FT SPECIAL REPORT

FT Health and the Workplacewww.ft.com/reports | @ftreportsWednesday October 15 2014

Inside

Breaking theculture of silenceLeading companies areencouraging staff to talkabout mental healthPage 2

Tapping into thedementia poundAgeing householdstend to have moredisposable incomePage 2

Two wheels aregood for the soulEmployers are realisingthe health benefits ofstaff cycling to workPage 3

The costs of insuringa healthier officeInsurers are offeringdeals to businesseswith healthy staffPage 4

W orking as an engineerfor British Gas involvesa great deal of lifting,stretching and crouch-ing in the course of fix-

ing faultyboilersaroundtheUK.That might sound like an ideal fitness

workout, but for many of the company’semployees itcanleadtoabadback.

Recognising the problem, the com-pany introduced back care workshopsand a range of other measures to helpengineers avoid musculoskeletal disor-ders. The result was a 43 per cent reduc-tion in back-related absences and areturn of £31 on every £1 invested in theprogramme.

Similar initiatives have sprung upacross the public and private sectors inrecent years, as employers wake up tothe cost of poor health in the workplace.More than 130m work days were lostthrough sickness absence last year inthe UK alone, costing an estimated£32bn. Back pain was one of the biggestcausesofabsence; stresswasanother.

“People are realising the cost is notjust in absenteeism but also lost produc-tivity from employees with health prob-lems who are still coming to work,” saysFiona Adshead, director of public well-being and health at Bupa, the UK healthinsurer. “Health doesn’t happen in adoctor’s surgery; it happens in people’s

everyday lives – and the workplace is abigpartof that.”

Policy makers are also recognising theimportance of employers in helpingtacklebigpublichealthchallenges, fromobesitytodepression.Non-communica-ble diseases, such as diabetes, cancerand heart disease, account for three-quarters of all deaths worldwide and thenumber isgrowingaspopulationsage.

Meanwhile, industrialisation andurbanisation in the developing worldare leading to less healthy diets andlifestyles that will greatly increase thereach of preventable conditions previ-ously concentrated in western coun-tries.Workplaceswillbeacrucialbattle-

ground in the fight against these dis-eases – and the heavy costs they imposeonhealthsystemsandeconomies.

Dr Adshead argues there is even a rolefor employers to play in controlling thegrowing burden of Alzheimer’s – a con-dition that usually arises deep intoretirement. “Problems that materialisein older age often have their origins inmid-life when people are working,” shesays, pointing to evidence of a range oflifestyle factors that could increase risksofdementia.

Many helpful measures have alreadybeen widely adopted by employers,such as making canteen menus health-ier and providing gym membership and

Companieswake up tocost of illemployees

Public and private sectors are investing in healthprogrammes to aid productivity, saysAndrewWard Stuck in the grind: absenteeism and staff coming to work despite health problems are bad for business— Getty Images

medical check-ups. First Scotrail, theScottish train operator, provides physi-otherapy, chiropody and massages to itsemployees and runs awareness pro-grammes on diet, alcohol and smoking.Absenteeism fell from 6.2 per cent to4.2 per cent after the campaign waslaunched.

Advocates say workplace health pro-vides a convergence of public and pri-vate interests. “The return on the bal-ance sheet by investing in workplacehealth is, over a five-year period, nor-mally at least double and sometimes tri-ple the amount spent,” said Carol Black,an adviser to the UK government on

continuedonpage2

Bouldering forbeginnersThe climbing crazethat is gripping India’smiddle classPage 4

2 ★ FINANCIAL TIMES Wednesday 15 October 2014

FTHealth and theWorkplace

A s a senior tax partner at EY,David Brewin was used tomaking important deci-sions. But it was his assist-ant who took charge one

day in 2010, telling him she had clearedhis diary and that he should not arguebutget intoacarshehadorderedto takehim to an appointment booked at thePriory, thementalhealthcaregroup.

“Looking back on it, I was resigned,even relieved,” he recalls. “She hadknown I had had concerns, and hadnoticed me change and become lessengaged. I went for two weeks andended up staying for a month. Ironi-cally, the Priory was one of the sanestandhealthiestplaces Ihaveeverbeen.”

Despite a successful career at the pro-fessional services firm, he concedes:“There was always something thatwasn’t quite right. Big set-piece eventswere stressful and the job was challeng-ing, but I just pushed on. With a divorce,the breakdown of a relationship and achange in roles, I could no longer findenergyormeaning.”

A growing number of professionalsare speaking about their experiences ofdepression and anxiety to set an exam-ple for others and to encourage employ-ers to take a more active role in protect-ingmentalhealth intheworkplace.

Some estimates suggest one in sixemployees are affected, and it costs UKbusiness £26bn a year through absen-teeism and “presenteeism”, when staffturn up but are unproductive. Men aged40-44 years have the highest incidenceofsuicide.

Geoff McDonald, a former top execu-tive at Unilever, was surprised when hehad a panic attack in the middle of the

night in 2008. He woke up thinking hewas going to die, and sought help fromhis doctor. “The only reason I am stillalive is that Iwasveryopenaboutmyill-nessandable toreachout forsupport.”

He contrasts his experience with thatof a friend, a banker who committedsuicide by jumping off a rooftop restau-rant terrace in central London two yearsago. “He had a macho personality andcouldn’t tell anyone,” he says. “Depres-sion is in many ways the scourge of thestrong. I began to think it was especiallyimportant to help men become morevocalaboutmental illness.”

Mr McDonald thinks the economicdownturn and pressures of 24-hourcommunications have increased therisks. “We are expected to do more withless, in a world which is more volatile,uncertain, ambiguous and complex.That is all contributing to people mov-ing from a position of stress to distressandmaybebecoming ill.”

There are signs of positive change.Since its creation late last year, the CityMental Health Alliance, an umbrellagroup seeking to promote more activediscussion of the issue, has signed up 26leading companies, banks and profes-sionalservice firmsinLondon.

