Few multinationals have implemented a health and productivity strategy outside US

Multinational companies have developed a health and productivity strategy in the United States, but they have not been as proactive in other regions of the world, according to a new survey by Watson Wyatt Worldwide, a global human capital consulting firm. However, as health care costs rise around the globe, multinationals are increasingly adding these programs worldwide.

The survey of 90 multinational companies found that 65 percent currently have a strategy to improve the health and productivity of their workers in the United States but significantly fewer have programs in Canada (22 percent), Asia-Pacific (21 percent), Europe (16 percent) and Latin America (15 percent). Although many of these multinationals plan to develop a health and productivity strategy in these regions over the next two years, they will still lag behind their U.S. operations by a wide margin.

Multinationals Plan to Develop a Health and Productivity Strategy
Outside the United States Over the Next Two Years

Currently Have Strategy
Plan to Develop Strategy Over the Next Two Years

United States
65%
18%

Canada
22%
33%

Asia-Pacific
21%
30%

Europe
16%
28%

Latin America
15%
21%

ìMultinationals have used health and productivity strategies in the United States to help combat the enormous burdens of rising health care costs,î said Bob Wesselkamper, director of international consulting at Watson Wyatt. ìOutside the United States, multinationals have been somewhat insulated from increasing health care costs, but they may find that things are changing. As many countries consider reducing state-funded health benefits, multinationals will find that well-implemented health programs will help keep costs down and productivity up worldwide.î

Despite plans of some multinationals to add health and productivity programs outside of the United States, these programs are currently much more prevalent in the United States. Ninety-three percent of multinationals offer preventive care coverage in the United States compared with 42 percent outside the United States. Likewise, 76 percent offer disease management and 70 percent offer return-to-work programs in the United States compared with 21 percent and 28 percent respectively outside the United States.

ìThe trend toward increasing health and productivity programs coincides with growing evidence that these programs are providing a return on investment and driving down costs,î said Shelly Wolff, national director of health and productivity consulting at Watson Wyatt. ìAs multinationals gain more experience in this area, it is likely that their use of health and productivity programs will continue to steadily grow in all regions. The benefits from improved worker health and productivity are universal.î

The survey also found that multinationals are much more concerned about rising health costs in the United States than elsewhere. Forty-five percent of their CEOs are greatly concerned about cost trends in the United States, while only 8 percent are concerned about trends outside the United States.