Prudential Financial

Narrative Description of Program

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $859 billion of assets under management as of March 31, 2011, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/

Health Management Strategy - Health Solutions

Personal service and individualized employee interactions are integral to engaging our employees and building support for health and wellness one person at a time. This is combined with a user-friendly self-service website and ongoing targeted communications delivered through company-wide mass media channels like PRU Today (daily e-newsletter),Leader link (online company magazine), Pru Tube (weekly video news segment), at employee meetings, webinars and via live /taped video broadcasts. Health and Wellness (H&W) also prepares business specific reports that summarize health programming results as well as disability and medical cost data and reviews these with senior leadership. Business-specific recommendations for employee health are incorporated into these reports. We consult with managers and present similar information at business division town halls and employee meetings. In 2010 we began delivering our “State of the Company’s Health” Summit via video streaming to all U.S. employees discussing external and internal health trends and engaging a panel of business leaders to discuss the implications of health for our employees and our business.

From the years 2008-2010, 77% of our employees completed a health assessment. In 2010 64% of our employees completed a health assessment. Upon completion of the HRA in addition to a summary of their risks and recommended action plan, each individual receives a personalized message reminding them of targeted available resources. Some of the resources are web based and available on the Prudential HealthSolutions portal. These include lifestyle improvement programs for nutrition, exercise, and smoking cessation. Tools such as exercise trackers and meal planners are also provided. In addition, employees are given the opportunity to “opt in” to additional programs such as telephonic coaching or EAP programs. The message is tailored to an individual’s risk.

At Prudential we have a variety of health management programs. Our most significant programs include our Health Coaching, Disease Management, Health Screening and Employee Assistance Programs.

Our Health Coaching program coaches employees and their dependents on weight management, smoking cessation and healthy living. Our coaching program is available to participants of all risk levels. This coincides with our philosophy of keeping low risk participants at low risk. All coaches are registered dietitians, certified personal trainers, health educators, or registered nurses, trained in supportive coaching skills and motivational interviewing. Healthyroads also provides coaching to smokers, offering a pre-quit coaching session with a health coach to develop quitting strategies and identify coping skills for success. After three sessions employees receive a Healthy Living Kit. Kits for participants in the tobacco cessation program, include up to a six-week supply of nicotine replacement therapy patches, gum, or lozenges. Participants are eligible for up to fifty-two free sessions per calendar year for all coaching programs. In addition, each on-site clinic location also provides the American Cancer Society’s Freshstart program as a service to employees who wish to quit smoking. It consists of four one-hour sessions held during a four week period. Our smoking rate at Prudential had decreased from 9% in 2008 to 7% in 2010 without any incentive or dis-incentive.

Disease management programs are available to participating employees and dependents through various Prudential health plans. Targeted conditions include, Coronary Artery Disease, Congestive Heart Failure, Diabetes, and Lower Back Pain. Also available through the health plans is our “Care Counselor” program. Care Counselors are registered nurses trained to assist employees and dependents in navigating the health care system and understanding treatment options. Care Counselors will call upon other specialists as needed so that participants can get the care and services they need. These specialists include additional medical nurses, behavioral health (mental health and substance abuse) practitioners, a nutritionist, a psychologist and other health care professionals.

Employees have access to on-site health clinics or quarterly H&W visits at over 20 remote locations and participate in Prudential’s health screening program. Based on a 2010 internal Human Resources effectiveness survey which showed 98% satisfaction for sites with clinics compared to 92% for those without, we’ve taken steps to improve our reach and expand services for our entire US population. Health and Wellness team members regularly travel to smaller sites to conduct seminars, perform biometric screenings, provide vaccines and consult with the business regarding local health needs. Employees can receive, at no charge, cholesterol, diabetes, blood pressure, and height/weight and body fat screenings from our staff of registered nurses. Following the screenings, employees receive a personalized consultation with our nurses. They are then referred to Healthyroads Health Coaching for ongoing attention.

Prudential offers an array of cost-free programs that address employee stress. These include Employee Assistance Program (EAP) counseling, life coaching, health coaching, personal budget coaching; workshops on topics such as time management, parenting, happiness, balancing work and life; and a work/life resource and referral service that provides carefully vetted info/referrals for any life need (e.g., pet care, family event planning, finding home repair contractors). Lactation consultants provide 24/7 support to new mothers and professional care managers consult on dependent care. Customized programs for leaders and their teams address workplace stress from an organizational perspective. Prudential strives for innovation in this regard, including our new program, “Optimizing Human Capacity”. This program focuses leaders on the need to balance performance and productivity expectations against the finite nature of time and human energy. The session helps participant’s model leadership practices that foster exceptional productivity, extraordinary morale, and optimally healthy employees.

