lori casselman , avp, health & wellness sun life assurance company of canada
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The Case for Wellness: Current Research on the ROI of Wellness . A. Solareh National Advisor Conference Series November 2012 . Lori Casselman , AVP, Health & Wellness Sun Life Assurance Company of Canada. - PowerPoint PPT PresentationTRANSCRIPT
Lori Casselman, AVP, Health & Wellness
Sun Life Assurance Company of Canada
The Case for Wellness: Current
Research on the ROI of Wellness
ASolareh National
Advisor Conference Series
November 2012
• Launched in May 2011 with mandate to provide insight and evidence to support workplace wellness in Canada
• 3 core projects to date– Canadian Health Index Study
• Including the Burnout Factor – Buffett National Wellness Survey– Strategic alliance Ivey: ROI Study
The Sun Life Wellness Institute
Workplace wellness no longer a nice to have• Chronic disease a growing toll on
organizations– 35% increase in health and productivity
costs since 2009• Effective health and productivity
programs deliver results– 11% higher revenue and 28% greater
shareholder returns• More organizations offering or
considering wellness
Source: Towers Watson Staying@Work 2011/2012
• 677 respondents• Responses collected during the
spring and summer of 2011• Current state: ‘wellness
initiatives’
Buffett National Wellness Survey
Source: 2011 Buffet National Wellness Survey
Highest ranked organizational health risk concerns• Work related stress• Mental health issues• High Blood Pressure• Diabetes
Source: 2011 Buffet National Wellness Survey
BRIDGING THE GAP
97% of respondents agree that employee health is directly related to corporate success72% of organizations are offering at least one wellness program.
BUT only 26% are taking a strategic approach to wellness
Including calculating an ROI
Source: 2011 Buffet National Wellness Survey
Employee Satisfaction Survey
Launch of program in 2006- Wellness survey, health risk assessment- Drug usage and Benefits analysis
Key Learnings- High prevalence of disease risk factors- Low engagement and culture scores
Case Study
• Health Risk Screenings• Health Challenges• Smoking Cessation Programs• Surveys for on-going
measurement• Continuous analysis and reporting• Management support
• Program success built into management performance metrics
Wellness Program Components
• Projected 5 year savings from Health Screening and Smoking Cessation alone
= $240,000• Measurable
improvements in employee engagement and culture
3400 Employees Multi-site
locations Diverse workforce Wellness
programs since 2006
The Results
• Comprehensive wellness program
• Strong leadership commitment
• Senior management forms and participates as a team in challenge
• 789 people (63 %) lost weight (61 of these moved into a healthy zone)
• 152 (12 %) improved on four or more of risk factors
• 41 stopped smoking for one full year or more
• Total cost avoidance of over $358,000
Case Study
• Move from
fitness re-imbursement to comprehensive wellness strategy in 2008
• Incentive: Earn $300 toward Personal Wellness Account (PWA)
• 70% overall participation in wellness programs
• Creation of PWA delivered +16% increase in employee engagement levels
• Over $610,000 in cost avoidance since inception of program
Case Study
What is still missing?• The measurable return-on-
investment for wellness– US further ahead– In Canada
• Gap in rigorous data• Varying measures and benchmarks
• Opportunity to build a healthier Canada, one organization and one employee at a time
Our commitment to results: Canadian ROI Study• Strategic alliance with Richard
Ivey School of Business at Western University
• Multi-year study, launched in 2011–Phase 1 meta analysis–Phase 2 in-field study
Why?• Little rigorous examination of
workplace wellness programs in Canada or indeed outside of the United States
• Even within the US, there are few studies that are comparable and that provide sufficient data and analytical rigour to underpin a solid, evidence-based business case.
Richard Ivey ROI Study Phase1, Spring 2012
Where is the Evidence ?• Academic & grey literatures, &
popular press promote the potential of a positive return for employers & benefits to workers– but is the evidence there?
• Employers who want to do the right thing still need to make the business case
• We need evidence, an assessment of studies that are robust & demonstrate analytical rigour, i.e., meta-analytical & systematic
Harvard Study
• Most recent meta-analysis (Baicker et al., 2010) published in Health Affairs
• Methods– Literature review of previous meta-
analyses & computerized searches looking for peer reviewed US research• Yielded “more than 100” studies• 30 years of research represented
Harvard Study Findings• ROI of Wellness Programs for 9
studies– Savings $394 per employee per year– Average program cost $159 per
employee/yr
• Absenteeism for the 9 studies– Absentee days saved 1.7
days/employee/yr– Estimated savings $274 per employee/yr– Estimated costs $132 per emp/yr (from 12
studies)– Estimated ROI absenteeism = $2.08
Ivey Study Methods• Computerized search based
on:– Commonly cited terms, e.g.,
employee, wellness, workplace, cost benefit analysis, etc., plus keywords from published studies
• Review articles were scanned for additional papers
• Yielded 504 studies – Oldest paper 1977
Meta-analysis (Phase 1) Criteria• The included studies met the
following criteria:– Experiment & control groups– Pre and Post intervention data– New intervention (excluded
retrospective evaluations of ongoing programs)
– Length of intervention was provided
– Days absence reported• Sufficient number & quality for meta-
analysis
Phase 1 Findings• Wellness programs save about 1.5
to 1.7 days absenteeism per worker over 12 months– Absenteeism ranges from 4.7 days to 11.2
days (Statistics Canada, 2011) • Employers can expect to receive
substantial savings in terms of reduced absenteeism from Workplace Wellness Programs– Results are statistically significant and robust
and comparable to the US results
Absenteeism ComparisonIvey Study• 4 studies
– All from Europe– Programs:
Personalized, Fitness training, Counseling, Exercise program
• Strict inclusion/exclusion criteria
Harvard Study• 9 studies (7
independent)– All from USA– Programs:
Online programs, Fitness, Education materials, Classes or workshops
• Strict inclusion/exclusi
on criteria
Absenteeism ComparisonIvey Study• 2.43 days
employee/year (equal weight)
• 1.5 days per employee per year saved with wellness programs
• Estimated savings $251 per employee per year with wellness programs
Harvard Study• 1.7 days per employee
per year saved with wellness programs
• Estimated savings $274 per employee per year with wellness programs
Phase 2: • Select organizations who meet criteria
will implement a Sun Life HealthyRETURNS program over a 2-year in-field study period
• Canada wide; multiple industries and sites
• Comparisons will be made between control groups and treatment groups with respect to:– Biometric measures (e.g. blood pressure;
cholesterol; body mass index; waist circumference, body fat)
– Prescription drugs– Extended health – Absence and disability– Lifestyle habits and respective risk levels
• Begins Jan 2013
Phase 2: What we will study• Some of the hypotheses
– Positive Return on Investment– Reduction in absenteeism and presenteeism– Decreased employee turnover– Increased employee working life satisfaction– Increased productivity– Decreased employee stress– Reduced health care costs– Healthier employees
ROI Study• Sun Life’s sponsored research will
be a widely cited effort in Canada, and has the potential to be a major contribution to workplace wellness knowledge worldwide
For more information Visit:
www.sunlife.ca/wellnessinstitutewww.sunlife.ca/healthyreturns
Contact: [email protected]