Nigel Jones, a partner with Linklaters,the law firm, and vice-president of theAlliance, says: “Physical health is easierto deal with, providing a gym or a goodstaff restaurant. Mental health is moredifficult to talkabout.”

He says growing awareness of mentalillness has brought support for a seriesof high-profile initiatives. While compa-nies may see a direct financial benefit,he believes interventions are simply“what a good employer should do”,

regardlessofanyeconomicarguments.MrMcDonald,whoisnowanon-exec-

utivedirectoratMentalHealthFirstAid(MHFA), a charity that provides train-ing, agrees: “It only takes one suicide inyour corporation for you to put the busi-nesscaseasideandaskwhatyoucando.”

One response is to encourage senioremployees who have had mental healthproblems to speak out, to tackle stigma,provide role models and encourage oth-ers to come forward. Steve Wilkinson, apartner at EY, says training is offeredacross the firm, as well as a “buddy” sys-tem of informal support. “We needmorepeople totalkabout it,”hesays.

MrMcDonaldcautions that“mindful-ness training” alone is not sufficient.“Sendingstaffonacourse is likestickinga plaster on a gaping wound,” he says.“We can’t address the issue withouttackling the environmental factors.” Hesays companies should encourage staff

to takebreaks;workfromhomeorawayfrom office distractions periodically;receive better feedback from managers;and be offered tasks that make themfeel theyaremakingapositivecontribu-tion“beyondgrowthandprofits”.

Poppy Jaman, chief executive ofMHFA,favoursprevention.“Wouldn’t itbe great if we developed an approach formental health at work like we have forback problems?” she says. “You couldmake reasonable adjustments [at thebeginning], just as you do in assessingdeskspace,chairsandfootstools.”

She too argues for more structuralchange.“It’s ridiculouswhencompaniesset very high performance rates. Ifsomeone is performing at 120 per cent,that probably comes at the cost of some-thing else. When someone is overper-forming, we should not be celebratingbut saying ‘you are doing way too muchandyouwillburnout’.”

Environmentalfactors and culturehave to change toremove stigmaMental health Positive signs as leading companiessign up toworkplace initiatives, writesAndrew Jack

A long day:meeting highperformancetargets can comeat the expense ofmental healthEPA

work and health, at an awareness eventthisyear.

Incentives for investment in work-place health are strongest in the US,where employers bear a large share ofhealthcare costs through employeeinsurance schemes. Among US employ-ers offering health benefits, almost alllarge organisations and nearly three-quarters of smaller ones provide at leastone so-called “wellness” programme tostaff, according to the Kaiser FamilyFoundation, a health-focused US non-profit group. Such schemes typicallyinclude counselling for those with medi-cal conditions to encourage them tostick to their treatments – as well asadviceonlifestyleanddiet.

More than a third of large employersprovide a financial incentive for staff toparticipate in health programmes and8 per cent penalise workers financially –based on screening of risk factors such

continued frompage1 as weight, blood pressure and choles-terol.

Punitivemeasuresof thiskindare lesslikely to be adopted in Europe, where largely public health systems shieldemployers fromthefull costof illhealth.However, there is growing understand-ing on both sides of the Atlantic andbeyond about the case for encouraging ahealthyworkforce.

There are some positive signs ofprogress. Days lost through health-related absence in the UK have fallen toan average of 6.6 per employee this year,from 7.6 in 2013, according to the UKChartered Institute of Personnel andDevelopment(CIPD).

Sceptics believe this could simplyreflect an increased tendency to con-tinue working while sick. FrancesO’Grady, general secretary of the UK’s Trades Union Congress, says: “The realhealth threat we face is the culture ofpresenteeism, where unwell staff are

pressed into coming to work by theirbosses. This can prolong illness, spreaddiseasesandcausestress.”

While overall absenteeism is down,two-fifths of UK companies reportincreased stress-related absence andmental health problems, including anx-iety and depression, in the latest CIPDsurvey.

It is not clear to what extent thisreflects rising incidence of such condi-tions or simply a growing readiness onthe part of employers and employees torecognise a problem previously sweptunderthecarpet.

Either way, the issue is a serious onefor business in a knowledge-based era,

when employees’ brains are many com-panies’mostvaluableassets.

About half of long-term absencesfrom work are due to mental issues.ResearchfromtheOECDgroupofdevel-oped economies found that mental ill-ness costs the UK about £70bn a year, or4.5percentofgrossdomesticproduct.

A group of leading UK employers inApril launched a campaign to tackle theproblem – including a pledge to helpremove the stigma surrounding mentalill health that often deters people fromseeking help. Backers included BT,Royal Bank of Scotland and Procter &Gamble.

“Unless prevention is embedded intohow businesses manage and nurturepeople, issues that could be resolvedsimply can develop into ill health,absence and disengagement,” says Lou-ise Ashton of Business in the Commu-nity, a charity focused on the relation-shipbetweenbusinessandsociety.

Companies wake up to the cost of ill employees

130mWork days lostfrom sicknessabsence last yearin the UK, costingabout £32bn

£70bnCost of mentalillness to the UKeconomy a year, or4.5% of grossdomestic product

When drivers at Mainline Sevens, a Sal-ford taxi company, received pick-uprequests from an elderly customer inthe early hours of the morning, theysuspectedsomethingwaswrong.

“He lived alone and would call regu-larly asking to be taken to breakfast inthe Co-operative café,” says GlennysGlover, the managing director. “Wewould take him every morning, thensuddenlyhewascallingat1am,2am . . .

“We told him to go back to sleep, thatwe would be there in the morning asusual,buthewouldbecomeveryupset.”

Ms Glover says she suspected he wasshowing signs of early-stage dementia –and she was right. “We got involved,because it was happening to our cus-tomers.Wewantthemtofeel secure.”