Prudential’s Employee Assistance Program (EAP) provides free, face-to-face assessment and grief counseling. The EAP addresses issues such as work-related stress, family and other relationship issues, addictions, depression, anxiety and domestic violence. Employees are also eligible for four free sessions per year of counseling with a mental health care provider.

Prudential has a distinctly integrated approach to wellness and disease management. We conduct quarterly “Vendor Summit” meetings, where our vendor partners meet to discuss various ways of integrating and referring programs to Prudential employees and dependents.

We partner with our Dining Services to ensure healthy food choices are available and employees have the information needed to make healthy selections at work. Several times per month we feature a marketing piece on our company intranet page, highlighting healthy choices for that month. Dining Services features “Balanced Choices” each month, such as “Meatless Mondays”, sugar and fat free options, 2 pieces of fruit for the price of one, bundled meals containing minimal calories, fat and sodium,100% fruit juices, low fat yogurt, whole grain cereals, skim milk, egg white omelets and fresh vegetables are always available. They also feature “Super foods” each month, labeling the healthy content of vitamins and minerals in these anti-oxidant, phytonutrient, or nutrient rich foods. H&W sponsors Healthy Lifestyle Challenges throughout the year where we integrate 5 fruits and vegetables daily, no “sweets,” daily exercise and drinking water into the required activities. “Balanced Choices for a Healthy Lifestyle” is a program that highlights healthy and well-balanced food choices each day in our cafeterias. “Farmer’s Market” is a fresh fruit and vegetable station in our cafeterias where employees can buy produce. As of June 1, 2011 we will be offering a 20% discount for healthy food choices in all of our dining centers.

All vending machines offer a minimum of 20% healthy items. These are identified by a healthy symbol. We have placed vending machines with 100% healthy choices in our corporate headquarters buildings as a pilot.

Physical activity is an integral component of our holistic definition of health, and our frequent communication on the importance of physical activity stresses the “Just Start Moving” philosophy. In addition to our on-site fitness centers, both staffed and unstaffed, we also coordinate discount memberships for fitness facilities in the community. The staffed on-site fitness centers offer fitness classes. Prudential allows flexible work time to engage in physical activity and work/life balance. Safe and easy walking places, such as stairwells and campus trails, have been created at many sites. Prudential locations also sponsor walking programs, as well as bike racks and shower/locker rooms. ‘Zero cost’ options such as links to organizations that offer running or bicycling programs are pushed from our Health and Wellness intranet site. We often involve families by offering kids programs and community events at Prudential locations.

Incentives include a video to teach employees to exercise at home (3rd most viewed video of the year produced internally by Prudential); safe walking spaces in tunnels and parking garages; subsidized fitness centers and classes on-site; additional bike racks around the country; we have a point system for frequent exercisers in our on-site centers and a refund of health club dues with our MN health plans. We opened a new wellness center in our Woodbridge, NJ office for 800 people and our last six week Healthy Lifestyle Challenge involved 12.4% of our population with 78% reporting they exercised 30 min, 5 times a day because of the contest.

Communications

We develop an annual comprehensive, multi-channel communication strategy for promoting a “Culture of Health” at Prudential. This plan includes stressing the importance of self care for body, mind, emotions, finances and spirit. It includes physical activity, healthy eating, stress reduction and work/life balance. We also focus on healthy lifestyle choices through articles on our intranet and our popular “Culture of Health Webinar Series”. Our communications routinely provide relevant statistics, the business/personal case for healthy lifestyle choices, personal success stories, benchmark data, elements of executive commitment and information relevant to employees’ loved ones (e.g., teens, aging adults, children with special needs, etc.).

The strategy includes promotion of our Health Quotient health risk assessment focusing on our Wellness Incentive and the value of becoming aware of one’s health risks by knowing biometric numbers such as cholesterol, blood sugar, blood pressure and weight. We call this our “Know Your Numbers” campaign which encourages health clinics/primary doctor visits for screenings. We also target our web-savvy employees via our intranet site, where they find program information. We use targeted health improvement messaging through our HealthSolutions website’s messaging tool as well. This allows us to communicate using a personalized touch based on health criteria employees provide to us.

