From the May 2008 issue of Ceridian Connection

With a health care crisis looming over U.S. businesses of all sizes, the need for employee health and productivity programs is greater than ever. In the coming year, a third of the workforce is at risk of developing serious medical conditions including diabetes and heart disease. In addition, issues such as absenteeism, productivity and work-life balance all impact an organization's financial condition.

Organizations can gain efficiencies by offering complete health and productivity programs for employees. But how do you determine if these programs are truly effective? And how do you calculate return on investment (ROI)?

Building a case
What you need are measurements of program results that can be quantified and reliably plugged into ROI calculations. Most Ceridian LifeWorks programs have ROI calculations based on actual outcomes data. For example, this includes data collected from program participants by health coaches, consultants and satisfaction surveys. Ceridian believes that, unlike enrollment and demographic statistics, outcomes data more accurately and directly reflects changes in employee behavior.

The outcomes model gives researchers a baseline data set when employees enter a program and then follow-up data as participants progress through the program. Outcome metrics also provide data that is essential for studying problems such as absenteeism and productivity, which are difficult to evaluate with health claims data alone.

Our programs also reach a broader range of employees than, for example, a traditional employee assistance program (EAP) that only offers help line support to employees.

Ceridian LifeWorks has an EAP that is integrated with health and wellness, work-life and productivity management solutions. Each solution provides measured outcomes in two core program areas -- EAP/work-life and health coaching.

How do we get our data?
Ceridian's primary source of outcomes data is from our participants, and we capture up to 40 metrics per program. For example, health coaching participants self-report over the telephone to their health coaches. In this case, all baseline data is captured in an initial assessment call. Progress data is captured through follow-up calls at three, six and 12 months post-enrollment. In the follow-up calls, coaches ask many of the baseline questions again for comparison to the baseline data.

Participants in our work-life programs complete satisfaction surveys. This data can give employers a picture of the program's impact on work performance, such as improved productivity, lower absenteeism, and time saved.

After outcomes data is collected, it is pulled together into an aggregate format for the Health Insurance Portability and Accountability Act (HIPAA) privacy compliance and is reported back to employers on a quarterly basis. The report provides a snapshot of program effectiveness. Ceridian Tobacco Cessation, for example, reports back demographic data on participants, such as gender and average age. The report also provides behavioral history, such as the average age when individuals started smoking, how many years they have smoked, the number of previous attempts to quit and the current quit rate, which Ceridian measures by a rigorous "intent-to-treat" analysis.

ROI calculators
Ceridian LifeWorks also has ROI calculators for two of our core areas: EAP/work-life and health coaching. Ceridian health and productivity ROI calculators are based on actual (not predicted) program utilization, actual program outcomes and independent research that supports the per-participant cost of the condition or behavior being analyzed.

Outcomes vary from program to program. For example, our stress management and cardiovascular health coaching programs are more difficult to quantify and there is not as much peer-reviewed research linking outcomes to cost savings. An ROI calculator for stress management is in development and will be based on measuring stress-related symptoms such as headaches, insomnia and loss or gain of appetite.

Scientific advisory board oversight
To ensure the accuracy of our ROI tools and to discover trends and guide program development and improvement, Ceridian LifeWorks depends on two resources outside the company: a scientific advisory board and an independent analytics firm.

The scientific advisory board provides ongoing clinical oversight and scientific expertise for LifeWorks solutions. The board is comprised of medical, behavioral and motivational experts in fields such as cardiology, psychology, pharmaceuticals and health coaching.

Together, the analytics firm and the advisory board help direct the continuing review and improvement of our products and services. We apply research findings and board discussions to product development, coach/consultant training and service delivery improvements.

We can help you get more from your workforce
To an executive team focused on cutting costs at every opportunity, a proposal to invest in health and productivity solutions can be hard to justify, especially if you are already spending dollars on employee programs. HR professionals, CFOs and CEOs are correct in asking how much value any outsourced product or service provides.

Ceridian LifeWorks can help you make a powerful business case for investing in the health and productivity of your workforce with EAP programs that deliver demonstrated results from the very beginning: healthier employees, less absenteeism, lower health care costs, higher retention and higher productivity.

For more on this topic, read the white paper, Using ROI to build a business case for health and productivity programs, or contact your Ceridian representative.