P.O. Box 5597 Walmer Port Elizabeth 6065 Email: maggie@wellnesshouse.co.za Email: sarel@wellnesshouse.co.

za Tel: 041 581 0965 Fax: 086 518 4273

THE GOODYEAR STORY A CASE STUDY

A Fund Perspective on Wealth Creation through Employee Risk Management

Presenters: Tascha Olivier, Principal Officer, Goodyear. Maggie Clack, Wellness Specialist, The Wellness House. Abstract
Goodyear, in its continuous quest to build a high performance organisation, and to keep reforming its wellness strategies from good to great, partnered with a specialist wellness provider who managed all the wellness indicators in the company, which in turn impacted hugely on the performances of the pension and provident funds. The trustees of four of the five existing funds in the company opted to be part of this process. In 2006 the organisation started by implementing the holistic and specialist Comprehensive Employee Risk Management System (CRMS), provided and managed by the provider, to continuously audit, monitor, interpret, coordinate, engage and manage all wellness indicators in the company, including all existing internal activities, programmes and interventions as well as outside wellness services and providers. The benefits of using such a system were clearly demonstrated in the many benefits resulting for the members, the company, the insurer and the outside providers, alike. In comparing the performances of the different funds within the company, there were clear differences in the results between the funds being managed with the system and those who were not managed in the same manner. The successes achieved in using the said system was further demonstrated by the fact that the specific insurer opted to sponsor the cost to company impact and by offering the fifth fund the same. Riaan Botha, an actuary of Jacques Malan and Associates, John Kotze Group Assurance Executive of Old Mutual, Dr Mnusi of SP NX, Tascha Olivier principal officer of Goodyear and Marius Fourie, Human Resource Manager of Goodyear South Africa send a clear message to all stakeholders, specifically to the principal officers, when they indicated that such an approach, was what would set the different stakeholder, apart from the market.

Wellness House Risk Solutions ck 2007/18088/23 Member: M..Clack

P.O. Box 5597 Walmer Port Elizabeth 6065 Email: maggie@wellnesshouse.co.za Email: sarel@wellnesshouse.co.za Tel: 041 581 0965 Fax: 086 518 4273

The purpose. The purpose of all the stakeholders involved was to create customized employee wellness risk solutions that translates employee risk management into psychological and financial wealth. The Trustees of the Funds in question identified a need to better manage the employee risk factors in the company as part of their quest to create higher performances, to be more productive and to ensure that retirement funding for the members was maximized. The Principle Officers of the various group funds, met with the insurer in question to discuss the concept of implementing a holistic and comprehensible employee risk management system, called CRMS. The Insurer recognized the potential value for themselves, the fund and the company. The specialist wellness consultant was appointed and the CRMS system was implemented on 1 Jan 2006. The task of the consultant was to manage the health indicators with the integrated wellness system, starting with the problematic death and disability processes, as identified with the auditing instrument of the system. Background
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The World Health Organisation describes health as total physical, mental, emotional & spiritually wellbeing and not merely the absence of disease. Wellness is therefore multidimensional & and involves a persons entire lifestyle The workplace has a powerful effect on the health of the employee How an employee feels emotionally impacts on their productivity, and job satisfaction affects their health both physically & psychologically A sample study of more than 100 000 employees in more that 60 companies, found that 65 out of every 1000 employees take time off for psychological reasons They have found that this has increased over the last year costing these companies R19 million annually. Indirect costs related to lower productivity can rise to R40 million thus potential R60 million.

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Wellness House Risk Solutions ck 2007/18088/23 Member: M..Clack

P.O. Box 5597 Walmer Port Elizabeth 6065 Email: maggie@wellnesshouse.co.za Email: sarel@wellnesshouse.co.za Tel: 041 581 0965 Fax: 086 518 4273

Employees unfortunately experience emotional, financial, substance abuse, family and other psycho-social problems that impact on their performance in the workplace on a daily basis Evidence show that when companies promote and focus on specific health issues, absenteeism reduces (CAMS Solutions, 2009)

The Comprehensive Employee Risk Management System (CRMS). The CRMS model is a holistic and comprehensive system that continuously audits, monitors, interprets, coordinates, engages and manages, all wellness indicators, including all existing internal activities, programmes and interventions within the company as well as those externally provided. The system keep score is hard on standards but soft on people and protects members, employers, insurers and medical aid funds, alike. The Role Players: The company: Within organisations there are many role players who is suppose to provide and mange employee wellbeing. In most companies the Occupational Health Services is outsourced and the EAP services are provided internally or by a different service provider which then has to be managed, coordinated, interpreted and act upon, by non specialist human resource staff, that also has to do their core functions, more often resulting in highly costly and ineffective practices and outcomes. These role players are also then usually trapped in the company dynamics, competes for the same budgets, promotions and positions. Different role players who reports to different managers, leads to a silo approach towards wellness in the company, this situation then leads to the further misinterpretation of the overall wellness picture. This practice more than not, leads to the non specialist interpretations and coordination of the many health indicators, rendering interventions ineffective, results in non specific and programmes unsustainable, challenging the effective management and coordination of the said risk factors. There are many different role players: o o o o o
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HR Practitioners Payroll EAP Service Provider Occupational Health & Safety HIV Co-ordinator The Medical Aid Service Provider The Insurer Wellness Providers The Fund Administrator

