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