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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