Wellness House Risk Solutions ck 2007/18088/23 Member: M..Clack

P.O. Box 5597 Walmer Port Elizabeth 6065 Email: maggie@wellnesshouse.co.za Email: sarel@wellnesshouse.co.za Tel: 041 581 0965 Fax: 086 518 4273

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Absenteeism Management Training and development Recruitment The Wellness Specialist

The Wellness Specialist: The specialist wellness consultant using the CRMS system provides the co-ordination of the wellness indicators, stakeholders and services, to identify key health issues in the company using the assessment instruments of the system. Once all the assessments, auditing and interpretation of the employee risk factors has been made, customize wellness solutions are been generated, proposed, implemented and monitored by making use of acquired results from all existing internal, external, interventions or services. The CRMS system therefore create customize, prioritised and sustainable strategies based on reliable information and just interpretation thereof, resulting in the development of focused and result orientating interventions such as focused wellness days addressing real issues and budget allocations to programmes that address the most urgent issues, bringing real results, creating wealth and health in the corporation. Outcomes: In using a CRMS approach all healthcare indicators were measured providing all stakeholders with a greater understanding regarding risk, rates and possible implications. Claims notifications were being cut from 6 months to 3 weeks. The better management of prenotifications of dreaded diseases resulted in huge cost savings. The turnaround time for the submission of disability claims and receiving of the outcome of the application were brought down to as much as ten days. Management more easily released funds or sponsored funds for priority and focused programmes based on the reliable information and effective management practices. More than R500 000 was allocated to do a national roll out of the VCT programme. Benefits for Company: o All absence of 3 weeks or more a notification is done o Early identification of potential claims o Discussions with Business managers regarding the process or advice o Liaison with Medical Practitioners o Ensure Drs understand job description to ensure that o Rehabilitation of employees & early return to work o Pre-assessment of claims trigger needs for further medical evidence o Positive impact on claim experience and therefore reduction risk costs maximising retirement funding o Maintenance of standards o Detailed and regular reporting

Wellness House Risk Solutions ck 2007/18088/23 Member: M..Clack

P.O. Box 5597 Walmer Port Elizabeth 6065 Email: maggie@wellnesshouse.co.za Email: sarel@wellnesshouse.co.za Tel: 041 581 0965 Fax: 086 518 4273

Benefits for members: o One point of entry for all claims o Query resolution the employees have access to information as to the status of their claim o Disease intervention should improve members health o More than one assessor is involved o Holistic wellness approach is used o Awareness of the disability procedure o Health awareness contact is made with the member o One point of entry for all claims Benefits for Insurer/Fund o o o o o o o o o o o o o Prevention & early detection Allows for early notification Query resolution Co-ordinated claims management Fewer claims resulting from pre-assessment Improved claims service Back office time spent on administration eliminated Only real claims submitted Improve claims experience for the Fund Reduce risk to Insurer & Fund Better coordination of claims Positive impact on experience Model sets Insurer apart from the market

Impact on Retirement Funds: Real benefits measured after an 18 month period using the CRMS system were as follows: A premium reduction of 50% for Group Life Insurance, on a specific fund was being measured, an additional financial benefit of approximately 7% was added to the retirement benefit for members for another fund and the permanent health insurance premium for a specific fund has not increased for the last four years. The life expectancy for a group of workers increased from an average of 39 years to an average of 47 years. A total of 37 workers who applied for disability benefits were rehabilitated and brought back to work. The benefits of using such a system were clearly demonstrated in the many benefits for the members, the company, the insurer and the outside providers, alike. In comparing the performances of the different funds within a company, there were clear differences in the results between the funds being managed with the system and those who were not managed in the same manner. The successes achieved in using the said system was further demonstrated by the fact that the specific insurer opted to sponsor the cost to company impact by offering the fifth fund the same.

Wellness House Risk Solutions ck 2007/18088/23 Member: M..Clack

P.O. Box 5597 Walmer Port Elizabeth 6065 Email: maggie@wellnesshouse.co.za Email: sarel@wellnesshouse.co.za Tel: 041 581 0965 Fax: 086 518 4273

Riaan Botha actuary of Jacques Malan and Associates, John Kotze group assurance executive of Old Mutual, Dr Mnusi of SP NX, Tascha Olivier principal officer of Goodyear send a clear message to all stakeholders, specifically to the principal officers, when they indicated that such an approach, is what would set the different stakeholders, apart from the market

To require more information about the system, benefits, stakeholder experience, commentary and discussions you are free to liaise with the different role players who can be contacted at: The Principal Officer. Tascha Olivier, HR Services Manager, Goodyear Holdings. Tel: 041 505 5462 Fax: 086 636 2995 Email: tascha_olivier@goodyear.co.za

The Wellness Specialist Consultants. Maggie Clack: The Wellness House Wellness Specialist Tel: 041 581 0965 Fax: 086 509 5161 Cell: 082 783 7431 E-mail: maggie@wellnesshouse.co.za Website: www.wellnesshouse.co.za Sarel Steyn: The Wellness House Clinical Psychologist Tel: 041 581 0965 Fax: 086 509 5161 sarel@wellnesshouse.co.za

Wellness House Risk Solutions ck 2007/18088/23 Member: M..Clack