Työhyvinvointimarkkinan mahdollisuudet startupeille

New opportunities for wellbeing -

Product concept and business model alternatives

Quality, productivity and innovation through individuals, company culture and team spirit

30th of June 2014

These are project papers of an occupational wellbeing project led by Sitra that took place between autumn 2013 and spring 2014. Possibilities of digitalization and active Finnish start-up network in wellbeing and health sector were key triggers for the project. Experts from large Finnish companies, insurance companies and occupational Healthcare providers participated in the project. Work was supported by resources from PriceWaterhouseCoopers and Talent Vectia.

Objective of the project was to develop business concept that would meet customer need in occupational wellbeing field and could result in product offering with international business opportunities.

This material is published and hopefully will benefit companies that are operating in health and wellbeing market. Material can be used freely, but reference to Sitra’s project is requested to be mentioned in public presentations.

DisclaimerAny views or opinions presented in this document are solely those of the participating individuals and do not necessarily represent those of the organizations.

Foreword

2

Product concept and business model alternatives - Contents

3

Vision for health and wellness

Product and service offering

Market analysis

Nordic Wellbeing Markets, Finland Special Focus

European Working Conditions

Global Wellbeing Markets, USA Special Focus

Customer needs

Business model alternatives

Objectives

Background

Background

Measuring solution impact

Business areas

Overview


4



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

• Hundreds of thousands of work years are annually lost due to premature retirements, sickness absences, workplace accidents and lowered work ability in Finland alone

• Physical, social and mental wellbeing should all be improved• Wellbeing and health are increasingly segmented• Finnish workforce is the fastest aging one in Europe• Finland has competitive advantage due high technology know-how and world class research• Recent years have seen rapid development in wellbeing apps and sensors• Public, private and employer provided health and wellbeing services are overlapping• Occupational health and wellbeing services are those paid by employer either directly or employer

via insurance company

Background

5

Background / Occupational Wellbeing Services

• How to identify key drivers for ability to work?

• Eg. sleep, diet, everyday activity

• Mental level – Is life well-balanced?

• Leadership and employee’s own engagement

• How to gain comprehensive view to overall situation?

• Personnel groups, engagement, ability to work as physical and mental whole

• How to keep people committed (after short campaigns)?

• Expenditure on well-being at work shouldn’t increase from the current level at least without measurable returns

• How to form easy-to-use solution?

• Simplicity is key factor – preferably limited number of devices/programs and single sign-on

• Wellbeing employees are likely to be more productive and innovative

Challenges and opportunities regarding Occupational Wellbeing Services

6

Background / Solution providers

• There are several innovative individual solutions – however a comprehensive solution is needed

• Currently most individual solutions aren’t compatible with each other

• Solution providers are lacking vision of the whole ecosystem, products are often too focused

• Solutions are often tedious to use and require lot of commitment

• Technology development

• Health and wellbeing sector has been slow to adapt

• Often new solution are too much technology based – a combination of services and technology is needed

Challenges and opportunities regarding Solution Providers

7

Background / Finland

• Markets will be global in the long run

• Local solution may not be competitive in the long run

• Regulation – from local regulated to unregulated global environment

• The ‘Nordic model’ - Finland has competitive advantages in health and wellbeing

• The Nordic way of people management and culture is empowering and appreciated

• There is leading academic research on occupational wellbeing in Finland

• There is a large number of start ups and more established companies working in health and wellbeing sector in Finland (e.g. in Slush 2013 approx. participating 120 start ups in health sector)

• Finland and Nordic countries can act as lead markets

Challenges and opportunities regarding Finnish health and wellbeing ecosystem

8


9



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

• Improve Quality, Productivity and Innovation - through individuals, company culture and team spirit

• Cost savings – Reduce absences, insurance, early retirements

• Enhanced employer image – Company that cares for it’s employees

• Build a new Finnish success story in global wellbeing markets

• Enable shift from reactive to preventive care

Goals – Vision for wellbeing solution

10

11

Target ImpactOpportunities for change

• Employee well-being and satisfaction will improve, leading to new innovations and productivity improvements as activity levels increase

• Good physical and mental fitness means improved productivity

• An overall improvement in employee health would greatly affect them as individuals, as well as the productivity of the organization

• Top performance relies heavily on a person's basic mental and physical fitness

• Small changes have a major impact

Personal dreams and responsibilities

• The dream – a personal goal for the future and support in achieving that dream

• Establishment of the starting point and support in achieving the dream one step at a time

Individual-centred process

• The process continues and person owns information; a life-long adventure

• The means: awareness, culture, encouragement to be and remain active

Good leadership

• Good leadership is a prerequisite

• Other work clearly aimed at encouraging individuals to be active

• Growth trend in expenditure on health and well-being at work

• Despite companies taking many different preventive measures

• People are not in as good condition as they could be

• People's health and activity levels are more segmented than before

• Finland has the fastest ageing population in Europe

• There is no proven correlation between wellbeing expenditure and results

Employee well-being now

Targeted impact

The solution builds on the following principles:

• Individual is given tools and support to take more responsibility of their own wellbeing

• Increased emphasis on prevention

• Individual owns the data

• Individual data is not shown to the manager or at company level but may be aggregated

• Analysis, actions and support are customized for individual goals and situation

• Participation bias must be overcome (include those with high-risks)

• Effectiveness and ROI must be measured

• The solution should integrate current stand-alone value propositions and ease managing different solutions.

Principles

12

Corporate culture

Physical wellbeing

Socialwellbeing

Mental wellbeing

Innovation Productivity

Personal goal

Engagement

Solution must support all employees cost-effectively

• Cost of sickness absences

• Healthcarecosts

• Cost of accidents

• Presenteeism

Healthy and engaged

Identified or risen risk

Identified condition or major goal

Heavy interventions

Early retirement

Increasing workability

13

Physical wellbeing

Socialwellbeing

Mental wellbeing

Increasing costs

Objective should be in keeping employees in green area by focusing to preventive care

Solution should bring measurable benefits in key drivers for wellbeing in the occupational context

MENTAL WELLBEING:

• Competence and know-how versus demands

• Motivation

• Sense of control

• Stress management, mental capacity and strain

• Life control

PHYSICAL WELLBEING:

• Working environment and safety at work

• Resting periods

• Physical activity

• Healthy diet

• Drinking habits

• Smoking habits

CULTURAL DRIVERS

Ways of working and fluent processes, Management and Leadership, Internal Communication, Resources, Arrangement of working time, Traditions and established practices

SOCIAL WELLBEING:

• Work relationships and teamwork

• Human relations

• Participation and involvement

Physical wellbeing

Socialwellbeing

Mental wellbeing

Innovation Productivity

Personal goal

Engagement

Corporate culture

Satisfaction, accomplishment, engagement

Overall health and workability

Affinity, Team spirit, Respect14

Benefits: • New business and jobs for Finland

Engaged employee

CUSTOMER COMPANY

Benefits: • More productivity and innovation• Stop rise of wellbeing related costs• Easier wellbeing solutions management

ORCHESTRATOR

HEALTHCARE PROVIDER

Benefits:• New business• Better effectiveness and

cost-efficiency• Increasing role in

prevention

Wellbeing solution– roles and benefits for parties

Role: Wellbeing Leadership

PARTY PAYER

(e.g. insurance provider or public/government entity)

Benefits:• Reduce early retirement and

decreased work ability costs• Cost-effective prevention

Role: Build and provide solution. Create and orchestrate service

Role: Use solution for customer, employee and own benefit

15Individual solution providers

Sales channels

Role: Fund the solution (partially) and reward results


16



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

Wellbeing Megatrends

17

Patients’ freedom of choice is growing and they are taking more

responsibility

Private HC providers are taking new roles and increasing their influence

The role of prevention is growing

The border between healthcare and wellness

is blurring

Technology is changing the costs and ways of

healthcare

Political pressure has started the renewal of social and HC system

Demand for healthcare services is growing due to

aging population

Focus is moving more towards holistic care of

chronic diseases

Also rising trend is personalized medicine (genomics, printable drugs)

