Linking Workplace Health and Bottom Line Results

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Linking Workplace Health and Bottom Line Results

• November 3,2004
• Eugene Kraemer, Blount Canada Ltd

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Agenda Blount Canada Ltd. Approach

• Introduction
• Internal strategy / External environment
• Long Range Plans at Blount

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Blount Canada Ltd.

• Oregon Cutting Systems Group (OCSG)
• Manufacturing Oregon brand products
• Fully integrated manufacturing
• Largest manufacturer of professional chain
• 52 yrs. in Guelph 800 employees

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BLOUNT CANADA LTD

• US parent, headquartered in Portland, Oregon
• Operate manufacturing facilities in Canada, US,
  Brazil and China (2005)
• Operate distribution offices in Europe, Asia,
  Russia, Canada and US.

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Blount Canada Ltd Group Benefits

• Health and dental plan - traditional plan
• Life insurance, STD, LTD, EAP
• Pension plan, savings investment plan
• Fringe Benefits - educational aid, picnic, Xmas
  party, service awards, safety shoes, safety
  glasses, etc.

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The Internal Strategy

• Why is workplace health important to us at Blount
  ?

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Why is workplace health important to us at Blount
?
BUSINESS ISSUES

• Healthcare Costs
• US Healthcare Costs
• Global Competition
• Performance and Productivity

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Why Important ? Current and Future Health Benefit
Costs

• Next Five Years
• Extended Health 110 increase
• Dental 54 increase
• STD 30 increase
• Total 62 increase
• Based on trend factors and claims utilization
• Source BHH Benefits

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External Business Environment

• It is estimated that in the next decade there
  will be over one million employment vacancies in
  Canada the battle for high performing employees
  in the private and public sector will be fierce.
• Globe Mail

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The Internal Strategy

• Why is workplace health important to us at Blount
  ?
• How is workplace health linked to Blounts
  Business Focus ?

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Strategy Map Performance Drivers

• MANAGE OUR CULTURE
• Globally attract, train, retain engaged people
  with competencies necessary for our future
  success.
• Measure and manage employee satisfaction
• Drivers of HR strategic and operational
  indicators.

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Balance Scorecard Indicators
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Indicator 1 Medical /Employee

• Lagging Indicator Reactive Approach
• Eliminate benefits, introduce maximums, benefit
  restrictions
• STD analysis
• Integrated disability management
• Early intervention
• Supervisor involvement
• Reduction in STD costs

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Indicator 2 Long Term Health Strategy

• Leading IndicatorProactive Approach
• Analysis of the key health cost drivers of our
  organization.
• Provided recommendations to address the health
  cost drivers
• Strategic health focus

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HEALTH STRATEGY

• Project Goal
• Development and implementation of a long-term
  health strategy

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HEALTH STRATEGY

• Anticipated Benefits
• Promote Blount based on a healthy workplace
  culture
• Positive impact on
• employee health and wellness
• Performance and productivity
• Employee engagement
• health benefit costs
• attraction and retention of employees

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THE END

• CLOSING REMARKS
• QUESTIONS