The taxi company signed up toDementia Friendly Communities, anational scheme led by the Alzheimer’s

Society, a charity. Thirty cab driverswere trained in how to recognise signs ofthe illness – confusion and panic attacksare common symptoms – and how toassist theirpassengers.

When David Cameron, the UK primeminister, launched the government’sChallenge on Dementia in 2012, a pro-gramme that aims to bring improve-ments in care and research by 2015, heasked businesses to sign up to DFC.Some 69 towns and villages are nowmembersof thescheme.

And they are not only acting out ofcompassion. As the population ages,there isalsoacompellingbusinesscase.

People with dementia and their fami-lies often have considerable disposableincome.

The so-called “dementia pound” inEngland was worth £11bn in 2014,equivalent to 1.8 per cent of householdspending in England – and the figure isexpected to more than double to £23bnby 2030, according to a report,The Eco-nomic Cost of Dementia to English Busi-nesses, published in July by the Centrefor Economic and Business Research(CEBR),athink-tank.

But thatproportion is likely torisesig-nificantly, because rates of dementia areexpected to soar in coming decades. Theaverage household affected by demen-

tia will spend £16,800 this year. Morethan 657,000 people in England havethe condition, 1.2 per cent of the popula-tion. If projections are correct, that fig-urewill rise tomorethan1mby2030.

Worldwide, trends are similar. Anestimated 35.6m people had dementiain 2010. This is expected to nearly dou-ble every 20 years, to 65.7m in 2030 and115.4mby2050,accordingtodatabytheWorldHealthOrganisation.

As people develop dementia, so theyspend less, according to the CEBR.Nearly a quarter of people with demen-tiasaytheyhavegivenupshopping.

“Without action to make these poten-tial customers feel comfortable, busi-nesses may find their spending goeselsewhere,” thereportsays.

Some large retailers are catching on.Sainsbury’s, the Co-operative Group,the Post Office and Asda are amongthose involvedinDFC.

“High street businesses need tochange how they interact with theircustomer base,” says George McNa-mara, head of policy and public affairsat theAlzheimer’sSociety.

“We want every business involved,because there are different challenges –in pubs, cinemas, museums, forexample.”

Everyday banking is especially

challenging, he says, with its paperworkand digital security demands. Butchanges such as replacing chip-and-pincards – which require memory power –with old-style signature debit cards canmean these customers can bank inde-pendently for longer.

Lloyds Bank represents the bankingindustry on the Challenge on Dementiafinancial services “champion group”,a task force that produced a good-practicecharter in2013.

The cost to Lloyds is hard to quantify,says Graham Lindsay, group director forresponsible business and communityaffairs, but the business case is clear:“We know that the over-55s hold muchof thewealth,”hesays.

Butnotallbusinessesare interested.Professor Maggie Pearson, dean of the

college of health and social care at Sal-ford university, says local campaignershave found that some refuse to engage.“It’s foolish, because the dementiapound is very strong. They are worried[that customers with dementia] aregoing to flood through the door and theywill have people they can’t cope with,”shesays.

“A lot of people are frightened andthey block it out,” says Ms Glover ofMainline Sevens. “But if we can’t helpeachother, it really isallover.”

Business loses out by neglecting dementia poundDementia

Ageing households tend tohave plenty of cash, socompanies need to adaptthemselves to the market,reports Helen Barrett

‘High streetbusinessesneed tochangehow theyinteractwith theircustomers’

The spotlight of this year’sWorld Mental Health dayfell on schizophrenia, adisorder that affects anestimated 26m globally,writes Adam Palin.Yet, despite progress in

recent years to raiseawareness of mental healthissues, much has still to bedone to overcome “aculture of silence”, saysLouise Aston, a campaigndirector at UK charityBusiness in the Community(BitC).“Plenty of myths need

dispelling,” she says.Poor mental health not

only has an adverse effecton people’s wellbeing, butcan shorten life expectancyby as much as 15-20 years,according to a report fromSally Davies, England’schief medical officer,published this September.The costs extend

beyond sufferers and thoseclose to them.The report estimated

that mental illness coststhe UK economyapproximately £70bn ayear, equivalent to 4.5 percent of gross domesticproduct, once absences,productivity losses andbenefit liabilities are takeninto account.The report also

concluded that mentalillness accounted for70m lost working days in2013, making it the leadingcause of sickness leave inthe UK.“There is clearly a

dividend for companiesthat have a healthyworkforce,” says ChrisO’Sullivan, policy managerat the Mental HealthFoundation, a charity.Among the companies

that recognise the benefitsof improving the mentalwellbeing of its workers isMars UK, a subsidiary ofthe US food andconfectionerymanufacturer.The group employs

some 4,000 people in theUK.Julie Digby, the group’s

vice-president for people,says that Mars UK revisedits approach in 2011.The prompt for action

was the high levels ofstress, anxiety andabsenteeism among thecompany’s sales team, shesays.Mars’s experience tallies

with recent analysis.According to the chief

medical officer’s report, thenumber of working dayslost to “stress, depressionand anxiety” in the UK roseby 24 per cent between2009 and 2013, while thenumber of days lost to“serious mental illness”roughly doubled.Mars initiated a

programme of “resilience”training to improveemployees’ relationshipwith stress.Ms Digby says: “The

working world is busy andwill continue to remainbusy. Our programme is allabout being proactive.”A course – initially

attended by salesassociates – was designedto ask participants to look

at different responses tostress and to re-evaluatehow they cope.Employees learn how to

avoid “mind traps” –cognitive mistakes such asavoiding ruminating over aproblem – that prove self-defeating.The classroom training,

now offered to allemployees as part of apersonal developmentprogramme, is supportedby internal occupationalhealth managers as well asexternal specialists.In parallel, managers

were taught to spotcommon early signs ofmental ill health in staff,particularly stress andanxiety.Beyond detection of