• There are many alternative views on describing occupational wellbeing markets, for example:

• A wide range of services and products can be seen defined as wellbeing solutions

• Market structures, also due legal reasons, differ between countries

• In this report wellbeing at work is defined as including the following items:

• Management and leadership development

• Competence development

• Developing work communities and building team spirit

• Work environment development

• Health-promoting

• Maintaining and promoting workability

• Promoting healthy lifestyles

Markets for wellbeing and personnel related services and products

18

• Management and leadership development

• Consulting and training services like management group training, management consulting, leadership development programs, 360-feedback tools, coaching…

• Competence development

• Training and coaching services, mentoring programs, talent management programs• Developing work communities and building team spirit

• Recreation services, relationship skills training, group coaching services, personnel survey services, supervision services

• Work environment development

• Occupational healthcare, consulting, survey/evaluation services… • Maintaining and promoting workability

• Services like occupational healthcare, rehabilitation services and solutions• Health-promoting and promoting healthy lifestyles

• Wellbeing coach, wellbeing apps, wellness services, sensors, campaigns, sport and culture benefits / recreation services…

Wellbeing markets – examples of services offered

19

‘Occupational wellbeing’ – the term

The term ‘Occupational wellbeing’ and setting increasing ‘wellbeing’ as goals are not universally appreciated definitions. People have strong preconceptions of what the definitions mean.

In many cases the terms are seen as:• Issues led by and on HR’s responsibility• No measurable business benefit• Associated with healthcare and individual actions/campaigns related personnel (e.g. summer party, one

time training or 3 month active lifestyle campaign)

Actions, goals and terminology should more concentrate on improving Quality, Productivity and Innovation through individuals, company culture and team spirit to achieve top management engagement and financing

Where is the line between occupational wellbeing and individual’s own responsibility of one’s wellbeing?

20

Wellbeing at Work – Distribution ChannelsObservations and conclusions

21

• Currently Wellbeing at Work services are sold and delivered mainly directly to employers and the market is divided between large number of players

• This model is likely to be the most common in the future as well but OHC may increase their share

• A broker or integrator model may develop as a result of growing number and variety of wellbeing services offered

Wellbeing at Work

Services

• Wellbeing at Work services are sold through direct distribution channels hence supplier network management plays an important role

• Digital services can be global when physical services are local. Customer in most cases is HR

• The most important channel for delivering services to employees will be through direct business-to-business relationships with the employers

• Employees may have the freedom to purchase services independently, while employers control and coordinate the channel and its offerings

Direct Distribution

Channel

• There is no evidence of scalable, international business concepts in holistic Wellbeing at Work related services

• Wellbeing at Work markets are local and fragmented, therefore distribution channels must be country specific

• A different approach is needed for every country (e.g. sales through OHC providers in Finland and insurance companies in the USA)

Global Markets

22

The differences in type of work affect an employer’s priorities related to wellbeing

White collar Blue collar

Fixed location Moving work

Sedentary work Standing work

Independent Collaborative

• Most effective measures depend on type of work and may results in need of differentiation between employee groups

• Solution needs to flexible and adaptable for different user groups

• All employee groups may not have access to employer-issued mobile devices which may limit usability of mobile applications

Active party in improving employee wellbeing drivers can differPhysical

Mental

Social

Company Individual

Business premises

Good sleep

Ways of working /

disturbances

Activity

Mental stability

Leadership skills

Relaxation

Family

Work atmosphere and culture Respect

Non-smoking

Healthcare

Healthy diet

Colleagues Friends

Work-life balance

Non-sedentary behavior

Motivation

Purpose and satisfaction

Stress management

Actions by employer

Co-creation of wellbeing Actions by employee

1

Which drivers are priorities for a specific company?

2

Which drivers improve productivity and innovation?

3

Is it possible to measure the effect on productivity and innovation?

23


24



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

Nordic Wellbeing Markets

0%

2%

4%

6%

8%

10%

12%

1960 1970 1980 1990 2000 2010

Denmark Finland Iceland Norway Sweden

Total expenditure on health, % of GDP

Source: OECD Health data

• Total expenditure on health has been increasing rapidly the past 50 years

• Denmark has been topping the list as the most spending country compared to other Nordic countries

• Nordic countries hold health in high regard hence total expenditure on health is significant

25


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1960 1970 1980 1990 2000 2010

Denmark Finland Iceland Norway Sweden

Public expenditure on health, % of total expenditure on health

Source: OECD Health data

• The Nordic health model relies heavily on public financing

• Ratio between public and private financing has been fluctuating

• Private share of funding includes private insurance and occupational Healthcare

26


Healthcare financing in 2011

Source: OECD Health Statistics 2013

• The public share of healthcare financing in Nordic countries is large compared to OECD average

• Iceland’s financing scheme resembles OECD average the most

• Finland’s special feature is that OHC providers provide also medical treatment: companies pay more than half of OHC expenditure, hence the large amount of private funding

85%

60%51%

73%82%

35%

15% 30%

12%

37%

15%25%

19% 15% 18%26%

DENMARK FINLAND ICELAND NORWAY SWEDEN OECD34

General Government Social Insurance Private + other

27

Finnish Wellbeing MarketsOHC markets in Finland

0

100

200

300

400

500

600

700

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Million euros

Repayments by The Social Insurance

Institution of Finland

Employers’ share of costs

• Costs have been increasing rapidly the past 50 years

• Ratio between public and private financing hasn’t changed much

• Finland’s model is specific in terms of employers’ share of costs compared to other Nordic countries

Costs and Repayments 1965-2011

Source: Suomen virallinen tilasto (SVT): Työterveyshuolto 28

Occupational Wellbeing development potential in FinlandYearly financial losses due absences, early retirements etc.*

Cost Billion € Remarks

Absences 7 4 % of work output

Early retirements 18

Accidents 2

Healthcare 7

Presenteism 7 4 % of work output

Total 41

* Calculation is based on Finland’s 2010 GDP and state budget

Source:

Finnish Institute of Occupational Health,Työ ja terveys Suomessa2012

29

Finnish Wellbeing MarketsOHC markets in Finland

Number of Employees

Terveystalo� 500 000

Mehiläinen� 270 000

Diacor 120 000

Helsingin lääkärikeskus 65 000

Other private clinics 66 000

TYKE (Occupational HC unit of city of Helsinki)

40 000

Other employer′s own units � 92 000

Suomen työterveys ry (3300 companies) 97 000

Occupational HC unit of city of Jyväskylä 35 000

Tullinkulma (Occ. HC unit of city of Tampere)

26 000

Occupational HC unit of city of Vantaa 25 000

Other municipal companies � 359 000

Healthcare centers � 197 000

Total 1 892 000

Sources: Terveystalo, Mehiläinen, Diacor, Suomentyöterveys ry, Finnish Institute of Occupational Health (2012), KPMG (2011)

1) Updated 2013 figures2) Estimated 30 % decrease 2010 -2013 (customers moved

to private clinics and municipal companies3) Adjusted with Condia acquisition by Terveystalo in 2012

Terveystalo27 %

Mehiläinen14 %

Diacor6 %

Helsingin lääkärikeskus4 %

Other private clinics4 %

TYKE (Occupational HC unit of city of

Helsinki)2 %

Other employer's own units

5 %

Suomen työterveys ry (3300 companies)

5 %

Occupational HC unit of city of Jyväskylä

2 %

Tullinkulma (Occupational HC unit of city of Tampere)

1 %

Occupational HC unit of city of Vantaa

1 %

Other municipal companies

19 %

Health care centers10 %

30

Occupational Healthcare

• Occupational healthcare market is dominated by treatment oriented services and their share is still growing.

