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Breastfeeding is Good for Business

Breastfeeding is Good for Business. Sneak Preview – Section 2. Learning objective: Describe three ways supporting breastfeeding can improve a company’s bottom line. Topics: the business case for breastfeeding Handout A: “Elevator Speech”

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Breastfeeding is Good for Business

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  1. Breastfeeding is Good for Business

  2. Sneak Preview – Section 2 • Learning objective: Describe three ways supporting breastfeeding can improve a company’s bottom line. • Topics: the business case for breastfeeding • Handout A: “Elevator Speech” • Resource from The Business Case for Breastfeeding- Folder #1: “The Business Case for Breastfeeding”

  3. Understanding Business Priorities • Economic environment poses challenges for all businesses to STAY in business • Start-up businesses face even greater challenges • The economic environment makes it hard for employers to consider new programs unless the financial benefits are compelling. • Business priorities: • Handling more work with fewer people • Shrinking workforce of qualified people • Stress • Productivity among workers

  4. The GOOD News! • Lactation support programs provide solutions! • Changing environment requires managers to apply cutting edge methods to reduce absenteeism and maximize employee productivity, • Reduced risk of “presenteeism” due to stress, fatigue, illness • Ripple effect • Employers are implementing novel programs to attract new employees and improve employee health

  5. Family-Friendly Programs are On the Rise! (Alliance for Work-Life Programs 2007)

  6. Family-Friendly Programs WORK • Aetna New program providing 6 months of unpaid leave and part-time return to work option following family/maternity leave • Attrition dropped by 50% • Savings: $1 million per year (Cardenas 2005) • Companies offering family-friendly benefits experience: • Lower turnover rates • Greater job satisfaction and loyalty • Employees work later into pregnancy, return to work faster, and work more “on their own time” • Spillover effect – less perceived stress at home (Schwartz 1996)

  7. The Bottom Line • Family-friendly programs put money back into the human relations budget. • For every $1 spent on wellness, companies typically save $16 in improved productivity, lower absenteeism and turnover rates, and lower healthcare premiums.

  8. The Business Case for Breastfeeding • In today’s economic environment, employers are more likely to respond to programs that provide solutions that increase the bottom line

  9. Activity: The Business Case • Financial benefit • Expected cost • Potential risks • Risk of NOT investing in this • Options and rationale

  10. Show Me the Money!

  11. Return on Investment (ROI) (total benefit – total cost) = x 100 = ROI total cost • Total benefit = money saved or income realized • Total cost = monetary investment (both obvious and hidden) • A lactation program might have a lower ROI in the first year, but higher ROI the longer the life of the program • A positive ROI at least breaks even (especially in the first year) and a ROI of 2-1 or higher demonstrates the program is worth the investment

  12. Anticipated Benefits: $1,000 in health care savings per employee $1,000 per employee in lower absenteeism savings $30,000 in turnover cost savings for EACH of 6 employees Anticipated Costs: $5,000 for facility renovations $300 for breast pumps for each employee $40,000 for staff time to implement the program $10,000 contractual fee to IBCLC $2,000 in administrative costs Practice! Lactation Program for a company that will potentially be used by 30 employees

  13. Comprehensive Lactation Support Program Definition of “lactation support program” A comprehensive program of support for breastfeeding employees in a workplace that includes the following 4 components: • Support from supervisors, colleagues, and other mothers • Flexible return to work options and time to express milk at work • Education and access to professional lactation support • Private space for women to breastfeed or express milk when they are at work

  14. The Bottom Line:Breastfeeding is GOOD for Business • Lactation support does not deplete funds from human resource benefits…it puts money back INTO it • Translate health benefits into business language…the ROI See “Employer Snapshots” in Folder #3, “Tool Kit”

  15. Lactation Support: Reduces Health Care Costs • For every 1,000 babies who are NOT breastfed compared to exclusively breastfeeding babies, there are an extra: • 2,033 physician visits • 212 hospitalization days • 609 prescriptions (Ball 1999)

  16. Show Me the MoneyMutual of Omaha Case Study • Newborn health care costs were THREE TIMES LESS for mothers in the program ($1,269 vs. $3,415) • Annual savings: $115,881 (for health care costs alone) • The Bottom Line: annual savings per participant: $2,146 (Mutual of Omaha 2001)

  17. Show Me the MoneyAetna Case Study • Program saved $1,435 in medical claims per breastfed infant during first year of life • Annual savings in health care claims was $108,737 for an ROI of 3 to 1 • The Bottom Line: annual savings per participant: $1,435 (Ball 2001)

  18. Lactation Support:Reduces Absenteeism • One-day absences occur twice as often for employees whose babies are not breastfed (Cohen 95) • Absenteeism rates are lower for male employees when female partners breastfeed (Galtry 97)

  19. Show Me the MoneyCIGNA Case Study • Lactation program resulted in a 77% reduction in lost work time due to infant illness • Annual savings: $60,000 (Dickson 2000)

  20. Lactation Support:Lowers Turnover Rates • Employee retention a leading challenge for employers • National retention rate is 59% after maternity leave absence • Companies with lactation programs have higher retention rates • Mutual of Omaha – 83% (Mutual of Omaha 2001) • 9-company study – 94.2% (Ortiz 2006)

  21. Show Me the MoneyThe Cost of Replacing Employees • Separation Costs • Paying off accrued leave • Arranging for temporary replacement staff • Loss of experience and knowledge • Replacement Costs • Temporary staff • Management time • Advertising costs • Training Costs (Griffith 2001) • Travel and relocation expenses • Lost time in productivity • Losses due to human errors

  22. Show Me the MoneyReplacement Costs • Actual costs vary based on job position • Estimates: • 150% of that person’s annual salary (Reh 2006) • 70% for a receptionist job; 200% for replacing a manager (U.S. Department of Labor) • New Zealand: savings of NZ$75,000 [US$50,000]per retained employee(EEO Trust 2001) • www.dol.gov/cfbci/turnover.htm

  23. Lactation Support:Satisfies Employees • Employees of companies providing lactation support feel more productive and loyal to the company (Galtry 97; Frank 98)

  24. Show Me the MoneyL.A. Department of Water and Power Case Study • Lactation program available for both male and female employees • 83% felt more positive about the company • 67% said they intend to make it their long-term employer

  25. WIN! WIN! WIN!

  26. Lactation Support Benefitsby Company Size (SHRM 2007)

  27. Common Family-Friendly Benefits (SHRM 2007)

  28. Lactation Program Benefits by Industry (SHRM 2007)

  29. Elevator Speech • What service are you proposing? • What problem will it help solve? • What target group will it impact? • How will the service improve the bottom line? • What is the competitive advantage? • What do you want the listener to provide? • How will you help?

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