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NEWSLETTERS
NEWSLETTERS
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561-683-8383
December 2007 |
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In this issue
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Incorrect audits drive up rates for printing company |
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Wellness programs: What's working
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Dealing with employees who do not return to work
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Incorrect audits drive up rates for printing company
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Insured
The printing company employs 85-90 people and with revenues estimated at $15 million.
Situation
The employer was witnessing an increase in its Experience Mod and annual premiums.
Assessment
The employer became increasingly dissatisfied with their current carrier because they felt their audits were incorrect. Recognizing the need to have an expert review of the audit, the employer turned to Certified WorkComp Advisors (CWCAs). The CWCAs discovered that not only were employees misclassified, but the business itself was misclassified. They also had a higher than average number of injuries despite a formal safety program that even met state certification and insurance policy credits. This combination resulted in unnecessarily high premiums.
Solution
The CWCAs toured the facility, interviewed employees as to their duties and where they worked, and upon confirming their belief that many employees were incorrectly classified, set up a new audit. Furthermore, by taking the time to understand the nature of the operation, they determined that the company itself was being misclassified as a printing operation, when in fact the operation was sheet-fed, which has a lower employee injury factor.
To tackle the number of injuries, the CWCA's implemented their Behavior Based Risk & Safety Improvement Program that resulted in a reduction of the number of injuries by 63% in the first year and 94% in two years.
Result
The CWCAs were able to lower the employer's annual premium from $85,000 to $43,000. The employer also got back an additional 15% of the $80,000 annual premium ($12,000) by correcting their classification. They also saw their Experience Mod drop from 1.30 to .90, with an anticipated drop to .70 in year three due to establishing a unique Behavior Based Risk & Safety Improvement Program.
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Wellness programs: What's working
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In an effort to stem the ever-rising health care costs and increase worker productivity, more companies are implementing corporate wellness initiatives. While the following examples are from major corporations, the principals have universal application:
Pepsi offers prepaid debit card for wellness participation
A whopping 70% of Pepsi's 33,500 employees responded to the offer of a $75 prepaid debit MasterCard for participating in a health assessment. To encourage employees who needed follow-up help, Pepsi offered $100 to workers who attended classes on smoking cessation, diabetes management, high-risk maternity or depression. The company expects to see a $1.50 to $2 return for every $1 it invests.
Red Sox incorporate workplace wellness into Curt Schilling's contract
The Boston Red Sox signed Curt Schilling to a one-year deal that ties $2 million of his pay to meeting certain weight targets at six weigh-ins next year. On his blog 38pitches.com, the 40 year-old pitcher acknowledged that he was overweight when he reported to spring training this year and that it adversely affected his performance, missing several weeks due to injury and winning just nine games in the regular season. "Given the mistakes I made last winter and into Spring Training I needed to show them (Red Sox) I recognized that, and understood the importance of it. Being overweight and out of shape are two different things. I also was completely broad sided by the fact that your body doesn't act/react the same way, as you get older. Even after being told that for the first 39 years of my life."
Union Pacific Railroad long standing program builds health into culture
Successful wellness programs are often branded to provide greater recognition and Union Pacific's is called HealthTrack. Based in Omaha, NE, Union Pacific offers some companywide benefits, including health risk assessments and stop smoking plans. But much of the program, including regional walking contests and group weight-loss efforts, is administered locally. HeatlhTrack includes a "health index" report card that provides feedback to managers on their health and safety efforts. Managers' health initiatives are included in their annual review.
It works: the proportion of health insurance claims related to lifestyle has dropped by 11% over 11 years.
Supermarket chain, Hannaford Bros., combines education and incentives
Hannaford Bros has a comprehensive program that includes on-site wellness professionals, health risk assessment and identification, behavior modification education and evidenced-based, integrated care and disease management. "Health Huddles," are impromptu, interactive meetings where various health topics, such as daily salt intake and the impact on health, are discussed.
Financial incentives are also offered to employees who complete a health risk assessment, are tobacco-free or enter a tobacco cessation program, and participate in disease management initiatives.
According to Ellie Udeh, the manager of wellness initiatives for the supermarket chain,
the incentives have been extremely effective at encouraging participation. Almost 90% of employees and their spouses now complete health risk appraisals and 95% of people participating in disease management programs accepted calls from the wellness coaches, so the company has taken the financial incentive away from only 5% of those who signed up for the program.
The result: Health risk appraisal data showed a decrease in the number of employees identified as being at risk for stress conditions from 27% in 2005 to 16% in 2006, while the number of employees at-risk for heart disease dropped from 21% to 16%.
Wellness programs focus on promoting preventive behaviors and healthier life styles. The challenge is reaching the employees who can benefit most from the programs and maintaining their involvement. Additionally, companies need to carefully navigate the legal and privacy issues surrounding wellness programs to ensure that they comply with federal and state laws. Before instituting a program, it is best to review with your attorney. |
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Dealing with employees who do not return to work
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Nothing is more complex than dealing with human behavior. Even employers with stellar Return-to-Work and injury management programs can encounter employees who can't or won't return to work. The core of the matter is not about strategy, systems or even culture. According to John Kotter of the Harvard Business School, "The core of the matter is always about changing the behavior of people."
