Systematically leveraging data to improve employee health and wellness is not just an obligation but a strategic opportunity for organisations
In the contemporary landscape of corporate responsibilities, fostering a workplace culture that prioritises employee health and wellness has become an imperative, driven by talent shortages, escalating healthcare costs, and the growing emphasis on the social component of environmental, social, and governance (ESG) criteria.
While many companies monitor direct expenses and liability exposure related to employee health, a lack of systematic tracking leaves them uninformed about the broader health landscape of their workforce. In this era of data-driven decision-making, the use of comprehensive data analytics is emerging as a powerful tool for designing and implementing effective health and wellness strategies.
The Need for Systematic Measurement
Traditional approaches to employee health often lack rigor, with organisations responding reactively to immediate problems or regulatory requirements without a clear understanding of their impact. A fundamental shift is required to integrate measurement from the inception of health programs. The inability to systematically assess employee wellbeing hinders the design of effective, scalable health strategies tailored to the specific needs of the workforce.
A Four-Phase Framework for Employee Health Improvement
Recognising this need, the Cleveland Clinic has developed a four-phase framework that has proven effective in assessing and improving employee health. This framework, initially implemented internally, addresses key aspects of employee health:
- Summary Measures:The first phase involves generating summary measures that provide a comprehensive snapshot of workforce health. This includes understanding prevalent conditions, injuries, and risk factors affecting employees’ health. By analysing claims data, surveying employees directly, and utilising external benchmarks, organisations can gain valuable insights into the health status of their workforce.
- Upstream Drivers:Social, economic, and environmental factors significantly impact the health of a group. Identifying and addressing upstream drivers, such as income levels, language proficiency, and local pollution levels, can be pivotal. By leveraging data from diverse sources, including research atlases and government databases, organisations can develop targeted interventions to enhance employee health at a broader societal level.
- Real-time Indicators:Real-time tracking of employee health issues allows organisations to respond promptly to emerging challenges. Tools like mental health screening questionnaires and wearable device data enable continuous monitoring. For instance, companies can use wearables to track stress levels and promote employee well-being, as demonstrated by Cisco’s initiative with Fitbit devices.
- Key Enablers:This phase focuses on evaluating the accessibility and utilisation of health benefits. Analysing employee surveys, market intelligence, and claims data helps identify gaps in benefit plans. Understanding how easily employees can access care is crucial, particularly in areas like mental health and primary care where timely access is essential.
Case Studies: Turning Data into Action
- Cleveland Clinic’s Internal Implementation:The Cleveland Clinic, with its 77,000 employees, employed risk stratification based on factors like BMI and chronic conditions. This precision allowed the clinic to enrol 55% of eligible employees in chronic disease management programs, surpassing the national average of 20%. Financial incentives for a weight-reduction program resulted in a flattened average annual weight gain and a 25% decrease in hospital admissions, saving approximately $120 million annually.
- Purolator’s Holistic Approach:Purolator, a Canadian courier giant, collaborated with Cleveland Clinic Advisory Services to develop a holistic approach called “Purolator Health.” This initiative addressed social, physical, mental, and financial well-being. Special screenings and support were introduced for employees at elevated risk, resulting in increased mental health service utilisation, a 25% reduction in total injuries, and a 42% drop in injuries leading to lost work time.
Considerations for Implementation
- Protecting Privacy:As companies delve into systematic health data collection, safeguarding employee privacy is paramount. Adherence to European and U.S. rules, which stipulate that health data belongs to individuals and requires explicit consent for sharing, is crucial. Employers must demonstrate how sharing health data benefits employees while ensuring robust data protection measures.
- Weighing the Return on Investment:The dynamic job market prompts questions about the return on investment in employee health, especially considering potential turnover. However, organisations should view employee health improvement as a long-term investment in the well-being of both the organisation and society. Demonstrating a commitment to workforce well-being becomes a competitive advantage in attracting talent and investors, aligning with the evolving expectations of responsible and sustainable business practices.
Systematically leveraging data to improve employee health and wellness is not just an obligation but a strategic opportunity for organisations. By adopting a comprehensive framework, companies can gain insights into their workforce’s health, design targeted interventions, and demonstrate a commitment to societal well-being. In an era where responsible business practices are increasingly scrutinised, organisations that prioritise employee health and use data-driven strategies will not only navigate talent shortages and rising healthcare costs but also outperform in the market.
Know more about our Top Ranked PGDM in Management, among the Best Management Diploma in Kolkata and West Bengal, with Digital-Ready PGDM with Super-specialization in Business Analytics, PGDM with Super-specialization in Banking and Finance, and PGDM with Super-specialization in Marketing.