CFOs View Healthcare Costs as Top Concern - But Recognize Link Between Health Benefits, Productivity and Profits.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 9, 2002 Most Willing to Forgo Benefits Cost Cutting When Results are Demonstrated in Financial Terms During a year marked by record increases in health insurance costs, 93% of CFOs believe there is a link between the quality of their companies' health benefits and the strength of the bottom line. Yet, few CFOs are able to measure the full impact of healthcare benefits on productivity and profits because the criteria used to evaluate benefits programs - benefits costs, employee satisfaction and employee retention - are seldom expressed in financial performance terms. These are key findings of a national study on health and productivity released today by the Integrated Benefits Institute (IBI See Information Builders. ). The survey, which polled 269 senior financial executives in a wide variety of industries and employer-size classes, suggests that CFOs are most likely to appreciate the value of benefits programs when their impact is expressed in financial terms. When asked to rank their top three measures, CFOs cited "cash flow," followed by "revenue growth," "earnings growth" and "operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. growth." "There is an important disconnect disconnect - SCSI reconnect between the measures used to evaluate benefits programs and those used by CFOs for financial performance," notes Dr. Thomas Parry Thomas Parry may refer to more than one person:
Among the other survey findings: Employee Attraction, Retention Top List of Workforce Challenges. The IBI study shows that CFOs view employee attraction and retention as more critical priorities than controlling and managing employee absences. Nearly seven in 10 (69%) CFOs polled cite "employee attraction" as their top workforce challenge, followed by "employee retention" (68%), "employee motivation" (55%) and "training" (49%). Only 24% identify "absence management" as a critical priority. "The irony is that by assuring that their existing workforce is healthy, productive and on the job, CFOs could avoid much of the attraction, retention and training challenges they fear," said Dr. Parry. CFOs View Compensation as Top Lure for Talent. Not surprisingly, the workforce strategies that CFOs value most highly match their perceived challenges. The financial officers surveyed rank "attractive compensation" as the most important workforce strategy, followed by "performance-based compensation," "attractive benefits" and "training and advancement." Prescription Drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, are an Attractive Pill pill (pil) tablet. pill n. 1. A small pellet or tablet of medicine, often coated, taken by swallowing whole or by chewing. 2. An oral contraceptive. to Swallow swallow, common name for small perching birds of almost worldwide distribution. There are about 100 species of swallows, including the martins, which belong to the same family. Swallows have long, narrow wings, forked tails, and weak feet. . When asked to rank their benefits management programs in order of importance, CFOs gave "prescription drug benefit management" top honors, followed by "wellness," "employee assistance programs," "return/stay-at-work incentives" and "disease management." More than 8 in ten CFOs rate a pharmacy benefit as "important," "very important," or "crucial" to their health and productivity goals, and six in 10 believe a pharmacy benefit reduces health-related costs. Total Cost Management Emerges as Primary CFO See Chief Financial Officer. Goal. When asked to identify the core roles of providers - health plans, physicians and prescription benefit managers - CFOs cited "Minimizing total medical and absence costs " (55%) as the number one mandate, followed by "medical cost reduction" (52%), "employee return-to-work" (42%) and "employee performance" (21%). The research was designed in collaboration with CFO Research Services (a unit of CFO Magazine), whose participation was funded by Schering Plough plough: see plow. Corporation, a worldwide research-based pharmaceutical company and member of IBI's Board of Directors. The Integrated Benefits Institute (IBI) is a national, nonprofit organization Nonprofit Organization An association that is given tax-free status. Donations to a non-profit organization are often tax deductible as well. Notes: Examples of non-profit organizations are charities, hospitals and schools. supported by employers, insurers, healthcare providers, brokers, third-party administrators, consultants, pharmaceutical companies, behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or providers and others having an interest in integrated employee benefits. To best serve the needs of employers and employees, IBI identifies and analyzes health and productivity issues as they cut across traditional benefits programs of workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. , group health and non-occupational lost time. IBI's programs include research, assessment of full costs of benefits and an integrated benefits educational forum. |
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