problems and theirpossible referral, Ms Digbysays line managers havealso been coached in howto use “sensitivecommunication” whendiscussing mental healthwith employees.Within a year of

launching the programme,employees reported animprovement in their sleepand stress levels, as well astheir performance at work.Records showed that

absenteeism due to mentalhealth issues fell to almostzero, Ms Digby says.While absenteeism is a

concern for employers, it isestimated to account onlyfor one-third of the mentalhealth-related costs borneby businesses, adds MrO’Sullivan at the MentalHealth Foundation.Two-thirds of costs arise

from “presenteeism” –attending work despiteillness.“As you can imagine,

people are often concernedabout disclosing theiranxieties in the workplace,”says Mr O’Sullivan.Mars UK has established

a confidential 24/7helpline, and also helpsstaff who requirecounselling or psychiatricservices to get fast-trackreferrals.Mars is a member of

BitC’s Workwell initiative,which aims to give mentalhealth the same status asphysical health at work.Other Workwell affiliates

include BT, Friends Lifeand Procter & Gamble.Given the success of the

resilience training, Marshas launched a globalinitiative to improve thewellbeing of its entireworkforce, which would inturn be expected to returnbenefits to the company interms of workerengagement andproductivity.“It’s a win-win situation,”

says Ms Digby.

‘Culture of silence’ needs to end

Chris O’Sullivan

ContributorsHelen BarrettCommissioning editor, special reportsAvantika ChilkotiMumbai correspondentAndrew JackHead of aggregationMadison MarriageReporter, FTfmChris NewlandsEditor, FTfmNaomi RovnickFastFT reporter, Hong KongBarney ThompsonReporter, UK newsdeskAndrew WardPharmaceuticals correspondentRobert WrightUS industry correspondent

Hugo Greenhalgh, commissioning editorand head of editorial content; Steven Bird,designer; Andy Mears, picture editor

For advertising details, contact: IanEdwards +44 207 873 3272 andian.edwards@ft.com, or your usual FTrepresentative.

Mary Ann Baynton, of MindfulEmployer Canada, which promotesmental health in the workplace, says agood work-life balance is crucial formind,bodyandsoul.

“Overworked employees are bad forproductivity. The more they work, themore their productivity declines,” shesays. “The body and mind are one sys-tem. When something is wrong in onepart, itaffectsothers.”

Yet, doing less work does notalways lead to improved health. Manystudies have shown that the unem-ployed suffer more health problems –including mental ones – than those inwork and that the longer people stay offwork when sick, the less likely they aretoreturn.

Arguably the biggest health priorityfor employers and policy makers, there-fore, should be getting more people intojobs – and using wellness programmestokeepthemthere.

Wednesday 15 October 2014 ★ FINANCIAL TIMES 3

Cyclists coming to the Time-Life Build-ing, on Manhattan’s Sixth Avenue, oftenface a battle along crowded, unpredicta-blestreets.

Not surprisingly perhaps, there is lit-tle official promotion of cycling foremployees of Time Inc, the building’stenant, since the company’s lawyers areconcerned about encouraging commut-ers torideonsuchforbiddingstreets.

Teri Lukin, Time’s director of healthservices, says only a “handful” of itshundredsofemployeescycle towork.

In London, meanwhile, Canonical, asoftware developer, employs so manycyclists that Chris Kenyon, its head of sales, says the most common questionsfrom employees when the office relo-catedrelatedtocycling.

North London cyclists wanted guid-ance on a safe route across the Thamesto the new office in Southwark on thesouth bank. Mr Kenyon is now organis-ing a coalition of employers with cyclingemployees to call for rapid implementa-tionofnewcycling infrastructureplans.

These contrasting stories illustratehow, despite a sharp growth in cyclecommuting in recent years in both Lon-don and New York, employers’ enthusi-asmforthepracticedifferssharply.

It also remains clear that both citieshave considerable scope for furthergrowth. Although cycle commuternumbers doubled in New York between2007 and 2011, and in London doubledbetween 2001 and 2011, neither city islikely to topple Copenhagen from itsposition as the world’s leading cyclingcity. There, nearly 40 per cent of jour-neys to work and education are by bicy-cle. In London, according to the latestUK census, 3.9 per cent of trips are bybicycle, while in New York 1 per cent ofresidentsregularlycommutebybike.

Rosie Downes, campaigns managerfor the London Cycling Campaign, saysthere is “huge potential” for more Lon-doners to start cycling to work. “Manywon’t do so because they find our streetstoo dangerous to cycle,” she says.“Tackling barriers to cycling through

redesigning our streets and providingample and secure cycle parking makesgood sense for businesses that want ahealthier and more productive work-force.”

At theheartofwhetheremployeesareprepared to ride to work is the state ofeach city’s roads. Many big cities soughtin the middle of the 20th century toshapethemselves to theneedsof thecar.Motorways bulldozed through inner-city neighbourhoods while the dis-placed people often moved to distant,car-dependent, low-densitysuburbs.

While cities have made halting effortssince the 1970s oil price shocks toimprove conditions for cyclists, mostcampaigners believe safety fears con-tinue to discourage many would-becyclists, leaving the field disproportion-atelytothefitandthefearless.

Virtuous circles: two wheels areproving good for the workforceCycling

While companies are keen toencourage commuting bybike, many employers areworried about safety issues,reports Robert Wright

FTHealth and theWorkplace

P erceived wisdom holds that ahealthier workforce is a moreproductive workforce. Butfor every study that appearsto show that fitter staff per-

formbetter,another findsthat thebene-fits to a company of promoting well-being at work do not outweigh the costs,with the result being zero improvementinabsenteeismandperformance.

Rand, a US think-tank, is one suchnaysayer. It raised its head above theparapet on the subject in January, issu-ing an attack on the body of researchbacking the introduction of workplacehealthandfitnessschemes.

