Download
1 / 71
710 likes | 818 Views
REAL LIFE CASE EXAMPLE THE PLANT SECURITY GUARD Brenda, age 42, divorced Employed 10 years Performance steadily declining for 10 months Plant preparing to fire her . What does Brenda cost? Lost productivity Reduced work group productivity Increased general healthcare costs FMLA days Short-
E N D
2. REAL LIFE CASE EXAMPLE – THE PLANT SECURITY GUARD Brenda, age 42, divorced Employed 10 years Performance steadily declining for 10 months Plant preparing to fire her
3. What does Brenda cost?
Lost productivity
Reduced work group productivity
Increased general healthcare costs
FMLA days
Short-term disability
Unscheduled absences
More frequent accidents
4. What if Brenda gets help now? Still too late
The “Kindling Effect” has taken hold.
10 months to diagnosis predicts that long or longer to rehabilitation
Associated costs pile up
Early evaluation and treatment could prevent all of this
Early evaluation and treatment could have saved all this expense.
5. What if, ALL of the Brendas in the company were diagnosed and treated early? Individual productivity would soar
Work group productivity would climb even higher
Affected employees would be less miserable
Employee families would be less miserable
IN FACT:
6. PRODUCTIVITY GAINS Conservative estimates, based upon the clinical and business research, conclude that, if all of the Brendas were treated and treated early, the company would save:
$197,000.00/100 employees/year to
$275,000.00/100 employees/year
7. CASH FLOW LOOKS LIKE Per 100 employees over three years:
8. THE NUGGET:
9. THE NUGGET, EXPOSED: DC – PRODUCTIVITY FIGURES
In constant 2006 dollars
Stewart et al, JAMA, 2003: 289:3135-3144Stewart WF et al, JOEM, 2003: 45(12):1234-46. Greenberg, 2003, J Clin Psych. 64(12), Harvard 570-14, Goetzel RZ et al, JOEM, 2003, 46(4):398-412, Cornell 16,860-28, Carolyn Dewa et al, JOEM, 44(7):628-33,July 2002. University of
10. THE SUM: $19,738
TOTAL PRODUCTIVITY COST PER DEPRESSED EMPLOYEE PER YEAR
11. THE QUESTION: HOW CAN THIS BE?
12. HOW CAN THIS BE? Men seldom see that which they are not prepared to see. -Nietzsche
No one is prepared to see mental illness – they haven’t been told
No one is prepared to see the suffering of the millions of the mentally ill
Mental illness is the third rail of American business
13. HOW CAN THIS BE?
MENTAL ILLNESS IS
INVISIBLE
But it doesn’t have to be
14. HOW CAN THIS BE? Mental illness productivity loss has been invisible.
New productivity studies have changed all that.
15. Research and Reasoning If all we knew was that depression was common and was the #1 cause of disability in the world, we could have acted. We did not act.
17. 26.2% Annual U.S. rate of mental illness
19.
10.3%
Annual rate of depression in U.S.
20. 75% of mentally ill receive no treatment or inadequate treatment
21. $100 billion/year in lost productivity due to mental illness $100b x 139m x 10% = 719 (or 7190)