Here are some steps that can help reduce the length of disability:
1. Reach out and communicate with injured employees early in their disability
Don't assume employees do not want to return to work. For most employees, being injured at work is a first time occurrence and it can be a confusing and frightening experience. Workers whose employers reach out and communicate with them early in their disability return to work an estimated 2.7 weeks sooner, helping to save a company approximately $810 per short term-disability, according to the Washington Business Group on Health.
2. Realize that you are setting standards
Employees expect you to care about fellow workers with legitimate injuries. Likewise, they expect you to prevent abuses that can have a demoralizing effect on production. Treat employees consistently and follow your policies and procedures.
3. Don't use a Workers' Compensation claim to deal with a problem employee
Workers' Compensation is often seen by managers as an opportunity to get rid of marginal or troublesome employees. This is like walking in quicksand - there is a host of laws that employees can choose from to sue you, including wrongful termination, disability discrimination and retaliation.
Performance problems should be documented and disciplinary action taken separate from the Workers' Compensation claim.
4. Be the facilitator - keep communication open between the treating physician and the employee
The employer, not the claims adjuster nor the treating physician, should be the key facilitator following an injury. It is not the job of the treating physician to make employment decisions. The employer needs to communicate the desire to provide appropriate work for the injured worker and the doctor is responsible for providing information regarding the abilities of the injured worker so that informed return to work determinations can be made. Employees should also be involved in the discussions about return to work solutions.
5. Continually give injured employees reasons to return to work
After the initial outreach, it's easy to focus on production and reduce contact with injured employees. Yet, studies show that frequent expressions of regard and regular communication help reduce the probability of lengthy lost time. Give employees a reason to want to come back to work.
6. Closely monitor recovery progress, obtain timely Work Status Reports, and make offer for modified duty position
You have the right to monitor an injured employee's condition and progress and find out when an employee should be returning to work and with what restrictions, if any. After the initial examination, the treating physician must send the employer and the insurance carrier a completed "Work Status Report" and changes in the condition of the injured worker are reported on the report until the injured worker is fully released to return to work.
The reports should be reviewed in a timely fashion and a determination made if there is suitable work that accommodates the employee's restrictions and a bona fide job offer made.
7. Take action if employee refuses modified duty offer
If the injured worker does not believe the available work is within his or her restrictions, the person can ask the treating doctor for clarification. However, if the job offer is consistent with the physician's instructions and the employee refuses, in most cases you can cut off the indemnity benefits.
The work offered should be meaningful and not demeaning to the worker. While it may be legal to reduce the employee's pay, the best results come from employers who do not reduce pay. Reducing pay can have a negative effect on the employee's attitude and if reduced too much could require some indemnity to be paid. Modified duty assignments are intended to be short-term and every effort should be made to make the employee feel good about the process.
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Remember the praise - managing the Millennials
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In case you missed it, Morley Safer recently did a thought-provoking story on "60 Minutes" on the work and living habits of the Millennials who are now joining the workforce. Unlike Boomers and even Gen-Xers, Millennials (born between 1980 and 1995) were the first to mature in a tech-savvy world and in a culture that everyone is special, a winner, with the potential to be great.
"They were raised by doting parents who told them they were special, played in Little Leagues with no winners or losers, or all winners. They are laden with trophies just for participating and they think your business-as-usual ethic is for the birds. And if you persist in the belief, you can take your job and shove it."
Corporate America is so unnerved by the different work habits and attitudes of the Millennials that an industry of consultants has developed to figure out how to train, motivate, and retain these tech-skilled employees who put their needs above everything else.
This generation grew up in a world of no failure. Many never held jobs - they may have climbed Mount Everest, but never worked a summer job, nor punched a time clock. More than one-half move back home after colleges and parents play an increasing role in job choices and performance feedback.
Managers have found that Millennials have the expectation that they'll always be rewarded, even for just showing up. You can't be harsh or tell them they have not done their job well. They won't live and breathe the company because they are living and breathing themselves.
Mary Crane, a Millennial consultant, advises that boomers need to focus more on coaching rather than bossing. "If you just tell them, 'You got to do this. You got to do this,' they truly will walk."
Tips for Managing Millennials
Our partner, HR That Works, offers the following tips:
1. Get very clear about what "privacy" and discretion mean. Growing up in a tech world of instant communication, they may not think about it the same way that you do. If you intend for them to keep something private or secret, make sure they agree to do so in a contractual document.
2. Half of this generation grew up with over-supervision (having their lives totally scheduled) and the other half were raised by one or two parents who worked full time. Either way they may not be as independent or responsible as you'd like. They are going to need supervision. A "coaching" rather than bossing approach with much positive feedback will yield results.
3. Much of this generation expects to get rich tomorrow. They have little patience and have been told they can have something because they want it. It's important to identify both short and long-term goals. Let them know if they do what they agree to do, you will live up to your promises as well and their future is bright.
4. Much of this generation has grown up with parents who are overworked and stressed and the Millennials want no part of it. Whether they are right or wrong in their perception of a balanced life-style, employers are going to have to come to grips with this reality.
5. Be aware of their communication skills. Many can't write a decent business letter. They also have difficulty in communicating in more than three sentences at a time. Training sessions to improve communication skills may be necessary.
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