We use a variety of channels to communicate our programs understanding the diversity of our employees‟ preferences for receiving information. Most frequently, we use our daily e- newsletter “Pru Today” to all U.S. employees which is the homepage on every employee internet browser. We use this vehicle to post daily advertisements, as well as feature articles focusing on various health topics throughout the year. These feature stories highlight Culture of Health initiatives, success stories and testimonials. We also utilize the popular video segment Pru Tube in fun and creative ways to convey health and wellness messaging. We have featured videos on our Healthy Eating and Health Coaching programs and our Know Your Numbers campaign which included a song so employees would remember their important biometric numbers.

We also use e-mail to send direct messages to employees regarding local programming and via our Prudential HealthSolutions website. Our fitness center staff also sends weekly e-mails to its membership promoting current offerings. Our Health, Life and Wellness intranet site is another valuable tool for health improvement messaging. On our site there are placeholders for adding bulletins and events for health improvement and programming messages. It also includes wellness calendars with schedules for upcoming programs. Links to this site are located throughout the company intranet on many of our business division sites.

Our health and work/life subject matter experts regularly speak at town halls and employee meetings. At our 2010 “State of the Company’s Health” Summit, hundreds of employees heard our Vice Chairman express his commitment to health and other internal/external speakers discuss national/company health trends and the implications of health for our workforce and business.

We rely on our vendors to communicate programs and make appropriate referrals to our employees. We conduct quarterly vendor summits to keep vendors informed of our programs and encourage them to make referrals when necessary.

In addition, we use posters and flyers at our on-site locations. Home mailers are sent yearly during benefits enrollment period. These mailers contain information about a variety of health and wellness services, highlighting popular and useful standards as well as new programming. Our most recent home mailer was in April of 2011 where we introduced our newest offering “Best Doctors” – a second opinion and referral service for all U.S. employees.

We communicate our initiatives to diverse populations in part through our Business Resource Groups (BRGs) and related organizations. These affinity groups consist of Abled and Disabled Associates Partnering Together (ADAPT), Asian Pacific Islander American Group, Black Leadership Forum, Hispanic Heritage Group, and Employee Association of Gay Men, lesbian, Bisexual, and Transgendered Group (EAGLES). Also included is our Women in Finance Group (WIF) with a thousand participants. Health & Wellness employees participate as members with each of these affinity groups. Information is presented at local and national affinity group meetings with ramped up communications delivered during Prudential’s annual Diversity Recognition Month and affinity events throughout the year. We currently have a plan to present Prudential health disparity research related to race and gender to these groups in the upcoming year and participate in action planning with these groups and the larger community. Additionally, links to our health site appear on the Diversity intranet site and vice versa. We also have diversity-themed health stories appearing in PruToday during the year.

Health Improvement messages across workforce segments vary slightly in content. The major differences are more related to the communication vehicle used to deliver the message. For example at our corporate headquarters there are more stringent rules regarding communication via e-mail, so we communicate our messages through the company daily electronic newsletter. For many satellite offices we have the ability to send out direct e-mails to the employees. Communication of local programs or health messaging based on the needs of specific locations will also vary from some of the messaging to the company-wide population.

We also approach our agent population, located in numerous small offices throughout the country, differently. We use agent specific communication vehicles and tailor messaging to fit the needs of this population promoting programs that are available to them. For example, we would not promote an on-site fitness center to these employees if they are not located close to one.

Prudential’s health programs aim for changed behavior that lowers risk profiles, demonstrates personal accountability for health, promotes workforce engagement/productivity and reduces health costs. Our goal is to meet the employee’s needs and wants rather than conform to a specific model or program. Known in our markets for wealth-building, Prudential’s employees also know the company for health-building. Prudential’s programs support a “culture of health” where “healthy employees thrive in healthy workplaces and drive business success.”

Addressing all aspects of wellbeing, proven programs include: Prudential HealthSolutions with risk assessment/cash incentive and website, health coaching, life coaching and budget coaching, clinical services, on-site fitness centers and external fitness discounts, smoking cessation classes, 100%-covered preventative care, care counselors, disease management, nutritional programs, health education, work/life program with EAP, flexible work arrangements, maternity/adoption/parental benefits, child/adult care resources and much more.

