This Week's Herman Trend Alert

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  The Herman Trend Alert

January 24, 2007

Lifestyle and Health

Based on a study recently released by the Purdue University Fort Wayne (IPFW) in Indiana, we believe more employers will put more pressure on their employees to live healthier lifestyles. This study, released last month found that lifestyles play a greater role in health insurance claims than was previously believed.

To determine the results, graduate students in the university's business-school studied insurance claims and the accompanying health data. The students looked at claims data as well as the blood-test results to determine the cost of lifestyle choices. Of course, all data were anonymous.

Biomarkers chosen for the study included blood pressure, body mass, tobacco use, and cholesterol levels. The study found that there is a direct correlation between these biomarkers, the indicators of a person's general health and well-being, and their heath care claims. Not so surprising.

But here's the news that shocked us: an amazing 87.5 percent of the claims' costs were attributable to the individual's lifestyle. The more closely those bio-markers fell into acceptable guidelines, the lower the individual's healthcare claims.

The results will have national implications, especially as the developed nations of the world continue to battle rising health-care costs and companies ask employees to shoulder more of the burden.

Lately, we have witnessed an increasing number of employers becoming "smoke-free". Some of the employees of these organizations shared with us their fears that "maintaining a healthy weight" might be next. . . that they are concerned about the trend towards employers dictating all of an employee's lifestyle choices.

As we have watched and wondered about the many unhealthy lifestyle choices people make, we can't help but expect that employers facing huge increases in healthcare costs will begin to be more forceful with their employees. This trend will cause more overall churning in the labor marketplace, as employees rebel against this Big Brother movement on the part of employers.

In the past, we have written about employers with onsite health clinics and how they have used these facilities to reduce healthcare costs. We look for employers to embrace these innovations in their quest for greater profitability.


© Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Roger Herman and Joyce Gioia, Strategic Business Futurists. (800) 227-3566 or http://www.hermangroup.com. The Herman Trend Alert is a trademark of The Herman Group, Inc."


BACK BY POPULAR DEMAND: RETENTION SPECIALIST PROGRAM
A growing number of people have expressed an interest in attending our Employee Retention Specialist Certificate Program. We'd like to schedule on that's convenient for those who want to attend, but need your feedback to do so. Please place RETENTION SPECIALIST in the subject line and Joyce will personally call you back to schedule the workshop. Or you can call Joyce directly at 336-210-3548 (PDT this and next week).

BUSINESS IS PICKING UP
Most employers are unprepared. The recovery will bring a new set of challenges for employers that have been in prolonged contracted mode. They will need more skilled workers or will need now to begin to upskill their current staffs. But organizations can not engage in Strategic Workforce Planning, when they don't know how. That's where The Herman Group can help. We can help you with your "People Review"----large or small---so that you will know who you will need and when you will need them. . . and we can also guide you to the best sources for the people you will need. For more information, call Joyce at 336-210-3548 or e-mail joyce@hermangroup.com.

FIND OUT WHAT YOUR EMPLOYEES REALLY THINK AND FEEL
Discover what’s really going on in the hearts and minds of your employees. Our InnerViews interviewing service uses SPHRs and PHRs, certified human resource professionals to probe for the information you really need to know. Exit and Stay Interviews, as well as Why-Didn't-You-Take-Our-Offer Interviews. Call Rosalie Catalano at 937-416-7066, or read more at: http://www.hermangroup.com/retentionconnection/exit_interviews.html.


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