pitney
Pitney Bowes: Employer Health Strategy
When our employees become ill, it directly affects our bottom line. We seek a complete alignment of incentives between the company, the employee, and the providers and plans.”1
—Michael Critelli, Pitney Bowes Executive Chairman
Michael Critelli, Executive Chairman of Pitney Bowes, had taken a strong interest in health care dating back to his service as Chief Personnel Officer of the Fortune 500 mail and document management company between 1990 and 1993. Critelli had championed a transformation in Pitney
Bowes, pioneering the firm’s focus on improving employee health while controlling spending. By
2008, annual health care cost increases had dropped into “the low single digits,” below increases at many other large firms.
Critelli was proud of the recognition that Pitney Bowes’ health care programs had received, and saw them as works in process. For example, employees based at client sites, rather than corporate locations, could not always access health and wellness programs. Pitney Bowes also faced challenges influencing the policies of contracted health plans. Critelli had to chart a course to take employee health to the next level.
Company Overview
Founded in 1920, Pitney Bowes (NYSE: PBI) was a $6 billion mail and document management firm headquartered in Stamford, Connecticut. (see Exhibit 1) In 2008, Pitney Bowes served more than two million corporate and government customers through operations in 130 countries. The firm’s clients constituted around 80% of the U.S. mail-metering customer base and nearly 65% of the global customer base.2 The firm had completed more than 80 domestic and international acquisitions since 2000.3 In 2007, Pitney Bowes recorded 7% revenue growth largely due to acquisitions.
In its early years, Pitney Bowes had pioneered postage meters, which replaced stamps by printing postage directly onto envelopes at high speeds. By 2000, meter volume had stabilized with the advent
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When our employees become ill, it directly affects our bottom line. We seek a complete alignment of incentives between the company, the employee, and the providers and plans.”1
—Michael Critelli, Pitney Bowes Executive Chairman
Michael Critelli, Executive Chairman of Pitney Bowes, had taken a strong interest in health care dating back to his service as Chief Personnel Officer of the Fortune 500 mail and document management company between 1990 and 1993. Critelli had championed a transformation in Pitney
Bowes, pioneering the firm’s focus on improving employee health while controlling spending. By
2008, annual health care cost increases had dropped into “the low single digits,” below increases at many other large firms.
Critelli was proud of the recognition that Pitney Bowes’ health care programs had received, and saw them as works in process. For example, employees based at client sites, rather than corporate locations, could not always access health and wellness programs. Pitney Bowes also faced challenges influencing the policies of contracted health plans. Critelli had to chart a course to take employee health to the next level.
Company Overview
Founded in 1920, Pitney Bowes (NYSE: PBI) was a $6 billion mail and document management firm headquartered in Stamford, Connecticut. (see Exhibit 1) In 2008, Pitney Bowes served more than two million corporate and government customers through operations in 130 countries. The firm’s clients constituted around 80% of the U.S. mail-metering customer base and nearly 65% of the global customer base.2 The firm had completed more than 80 domestic and international acquisitions since 2000.3 In 2007, Pitney Bowes recorded 7% revenue growth largely due to acquisitions.
In its early years, Pitney Bowes had pioneered postage meters, which replaced stamps by printing postage directly onto envelopes at high speeds. By 2000, meter volume had stabilized with the advent
of