breastfeeding is good for business. sneak preview – section 2 learning objective: describe three...
TRANSCRIPT
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”
Resource from The Business Case for Breastfeeding - Folder #1: “The Business Case for Breastfeeding”
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
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
Family-Friendly Programs are On the Rise!
UPSFlexible work schedules offered
Turnover rates dropped from 50% to 6%
Illinois BellTelecommute option
40% increase in productivity
Hewlett Packard
Compressed work week option
200% increase in # of business transactions and doubling of productivity
IBM
Workplace flexibility options
Workers worked 8 hours more per week and felt they still had life balance
(Alliance for Work-Life Programs 2007)
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)
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.
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
Activity: The Business Case
Financial benefit Expected cost Potential risks Risk of NOT investing
in this Options and rationale
Show Me the Money!
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
Practice!
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
Lactation Program for a company that will potentially be used by 30 employees
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
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”
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)
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)
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)
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)
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)
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)
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 expensesLost time in productivityLosses due to human errors
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
Lactation Support:Satisfies Employees
Employees of companies providing lactation support feel more productive and loyal to the company (Galtry 97; Frank 98)
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
WIN! WIN! WIN!
Lactation Support Benefitsby Company Size
ALL Small (1-99)
Medium(100-499)
Large(500+)
2005 19% 8% 20% 28%
2007 26% 9% 26% 42%
(SHRM 2007)
Common Family-Friendly Benefits
Benefit 2007 2005
Flex-time 58% 56%
Paid FMLA 33% 30%
Family leave above FMLA 29% 26%
Bringing infant to work 28% 27%
Lactation Program 26% 19%
(SHRM 2007)
Lactation Program Benefits by Industry
4%
10%
35%
15%
19%
25%
27%
40%
11%
17%
5%
16%
38%
16%
25%
32%
0% 10% 20% 30% 40% 50%
Government
Retail
Manufacturing (NDG)
Manufacturing (DG)
Finance
Services (NP)
Services (Profit)
Health Care
20072005
(SHRM 2007)
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?
