WASHINGTON, May 30, 2006 - Multinational companies have developed a health
and productivity strategy in the United States, but they have not been as
proactive in other regions of the world, according to a new survey by
Watson Wyatt Worldwide, a global human capital consulting firm. However,
as health care costs rise around the globe, multinationals are increasingly
adding these programs worldwide.
The survey of 90 multinational companies found that 65 percent currently
have a strategy to improve the health and productivity of their workers in
the United States but significantly fewer have programs in Canada (22
percent), Asia-Pacific (21 percent), Europe (16 percent) and Latin America
(15 percent). Although many of these multinationals plan to develop a
health and productivity strategy in these regions over the next two years,
they will still lag behind their U.S. operations by a wide margin.
Multinationals Plan to Develop a Health and Productivity Strategy
Outside the United States Over the Next Two Years
Currently Have
Strategy
Plan to Develop
Strategy Over the
Next Two Years
United States
65%
18%
Canada
22%
33%
Asia-Pacific
21%
30%
Europe
16%
28%
Latin America
15%
21%
"Multinationals have used health and productivity strategies in the United
States to help combat the enormous burdens of rising health care costs,"
said Bob Wesselkamper, director of international consulting at Watson
Wyatt. "Outside the United States, multinationals have been somewhat
insulated from increasing health care costs, but they may find that things
are changing. As many countries consider reducing state-funded health
benefits, multinationals will find that well-implemented health programs
will help keep costs down and productivity up worldwide."
Despite plans of some multinationals to add health and productivity
programs outside of the United States, these programs are currently much
more prevalent in the United States. Ninety-three percent of
multinationals offer preventive care coverage in the United States compared
with 42 percent outside the United States. Likewise, 76 percent offer
disease management and 70 percent offer return-to-work programs in the
United States compared with 21 percent and 28 percent respectively outside
the United States.
"The trend toward increasing health and productivity programs coincides
with growing evidence that these programs are providing a return on
investment and driving down costs," said Shelly Wolff, national director of
health and productivity consulting at Watson Wyatt. "As multinationals gain
more experience in this area, it is likely that their use of health and
productivity programs will continue to steadily grow in all regions. The
benefits from improved worker health and productivity are universal."
The survey also found that multinationals are much more concerned about
rising health costs in the United States than elsewhere. Forty-five
percent of their CEOs are greatly concerned about cost trends in the United
States, while only 8 percent are concerned about trends outside the United
States.
About Watson Wyatt Worldwide
Watson Wyatt (NYSE: WW) is a leading global human capital and financial
management consulting firm. The firm specializes in employee benefits,
human capital strategies, technology solutions, investment consulting, and
insurance and financial services. Watson Wyatt has 6,000 associates in 30
countries and is located on the Web at www.watsonwyatt.com.
Contact
Ed Emerman, 609/452-5967, eemerman[at]eaglepr.com
Emily Rieger, 703/258-7634, emily.rieger[at]watsonwyatt.com