Prudential also annually introduces innovative programming to engage employees in new ways, including (in 2010): New webinars that increased education participation by 72%, a Healthy Lifestyle Challenge where 12.3% of U.S. employees competed by adopting new healthy behaviors each week, and a “State of the Company’s Health” Summit where 500 hundred participants learned about internal/external health trends. (In 2011): 1900 (9.5%) employees signed up to “Commit to a Healthier 2011” and receive monthly e-mail communications on different aspects of health, employees participated in a month-long May celebration called “100 Years of Health” commemorating the 100th anniversary of the first health clinic established at Prudential. Activities included an interactive calendar of events with health quizzes, tips, a 130 page “Healthy Cookbook” distributed to all employees and even a company-wide “Moment of Health” where employees were asked to pause for 2 minutes at the same time to stretch at their desk or de-stress with deep breathing – all facilitated by videos they could follow.

Prudential is proud to have senior leadership support from our Senior Management Committee which includes the Chairman, Vice Chair and our Business Heads. In 2011 this committee sent a statement of support for optimizing health and using available resources to each U.S. employee. Our Chairman known for his commitment to health and regularly communicates his support at employee meetings, town halls, on video and in the company’s Diversity Commitment Statement (inclusive of health and work/life). A typical statement, “…I’m convinced that a healthy lifestyle contributes to a stronger mind and body and to overall life success. As leaders of a workforce that daily proves its dedication to excellence and achievement for our customers, it follows that we would do what we can to help our employees achieve their personal best as well. That’s why we are building a culture of health at Prudential.

• Prudential Financial Evaluation

The following are verbatim remarks made by the reviewers:

Reviewer A

• Excellent participation.  Offerings include: HRA coaching, on-site fitness centers, smoking cessations, preventative care, disease management, nutrition, health education , and EAP.
• Senior leadership support is strongly demonstrated and a robust communication and marketing plan is employed. Families are included in this program.
• Healthy culture a major focus including: healthier dining and vending options, onsite fitness centers, flex-time for physical activity.
• ROI of 1.4:1

Reviewer B

• Long-term organizational commitment and recognition
• Strong statements of support from CEO and senior leadership commitment to creating healthy culture
• Comprehensive, mature health management strategy with broad range of components addressing needs across health continuum.
• Innovative “Optimizing Human Capacity” leader program
• Well-integrated across programs and into organizational operations (e.g., dining services and health food discounts, vending, fitness centers)
• Comprehensive, segmented and targeted communication strategy
• Data warehouse to support strong ongoing program evaluation
• Very substantial improvement in population health risks
• Reasonable ROI methodology documenting savings
• Use of HERO Scorecard and very high Scorecard results

Reviewer C

• Focus on healthy culture
• Financial incentives
• Fully covered preventive care
• Individualized approach
• Onsite clinics
• Strong emphasis on stress management
• Vendor summits to explore needs, solutions and integration strategies
• Healthy food choices on site
• Multi-channel communication strategy
• Strong diversity focus that ties into health and wellness
• Multiple data sources
• Risk reduction/migrating to low risk category
• Improvement in various health indicators, which benchmark favorably to Health People objectives
• Positive ROI
• Published study of biometric reporting
• Benchmark against HERO and NBGH

Reviewer D

• Broad program. Some favorable health and risk improvements found

Reviewer E

• Conflict

Reviewer F

• Good overall program design and organizational commitment.
• Good evaluation design and acceptable outcomes.
• Longstanding program with acceptable results.

Reviewer G

• Leadership is actively promoting and communicating about the organization’s commitment to good health.  Each year employees learn about the “State of the Company’s Health.”  A full array of programming is in place with special emphasis on Coaching (families included), Disease Management, Care Management, Health Clinics and EAP.  Program renewed annually with new webinars and challenges.  Workplace environment visibly supports good health.  Quarterly vendor meetings assure integration across vendors.  Communications encompass all methods available often using direct email and even daily messaging which is clearly an indicator or corporate support.  An integrated data base is the basis for evaluation.  A participant to non-participant comparison evaluation of the 2008-2010 HRA and associated claims for a cohort of 9,616 documented a 1.4 to 1 ROI based on risk migration.  With coaching risk reduction was notably higher.  The health assessment and biometrics enjoy high participation.  It is interesting that results are favorable and no incentive is offered.

Reviewer H

• Prudential offers a wide variety of awareness, skill building programs as well as efforts to create supportive environments.  Participation rates are very good.  Health and financial outcomes are excellent for those who are involved.

Reviewer I

• Conflict

Reviewer J

• -

Reviewer K

• Conflict

Reviewer L

• Strong program with good participation.  Strong data evaluation methodology, health risk reduction results, and measured cost savings.