health-costs-us-economy-576-billion-according-to-the-integrated-benefits-

institute-169460116.html. Accessed April 28, 2016.

10CONFIDENTIAL10

Looking past the obvious to see the real risk

4 sick daysper year on average

57.5 days at workbut not productive

$150 billionlost to absenteeism

GCC Insights. “Clocking on and checking out.” March 2016.

From http://info.gettheworldmoving.com/rs/018-WUL-420/images/presenteeism-whitepaper.pdf Accessed April 29, 2016.

Focus on

what’s

important

11CONFIDENTIAL11

Why invest in workers’ health?

Employers can save an average of

$3 for every $1 they invest in improving

their workers’ health.

This can result in opportunities for companies to

increase profits and wages while they improve

workers’ health.

Aetna White paper - 2016

12CONFIDENTIAL12

An absence costs an employer in two ways

Wage expenses

Daily wages and benefits

Paid at 100% (e.g. sick day) OR some fraction (e.g. STD)

Opportunity costs

Lost revenue opportunities

Overstaffing strategies

Temporary replacements

Co-workers’ overtime

Impact to customer service

Delayed deliveries

Long wait times in a call center (and

possibly high abandon rates impacting

satisfaction )

Loss of product knowledge and

expertise

Loss of management expertise in

running a team

Impact to patient care in medical

settings

13CONFIDENTIAL1 3 / A E T N A / [ P L A N S P O N S O R ] / [ M M . D D . Y Y ]

The value of investment:Costs that impact a company’s bottom line

Medical

39%

Pharmacy8%

Wage

replacements18%

Lost

productivity

performance24%

Lost

productivity

absence11%

Integrated Business Institute Full Cost Estimator statistical model, 2016.

14CONFIDENTIAL

A closer look at the total cost of health

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Depression Cancer

Presenteeism

Absence

Pharmacy

Medical

Average cost of

health condition

Integrated Business Institute Full Cost Estimator statistical model, 2016.

Estimating productivity loss and gain:

Where we have been and what the future holds

16CONFIDENTIAL16

Health Outcomes - Productivity Improvements Based on Work Limitation Questionnaire

Looking over past two years (2012/2013), 9,898 employees completed two

surveys at least 6 months apart. Of these respondents:

– 13% (1,238) of employees with low risks had no change in number of risk

over the two year period.

– 8% (836) of employees who took a sequential HRA had high risk reduced

their risk from 5 health risks to 4 or less risks.

– 14% (1,371) of employees who took a sequential Work Limitation

Questionnaire reported an improvement in their job productivity

– 8% (767) of employees had improved absenteeism scores.

*Based on Aetna survey

17CONFIDENTIAL

Focus on modifiable health risks

Alcohol Sleep

Cholesterol Depression

Blood sugar Blood pressure

Personal safety Tobacco/E-cigarettes

Obesity Activity

Stress Nutrition

18CONFIDENTIAL18

Creating a productive workforce

What’s the future of productivity ?

- Technology solutions

- Tracking and trending --- information!

- Understanding your industry and the specific

implications to your employee productivity

19CONFIDENTIAL19

Creating a productive workforce

Identify your company’s employees’ productivity

“zappers” : “something that kills or destroys the

productivity or performance of an employer’s workplace”

Down, but not out

Behavioral health

Stress at home

Workplace distractions such as media, gossip, etc.

Financial and medical issues

Low employee morale (for various reasons)

20CONFIDENTIAL 20CONFIDENTIAL

The Future of productivity

TeleDoc and productivity – Liz’s story

21CONFIDENTIAL21

Creating a more productive culture

Employers can help drive productivity improvement in their

workforce by making worker productivity part of their benefits

strategy

Some examples include:

• Measure the employee’s functional capacity against the essential job

functions

• Early behavioral health intervention

• Implement income replace contracts that reward employee engagement

in their return to health

• Address ADA related issues up front

• Assess work-fitness after employees return from STD or LTD

• Train your supervisors and managers on how to recognize common

workplace physical and mental conditions in their workforce

22CONFIDENTIAL22

The wellbeing connection

The relationship between wellbeing and physical health runs in both direction:

Serious health problems can lower wellbeing, and

Higher wellbeing results in healthier and faster recovery from illness

Employers can impact an employee’s social connectedness, job satisfaction,

financial security, physical health, and emotional health.

Employees with higher levels of wellbeing are healthier, more productive,

and higher performers.

For employers looking to implement wellbeing programs ---Evaluate what

is important to the organization’s culture, prioritize programs that will yield

the largest impact, then expand programs to encompass broader issues of

wellbeing.

National Business Group on Health: “Moving from wellness to wellbeing – 7th annual employer sponsored health and wellbeing survey

3/16

23CONFIDENTIAL23

Novel Performance Guarantee for Presenteeism*

• Two components to our PG

- Telehealth usage after 1-yr of implementation

- Healthability (commitment to no deterioration in

performance)*

What is Aetna Doing Differently

*Requires a combination of programs and products and Aetna actuarial evaluation & approval

24CONFIDENTIAL24

Improving Employee Productivity – Management Practices

1. Design economic incentives so employees at all levels of an organization

can benefit from them – encourages commitment

2. Provide meaningful feedback in a constructive manner on a regular basis

3. Respect employees as individuals in addition to the job they do –

encourages “going the extra mile”

4. Be sure that management at all levels of an organization receives adequate

training– start early in the manager’s career

5. Provide support for employees when it’s genuinely needed – builds

goodwill and loyalty

6. Don’t be emotionally stingy – recognition is often a more powerful motivator

than money

7. Ensure senior leadership models behavior that makes the rank-and-file

proud to be part of the team -- it energizes employees when leaders “walk

the talk”

Forbes - Victor Lipman, contributor – 6/17/2013

25CONFIDENTIAL25

Summary

Productivity matters

What’s good for the employee can be good for the bottom

line

Make productivity an element of your business strategy

Employee health is a worthwhile investment

26CONFIDENTIAL

Contact Us

For more information, contact us:

Thank You

©2017 Aetna Inc.

26.25.158.1 (5/17)

Disability insurance plans/policies are offered, administered and/or underwritten by Aetna Life Insurance Company (Aetna).

This material is for information only and is not an offer or invitation to contract. An application must be completed to obtain coverage. Rates

and benefits vary by location. Disability insurance plans contain exclusions and limitations. Information is believed to be accurate as of the

production date; however, it is subject to change. Policies may not be available in all states. Policies contain certain exclusions, limitations,

reductions and waiting periods, which may affect the payable benefit. See policy or contact an Aetna representative for details. For more

information about Aetna plans, refer to www.aetna.com.

Policy form numbers issued in Idaho and Oklahoma include: GR-9/GR-9N and/or GR-29/GR-29N.

Policy form numbers issued in Missouri include: GR-29N-DIS 01, GR-29N-STD 01.