Download Benchmarking Health, Absence and Productivity Programs

December 2016
Benchmarking Health, Absence
and Productivity Programs
Results From This Year's EMPAQ® Survey
This presentation was funded by the members of the National Business Group on Health® and is for their exclusive use. To protect the proprietary and confidential information included in this
material, it can only be shared, in either print or electronic formats, within and among Business Group member companies. All other uses require permission from the Business Group. ©2016
National Business Group on Health.
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Introductions
John Azzolini
Senior Consulting Scientist
Truven Health Analytics
Jennifer Ramos
Senior Manager, Human Capital &
Global Quality Driven Mgt. Programs
FedEx Express
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What Is EMPAQ®?
• EMPAQ® (Employer Measures of Productivity, Absence and
QualityTM) was created to assist employers in quantifying the costs of
poor health, productivity, and absence
– EMPAQ® comprises a set of standardized metrics employers can use to monitor
and measure how well their human capital investments are paying off
– Benchmarking is available for seven health and productivity management
program areas
– EMPAQ® is employer developed and driven
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What Programs Are Benchmarked?
Employee Assistance
Programs
Short-Term Disability
Workers’ Compensation
Group Health
Incidental
Absence
Long-Term Disability
Family Medical Leave
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This presentation is for National Business Group on Health® members only. It should not be reproduced or quoted without permission from National Business Group on Health®
What Is Measured?
Metrics focus on three key areas of business evaluation:
How many people use the program?
• Incidence
How much does it cost the company in terms of paid benefits?
• Cost per employee
What is the impact on productivity?
• Lost workdays
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This presentation is for National Business Group on Health® members only. It should not be reproduced or quoted without permission from National Business Group on Health®
What Is Measured?
• In response to participant feedback, this year questions were added
about:
•
•
•
•
Return-to-work programs
FMLA administration
Types of short-term disability leaves
Short- and long-term disability benefits (elimination periods, maximum benefits,
and wage replacement structure)
• Respondents reported findings for calendar year 2015
• The full report is available at no charge
• 49% of the 2015 survey participants submitted data again in 2016
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EMPAQ® Survey Respondents
This year the results were based on more than 100 employers from a
wide variety of industries
EMPLOYERS REPRESENTED, BY INDUSTRY
Percentage of Data
Contributors (%)
Industry
Colleges & Universities
4.6%
Energy, Utilities & Chemicals
8.4%
Financial Services & Insurance
17.8%
Food & Beverage
4.7%
Healthcare
11.2%
Hospitality & Retail
7.5%
Manufacturing (Auto, Mining & Metal)
20.6%
Other
11.2%
Pharmaceuticals
5.6%
Technology & Telecommunications
8.4%
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EMPAQ® Survey Respondents
The age and gender mix varied significantly by industry
AVERAGE EMPLOYEE AGE, BY INDUSTRY
Energy, Utilities & Chemicals
45.0
Pharmaceuticals
44.8
Manufacturing (Auto, Mining & Metal)
44.5
Food & Beverage
43.8
Other
43.4
Healthcare
42.9
Technology & Telecommunications
42.3
Financial Services & Insurance
Hospitality & Retail
All-Industry Median
All-Industry Average
42.0
39.9
43.4
43.2
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Findings: Incidental Absence
• Refers to sick days or unplanned/unscheduled paid time off (PTO)
• For all industries, total lost workdays averaged 4.8 days per
employee
– The financial services and insurance industry had the lowest incidental absence
rate, 1.6 days per employee
• Leave types
–
–
–
–
51% of all employees used a traditional vacation plan
47% had a PTO bank
Only 1% had permissive/unlimited leave plans
All healthcare industry employers selected PTO bank plans
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This presentation is for National Business Group on Health® members only. It should not be reproduced or quoted without permission from National Business Group on Health®
Findings: Family Medical Leave Act
• The previous positive
association between
FMLA lost workdays
and the % of female
employees was not
observed this year
• Only 43% of firms self
administer their FMLA
program
FMLA METRICS, BY INDUSTRY
Averages per 100 Covered Employees
Industry
Energy, Utilities & Chemicals
Healthcare
Hospitality & Retail
Manufacturing (Auto, Mining & Metal)
Financial Services & Insurance
Technology & Telecommunications
All-Industry Average