22. DEPRESSION: #1 cause of disability in the world 3 other mental illnesses are in the top 10
23. So, Research and Reasoning Tell the Tale: LOST PRODUCTIVITY
24. LOST PROFITS
25. LOST CHANCES (Kindling)
26. HOW BAD IS IT?
27. LOST PRODUCTIVITY: $197,000.00/year per 100 employees to $825,000.00/three years net cumulative loss per 100 employees
28. ASSERTIONS 1) Mental illness is prevalent in the U.S. and in the U.S. workforce
29. 2) Mental illness reduces employee productivity
30. 3) Mental illness-related productivity losses are so great that if staunched, they more than pay for the treatment of afflicted employees and the education/training that gets them into treatment
31. 4) Mental illness treatment demonstrates a considerable return on investment beyond merely paying for itself
32. 5) DC’s Business Case Analysis strongly affirms this
33. Index Case Assumptions: Period: 3 years, with a year 0. Company of 100 employees 10 of 100 employees suffer a handicapping undiagnosed and untreated mental disorder All 10 employees obtain treatment
34. Index Case Metrics:
35. 307% simple ROI
36. 165% IRR NPV (with DCF @ 10%): $650,364
37. Index Case Outcomes: Total cumulative benefits: $1,222,893.00 Total cumulative costs: $398,025.00 Net cumulative cash flow: $824,868.00
38. MAJOR DEPRESSION: CORE PRODUCTIVITY FIGURES Short-Term Disability: $83,560/year/100 employees Excess Absenteeism: $51,920/year/100 employees Presenteeism: $61,900/year/100 employees
40. Figures based upon collation of data from 12 ground-breaking studies, 1992-2004
41. DETAILS Mental illness is decimating 26.2% of your workforce.
42. 75% of those affected receive either no treatment or inadequate treatment. This accounts for 19.7% of the general population receiving no treatment or inadequate treatment – about 20% of your employees
43. By definition, affected employees are less productive. They impair the productivity of others. Lost productivity siphons away profits.
44. Research shows that none of this has to happen.
45. Simple, brief, efficient education/training is all that is required to increase productivity and retain profits
46. In fact, it is so simple that no one has done it.
47. DC focuses only upon education/training and consultation about mental disorders
48. The Business Case for the “DC Method” demonstrates that by helping your employees self-identify and self-refer for optimal mental health treatment you are also helping yourself to increased productivity and greater profits.
49. Ask yourself: What should you do about all of this?
When should you do it?
To whom will you turn to help you do it?
50. ANSWERS: BUILDING BLOCKS
51. THE DIAGNOSTIC FORMULA Education ? Self-Identification/Self-Referral ? Treatment ? Productivity ? Profits
52. II. THE DIAGNOSTIC METHOD: 1) 90 minute seminar with upper management 2) A three hour training workshop for middle management/supervisors 3) A one hour lecture to all employees
53. KEYS TO THE DIAGNOSTIC METHOD:
CONTINUOUS ACTION BY THE SUPERVISORS
CONTINUOUS ACTION BY UPPER MANAGEMENT
54. GOALS OF THE DIAGNOSTIC METHOD:
55. Education and training of manager/supervisors to continue to do things, after their training, to increase mental illness awareness,
56. 2) Educate/persuade management to support the interventions that the supervisors need to do.
57. 3) Educate employees to remain alert to the “warning signs” of mental illness
58. IMPORTANT CASE FINDINGS
59. 1) LINEAR COST/BENEFIT CURVE
60. 2) LOW-END PARADOX: Given full-content DC Methods with NO RESPONSE, loss to company is $17,925.00, compared with the $398,025.00 in costs outlined in the index episode (where 10 untreated employees per 100 employees obtain treatment).
61. 3) OFF THE RADAR SCREEN: The Diagnostic Method INTENDS upon increasing treatment referrals in a way that is below the radar, in a way that attracts little attention, that demands little to no attention, ADA concerns, etc.
62. This is the reason that the Diagnostic Formula refers to “Self-Identification” and “Self-Referral.”
63. FOUR CASH FLOW SCENARIOS: Scenario 1: 10 untreated workers respond Scenario 2: 5 untreated workers respond Scenario 3: 1 untreated worker responds Scenario 4: 0 untreated workers respond
64. Summary of Four Cash Flow Scenarios
65. Conclusions:
66. 1) Business can easily profit from effective management of mental disorders in the workplace.
67. 2) The Diagnostic Corporation is best suited to help business realize this profit.
68. 3) Education and training are catalysts for achieving this profit.
69. 4) Companies that pursue the Diagnostic Method’s guidelines for profit will also inadvertently serve the greater good (Adam Smith, 1776).
70. “Every individual …intends only his own gain, and he is in this, as in many other cases, lead by an invisible hand to promote an end which was no part of his intention…By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.” Adam Smith - Wealth of Nations, 1776.