• This is due to demand from employers and employees. OHC packages have become part of employee compensation.

• The occupational Healthcare legislation stress the preventive role of occupational Healthcare but requirements are low.

• The costs of OHC services are continuously growing, but the benefits of the increased payments are difficult to prove.

• The earnings of OHC service providers are typically tied to the number of patient visits and operations.

Finnish Wellbeing MarketsCurrent OHC market challenges

The vicious circle of

Healthcare

Insurance companies compensate concrete,

verifiable costs

Healthcare service providers’ earnings are

based on number of patient visits and treatments

Physicians and nurses and rewarded based on number of patient visits

and treatments

HC professionals are trained to cure diseases and to give prescriptions

Patients expect concrete treatment, such as tests

and medicine

Employers want to provide concrete

healthcare benefits to their employees

Wellbeing

• OHC service providers have been active in offering work wellbeing services for some time, but the market is still small and lacking of comprehensive solutions and expertise.

• There are also lots of specialized actors, such as trainers, consultants and tool developers.

• The effectiveness of the services are hard to prove and employers often don’t see the connection between the solutions and measurable results.

31

Finnish Wellbeing MarketsRevenue Models

Revenue maximizers Productivity maximizers / Cost minimizers

Differences in priorities

• Earnings model is based on

maximizing the number of visits and

tests/operations

• Controlling or optimizing the overall

care process is not necessarily the

interest of companies or HC

professionals

• Prevention is not very attractive,

because earnings are based on

treatment and prevention would

complicate their business model

• Earnings model is based on fixed fee or result based charging

• This leads to need to minimize the cost of the process and to

maximize the effectiveness of care through

• Effective prevention

• Fast care process and short waiting times for care

• The key to cost savings is overall control of the process, including

prevention

Examplesof players

• Most of OHC clinics use this model �

mutual interest of clinics, doctors,

patients & insurance companies

• Public OHC services work in a similar

way, as there is no clear incentives to

maximize the effectiveness of the

process

• Outsourcing companies are forced to create processes that cost

less than the old processes

• New players in the OHC market

• Companies with in-house OHC are often more aware of the role of

OHC in employee welfare and are interested in maximizing the

productivity of system. Note: companies with in-house OHC

would be good partners for pilot, as they understand the value of

work wellbeing and the set-up would be simpler

32

• Rapid smart device and sensor technology advancement, as well as falling prices have given rise to a cluster of small companies focused in developing well-being measuring and monitoring equipment/services in Finland and elsewhere in the world

• Challenges:

• Rapid technological advancement and relatively short product development cycle mean product life cycles are kept short and there is poor visibility into the future winning technologies

• Companies are mainly small and with limited resources

• Products and services are technology-driven and focused on a narrow segment (physical exercise orientated). Compatibility with other solutions is often poor.

• Services are often short term campaigns and manage to inspire only some weeks or months

• Solutions are often directed to active people who would do similar actions in any case. People who would need the solutions the most are less eager to use them.

33

Wellbeing technology firms in Finland


34



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

European Working ConditionsAbsenteeism

%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

RO KO EL MK PT TR BG AL HRME ES HU LV LT EE SK CY FR PL IE IT SI CZ LU UK BE NL AT SE NO DE DK MT FI

Days of sickness absence due to health problems

None 1 to 15 More than 15

Source: Eurofound, European Working Conditions Survey 2010

• Higher volume of sickness absence can be found in countries with high job security and protection with Finland holding largest percentage of absences

• Vice versa job insecurity acts as a driver for absenteeism; the higher the market pressure the less the employees will be absent from the workplace

• Sickness absence costs are high due to lost productivity and compensation

35

European Working ConditionsAbsenteeism

Mean days of sickness absence, by country and gender

• Mean days of sickness absence is higher among women; this is explained by biological and social reasons

• In addition mean days of absence are lowest among high-skilled white-collar workers and highest among low-skilled blue-collar workers

Source: Eurofound, European Working Conditions Survey 2010 36

European Working ConditionsPresenteeism

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ME SI MT DK SE UK FI AL TR BE FR NO LU SK EE MK CY IE NL LV KO RO DE HR ES HU CZ LT AT EL PL PT IT BG

Working while sick

No Yes

• The term presenteeism is used to “to designate the phenomenon of people, despite complaints and ill health that should prompt rest and absence from work, still turning up at their jobs”.

• Costs from presenteeism comes from reduced productivity at work and increased risk of developing health disorders. In addition these costs have been estimated to exceed costs of medical expense and sickness absence.


European Working ConditionsPresenteeism

Mean days of presenteeism, by country and gender

• Presenteeism is more common in committed white-collar workers than blue-collar workers

• Presenteeism is associated with high occupational class, long working hours, high psychological and cognitive demand

• Presenteeism is more common among over-committed white-collar workers with high autonomy and high level of engagement with their jobs


European Working ConditionsWork sustainability

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NL DE IE NO DK UK SE FI CY IT EE LV BE AT RO LT CZ MT SK LU BG AL PL ES HU HR FR EL ME KO PT MK SI TR

Ability to do the same job when 60 years old

Yes, I think so I would not want to No, I do not think so

• Differences across Europe are significant in work sustainability

• Ability to do the same job in the age of 60 years correlates with general wellbeing; workers who have good health are more confident to be able to do the same job in the future


European Working ConditionsWellbeing by Occupation

Workers who are satisfied or very satisfied with their working conditions, by occupation and gender

• White-collar workers seem to be more satisfied with their working conditions than blue-collar workers

• In addition average well-being seems to be higher among white-collar workers than blue-collar workers

• Well-being seems to be higher regardless of occupation generally among men


European Working ConditionsWellbeing by Industry

Workers who are satisfied or very satisfied with their working conditions, by industry and gender

• Workers working in education, financial services and the public services seem to be more satisfied with their working conditions

• In the male-dominated sectors (construction and transportation) women seem to be more satisfied than men



42



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

• One out of three employers have measured specific outcomes from their health promotion programs

• There is no common way to measure work wellbeing and no proven way to connect work wellbeing with productivity and innovativeness

• Employers who measure outcomes of their wellness programs are more likely to increase their investment in health promotion

• Typical cost-related indicators used by companies are absenteeism, cost of Healthcare claims, productivity gains, customer service scores, and short- and long-term disability claims

• Trend in work wellbeing is moving away from fee-for-service towards payment for outcomes

• Development is still in very beginning, some countries, such as Switzerland and USA as forerunners

• Employees who are least likely to take part in wellness initiatives are the employees with the highest health risks. Also, 65 % of initiatives don’t target those with greater health risk

• In the US, a major goal of employers is to reduce long-term Healthcare costs. Outside the US, where medical costs are lower, employers concentrate mostly on reducing employee absenteeism, increasing productivity, improving engagement and retention, and maintaining the organization’s reputation.

43

Sources: Global Workplace Health and Wellness report, Global Corporate Challenge, 2013

A Global survey of health promotion and workplace wellness strategies, Buck Consultants LLC, 2012

The MetLife Study of Global Health & Wellness, Metropolitan Life Insurance Company, 2013

Aon Hewitt 2013 Healthcare Survey, Aon plc , 2013

Key conclusions about global work wellbeing market

Global Wellbeing Markets

44

Percentage of companies providing health promotion to employees by region

76 %

North America

43 %

Latin America

42 %

Europe

33 %

Africa / Middle East

47 %

Asia

47 %

Australia / New Zealand

• Work wellness programs are widely used by the employers globally, but they often include only basic physical activity initiatives, such as gym memberships. 22 % of organizations have a fully implemented a wellness strategy

• Globalization of health promotion programs have risen significantly over the last five years. About half of the multinational companies have a global health promotion strategy.