Over a seven-year period, the think-tank assessed 67,000 workers partici-pating in the healthy living programmeof PepsiCo, the the US-based drink andsnack-food company, and concludedfrom the results that so-called “well-ness” programmes designed to pro-mote better health are not economi-cally worth the effort .

PepsiCo’s lifestyle management pro-grammes that specifically address lackof exercise, bad eating habits and smok-ing were shown to reduce sick leavetaken by employees by an hour a year,but this only resulted in a saving of 50cents in healthcare costs for every dollarspent.

“Thesavingsgeneratedbythisbenefitare not enough to make the programmepay off financially,” the think-tankreported.

PwC, the consultancy, reached asimilar conclusion in a 2009 study look-ing at the exercise and dietary habits ofpublic sector workers at four localauthorities intheUK.

It found that although “other researchhas shown the beneficial effects of dietand exercise on health”, there was nodiscernible difference in exercise habitsof those who took a high level of sickleavecomparedwiththosewhodidnot.

These findings raise important ques-tions about the benefits of investing inhealth and fitness initiatives, whichhave increasingly become the normfor largecompanies.

Roughly half of US employers withat least 50 workers offered a healthy

working programme in 2012, accordingto Rand. This figure rises to more than90percentwhenconsidering firmswithmorethan50,000workers .

But those in the pro-fitness campbelieve the reason why critics thinkthere is little point to workplace healthschemes is simple: they have totallymiscalculated the cost of ill health tobusiness.

The argument is that while the outlayon company health initiatives is easyto calculate, the losses caused by staffsickness do not consist of easily deci-pherable entries within a company’sbalance sheet and, as such, are greatlyunderestimated.

Alistair Peck, a principal at Mercer,

which advises companies on the health,wealth and performance of their staff,calls this“poormetrics”.

“Most organisations do not capturethe true cost of ill health and captureonly the increased direct spendon health initiatives. But the impactof ill health is not a neat single lineon a company’s P&L. The positive bene-fits of increased productivity andlower employment costs linked tohealthmustbecaptured ifa trueevalua-tion is tobemade.”

Companies that have been willing tosuspend belief and plunge into spendingon healthcare without a “cast iron guar-antee of return” have typically wit-nessed a return on investment of 3:1,accordingtoMrPeck.

A recent report by the Confederationof British Industry, a UK business asso-ciation, indicates that the returns onsuch an investment could be evenhigher. New health and wellbeing poli-cies at Royal Mail Group, the postalcompany, generated a 500 per centreturn on investment over three years,accordingtotheCBI.

There is also a sense that the negativefindings of some studies could be areflection of poorly executed corporatefitness campaigns that primarily appealto employees who are already fit andactive, rather than those who need itmost.

The assumption is that if companiesaddressed that imbalance, they mightseeabetterreturnoninvestment.

Kimberly Jinnett, executive vice-president of the Integrated BenefitsInstitute in San Francisco, says: “Eventhe best fitness intervention maynot affect absence, job performance,work disability or broader workoutcomes, if the only ones targeted bythe programme are the [healthy]employees who come to work everyday.”

Mr Peck of Mercer agrees that moreaccurately targeted fitness programmesare imperative. “Well-intentioned butpoorly researched initiatives will havelimited impact – simply placing a bowlof fruit in an office will not create a cul-tureofhealthyeating.”

Poormetrics put health programmes in perilFit for purpose?While somedecry the value of employee health schemes, others think campaigns are badly executed, say Chris Newlands andMadisonMarriage

Stretched:work fitnessprogrammesneed to be moreaccuratelytargeted— Alamy

“Cycle Superhighways”, developedunder London’s mayor, BorisJohnson, were intended to promotecycling for a low cost. But, after aseries of deaths, many believe theyhave increased the risks as well asthe number of riders.London employers have started

a campaign to call for segregatedroutes. Some are involved becausetheir employees have been killed orbadly injured biking on London’sroads, says Chris Kenyon, founderof the CyclingWorks campaign.Many contend that only solid

separation from motor traffic canprovide proper protection.But the process of introducing

“Dutch-style” infrastructure, suchas that proposed on some Londonroutes, is controversial. Opponentsare worried about the impact onspeeds for non-bike traffic.

Cycling safety

With more than 5,000 employees in the UK andIreland, PepsiCo says it is “committed” to creatingan environment that encourages a healthylifestyle, despite criticism of its wellbeing scheme.Its strategy, according to Kimberley Swift,

PepsiCo UK health and wellness manager, isbased on four pillars: diet and hydration; quittingsmoking; exercise; and mental resilience. She says:“We have invested significant time and resourcesin health and wellbeing initiatives and have seen areally positive effect on our employees. “Last year, PepsiCo partnered with

iGlobalWellness, a supplier of corporate health

programmes, to offer 1,000 employees a “stayactive challenge” in which they were issued withaccelerometers and received points based onincreased activity levels.Staff participated in teams of five and their

points were added up and swapped for prizes.“It has been a resounding success,” says Ms

Swift. “Over 11 weeks, average activity rose 77 percent, smashing our 50 per cent target.”To doubts that the programme is not cost-

effective, she responds: “Healthier, happieremployees create a great working environmentthat encourages productivity.”

Living for nowWhat’s in it for PepsiCo in the UK and Ireland?

Ms Lukin explains how Time consid-ered participating in an annual chal-lenge organised by TransportationAlternatives, a cycling and pedestrianadvocacygroup,butdecidedagainst it.

“We didn’t want to have an officialcycling team because it is midtownManhattan and it’s tricky,” she says.“The legal team were concerned that, ifit was a company initiative and therewas an injury, it would be the company’sresponsibility.”

Time does supply secure bike parking– as required under New York City law –but justahandfulofemployeesuse it.