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Total
FMLA
Leaves
23.6
22.1
18.0
15.1
13.9
9.7
16.2
NonNonConcurrent Concurrent
FMLA
FMLA Lost
Leaves*
Workdays*
15.3
14.1
198.7
11.8
293.9
10.8
236.5
8.7
166.3
3.8
41.8
10.1
186.9
Findings: Short-Term Disability
• The overall STD
incidence was 8.1
STD claims per
100 covered
employees
SHORT-TERM DISABILITY CLAIMS, BY INDUSTRY
Energy, Utilities & Chemicals
11.8
Manufacturing (Auto, Mining & Metal)
9.9
Healthcare
8.9
Hospitality & Retail
8.4
Technology & Telecommunications
7.8
Financial Services & Insurance
Pharmaceuticals
Other
6.9
6.3
5.7
All-Industry Median
All-Industry Average
STD Claims per 100 Covered Employees
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7.5
8.1
Findings: Short-Term Disability
• Pharmaceuticals,
which had the
highest STD cost
per employee, had
the lowest reported
incidence rate
– This is due in part to
that sector’s
generally high wage
rates
SHORT-TERM DISABILITY METRICS, BY INDUSTRY
Industry
Average STD Lost Workdays
per 100 Covered Employees
Average STD Cost per
Covered Employee ($)
Manufacturing (Auto, Mining & Metal)
458.7
478
Technology & Telecommunications
363.3
355
Hospitality & Retail
361.7
240
Energy, Utilities & Chemicals
342.3
-
Healthcare
297.4
405
Financial Services & Insurance
250.2
491
Pharmaceuticals
249.4
741
Other
221.2
228
All-Industry Median
279.4
391
All-Industry Average
324.5
413
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This presentation is for National Business Group on Health® members only. It should not be reproduced or quoted without permission from National Business Group on Health®
Findings: Short-Term Disability
• STD elimination period:
– A 7-calendar-day plan was used by 71% of employers
– Programs without any STD elimination period were seen only in the hospitality and
retail industry
– The average rate of STD lost workdays for the 7-day elimination period plans was
57% of the rate for plans with no elimination period
• The most common STD maximum benefit period was 180 days
– Offered by 44% of all employers
– Increasing the STD maximum benefit period from 90 to 180 days only increased
the average cost per employee by 3%
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Findings: Short-Term Disability
• The overall average STD wage replacement rate was 74%
– This is high; at levels greater than 70%, employees may not see a sufficient
incentive to remain on the job or return to work
• A higher percentage of male employees was associated with higher
STD incidence and cost
– Only 16% of all-industry STD claims were maternity related
– Even in healthcare, the industry with the highest percentage of female
employees, only 23% of STD claims were maternity related
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Findings: Long-Term Disability
• The average annual
incidence rate was 4.02
per 1,000 employees
– The maximum average
LTD cost was in
technology and telecom.
It was 75% above the
overall average, but
their incidence rate was
at the overall respondent
average
LONG-TERM DISABILITY METRICS, BY INDUSTRY
Industry
Hospitality & Retail
Energy, Utilities & Chemicals
Healthcare
Manufacturing (Auto, Mining & Metal)
Technology & Telecommunications
Other
Financial Services & Insurance
Pharmaceuticals
All-Industry Average
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Average Annual LTD
claim incidence per 1000 Average LTD cost
employees
per claim ($)
6.03
6,099
5.86
11,338
5.00
15,544
4.78
9,895
4.01
19,918
3.15
6,681
2.43
16,396
1.83
8,136
4.02
11,376
Findings: Long-Term Disability
• LTD elimination period
– 46% of respondents employ the most popular period, 180 days
– The shortest, 90 days, was the choice of 11% of employers
• These employers had an LTD incidence rate 33% higher than firms with a 180day elimination period
• LTD maximum benefit period
– 66% of employers selected age 65 as the maximum LTD benefit period
• Insurance status
– Fully insured LTD plans were used by 66% of firms
– However, self-insured LTD plans paid on average 24% less per LTD claim
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Findings: Return and Stay At Work
Programs
• 86% of respondents had a return-to-work program in place
– 100% of two industries (hospitality & retail and energy, utilities & chemicals)
offered these programs
– Return-to-work programs were associated with lower STD claim incidence rates,
but the data shows no overall financial benefit
• 69% of respondents have a stay-at-work program in place
– These programs were most popular in the manufacturing industry
– Where present, STD costs per employee were 10% lower
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Findings: Workers’ Compensation
• Average WC incidence rate
was 3.25 per 100 FTEs
– The incidence rate in the
healthcare industry was six
times higher than that of the
financial services and
insurance industry
– The % of union employees
had a stronger association
with the WC cost, and