Source: Working Well: A Global Survey of Health Promotion and Workplace

Wellness Strategies 2012, Buck Consultants LLC, 2012

Global Wellbeing Market

45

30,7

50

60,3

106

113

243

276,5

390,1

679,1

0 100 200 300 400 500 600 700 800

Workplace Wellness

Medical Tourism

Spa

Wellness Tourism

Complementary & Alternative Medicine

Preventive / Personalized Health

Healthy Eating / Nutrition & Weight Loss

Fitness & Mind-Body Exercise

Beauty & Anti-Aging

Market size (in billion U.S. dollars)

Estimated global market size of the wellness industry cluster in 2010

• The size of wellness market is $1900 billion globally

• The market is strongly driven by private consumption

• Dedicated workplace wellness market is worth $30,7 billion globally, 20% or $6 billion in the USA

Source: Statista 2014

Global Wellbeing Market / USA special focusWellness program components

46Source: RAND Employer Survey, 2012

• Goal is to identify health risks utilizing biometric screening and health risk questionnaires

• Focus on nutrition, physical activity, smoking, weight, blood pressure etc.

Screening Activities

• Goal is to reduce health risks, also referred to as lifestyle management and disease management

• Designed to help workers to make positive changes to their health• Include campaigns, counseling and education

Preventive Interventions

• Goal is to encourage healthy lifestyles among employees• Focus on improving health and wellbeing of employees• Include vaccination services, fitness benefits (e.g. free gym), healthy

food options and nurse advice lines (e.g. telephone services)

Health Promotion Activities

• Include employee assistance programs (counseling and assistance for personal issues), occupational health services (preventing injuries in the workplace), on-site clinics (workers can get care without leaving the workplace) and absenteeism management (active management of employees’ return to work)

Other Benefits Related to Wellbeing

Global Wellbeing Market / USA special focus

47

51%

39%

62%

85% 86%91%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All employers 50-100 101-1.000 1.000-10.000 10.001-50.000 50.001 or more

Number of Employees

Percentage of Employers Offering a Wellness Program, by Employer size

Source: RAND Employer Survey, 2012

• Work wellness program components include screening activities to identify health risks, preventive interventions to address manifest health risks and health promotion activities to further healthy lifestyle. In addition employers offer other benefits related to health and wellbeing (occupational health and safety programs)

• Work wellness programs are offered in big companies more often than in small companies. Big companies also spend more money on programs.

Global Wellbeing Market / USA special focus

48

51%

44%

58%

51%

66%

0%

10%

20%

30%

40%

50%

60%

70%

All employers Heavy Industry Trade Services Government

Type of Industry

Percentage of Employers Offering a Wellness Program, by Industry


• About half of all employers with 50 or more employees offer a wellness program, but there are no statistically significant differences between the sectors

Global Wellbeing Market / USA special focusProgram Impact

49

32%

18%16% 16%

19%

0%

5%

10%

15%

20%

25%

30%

35%

0-20 % 21-40 % 41-60 % 61-80 % 81-100 %

Employee Completion Rates of Health Risk Questionnaires

• About half of employees complete questionnaires or participate in clinical screenings

• Share of companies with high completion rate (81-100 %) is only one fifth of all companies providing questionnaires which suggests it is difficult to get all employees to participate


Completion rate

Global Wellbeing Market / USA special focusProgram Impact

50

21%

7%

11%

16%

0%

5%

10%

15%

20%

25%

Fitness Smoking Weight DiseaseManagement

Average Participation Rates of Employees Identified for Inclusion in selected Wellness program components

• Participation in preventive interventions (lifestyle management) seems to be lower than participation in wellness screenings

• There is little variation in participation rates across different intervention programs


Wellness program component


51



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

Individual

Manager

Company

Different perspectives for customer needs

• Positive impact on business

• Productivity, quality, lower costs

• Energy and engagement

• Enable a view of the company’s wellbeing status

• Measurable benefits and effectiveness

• Help managers who are not familiar with the wellbeing context

• Enable team level metrics

• Support the performance of the team

• Fit individual goals and needs

• Different situations in life

• Different roles at work

• Support self-management

52

Health issues driving wellness strategies2012

53

2012 Africa Asia Australia Canada EuropeLatin

AmericaUnited States

Stress 1 3 1 1 1 1 6

Physical activity/exercise 2 2 6 3 3 3 1

Nutrition/healthy eating 4 4 9 6 7 4 2

Work/life issues 5 6 8 7 4 10 10

Chronic disease (e.g., cardiac, diabetes) 8 9 11 4 10 8 3

High blood pressure 6 7 13 5 11 5 5

High cholesterol 11 8 14 8 13 9 7

Workplace safety 3 1 2 9 2 2 11

Depression 13 11 3 2 6 6 9

Tobacco use/smoking 10 12 12 11 9 11 8

Psychosocial work environment 12 10 5 10 5 7 14

Obesity 17 14 9 14 14 14 4

Personal safety 8 5 4 13 8 13 15

Sleep/rest/recovery 15 13 6 12 11 12 12

Maternity/newborn health 16 15 16 16 16 16 13

Substance abuse 13 17 15 15 15 15 16

Infectious diseases/AIDS/HIV 6 16 17 17 17 17 17

1 = highest impact, 17 = lowest impact Ranked 1st Ranked 2nd Ranked 3rd

Source: Working Well: A Global Survey of Health Promotion and Workplace Wellness Strategies 2012, Buck Consultants LLC, 2012

• Work related stress remains to have the biggest impact on Wellness Strategies globally

• Rather than focusing nutrition/healthy eating and work/life issues wellness strategies focus more on workplace safety

Health issues driving wellness strategiesChange from 2009 to 2012

54

Change from 2009 to 2012 Africa Asia Australia Canada EuropeLatin


Stress 0 2 0 0 0 2 1

Physical activity/exercise 2 0 4 1 1 2 0

Nutrition/healthy eating 6 1 5 1 1 2 0

Work/life issues 2 0 5 5 1 1 1

Chronic disease (e.g., cardiac, diabetes) 0 2 6 4 0 2 0

High blood pressure 3 2 6 5 0 1 1

High cholesterol 2 4 6 1 0 4 0

Workplace safety 3 7 4 3 3 6 0

Depression 8 0 7 1 1 7 1

Tobacco use/smoking 2 2 0 0 5 1 0

Psychosocial work environment 2 0 8 3 3 2 1

Obesity 2 2 0 1 0 7 2

Personal safety 2 4 10 1 1 2 2

Sleep/rest/recovery 2 0 5 1 1 0 2

Maternity/newborn health 2 2 0 0 1 2 1

Substance abuse 1 1 0 1 1 3 0

Infectious diseases/AIDS/HIV 4 0 0 1 1 0 0

Impact increased Impact decreased Impact the same


Source: Working Well: A Global Survey of Health Promotion and Workplace Wellness Strategies, Buck Consultants LLC, 2009

• There is no significant change in impact of stress

• The impacts of nutrition/healthy eating and work/life issues have decreased

• The impacts of depression and workplace safety have risen significantly from 2009 to 2012

