8/7/2019 Employee Health as a Strategic Imperative
http://slidepdf.com/reader/full/employee-health-as-a-strategic-imperative 1/6
EMPLOYEE HEALTH AS
A STRATEGIC
IMPERATIVE
January 2009
8/7/2019 Employee Health as a Strategic Imperative
http://slidepdf.com/reader/full/employee-health-as-a-strategic-imperative 2/6
“Awareness on what can be done
to improve employee health is
too low; this is one reason why
we need to work with the Forum,to reach out to leaders who
should be the driving force.”
Margaret Chan, Director-General, World Health
Organization (WHO), Geneva
Employee Health as a StrategicImperative
Executive Summary
• Investment in employee health brings strong returns including
financial gains from increased productivity, and non-tangible
benefits such as improved morale and loyalty
• In times of economic downturn, companies should continue
to invest in employee health, as this situation puts employees
under additional stress with negative consequences for health
and business alike
• To promote continued focus on employee health, it is critical
to spread the message using different communication means,
from peer-to-peer to making use of new technologies
Background
The workplace is a key setting for improving health; currently, one
third of the global workforce suffers from preventable diseases in
a given year, costing up to US$ 1,500 per employee. The burdenof such diseases will increase by 25% in 2025, and this does
not include the expected impact of current financial strains on
employees’ mental and physical health. Fortunately, this situation
is preventable. Healthy diets, exercise and avoidance of tobacco
use are determinants of economic growth and can be facilitated
through a variety of worksite actions. While programmes improve
employee health with return on investment as high as US$ 6 per
US$ 1 invested, participation in such schemes tends to be low,
and few programmes are comprehensive and global in nature.
The World Economic Forum, with the Working Towards Wellness
Initiative, continues to support companies to promote employee
health, expanding beyond infectious diseases, developing
knowledge, creating platforms for action, and raising awarenessand advocacy on the role of physical activity, good nutrition, the
avoidance of tobacco use and good mental health and well-being
as drivers for productivity and competitiveness. The private
session in Davos, “Employee Health as a Strategic Imperative”
convened business leaders, experts, NGOs and public figures to
discuss the importance of employee health and to explore investment
in workplace health, especially at times of economic downturn.
Session Report
Margaret Chan, Director-General, World Health Organization (WHO),
Geneva, opened the session by highlighting that, “especially during
this financial crisis, we cannot afford not to invest in employee
health. We have learned from ample evidence from the past
downturns. We will see more problems with sickness, alcoholism,
drug abuse and depression driven by stress from the crisis,
impacting not only on the workforce but their families.”
Participants reflected on the impact of the economic downturn
on employees and their responsibilities towards their workforce.
The economic situation inevitably brings insecurity and
1
Margaret Chan, Director-General, World Health Organization (WHO), Geneva
Richard H. Bagger, Senior Vice-President, Worldwide Public Affairs and Policy, Pfizer, USA; and
Harish Manwani, President, Asia, Africa, Central and Eastern Europe, Unilever, United Kingdom
8/7/2019 Employee Health as a Strategic Imperative
http://slidepdf.com/reader/full/employee-health-as-a-strategic-imperative 3/6
nervousness regarding job retention and this in turn may take atoll on an organization’s ability to perform. During times of job
cuts, greater stress is placed on those employees who remain
behind. Families and communities are affected with a ripple
effect which goes far beyond the employees of the organization.
A common theme running through the session was the reflection
that people react better to news than to the uncertainty of no
news, and therefore communication becomes central to limit the
damage to employee health.
A Few Simple Cost-effective Strategies
In a time of resource
constraint, easy cost-
effective solutions are
available, such as “making
your environment smoke
free; introducing healthy diets
in workplace cafeterias;
introducing ergonomics and
exercise support,” said Chan.
The evidence for these
interventions is strong. “It is aparadox that some of the
least expensive treatments canbe the most effective,” remarked
Thomas R. Insel, Director,
National Institute of Mental
Health, USA. Case studies
highlighted a variety of cost-
effective outcomes. For
example, General Mills’
screening programme to identify
health risks and help workers
achieve positive lifestyle changes
resulted in the company’s
healthcare cost increases climbing less than 3% annually in the
past five years. Powell, Chairman and Chief Executive Officer,
General Mills, USA, pointed out that “these increases are below
the rate of inflation and are significantly less than the rate posted
by American industry overall.” Participants were careful to note
that simplicity should not overshadow the importance of tailoring
programmes to different cultural needs.
Evidence on the Return on Investment Is Critical,
Especially in Times of CrisisBusiness leaders are increasingly aware of the importance of
employee health for increased productivity, competitiveness and
loyalty of the workforce. The economic downturn should
increase, not undermine, this focus on health. Richard H.
Bagger, Senior Vice-President, Worldwide Public Affairs and
Policy, Pfizer, USA, commented, “When employers focus on
prevention and wellness as a business driver, they see that a
healthier workforce not only results in lower medical costs, but
also significantly improves productivity. For every dollar saved in
lower medical costs for healthier employees, an additional US$
2 to US$ 3 is saved in reduced absenteeism and less
‘presenteeism’ – employees with lower productivity on the job.
More and more employers around the world understand and are
acting upon the fact that a healthier employee is a more
2
Report of the Governors Meeting of the Consumer Industries
Daniel J. Bryant, Senior Vice-President, Global
Public Policy and Government Affairs,
PepsiCo, USA
Margaret Chan, World Health Organization (WHO), sharing her opening remarks with the group George C. Halvorson, Chairman and Chief
Executive Officer, Kaiser Foundation Health
Plan, USA
Group discussion captured pictorially by the Davos WorkSpace artist
“There is a clear
connection between
good health,
prosperity and
economic progress.”