Caroline Samponaro, TransportationAlternatives’ director of campaigns,says the state of streets is a particularlyurgent problem. New York, which hasabout the same population as Londonand similar traffic levels, suffers twiceLondon’sannualroaddeaths.

At Canonical, meanwhile, there is lessworry about what would happen ifemployees started cycling and far morepressure from those who are. The own-ers have become vocal about the needfor segregated cycle paths in centralLondon after the London Chamber ofCommerce, a business group, opposedthem, saying they would harm business.

Mr Kenyon decided it was time to goon the record about how important thepaths are to his business, and enteredinto discussion with other companies. Aseries of employers, including Deloitte,a professional services company, KnightFrank, an estate agents, and some ofLondon’s biggest hospitals have backedhiscampaign,calledCyclingWorks.

This reflects a changing sense ofemployers’ responsibilities. While MrKenyon says some have voiced legalconcerns of the kind that Ms Lukinarticulates, others feel under pressureto improve their environmental per-formance and encourage more environ-mentally friendlymodesof transport.

On top of that, Mr Kenyon says thehealth benefits for cycle-commutingemployees seem to outweigh the injuryrisks. Employees who cycle take farfewerdaysoff sick,hesays.

The crucial point is that employeeswho travel by bike should not face therisk they currently do on many big cit-ies’ streets, Mr Kenyon says. More andmore are seeking help from theiremployers tomitigate thedangers.

“We have to stand up for the rights ofour staff to safe transport,” Mr Kenyonsays.“Thevastmajorityof this relates towhatouremployeesareaskingfor.”

4 ★ FINANCIAL TIMES Wednesday 15 October 2014

FTHealth and theWorkplace

R ound the back of a collegeauditorium in Matunga, cen-tral Mumbai, a handful ofyoung people are crowdedaround a yellow plastic

climbing wall. Two figures hang fromthe structure, while others stand onmulticoloured crash pads below shout-ing instructions: where their friendsshould move next and how to improvetheirbalance.

Bouldering, like many other non-competitivesports, isbecoming increas-ingly popular in India, as the growingmiddle class becomes interested inhealthandfitness.

Sociable sports that require team-workrather thancompetitionarecatch-ing on in particular among an urbanpopulation eager to escape the stressesofdaily lifeandmeetnewpeople.

“When I came [home] from college, Iused to play on the PC and I got fat . . . Iused to get bored,” says Anogh Jadhav,18, who now climbs five times a week inMatunga.“All thisgrouparefun.”

Bouldering is a form of rock climbingthat usually involves heights below 15feet. That means climbers do notrequire a rope – just climbing shoes andchalk to dry their hands – making it asimpleandaccessiblesport.

Cricket and football remain the mostpopular forms of exercise in India,where many people also play badmin-ton and squash. But bouldering isamong a handful of non-competitivesports thataregainingprominence.

Large corporate houses are catchingon, using these non-competitive activi-ties tohelpwithteambuilding.

At Tata Steel, for example, executivetrainees are sent on an adventure pro-gramme with the Tata Steel AdventureFoundation. For 15 days, the group of30-35 graduates works together trek-king intheHimalayas, forexample.

“It is expensive but we do that foremployees,as theseareactivities thatgo

towards ensuring stronger employeeengagement,” explains Kulvin Suri, acompanyrepresentative.

Matt Powell, an analyst at SportsOne-Source, who studies the US market,says: “There are a lot of alternativekinds of fitness happening. Many ofthem I would describe as social fitnessactivities, meaning that you’re doingtheminagroup.”

Climbers, for example, advise oneanother, setting new routes to challengetheir peers. “People help each other,”says Praveen CM, 28, a championclimber who is an instructor at Equi-librium, a gym in Bangalore. “You learnthe technique I have, and I learn thetechniqueyouhave.”

The gym, located in India’s IT capital,has some 600 members. It draws thecity’s large population of young profes-sionals, who climb during their lunchbreak or straight after work, paying justRs150($2.50)foradaypassat thegym.

“Climbing is one thing that comesfrom your ancestors – it’s inbuilt,” theinstructorexplains.

As income levels rise and the urbanmiddle class looks to spend time out-doors, interest in adventure sports is ris-ing. But India has long been a hub forthese activities, with the Himalayas inthe north and the Western Ghats nearthecommercialcapitalofMumbai.

Nowadays, many people plan trek-king trips with friends at the weekend,or join an organised group to meet newpeople. Be it a day’s hiking or a longerholiday, most amateur groups aremixed in terms of gender, age and abil-ity, with people supporting one anotheralongtheway.

“Trekking and being healthy is catch-ing on with the young crowd as well asthe old,” says Abhijeet Mhatre, founderof Letscampout.com, which organisesday treks near Mumbai for Rs999 ahead.“It’sgrownbyleapsandbounds.”

The group’s revenues have rocketed

from about Rs1m in 2010 to more thanRs20m in the financial year just ended,and it now has 12 campsites around thestateofMaharashtra.

Social media are helping drive inter-est in these sociable sports as internetpenetration rises in India. The youngclimbers in Matunga say they heardabout the facility on Facebook andmany trekking groups credit theirgrowthtotheironlinepresence.

“People who had never thought abouttrekking see pictures of their friendstrekking and having a good time, thenthey want to try it,” says Asif Ebrahim,managing director of Nature Knights, agroup organising adventure activities inIndia. “Social media have a large part toplay in influencingpeople.”

The convivial nature of these activi-ties may be driving demand but the ris-ing interest in these sports also comesdown to economic development –India’srisingwealthandopeneconomy.

Diving is the perfect example, asinterest in the sport is growing rapidly.

On expeditions to exotic destinations,including the Andaman and NicobarIslands off the east coast of India or Lak-shadweep off the west, divers take to thesea insmallgroups.

“Diving is a buddy sport,” says AneesAdenwala, who runs Mumbai-basedOrca Dive Club and has taught morethan 2,000 divers over his career.“You’re looking after your buddy andyourbuddyis lookingafteryou.”