Top employer objectives driving wellness initiatives2012

55

2012 Africa Asia Australia Canada EuropeLatin


Improving worker productivity/reducing presenteeism

1 3 3 3 3 2 2

Reducing employee absences due to sickness or disability

2 4 2 2 2 1 3

Improving workforce morale/engagement 3 2 4 1 1 3 4

Reducing Healthcare or insurance premium costs

8 10 10 4 10 9 1

Improving workplace safety 5 1 1 7 5 4 7

Furthering organizational values/mission 6 7 6 6 6 5 5

Maintaining work ability 4 5 4 8 4 6 6

Attracting and retaining employees 7 8 7 5 7 7 8

Promoting corporate image or brand 10 6 8 9 8 10 9

Fulfilling social/community responsibility 9 9 9 10 9 8 10

1 = most important, 10 = least important Ranked 1st Ranked 2nd Ranked 3rd


• Worker productivity and reducing presenteeism is not a primary object for employers

• Improving workplace safety increased its importance in 2012

Top employer objectives driving wellness initiativesChange from 2009 to 2012

56

Change from 2009-2012 Africa Asia Australia Canada EuropeLatin


Improving worker productivity/reducing presenteeism

0 1 2 2 2 1 0

Reducing employee absences due to sickness or disability

0 1 0 0 1 2 0

Improving workforce morale/engagement 1 1 1 3 1 1 0

Reducing Healthcare or insurance premium costs

1 1 1 1 1 2 0

Improving workplace safety 2 4 4 1 2 1 1

Furthering organizational values/mission 1 3 2 0 0 1 0

Maintaining work ability 1 1 2 1 0 4 2

Attracting and retaining employees 1 1 3 0 2 0 1

Promoting corporate image or brand 2 2 2 0 0 1 0

Fulfilling social/community responsibility 1 1 1 0 0 0 0

Importanceincreased

Importancedecreased

Importance thesame

• Improving worker productivity and reducing presenteeism decreased significantly

• Improving workplace safety increased its importance significantly from 2009 to 2012


Source: Working Well: A Global Survey of Health Promotion and Workplace Wellness Strategies, Buck Consultants LLC, 2009


57



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

PHR

58

Identified solutions - overview

Wellbeing management

system

Models, processes and support software and activities to manage

wellbeing

Service network management

Knowledge and management services of

wellbeing services available on the market

Wellbeing booster

A (virtual) toolset for employees for managing their own wellbeing and

supporting each others

Data platform

Integrate applications and data to create a unified solution

Wellbeing Benchmarking and Metrics

Analysis and benchmarking of wellbeing using standardized indicators

Individual solution providers

Wellbeing certification & audit

Certification of a company’s wellbeing management/governance

PHR

59

Identified solutions – products and services

Wellbeing management

system

- Mgmt best practices- Enterprise SW- Operational model- Ways of working- Supporting processes

& consulting- Services mgmt


- Network mgmt- Knowledge services- Enterprise SW- Service portfolio- Service measurement- Incentives model

Wellbeing booster- Wellbeing app- Analytics- Platform - Community and

gamification- Core sensor(s)- Service portfolio

Data platform

Enterprise SW&DW, API, Sensor integrations, Data cloud

Wellbeing Benchmarking and Metrics

Wellbeing dashboard, Wellbeing review, Benchmarking, Consulting

Wellbeing certification & audit

Defined standard, Certification, Audit

Individual solution providers

60

Wellbeing Benchmarking and Metrics – overview

Description• Model for measuring company wellbeing and it’s effect on productivity and innovation in

standardized way• Cost based metrics alone aren’t sufficient • Model can be used for company review’s and benchmarking• Framework for managing wellbeing and understand it’s effect on company’s success

Remarks / open issues• Is it possible to create a model that is credible and relevant for different industries?

Benchmarking and Metrics

Wellbeing effectiveness measurement

Company personnel review

Benchmarking

Consulting

..

…

61

Wellbeing Benchmarking and Metrics – components

Service / product Description User Benefit

Wellbeing effectiveness measurement

Dashboard for managing wellbeing. Selected measures framework linking wellbeing to company performance, e.g. productivity and innovation capability

Company –mgnt, HR

• Information for decision making

Company personnel review

Comprehensive review of company’s wellbeing situation base, including company level information (finance, used resources, HR info and cost of reduced work ability) and summarized results of individual wellbeing

Company –mgnt, HR

• Understanding of company wellbeing situation, as well as potential and benefits of improvements

Benchmarking Benchmarking of companies’ wellbeing results and group individual results across industires

Company –mgnt, HR

• Comprehensive understanding of company wellbeing situation compared to other similar companies

Consulting Consulting for wellbeing management basedon above model

Company –mgnt, HRManager

• Support and knowledge for decision making

62

Wellbeing booster – overview

Description• Wellbeing check and coaching for an individual, supported by data analytics• Support all employees in improving their personal wellbeing and reaching their goals• Increase share of preventive wellbeing actions and reduce costs of reduced work ability• Increase productivity and innovation capability of employees

Remarks / open issues• Are service enough to activate individuals most in need of support?• Can the service compete with leading consumer products?

Wellbeing booster

Wellbeing app

Analytics system

Social media and gamification

Wellbeing check

Core sensor(s)

Service portfolio

63

Wellbeing booster – components


Wellbeing app Personal app for helping/coaching individualin improving wellbeing – check, wellbeing action planning and implementation. Personal feedback for employee on key risks and issues, and creation of individual wellbeing plan, based on review and individual’s own goals.All related information and services as part of one application (mobile and Internet)Data collection and questionnaire implementation

Individual • Tools and information for own wellbeing mgnt

Analytics system System for analysing personal health and wellbeing information, and creating (scientifically valid) recommendations based on the information, including both personal analysis of risks and recommended wellbeing action plan. Can use questionnaire, PHR, sensor and EHR data.

CompanyIndividual

• Scientifically valididentification of risks

Platform –community and gamification

Social media capabilities to drive activity, e.g. discussion, peer support and campaigns. Can include also gamification elements to keep users motivated.

Individual • Support and motivation for individuals

64

Wellbeing booster – components (continued)


Wellbeing (preventive) check

Physical wellbeing check and support for employees, extra service to virtual check done in wellbeing app. Can include physical meausrements

Individual • Personal motivation and analysis for employee

• More effective health checks

Core sensor(s) Selected, advanced sensor / sensors for supporting wellbeing check and/or implementation of wellbeing plan. Sensors provided by orchestrator.

Individual • More effective and personalized preventive actions

Service portfolio Set group physical as well as Internet and mobile based basic solutions for supporting individuals’ wellbeing, managed by orchestrator.Virtual services are used through the wellbeing app.

Individual • More holisticsolution, cost savings

Company check

Goal setting & action plan

Action and follow-up

Team checkGoal setting & action plan

Action and follow-up

Virtual check and goal setting

Wellbeing planningAction and follow-

up

Individual

Team

Company

Personal goals

+ Goal 1

Goal 2

Goal 3

• Virtual coach and support• Gaming and social functions• Wellbeing and healthcare services and activities

• Questionnaire• Personal health record and

(disposable) sensor data

Reporting

Status checks and feedback

• Process is repeated as a cycle

• Check and coaching cycle expected length is one year, but can be customized

1 - 4 wk 3 – 12 months

Re-align goals

Gaming and social functions

Wellbeing booster - example cycle

65

Reporting

Gaming and social functions

Supporting services

Group level(anonymous data)

Individual wellbeing plan

1 - 6 wkAnalytics and data

gath

erin

g

66

Wellbeing management system – overview

Description• Models, processes and support software and activities to manage wellbeing (in selected segments). • Help customer companies to lessen costs of reduced working ability • Simplify management of wellbeing• Holistic model for managing wellbeing

Remarks / open issues• Are there enough benefits and new content for sophisticated, large companies?• Is there a priority between components?• What are the selected (“horizontal”) wellbeing management focus areas for solution?

Wellbeing management system

Management best practices & training

Operational model

Enterprise software

Ways of working -app

Supporting processes & consulting

Services management

67

Wellbeing mgnt system – components


Management best practices & training

Best practices for wellbeing and personnel management, as well as tools for cultural change of management. May include training and instruction, interventions for supervisor and culture problems, templates for goal setting and planning.

