Consumer_Gov_Rep_09-26Nov:Layout 1 26.11.

09 11:04 Page 1

EMPLOYEE HEALTH AS
A STRATEGIC
IMPERATIVE

January 2009

Margaret Chan, Director-General, World Health Organization (WHO), Geneva
Employee Health as a Strategic
Imperative
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 burden
of 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
“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
knowledge, creating platforms for action, and raising awareness
and 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
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
1
Report of the Governors Meeting of the Consumer Industries

Daniel J. Bryant, Senior Vice-President, Global Margaret Chan, World Health Organization (WHO), sharing her opening remarks with the group George C. Halvorson, Chairman and Chief
Public Policy and Government Affairs, Executive Officer, Kaiser Foundation Health
PepsiCo, USA Plan, USA

nervousness regarding job retention and this in turn may take a least expensive treatments can “We as employers
toll on an organization’s ability to perform. During times of job be the most effective,” remarked
get a good return on
cuts, greater stress is placed on those employees who remain Thomas R. Insel, Director,
behind. Families and communities are affected with a ripple National Institute of Mental investment from
effect which goes far beyond the employees of the organization. Health, USA. Case studies health; for every US$
A common theme running through the session was the reflection highlighted a variety of cost-
1, we can get up to
that people react better to news than to the uncertainty of no effective outcomes. For
news, and therefore communication becomes central to limit the example, General Mills’
US$ 6 back.”
damage to employee health. screening programme to identify
health risks and help workers Margaret Chan, Director-General,
World Health Organization (WHO),
A Few Simple Cost-effective Strategies achieve positive lifestyle changes
Geneva
In a time of resource resulted in the company’s
constraint, easy cost- “There is a clear healthcare cost increases climbing less than 3% annually in the
effective solutions are past five years. Powell, Chairman and Chief Executive Officer,
connection between
available, such as “making General Mills, USA, pointed out that “these increases are below
your environment smoke good health, the rate of inflation and are significantly less than the rate posted
free; introducing healthy diets prosperity and by American industry overall.” Participants were careful to note
in workplace cafeterias; that simplicity should not overshadow the importance of tailoring
economic progress.”
introducing ergonomics and programmes to different cultural needs.
exercise support,” said Chan.
Mark Foster, Group Chief
The evidence for these
Executive, Management Consulting
Evidence on the Return on Investment Is Critical,
interventions is strong. “It is a and Integrated Markets, Accenture, Especially in Times of Crisis
paradox that some of the United Kingdom Business 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
Group discussion captured pictorially by the Davos WorkSpace artist acting upon the fact that a healthier employee is a more

2
Group discussion captured pictorially by the Davos WorkSpace artist

productive employee.” Continuously providing solid data on its “Businesses should look at the health
returns will guarantee that employers do not abandon or
status of their employees as an asset for
minimize their commitment to employee health.
the organization, and take steps to improve
We All Have a Role to Play: Multistakeholder Action health as part of their executive goal
at the Core of Employee Health setting, incentive setting and performance
Employee health is a multistakeholder issue which impacts and
monitoring process.”
involves businesses, governments, shareholders, unions,
communities and civil society. This private session enabled
champions of workplace wellness to reflect on the impact of the George C. Halvorson, Chairman and Chief Executive Officer, Kaiser
Permanente, USA
economic downturn on different stakeholder groups and make
the case for a continued emphasis on health as a strategic Communication Is Key: Media and Technology
imperative to each stakeholder group. For example, Mark Foster, for Health
Group Chief Executive, Management Consulting and Integrated Session moderator Jeff Jarvis, Blogger and Professor,
Markets, Accenture, United Kingdom, described the perspective Buzzmachine.com, USA, introduced a variety of means of using
of shareholders as being on two levels. “The short-term media and technology to advocate for investment in health and
perspective is around this quarter’s productivity; a healthy to unite arguments of stakeholders – employers, employees,
workforce is more productive. The long-term perspective is government, families and communities – to promote the cause.
“Strong arguments around the competitiveness, To test different communication means, participants applied the
brand and reputation of the arguments discussed to recording video messages on “why to
why health is good
business; a workforce with key invest in employee health”. These videos may be accessed at:
for the employee skills and capabilities will fulfil the http://www.weforum.org/en/initiatives/Wellness/index.htm.
and for the company long-term mission.” Leaders
must be able to communicate The closing discussion highlighted communication as critical in
are essential.”
the need for employee health in times of crisis. Engaging with employees and creating a culture of
ways which win over the openness and trust will help alleviate the stress and negative health
Richard W. Edelman, President
shareholder from a short- and consequences of an economic downturn. As one participant
and Chief Executive Officer,
Edelman, USA
long-term perspective. 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.”

3
Report of the Governors Meeting of the Consumer Industries

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

“Communities are critical for employee Contributors

health, as the boundaries between
Margaret Chan, Richard W. Edelman, George C. Halvorson,
workplace, public places and home are Harish Manwani, Richard H. Bagger, David E. Bloom, Awa Marie
blurring.” Coll-Seck, Victor J. Dzau, Thomas R. Insel, Peter Piot, Pekka
Puska, Robert Scoble, Mara Swan, Mark Foster, Jeff Jarvis,
Scott Ratzan, Vice-President, Global Health, Government Affairs and Martin Richenhagen, Scott Ratzan, Christopher Murray.
Policy, Johnson & Johnson, USA

Highlighted Needs and Next Steps “Peer groups are one of the most
important, influential and effective
In times of economic downturn, it is more important than ever to
keep the emphasis on employee health. It is critical to maintain
means of changing employee behaviour,
dialogue and advocacy for workplace health, and provide tools as employees are motivated by
and information to support its application. The World Economic individuals that they can relate to.
Forum and all stakeholders have an important role to play.
Therefore, focusing on an organization's
Recommended actions that could support further steps in this
area include: peer support system is critical to driving
• Raising awareness of the problem, highlighting the business healthy behaviour.”
case in times of economic downturn
• Capturing data that can inform companies on the impact of Mara Swan, Executive Vice-President, Global Strategy and Talent,
the economic situation on health Manpower, USA
• 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

4
The World Economic Forum is an independent
international organization committed to improving
the state of the world by engaging leaders in
partnerships to shape global, regional and
industry agendas.

Incorporated as a foundation in 1971, and based

in Geneva, Switzerland, the World Economic
Forum is impartial and not-for-profit; it is tied to
no political, partisan or national interests.
(www.weforum.org)