After the triumphant 1990s, the first decade of the 21st century reminded everyone of the dangers that sneaked up behind globalization and prosperity. SARS and swine flu were scary illustrations of how quickly danger travels around our shrinking world. And some of the most violent terrorist attacks in history had a devastating effect on our collective consciousness.
In an age of staggering corporate and technological innovations, business reeled from the once-in-a-lifetime financial crunch and, at least in the United States, the rising costs of health care. As concerns over global warming grew, environmentalists raised the specter of our planet's inability to sustain the growing population and its pursuit of the conveniences and luxuries of modern life. In this fraught environment, it seems reasonable for business to hunker down and wonder when it might be safe to come out.
No doubt the next decade presents phenomenal opportunities for companies to grow, especially in emerging markets like Brazil, India and China. But businesses have to remain cognizant of risks like health and environmental degradation. Perhaps even more importantly, businesses must understand that the public perception of those risks, whether accurate or not, can hurt the bottom line worse than any threat they present to actual operations.
What's more, companies also have to maneuver in increasingly tough regulatory environments. In response to the financial crisis and the number of Americans without health insurance, for example, the Obama administration has pushed forward sweeping new regulations that could have a broad impact on how businesses of all sizes operate. Not until midterm elections in November will the public get its first real chance to weigh in on these changes—and will business be able to gauge whether to expect a further regulation or a less ambitious agenda until the 2012 presidential election.
If none of this paints an especially rosy picture for business, it's important to remember that the smartest players will know how to maneuver around and even leverage the main risks of the coming decade.
Healthy Employees, Healthy Business
As the cost of treating chronic medical conditions, such as diabetes, heart disease and asthma, threaten to overwhelm businesses, employee wellness programs are taking on a greater importance.
"In the U.S. we're focused on improving employee productivity and lowering the rate of increase in the costs of group medical coverage," says Tom Lerche, Aon's Health Care Practice leader. Lerche says it's helpful to think of employee health as a competitive advantage, as well as an effective tool to recruit and retain employees.
Wellness programs, he says, focus on minimizing the conditions that cost business the most. They include programs that encourage employees to quit smoking, lose weight, effectively manage stress or develop a regular exercise program.
While implementing preventive initiatives for employees who are considered health risks can be expensive, investing in such programs early can eventually pay off. "There's a pretty good linear correlation between the number of risk factors patients have and the amount of dollars they'll spend in medical claims," says Paul Berger, M.D., chief medical officer of Aon Consulting.
Making Employee Wellness a Priority
Despite the huge expenditure that employer-based health plans represent, Lerche says many companies have not yet made employee wellness a major organizational priority. While 85 percent of employers acknowledge having some type of wellness program, many programs are poorly communicated and are underutilized by the workforce.
The most effective regimens depend on endorsement from an organization's leadership and may include individual programs tailored to employee needs. For young employees of healthy weight who don't smoke, wellness could amount to offering healthier snacks in company vending machines or subsidizing the cost of an exercise program. Employees more at risk might be encouraged to take online tutorials or even seek individual counseling on how to eat better or quit smoking.