HR, Manager

Better management

Operational model Defined model for wellbeing management (of defined issues): processes, triggers and roles

HR,Manager

Improvement in defined area

Enterprise software Enterprise software for implementing defined operational model and HR&management user interface

HRManager

Process automatisation

Ways of working -app

Key functionalities: diary of disturbances and company pulse questionnaire

Individual Immediate info on disturbances and wellbeing challenges

Supporting processes & consulting

Support and resources for implementing defined wellbeing management system, e.g. training, baseline audits, coaching and process implementation

HRManagerIndividual

Support in implementation of wellbeing mgnt

Services management

Management of wellbeing services HR

68

Wellbeing Certification and Audit - overview

Description• Company level certification for all aspects of Wellbeing Management based on audit• Describe a holistic model, including concrete tools, for managing wellbeing in a company• Create a achievable goal for a company to improve holistic wellbeing• Support calculated and proven investments to wellbeing

Remarks / open issues• Certification can be supported by audit / consulting services

Wellbeing Certification and Audit

CompanyReview

Certification

Best practices

Audit

Consulting

…

69

Service Network Management – overview

Description• Measurement of market services available and knowledge services• Better payback on wellbeing investments; selection of effective wellbeing services for individual’s

wellbeing challenges, verified• Help customer companies to manage their wellbeing partner network

Remarks / open issues• Is it possible to gain access to target level information and create the measurements?• Is it possible to create direct links from wellbeing drivers to different services, though different

work roles, companies and industries? Taking all factors into consideration?


Partner network management

Knowledge service

Enterprise software

Service portfolio

Service measurement

Incentives model

70

Service Network Management – components


Partner network management

Management of service provider network for wellbeing services (in defined areas)

HR • Easier partner management

Knowledge services Sales of knowledge services for wellbeing services selection. Service can be offered separately from other listed services / products.

HR • Knowledge on wellbeing management solutions

Enterprise software Enterprise software for managing available services for company employees and following their use

HR, Manager

• Holistic management of offered wellbeing services

Service portfolio Set group of basic solutions for supporting individuals’ wellbeing, managed by orchestrator (e.g. short videos and apps)

Individual • More holisticsolution, cost savings

Service measurement

Measurement of service’s effectiveness for improving selected wellbeing driver. In practice measurements could be simplified at start, e.g. usage-%, churn rate and user satisfaction rate

HR • Better payback on wellbeinginvestments

Incentives model Model for compensation and incentives for employees to use preventive wellbeing services

HR,individual

• Better payback on wellbeinginvestments

Physical wellbeing

Socialwellbeing

Mental wellbeing

Commsplan

Social media

Healthcare services

Webinars on safety

Webinars on stress

management

Surveys Health services

Best idea competition

Leadership development

Team discussions

Rules for ways of working

Tools, process

Goal setting, PDP

Charity work

Virtual check & coach

Participation in team activities

Virtual check & coach


Individual wellness plan


Walking meetings

71

Pause exercise

Wellness plan & budget

mHealth apps

Service network management - example

72

Data platform – overview

Description• Integrate wide range of existing solutions and information to create a holistic service• Combine information and services to create unified user experience and synergy• Decision support for management (using big data)

Remarks / open issues• Are extended integrations too costly compared to benefits? Is required core competence in

information services and business intelligence technologies? • Most service providers have proprietary data clouds• Are customers and service providers willing to share data?

Data platform

Enterprise software and DW

PHR integration

Sensor integrations

Data cloud -integration

API – application platform

…

73

Data platform – components


Enterprise software and DW

Software and datawarehouse for managing solutions. Use/integration to basic data: finance, cost of reduced work ability (insurance), HR-system (performance & personel surveys), OHC, wellbeing investment costs and summary of personal data

Company • Required building block

Taltioni integration Taltioni is an independent PHR, enables use of data from other sources

CompanyIndividual

• Person owns data and can use it

Sensor integrations Integration to most popular and/or selected existing personal products. Data from employees’ own sensors can be used

Company • Solution not linked to specific sensor(s)/product

Data cloud –integration

Collect and combine data from various data points, functionalities include reports and queries

Company • Large amount of data• Big data analysis

API – application platform

API to enable different electronic solutions to be used as part of the solution

Company • Unified user experience

• It includes basic elements that can be modified to meet the needs of the company, for ex. a frame how to manage well-being (documentation bank)

• It is able to collect and combine data from various data points (company HR data and external data sources) based on what has been agreed to be the search criteria in a company level (name of the organization/location/employee group, etc). Each individual owns his/her own data (data bank)

• If using external applications/solutions/data sources, only group level data according to the agreed search criteria can be brought to the cloud (data privacy)

• When combining the data from multiple data points the service should create up-to-date reports regarding the well-being status in the company to help follow-up, planning and decision making (knowledge based continuous improvement)

• It is able to create reports regarding the ROI (cost effectiveness)

74

Employeesurveys

Occupational Safety

Occupatio-nal Health

(Organiza-tion leveldata)

Insurance Company

Business metrics

HR system

Etc.

Data platform – example


75



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

Business model overview

76

CUSTOMERS

SOLUTION

Employers with an urge to improve and maintain the wellbeing of the employees

hence improving productivity and innovation

Solutions are based on different wellbeing services, products and/or different

combinations of these items

Competitive advantage

Value proposition for the customer

”An effective and a holistic wellbeing solution for employers and employees”

• A holistic solution

• Improves productivity and capability to innovate

• Increases energy at work and employee engagement

• Stops continuously rising total costs due to lowered work ability

Business model principles

• The developed solution is planned to be global market leader product

• Finland and Scandinavia have competence and readiness to be pioneers in the area

• Combining well-being management, service concept and technology

• Lead market being Finland and international companies

• Limits to the model caused by global approach:

• Model has to be generic – Country-specific localizations

• Proactive operations global – Reactive operations local

77

Cost of preventive operations

Direct and indirect costs caused by

illnesses

Healthcare costs

Reducing costs

(short term)

Customer’s cost/benefit analysisWellbeing related costs

- Quick pay back time

- Additional savings

Improved competitive advantage

- ”Extra” benefit to customer

- More difficult to measure

Customer business case

Other benefits

(long term)

Innovation

Productivity

Occupational

WellbeingQuality

78

Holistic solution

Additional service

Value proposition - alternatives

Employee

OHC, Work wellfare, leadershipWork community Service model

Model adapted from Hilli, Pyykkö, Savukoski: IIIF-projektin tyhy-osuus 14.3.2013 79

Value proposition – alternatives pros and cons

Holistic solution

Pros (+) Cons (-)

Customer • One-stop purchase• Service provider could take full

responsibility of results• Possible use of pay-only-for-results or

fixed pricing model• Focus on preventive care and solutions

• Dependability of one service provider• Currently no full service providers on

market

Serviceprovider

• Comprehensive customership and revenue stream

• Data for benchmarking

• Impossible to control all variables (eg. leadership)

• Full responsibility of results (no one else to blame)

• Transparency

Additional Solution

Pros (+) Cons (-)

Customer • Price control with competitive bidding • Need to evaluate different solutions• OHC incentives currently on sick care and maximising revenue

Serviceprovider

• No full responsibility• Can sell partial solutions

• Difficult to sell results (or fix price to results) because doesn’t have full control

80

Pricing alternatives

Usage based pricing (visits, operations, checks)