But India’s growing interest in divingcomes down to access. Just as climbersclaim it was difficult to find good shoesin India until recently, trekking groupssay quality tents were once difficult tofind. Mr Adenwala says safety is crucialandhestill importsa lotofequipment.

Diving, which requires everythingfrom wetsuits to face masks, remains anexpensive hobby. But as India develops,many people are willing to spend lav-ishly to enjoy a sport that takes them toexoticdestinationstomixwithnewpeo-ple. “There are many rich people in thiscity,”MrAdenwalaadds.

Growing interestin adventuresports mirrorsrise in wealthExercise Sociable sports that require teamwork notcompetition are catching on, saysAvantika Chilkoti

Celebrities, from Sting to Madonna,have popularised yoga in thewestern world – and theseendorsements have triggered arevival in India, the birthplace ofthe practice.“People might start because they

see someone famous or beautifuldoing it,” says Deepika Mehta, awell-known instructor in Mumbaiwho regularly features on televisionprogrammes about fitness.But, she explains, they stay

because they appreciate thebenefits of the combination ofworkout and meditation.Yoga participation in the US has

increased an average 6.5 per centannually in the past five years to24.3m people in 2013, according todata from the Sports & FitnessIndustry Association. And a vastbusiness has emerged to serve thefashionable pursuit.Matt Powell, an analyst at

SportsOneSource, estimates thatthe US fitness and yoga apparelindustry was worth $500m in 2013,up from $350m in 2010.As the practice becomes popular

in the western world, so the Indianpublic are also returning to yoga.Ms Mehta, who was introduced to

yoga after an accident, has trainedmany of India’s best-known modelsand actors eager to keep in shape,including Bollywood royalty,Aishwarya Rai. And the instructorhas seen demand rocket.She takes classes around the city,

charging some Rs6,000 ($100) fora course of three lessons a weekover a month. Her training is at thetop end of the market, so the pricemeans that yoga remains fairlyaffordable in India.Ms Mehta comments: “Especially

in the urban areas, it’s almost afunctional need.”

Yoga Popularitysparks revival at home

Deepika Mehta says demand forclasses has rocketed in India

Employees at BP’s UK operations maynot have noticed, but their diets aregetting healthier. Starting last year,the oil major’s chief medical officer,Richard Heron, has been quietly reduc-ing salt and calories in meals in thestaffcanteens.

This is part of a wider project thatDr Heron has spearheaded: to create ahealthier workforce by gathering dataon employees’ lifestyles and encourag-ing them to exercise more and eat bet-ter,via targeted incentiveschemes.

BP’s actions are not entirely altruistic.There are clear financial benefits forcompanies that focus on staff well-being. Sick leave and working whileunwell costs companies 7.8 per centof their yearly wage bill on average,according to a study of 82 British busi-nesses conducted by Cambridge univer-sity, think-tank Rand Europe andPruHealth, thehealth insurer.

The situation is worsening. The study,completed this year, found that nearlytwo-thirdsof the82companies’250,000employees have habits that put them atriskof illness.

“Absence rates and health insuranceare business costs,” says Dr Heron, whois also president of Britain’s Faculty ofMedical Leadership and Management.“Also, companies that demonstrate theycare [about staff] see higher levels ofengagement, better retention rates, lessabsenteeism and more alignment withcompanyvalues.”

Shareholders should be aware of thisissue too, says Greg Levine, director ofcorporatevitalityatPruHealth.

“At some stage,” he says, “I hope to seecompanies discussing their wellness

credentials in their annual reports.”According to Wolfgang Seidl, partner

at Mercer, healthcare costs constituteup to 10 per cent of payroll at US compa-niesand3.9percent inEurope.

PAConsulting,amanagementconsul-tancy, has taken the idea of gatheringemployees’ health data one step further.The company has developed what itcalls a “healthcare patch”, a monitor thesize of a 10 pence piece and resembling aplaster that doctors or employers canask individuals to wear. The patch thenmonitors heartbeat, body temperature,bloodoxygenlevelsandlungfunctions.

PA intends to commercialise theproduct for use in the pharmaceuticaland medical industries, and to ask itsown staff to wear patches so their statis-ticscanbeaccessedbythecompany.

“Many of our people use wearabledevices already,” says Emma Hardaker-Jones, global head of human resourcesat PA. “As I walk around the office I see30-40 per cent of people are using[them] to track things like their energylevels, theirsleep.”

When asked if being asked to wear thepatch may be viewed as intrusive, MsHardaker-Jones says: “We are anemployee-owned business, so if we caneducate people about the benefits tothem of these data, that they could helpussavecosts, this isapositiveopt-in.”

Dr Heron says 85 per cent of BP’s UKstaff have volunteered to take part inhealth checks. From analysing anony-mous data, he realised that more thanhalf the workforce “had an opportunityto improvetheirweight”,hesays.

Dr Heron then started pilot schemessuch as offering weight reduction coun-selling to staff whose body mass index isabove 25, the NHS criterion for consid-ering someone overweight. It seems tobe working. “We’ve seen some earlyindications at about six to 12 months ofsustainedloss inweight,”hesays.

Dr Heron has also ensured that BP’sstaff canteens encourage employees tochoose healthier options. For example,he says, if someone buys nine low-calo-riemeals inarow, theyget the10thfree.

From canteenmenus tomonitoring vital signsEmployer action

There are many measuresthat companies can adoptthat will improve staffwellbeing and productivity,reports Naomi Rovnick

With a high-grade carbon compositeframe, electronic gears, a transmitterthat records wheel-speed data and aprofile that makes it look like a barra-cuda hunting for its next meal, the GiantPropel Advanced SL 0 is the kind ofmachine that has cycling aficionadosapplyingfornewcreditcards.