prevalence than age or the %
of female employees
WORKERS' COMPENSATION (WC) METRICS, BY INDUSTRY
Industry
Healthcare
Hospitality & Retail
Other
Manufacturing (Auto, Mining & Metal)
Energy, Utilities & Chemicals
Technology & Telecommunications
Financial Services & Insurance
All-Industry Median
All-Industry Average
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Annual WC
Lost WC TTD
claim incidence WC cost per workdays per
per 100 FTEs
100 FTEs
FTE ($)
5.87
203
61.45
5.46
431
110.86
3.99
554
88.59
3.52
309
121.58
1.78
441
65.98
1.72
256
68.36
0.87
62
5.65
2.59
166
42.34
3.25
288
81.60
Findings: Group Health
• In 2015, the average employer spent $9,870 per covered employee
on health benefits. There is significant variation by industry
• Group health costs per employee rose along with the percentage of
union employees
– An increase in average age was associated with increased group health costs,
but the impact of age was half as strong as the impact of gender mix and onthird as strong as the influence of the unionization
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Findings: Group Health
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Findings: Wellness and Employee
Assistance Programs
• Like last year, 100% of respondents offered some type of employee
wellness program
• Across all industry segments, the EAP participation rate was 5%
– The highest participation (6%) was in the financial services and insurance sector,
and the lowest rate (3%) was in technology and telecommunications
• Program costs averaged $29 per employee with the highest
spending ($89) in the manufacturing industry and the lowest ($19) in
healthcare
– Increasing union representation was associated with higher EAP spending per
employee
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Findings: Health Risk Assessments
• 95% of the surveyed firms reported using an HRA
• The average participation rate across industries was 52%
• Employers that offered a financial incentive averaged an 11%-higher
HRA participation rate than firms without any incentive
– 54% versus 43% participation rate
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Findings: On-Site Clinics
• 72% or respondents offered an on-site clinic to at least some portion
of their workforce
– Acute care services were provided by 85%
– Occupational health services by 64%
– All healthcare firms offered some type of on-site clinic. Financial
services/insurance firms were the least likely to do so
• Employers who offered on-site clinics indicated that 56% of their
workforce had access to them
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FedEx Express Human
Capital Management
Absence: Changing Employee Behavior
This presentation was funded by the members of the National Business Group on Health® and is for their exclusive use. To protect the proprietary and confidential information included in this
material, it can only be shared, in either print or electronic formats, within and among Business Group member companies. All other uses require permission from the Business Group. ©2016
National Business Group on Health.
Unscheduled Absences:
Reversing the Trend
• 8% Workforce Absent Any Given Day
• 6% Industry Benchmark
• 2-Year Project (April 2014 – May 2016)
– Executive and Stakeholder Buy-In
– Critical Areas: Policies & Best Practices, Worker
Injuries, & Disability Plan
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Policy Change Impact
Increasing % of EEs on Temporary
Return to Work Decreases Durations
Effect of 6/1/2015 Policy Change on
Unpaid Unscheduled Absences
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Outstanding Results
• Reduced Leave Duration by
27 Days
• TRW Increased 60% FY14FY16 in Operating Divisions
• Lost Workdays/100 EEs 30%
Lower than EMPAQ Norm
• Increased Available FTEs Improving Service and Profit
• Workforce Readiness:
– 2014: 8% Absent Any
Given Day
– 2016: 7% Absent Any
Given Day
• FY17
– Measure Results
– Continue Data Analysis
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2016 EMPAQ® Insights Report
For a copy of the 2016 EMPAQ® Report visit:
http://www.empaq.org/insightreport/
This presentation is for National Business Group on Health® members only. It should not be reproduced or quoted without permission from National Business Group on Health®
This presentation is for National Business Group on Health® members only. It should not be reproduced or quoted without permission from National Business Group on Health®
Questions?
Ask questions any time during the presentation:
(1) Click on the Q&A tab
(2) Type your question
(3) Click “Send to All Panelists”
This presentation is for National Business Group on Health® members only. It should not be reproduced or quoted without permission from National Business Group on Health®
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National Business Group on Health
2017 Events
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