• Customers pay by the volume of usage

1

Fixed fee

• Customers pay a fixed fee (€/employee/year)2

Share of cost savings

• Customers agree to give a percentage of cost savings to the service provider

3

Improved productivity, innovation and wellbeing

• Customers pay for improved productivity, innovation and wellbeing

4

• The current model• Focus on sick care

rather than Healthcare

• Cost estimation• Risk management• Focus on stability • SLA important

• Value-based pricing• Provider commits to

decrease costs• SLAs and KPIs

• Holistic approach• Focus on wellbeing• How to measure?• SLAs and KPIs

INCREASES INCENTIVE TOWARDS PREVENTION81

82

Type of offering Earnings logic / pricing model Observations about the model

Wellbeing and health services

Fixed fee, e.g. yearly / monthly fee • Simple and easy to understand• Constant, easy-to-predict cash flow• Can cause excessive use of services• May look expensive for customers

Value based pricing (based on agreed metrics or subjective)

• Win-win model, if properly applied• Benefits are difficult to prove, e.g. increased wellbeing or productivity are usually result of

several factors

Pay per use, e.g. visits • Simple and transparent model• May tempt service providers to maximize use of services and offer more reactive services

instead of preventive

Insurance-based • Indirect payment method through insurance operator• Paid price / user is usually the same regardless of the actual use of services• Difficult to estimate the right level of costs

Consultancy & training

Day / hour pricing • Typical, easy to justify pricing model• Makes it difficult to benefit from service concepts and learning curve

Value based pricing • Win-win model, if properly applied• Benefits are difficult to prove, e.g. increased wellbeing or productivity are usually result of

several factors

Fixed fee (contract) • Works for consultants if costs and required work can be estimated accurately• Customers benefits, if there are potential surprises in required amount of work

IT systems and applications

Software-as-a-Service • Very widely used morel in software-based solutions• Easy updates• Continuous, predictable revenue stream

License fee • Attractive front-end payment, but difficult to get additional sales

Pay per use • Can be based on clicks, time, number of users, transactions• Good model, if customer has growing usage or user base

Certifications One time fees • Front end payments are typical in certification issuing• Lack of continuity or further sales

Maintenance fees • Can be based on continuous improvement programs or maintaining certificate• Usually completing certification fees

Wellbeing at Work – Earnings logics and pricing models


83



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

Alternative Business Areas

84

WellbeingBusiness

Models

Systematic identification of viable Alternative Business Area

Objective Comparison of

Business Model Alternatives

Markets, Customer Needs and Value Proposition

Wellbeing Certification and AuditMarkets, Customer needs and Value Proposition

85

Identified Customer Needs Value Proposition

Summary of Existing Markets Business Potential ConclusionsCertification &

Audit

• Employers are lacking of wellbeing related knowledge and look for the best practices and proper reference point. HR-departments look for concrete targets and action plans.

• The benefits of wellbeing investments are difficult to prove and employers need some way to find the right level of investment

• Employers look for ways to communicate that the workplace wellbeing issues are taken care of.

Wellbeing Certification and Audit solutions provide:

• Third party evaluation of company’s work wellbeing practices and achieved results. A certified and uniform way to measure wellbeing .

• Benchmarking of wellbeing practices with other companies

• Analysis of the development needs

• Enhanced employer image through certified wellbeing practices

• Certifying business can be profitable for limited number of players.

• However, the entire work wellbeing market will benefit from certification practices as they can potentially increase the demand of work wellbeing and make the solutions more tangible.

• Certification will also facilitate internationalization of work wellbeing business

• Development of widely accepted best practices can generate business potential even without actual certification process.

• There are several international approaches to certify work environment and work ability related practices:

• OHSAS 18000 is an international occupational health and safety management system specification. Certifications are issued by several companies, e.g. Inspecta, DNV, Finlog Audits

• Great Place to Work ® is an international model focusing on culture and leadership, lacks focus on wellbeing. There are GPW studies in 150 organizations in Finland and in 5500 worldwide every year.

• Certification of wellbeing professionals’ competence is certified with various national systems

• Inspecta is the most active player in Finland and develops a solution concentrating in work ability management with Varma

• There are no identified holistic approaches in Finland or inter-nationally, that certify employers’ employee wellbeing practices.

Wellbeing Benchmarking and MetricsMarkets, Customer needs and Value Proposition

86


Benchmarking & Metrics

• The impact of different wellness activities on actual wellbeing as well as on business performance is essential to know for companies to make the right wellbeing investment decisions.

• Employers look for metrics that are reliable and easy to measure

• Business decision makers look for metrics that help them to connect wellbeing investments with business performance and to provide guidance for future investments. They also look for ways to manage the costs of wellbeing.

• HR and superiors look for concrete indications how the chosen actions work and how to further improve workplace wellbeing in organization and individual level.

Wellbeing Benchmarking and Metrics provide:

• A way to measure employee wellbeing and understanding its effect on success, productivity and innovation

• A way to measure direct and indirect costs related to employee wellbeing.

• A benchmark database to compare company’s wellness metrics against the industry or other reference groups

• Required tools for gathering information and for creating useful management report for decision making

• Wellbeing metrics are an essential part of any work wellbeing related offering, but there is no notable business potential in metrics alone.

• Because measuring work wellbeing is difficult to do in a reliable way, benchmarking data will have some commercial value

• Many employers will develop in-house solutions for work wellbeing measurement – alone or with help of consultants.

• The set of metrics and their calculation formulas vary between companies. Also, there is no proven way to connect wellbeing problems or actions with cost and productivity, except some single measures, such as absenteeism or pension costs.

• Wellbeing metrics are typically• Subjective measures, typically questionnaires• Numeric metrics, such as absence days

• The main developers in Finland are non-profit organizations (e.g. TTL, EK, Duodecim, Valtiokonttori, VM, Työturvallisuuskeskus, Kuntoutussäätiö), pension insurers (e.g. Varma, Ilmarinen, Elo, Etera) and OHC providers (e.g. Terveystalo, Mehiläinen, Diacor)

• There are no examples of remarkable businesses focusing on metrics and benchmarking. The available tools are either available for free or bundled with other services

• Some organizations publish annual personnel report but format isn’t standardized yet.

Summary of Existing Markets Business Potential Conclusions

Wellbeing Data PlatformMarkets, Customer needs and Value Proposition

87


Data Platform

• Wellbeing and health related data is currently scattered to several systems and companies are missing the big picture. There are also needs to combine information from different wellbeing service providers and this is often done on excel spreadsheets etc.

• There are hardly any common application or user interfaces between the systems

• Creating a proper big picture for decision making required lots of manual work.

• Adding and combining several sources of information creates needs for two types of data platform:

• Integration of data transfer and storing

• Knowledge integration to create meaningful information for work wellbeing processes

Wellbeing Data Platform provides:

• A way to store, manage and utilize wellbeing data

• A way to combine information from different sources and services through common application and user interfaces

• A way to transform data into valuable information for employers and employees alike

• Integration of data and information between systems and processes is a necessary part of the work wellbeing solutions, but it is very difficult to enter the market due to the proprietary nature of the information itself and the information systems.

• There are matters of legislation that needs to be taken in consideration. Regional differences may hamper global approach.

• Integration and analytics of personal health and wellbeing data from various sources creates potential for new players when the amount of data increases and the use of data becomes common.

• Currently there are several data / knowledge platform approaches in the market.

• Employers have different HR- and wellbeing related data in their HR- and ERP- systems

• There are tens of different patient information systems in use and the user or application interfaces are not uniform yet

• Legislation regarding ownership of data differs between countries

• There is a growing number of health and wellness data platforms and integration solutions

• Healthvault is Microsoft’s globally offered platform to store and manage personal health data. Other examples are Finnish Taltioni and US-based integration platform Validic .