Mark Foster, Group Chief
Executive, Management Consulting
and Integrated Markets, Accenture,United Kingdom
“We as employers
get a good return on
investment from
health; for every US$
1, we can get up to
US$ 6 back.”
Margaret Chan, Director-General,
World Health Organization (WHO),
Geneva
8/7/2019 Employee Health as a Strategic Imperative
http://slidepdf.com/reader/full/employee-health-as-a-strategic-imperative 4/6
Communication Is Key: Media and Technology
for Health
Session moderator Jeff Jarvis, Blogger and Professor,
Buzzmachine.com, USA, introduced a variety of means of using
media and technology to advocate for investment in health and
to unite arguments of stakeholders – employers, employees,
government, families and communities – to promote the cause.To test different communication means, participants applied the
arguments discussed to recording video messages on “why to
invest in employee health”. These videos may be accessed at:
http://www.weforum.org/en/initiatives/Wellness/index.htm.
The closing discussion highlighted communication as critical in
times of crisis. Engaging with employees and creating a culture of
openness and trust will help alleviate the stress and negative health
consequences of an economic downturn. As one participant
commented, “all of us, with our different roles, can support
health, making use of communication options. In my organization,
I need to review my plan to make sure it meets the criteria
discussed so I can make our existing programme more robust.”
“Businesses should look at the health
status of their employees as an asset for
the organization, and take steps to improve
health as part of their executive goal
setting, incentive setting and performance
monitoring process.”
George C. Halvorson, Chairman and Chief Executive Officer, Kaiser
Permanente, USA
productive employee.” Continuously providing solid data on its
returns will guarantee that employers do not abandon or
minimize their commitment to employee health.
We All Have a Role to Play: Multistakeholder Action
at the Core of Employee Health
Employee health is a multistakeholder issue which impacts and
involves businesses, governments, shareholders, unions,
communities and civil society. This private session enabled
champions of workplace wellness to reflect on the impact of the
economic downturn on different stakeholder groups and make
the case for a continued emphasis on health as a strategic
imperative to each stakeholder group. For example, Mark Foster,
Group Chief Executive, Management Consulting and Integrated
Markets, Accenture, United Kingdom, described the perspective
of shareholders as being on two levels. “The short-term
perspective is around this quarter’s productivity; a healthy
workforce is more productive. The long-term perspective isaround the competitiveness,
brand and reputation of the
business; a workforce with key
skills and capabilities will fulfil the
long-term mission.” Leaders
must be able to communicate
the need for employee health in
ways which win over the
shareholder from a short- and
long-term perspective.
3
“Strong arguments
why health is good
for the employee
and for the company
are essential.”
Richard W. Edelman, President
and Chief Executive Officer,
Edelman, USA
Group discussion captured pictorially by the Davos WorkSpace artist
8/7/2019 Employee Health as a Strategic Imperative
http://slidepdf.com/reader/full/employee-health-as-a-strategic-imperative 5/6
“Peer groups are one of the most
important, influential and effective
means of changing employee behaviour,
as employees are motivated byindividuals that they can relate to.
Therefore, focusing on an organization's
peer support system is critical to driving
healthy behaviour.”
Mara Swan, Executive Vice-President, Global Strategy and Talent,
Manpower, USA
Highlighted Needs and Next Steps
In times of economic downturn, it is more important than ever to
keep the emphasis on employee health. It is critical to maintain
dialogue and advocacy for workplace health, and provide toolsand information to support its application. The World Economic
Forum and all stakeholders have an important role to play.
Recommended actions that could support further steps in this
area include:
• Raising awareness of the problem, highlighting the business
case in times of economic downturn
• Capturing data that can inform companies on the impact of
the economic situation on health
• Making effective low-cost solutions for employee health available
• Exploring opportunities for new technology to communicate
why employee health is an investment and to deliver health
messages
Contributors
Margaret Chan, Richard W. Edelman, George C. Halvorson,
Harish Manwani, Richard H. Bagger, David E. Bloom, Awa Marie
Coll-Seck, Victor J. Dzau, Thomas R. Insel, Peter Piot, Pekka
Puska, Robert Scoble, Mara Swan, Mark Foster, Jeff Jarvis,
Martin Richenhagen, Scott Ratzan, Christopher Murray.
4
Report of the Governors Meeting of the Consumer Industries
“Communities are critical for employee
health, as the boundaries between
workplace, public places and home areblurring.”
Scott Ratzan, Vice-President, Global Health, Government Affairs and
Policy, Johnson & Johnson, USA
Peter Piot, Senior Fellow, Bill & Melinda Gates Foundation, USA, and Chair, Global Agenda Council on HIV/AIDS; Scott Ratzan, Vice-President, Global Health, Government Affairs and Policy, Johnson
& Johnson, USA; Tom Achoki, Project Manager, Global Health Initiative, World Economic Forum; Kendall J. Powell, Chairman and Chief Executive Officer, General Mills, USA; Ramazan Salman, Founder,
Ethno-Medizinisches Zentrum, Germany; and John G. Evans, General Secretary, Trade Union Advisory Committee to the OECD, France
8/7/2019 Employee Health as a Strategic Imperative
http://slidepdf.com/reader/full/employee-health-as-a-strategic-imperative 6/6
The World Economic Forum is an independentinternational organization committed to improvingthe state of the world by engaging leaders inpartnerships to shape global, regional andindustry agendas.
Incorporated as a foundation in 1971, and basedin Geneva, Switzerland, the World EconomicForum is impartial and not-for-profit; it is tied tono political, partisan or national interests.(www.weforum.org)