Panasonic Corporation of North America Case Study

Panasonic Corporation of North America (Panasonic) produces consumer products such as home appliances and media equipment, business imaging products including copiers, fax machines and printers, and industrial electronics products such as computer components, semiconductors, and appliance motors. Panasonic is also a leading manufacturer of plasma televisions. The company's consolidated group sales for fiscal year ending March 31, 2008, was more than $86 million. Currently, approximately 5,400 U.S. employees participate in benefits programs.

Key Observations

Sixty-eight percent of Panasonic employees who participate in benefits programs took a health risk assessment last year. Of that 68 percent, 36 percent of employees and covered spouses/domestic partners reported using tobacco. A relatively high rate of tobacco use and a company philosophy of social responsibility were the catalysts for Panasonic's implementation of a policy and programs designed to help employees quit.

In July 2007, the company banned smoking on the campus of its North American headquarters in Secaucus, New Jersey. To help employees abide by the new rule, the company implemented a best-in-class tobacco cessation program through Free & Clear^® and made changes to employee health plans, including 100 percent coverage for tobacco-cessation medications. Employees and their eligible dependents can access counseling, educational materials, Free & Clear's "Quit Kit," and nicotine replacement therapies, at no cost to the participant. Aetna is Panasonic's employee assistance program vendor, but 22 percent of employees are not enrolled in an Aetna medical plan. Panasonic has a plan design that allows employees to be eligible for Aetna's EAP benefits regardless of their medical plan selection, and EAP counselors understand that employees seeking tobacco-cessation assistance should be transferred to Free & Clear.

Panasonic's senior leadership strongly supported the decision to go tobacco-free and to support employees through the process with redesigned benefits. Because a tobacco-free policy is so well-aligned with the company's policy of social responsibility, company leaders felt it was a natural progression to make this change, although the presentation of a strong business case was also essential. Using numbers from the New England Journal of Medicine, the business case showed that smokers experience up to 40 percent more in health care costs and lost productivity than non-smokers. According to Ms. Grand, senior management "has been tremendous in their wholehearted support of the program," and she cites this support as one of the factors that has made Panasonic's program uniquely successful.

Panasonic took a multi-pronged approach to the rollout of its tobacco cessation policy and program. The company's strategy was to announce the tobacco cessation program before the tobacco-free policy launched so employees knew the company was giving them the tools to help them adjust. In April of 2007, e-mails were sent to each employee to deliver information, rather than asking employees to seek it themselves. Information about the new program and the forthcoming policy change were posted on both the home page and the wellness page of the company's intranet. At two large locations with onsite medical clinics, the company posted hard copies of a brochure and worked with nurses to educate employees about their new benefit. At locations where employees had no computer access, supervisors were recruited to help get the message out by posting e-mails and information, and the new tobacco cessation benefit was highlighted during open enrollment meetings.

According to Ms. Grand, however, the most effective component of the communications campaign was the eye-catching posters created by Free & Clear and posted at each location. The posters were based on Free & Clear's research, which showed that the biggest reasons people choose to give up tobacco are health, family and money. The posters are co-branded with Free & Clear's logo and Panasonic's health and wellness logo, "Panasonic ideas for health," which reflects the company's tagline, "Panasonic ideas for life."

Measuring Success

Although it is too soon to know what kind of financial return on investment Panasonic will see from their efforts, the company solicited employee feedback throughout the implementation process. To date, the company has seen a 96.2 percent satisfaction rating, and many employees have expressed thanks for the program either through e-mails or phone calls to Free & Clear, or in conversations with onsite nurses. One employee said, "My workplace is going smoke-free so that has motivated me to quit smoking." Another stated, "I have remained smoke-free since I started with the Free & Clear program!" These testimonials are powerful indicators of the success of Panasonic's initiative.

As for costs, the company did not pay for financial incentives other than what was provided through Free & Clear, and the number of hours required to sustain the program is minimal — Ms. Grand estimates it takes approximately 20 employee hours per year.

The Next Generation

Going forward, Panasonic plans to continue reaching out to employees with clear, concise communications, and is planning to send mailings to employees' homes to reach spouses and domestic partners. According to Ms. Grand, the key is to reach members when they are at their optimal place on the continuum of behavior change. Finding an employee at just the right moment involves sustained and varied communications. The company is also making connections with the Great American Smokeout as a way to engage members in this national cessation program.

The success of the tobacco cessation policy and program at Panasonic has helped inspire the implementation of other wellness programs, which the company is planning to launch in the future. According to Ms. Grand, the success of the program "has made believers out of skeptics who didn't believe it was possible to effect change."

Lessons Learned

One of the most important factors of the company's success has been a robust and well-planned communications strategy. When asked what would change if she were to launch the program again, Ms. Grand stated she would allow more lead time for benefits staff to plan for the implementation. Although the fast turnaround time made for an efficient implementation, the team only had two weeks to choose the vendor and develop a communications strategy. Allowing for some more time would have made the implementation easier for team members.

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