• VM is leading the development of a data bus solution for all government services and Kela (Kanta) is developing a nation-wide storage system for health data

• Most of the service developers have their proprietary platforms

• There are no successful examples of platforms integrating 3rd party data from different sources


Wellbeing BoosterMarkets, Customer needs and Value Proposition

88


Booster

• Lifestyle-related health and wellbeing information supports employees’ personal efforts to improve their wellbeing or to do self-analytics

• Employers want to support their employees wellbeing efforts to increase motivation and productivity and to gain additional information about wellbeing in the company

• The polarization between employees who are healthy and fit and employees who have problems is growing

Wellbeing Booster solution provide:

• Support all employees in improving their personal wellbeing and reaching their goals

• Increase share of preventive wellbeing actions and reduce costs of reduced work ability

• Increase productivity and innovation capability of employees

• New smart phone and other technologies provide easy-to-use and ubiquitous platforms for personal health and wellbeing information collection, but the information needs to be integrated with the work wellbeing processes to become commercially valuable

• Wellbeing booster solutions have commercial potential, when integrated with other wellbeing metrics and services

• Smart phones, heart rate monitors or activity bracelets are already widely used by individuals in monitoring heath and wellness. Finland is the leader in developing these solutions together with USA.

• More than 100 start up companies in Finland develop solution for

• Personal data collection (sensors, diary applications etc.)

• Analysis and aggregation of data to different visual and technical formats (data analytics, reporting, etc.)

• Sharing of data with healthcare professionals or peer groups

• The data is usually used for personal interest and there are hardly any solutions where the data is used systematically by employers or healthcare professionals. Employees are often not willing to share personal health and wellbeing data with their employers.

• Self-analytic solutions are already used in many areas of healthcare where self care is common, such as diabetes

• Taltioni is the biggest actor in storing personal health data in Finland, but there are few applications for the data yet.


Wellbeing Management SystemMarkets, Customers and Value Proposition

89


Management System

• Management of wellbeing investments and activities are in the core of employers’ work wellbeing initiatives.

• To manage work wellbeing in a cost efficient and productive way requires right tools and expertise. The key needs in wellbeing management are:

• Measuring the effects of wellbeing activities and investments

• Making decisions on required activities and on services offered to employees

• Making decisions and tendering for the service providers

Wellbeing Management System provides:

• Services or ICT solutions to support or outsource work wellbeing management processes of the employers, including e.g. metrics and reporting, benchmarking of the service providers or support for tendering

• Wellbeing management is the most valuable part of the work wellbeing ecosystem.

• However, employers are not willing to invest in wellbeing management services or systems unless service providers can provide better information about the impacts and ROI than employers’ own systems.

• The main players in work wellness management (also called as strategic welfare by some actors) in Finland are

• OHC providers, who seek for growth from wellness services

• Pension insurers, whose interest is to avoid premature pension payments

• Wellness management specialists (such as Aino Health Management), who look for profitable sub-segments in the market

• Non-profit actors (such as TTL, EK, Työturvallisuuskeskus), who are developing frameworks and best practices available for all

• Public sector, like Valtiokonttori, who is developing tools and services for government workforce

• The market has not cleared up yet. Many players have their own partner networks which compete with each other


General conclusions about the identified business areas and workplace wellbeing market

90

• Workplace wellbeing market consists of several areas, which are very important for proper wellbeing practices, but hardly potential as stand-alone businesses (e.g. certification, metrics, data platform)

• The key to successful capitalization of the market potential is dependent on the ability to combine different elements in a successful way. E.g. combining wellbeing management services with a certified best practice framework, easy to use metrics and supporting technologies for individuals (such as smart phone applications) can together create great potential for wellbeing actors.

• Lack of good ways to measure business benefits of workplace wellbeing as well as missing business models that integrate services and technologies into companies’ wellbeing processes are slowing down the development of the wellbeing market

• Also, the attitudes towards new types of solutions are changing slowly among wellness and health professionals

• Currently available services and technologies are scattered to several proprietary systems and partial solutions that are not working together.

• There are no dominant and scalable global solutions in workplace wellbeing market. The few exceptions are e.g. work safety certifications, Great Place to Work model and some initiatives to integrate health and wellbeing data to the same databases, such as Microsoft’s HealthVault

• Internationalization of Finnish workplace wellbeing expertise requires solutions that are scalable and work with different work cultures. International certification of Finnish wellbeing approach could greatly facilitate internationalization of Finnish companies.

Certification & Audit

Benchmarking & Metrics

Data Platform

Booster

Management System

General conclusions


91



Market analysis




Customer needs


Objectives

Background

Background


Business areas

Overview

• Significant investments to wellbeing solutions must demonstrate positive cost/benefit impact

• Required strength of link between investment to employee wellbeing and added profits from the solution is dependent on customer company culture

• At the minimum the solution must produce measurable improvements in a customer company’s selected management indicators for wellbeing

• Current wellbeing indicators can be divided to five categories:

1. Established employee indicators

2. Employee (engagement) surveys

3. Personal (well-being) measurements

4. Project/program specific goals

5. Productivity and performance measurements


92

1 Established employee indicators (cost based)

• E.g. sickness absences, accidents at work, commuting accidents, disability pensions and related costs, occupational health-care costs, employee turnover

• Weaknesses/opportunities

• Based on cost savings and the risk aspect

• Looking to the past > take a more preventive approach?

• Indicators are slow, impact is up to 10 years later > reduce cycle times

• Does not include investment impact (input/output ratio) > analyse group/individual differences?

• The lack of benchmarking /comparison is challenging (data analysis methods differ, e.g. price-per-day calculation formulas and workplace well-being activities) > harmonise?

• More advanced analysis solutions exist, e.g. Aino Health Management, Hoffmanco, NHG

• Notes:

• Existing metrics are important: The company is aware of its own situation, and promotes insight generation by management and line managers

• Indicators should be part of the whole, not separate

• Can the company influence future costs, and how?

• Long-term sickness absences are a sign of future incapacity for work

93

2 Employee (engagement) surveys

• E.g. employee surveys: job satisfaction, atmosphere, pulse, motivation, feedback on leadership, line manager feedback, health surveys (also at organisation level), customer satisfaction, personal ability to work


• Cannot be converted to cash

• Not comparable outside the organisation

• Exploitation of results in managing well-being at work, different practices > ?

• Reaction time-lag

• Data not analysed with results, but separately and rarely

• Utilisation of surveys is often superficial > statistical research, analysing the relationship between metrics and performance (e.g. Promenade Research Oy, an expensive and heavy process)

• Surveys usually do not include a business aspect > questions could be steered more towards business activities, e.g. assessment of team productivity, achievement of goals

94

3 Personal (well-being) measurements

• E.g. Personal Health Record information, personal sensors, quaries, results of automated wellbeing/health checks


• Averaging of information > usability?

• Privacy policy

95

4 Project/program specific goals

• E.g. various interventions, schemes, and projects related to well-being at work


• Practical metrics related to the solution/scheme

• Demonstration of the actual output/input ratio is challenging

• Long-term impact of investments and ability to make generalisations?

• Notes:

• Requirements for general metrics include the ability to measure the impact of individual actions

96

5 Measurement techniques embedded in productivity and performance

E.g. HCROI and Potential model

E.g. work flow, work management

Weaknesses/opportunities

• Aimed at measuring the impact of occupational well-being activities (TyHy) on business performance

• A reliable and widely used model has not yet been found

• Easily remains at academic level > Process disruptions and other metrics related to work flow might be more concrete; setting concrete objectives is recommended, to be done by senior management

• The model should define example metrics for various situations, metrics are highly sector- and unit-specific and set by management, they cannot be generic

• With so many existing metrics, do we need new ones?

97

Työhyvinvointimarkkinan mahdollisuudet startupeille

Health & Medicine

mental wellbeing

occupational wellbeing

wellbeing apps

improved wellbeing

wellbeing product concept

occupational wellbeing

business concept

health sector