And for £8,499, a bike that not so longago was the preserve of professionalscan be yours as you tackle the challengeof the weekend race or the daily com-mute. “We sell one of those about everyfive or six weeks,” says Ian Manzano ofCadence Performance, a bike shop andcafé inCrystalPalace, southLondon.

The success of athletes such as Brad-ley Wiggins and Victoria Pendleton hasdone more than spark huge interest incycling in the UK. It has made us madfor technology. For today’s executives,cycling is the new golf – just with moreopportunitytoshowoffexpensivekit.

Where spending several thousandpounds on a bike was once consideredwildlyextravagant,nowit isall tooeasy.

Flick through the pages of bike maga-zines and you can find (as an unscien-tific sample): a De Rosa SuperKing for£5,349, a Genesis Zero for £4,499, aTrek Emonda for £7,800 or a ColnagoC60for£7,999.

According to the market researcherMintel, bike sales by value rose from£639m in 2008 to £745m in 2013,while the volume of bikes solddropped over the same periodby 13 per cent to 3.2m a year –showing that cyclists arespending more money oneachmachine.

Much of the latest cyclingtechnology has been pioneered in

the fields of aerospace and Formula 1,where combining lightness and strengthis paramount. Professional riders andengineers then experiment and adaptthe technology to seek an edge, howeversmall,over theirrivals.

And it is not long before those innova-tions leak into the commercial market.“The latest equipment is beta-tested onthe pros,” says Roly Seaton, store man-ager at the Cycle Surgery bike shop andrepair centre on the edge of the City ofLondon. “But it trickles down throughtheranges[ofhighstreetmodels].”

Mr Seaton leads the way to a backroom of the shop and puts a sleek, blackParlee Z3 on to a mechanic’s stand. Thefirst thing he points out is the bike’smain material. “Carbon frame, carbonfork, carbon stem, seatpost, rail on thesaddle, carbon fibre spokes,” he says,pointing to all the parts. “It all meanslessweightbut thesamestrength.”

And this is just the Z3, which has beenaround for a few years – subsequentmodels have shaved a few 100 grams offthe frames until they weigh well under akilogramme.

But to cycling fanatics, carbon is oldhat. With technology now widespreadon the market, Ben Spurrier, head ofdesignatCondorCycles, saysthefocus ison ever greater specialisation and preci-sion alongside the introduction of newcomponents. This is probably whychoosing the frame first and setting upthe components according to thebuyer’s physical type, fitness andbudget isbecomingsopopular.

When it comes to the design of high-end carbon bikes, Mr Spurrier says,manufacturers and riders now differen-tiate between “aero bikes” for road rac-ers – machines designed to cut throughthe air more efficiently – and bikes forriders who spend all day climbingmountains, where the emphasis is onmakingeverythingas lightaspossible tominimisethepullofgravity.

As for components, the refinementsare never-ending. “One of the most pop-ular developments in recent months isthe use of disc brakes, especially forcommuter and loaded-up touring bikes,which need all the stopping power theycan get,” says Mr Spurrier. Disc brakesare mounted at the wheel hub, withpads squeezing on the disc to slow thewheel’srotation,asopposedtoclampingontotherimofthewheel itself.

“Day after day of stopping at trafficlights and riding in the wet and the mudmean wear and tear on the traditionalbrake pads on the rim – and that area ofthe wheel itself. But a brake at the hub ismoreoutof theway.”

But while this is fine for those with thecash, bike retailers say the biggest sell-ers are the £500 to £1,000 aluminium-framed bikes. This is in no small partdown to the government scheme thatallows tax breaks on bikes up to £1,000.“The cycle-to-work scheme has made ahuge difference,” says Mr Seaton.“£1,000getsyouareallygoodroadbike,orahybridandaloadofsafetykit.”

You can avoid paying to upgrade yourgroupset – the collection of componentsthat includes gears, shifters, chain,derailleurs and cogs – by keeping themcleanandwellmaintained.

And for about £150 you can get anexpert to check your posture, tech-

nique and saddle height, which isprobably a better investmentthan spending a few thousandpounds more to go up to thenext model. And as one bikesalesman wryly put it: “If you

really need to lose a few kilosfrom your bike, it’s probably

quickerandcheapertogoonadiet.”

Thirst for latest technology helpsboost the benefits of exerciseSports technology

Professional innovationsrapidly filter down to thecommercial cycling market,writes Barney Thompson

The only way isup: bouldering –both outdoorsand in the gym –is gainingprominence inIndia— Alamy

People whohad neverthought oftrekking, seepictures oftheir friendshaving agood time,then theywant to try it

Tony Powis, the chief executive ofemployee benefits at insurancebroker Willis, says insurers cansometimes offer better deals tocompanies whose staff are in goodhealth.He says: “Insurers look

favourably on employers that adopta risk management strategy onwellness in the workplace.”There is no one-size-fits-all way

to do this, he adds, explaining: “Thewellness strategy needs to beidentifiable by industry sector. Forexample, if you look at banks, thebig issue is workplace stress.”When companies approach an

insurer to claim they have improvedemployee health, Mr Powissuggests, they must provide datato demonstrate not only that theirstaff’s diet and health haveimproved, but also that they arecontrolling absences and have earlyintervention programmes tomanage lifestyle-related diseases.US companies are “leading the

pack” in this regard, says Mr Powis.“What you see a lot of is obesitymanagement, for example healthyfood choices with a cheaper pricetag, organised weight loss clubsand competitions, walking clubs.”Willis calculates that companies

that properly manage absence willsave 5-10 per cent on incomeprotection policies. He adds thatthe ability to present data showingthat employees are becominghealthier will be treated favourablyby private medical insurers, whomay offer a 5 per cent discount.Mr Powis adds that employers

should not forget that healthierstaff will make fewer insuranceclaims, leading to a saving inpremiums over time.

Costs of insuring ahealthier workforce

The De RosaSuperKing