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April 2012

Apr 01
Love0

IGNORING WORKPLACE DEPRESSION WON’T MAKE IT GO AWAY

By Workplace Safety

At any given time, one in 10 employees suffers from depression. The repercussions of depression in the workplace-in terms of absenteeism and lost productivity-is estimated to run at $52 billion annually. An additional $26 billion is spent on medical care each year for the symptoms of depression. According to employees who suffer from depression, this illness hampers their ability to work effectively in many ways: 83% lack motivation, 82% have difficulty concentrating, 62% find tasks overwhelming, 45% arrive late for work or leave early, 24% experience chronic physical pain, and 20% have difficulty dealing with coworkers.

This data, reported by the University of Michigan Depression Center (UMDC), underscores the impact that employee depression has on a business’s bottom line. The Depression in the Workplace study was conducted through interviews with depressed employees (those having received treatment for depression within the last three years), middle managers, and benefit managers.

According to the study, many businesses think they are addressing the problem of employee depression, yet employees disagree. The good news is that in companies implementing “best practices” for dealing with workplace depression, depressed employees report better control over their disease and, consequently, they become more effective at work.

Half of the employees surveyed said they had been so depressed that they missed work, typically one to three days a month. When depressed, 38% of employees said they couldn’t carry out their normal workplace responsibilities. Surveyed managers placed depression’s impact on employee productivity as greater than that caused by drug or alcohol abuse, heart disease, or diabetes.

Though most of the employees (89%) said they had some type of mental health care coverage, 75% delayed seeking treatment for depression and 36% received only partial treatment. According to the survey, the failure or delay in seeking treatment resulted not from employees’ lack of familiarity with their mental health benefits, but from a concern that their depression might affect their career advancement and how they are viewed at work.

While many of the surveyed businesses felt that they were taking steps to help depressed employees deal with their illness, these steps were not necessarily a reality for employees:

  • 83% of benefit managers said their companies had taken steps to ensure that employees with depression receive help, but only 37% of the businesses had conducted proactive depression education programs;
  • 65% of the benefit managers said that employees have access to an employee assistance program (EAP), but only 14% of the surveyed employees ever contacted the EAP; and
  • 78% of benefit managers agreed that lost productivity cost their businesses more than treating the depression would, but only 11% of the businesses offered depression screenings.

The survey identified a number of “best practices” that companies can implement to help employees deal with depression. These included providing access to appropriate outpatient care; providing information that enables employees to identify symptoms of the disease and the importance of seeking treatment; offering screening/early detection mechanisms; having guidelines for job accommodation that enable afflicted employees to seek treatment; providing supervisors with training on dealing with the issue; and having return-to-work plans for employees who have been absent due to the disease.

Employees of companies that utilized such best practices reported higher levels of job satisfaction and were less likely to view their illness as a barrier to career advancement. Also, among employees who received treatment, 88% said their effectiveness at work improved as a result.

Given the cost of depression-both on its victims and their employers’ business interests-the identified best practices represent compassionate and smart workplace measures.

Apr 01
Love0

BETTER HOUSEKEEPING RESULTS IN A SAFER WORKPLACE

By Workplace Safety

Even the smallest workplace hazards have the potential to be the most dangerous. Whether there are protruding nails or slippery floors, the potential for danger is everywhere. With a few simple guidelines, these threats can be identified and reduced. The key idea to remember is that a disorderly workplace equals a dangerous workplace. Keeping order in the office or on the job site is the best way to ensure safety for employees.

Cluttered workplaces lead to a variety of illnesses and injuries. For example, if an employee sustains a laceration from a protruding rusty nail, he or she may be susceptible to tetanus. Not all employees receive regular vaccinations. In addition to this, not all employees are diligent about promptly disinfecting and treating a wound. If both issues were true, that small cut could lead to thousands of dollars in medical bills. Some injuries may be much more serious. For example, an employee who hits his or her head on an overhanging object may wind up with a head injury. Although such injuries might simply be treated with ice and rest, others might be fatal. For example, individuals who take some blood thinners are more susceptible to life-threatening damage from such occurrences. Unkempt workplaces where food or other perishable objects are present create a danger for illnesses.

When the workplace is cluttered, many employees develop a negative attitude toward safety. If employers do not show the utmost concern for safety, employees will feel that there is no reason for them to care either. The Occupational Safety & Health Administration clearly states that all passageways, places of employment, service rooms and store rooms should be kept orderly and sanitary. Employers are responsible for ensuring all hazards are removed and the workplace is clean.

To make employees happier and the workplace safer, follow these helpful housekeeping tips:

  • Keep the walkways free of debris, boxes, tools and other equipment.
  • Delegate various housekeeping tasks to each employee. Everyone should contribute to ensuring a safer workplace.
  • Make sure all pallets are neatly stacked in a safe place.
  • Check the workplace regularly for slick floors, damaged rugs, carpet rips, loose boards and other tripping hazards.
  • Keep all floors maintained, and always place signs indicating wet floors after cleaning or mopping.
  • Make sure there are no exits or aisles being blocked by equipment, boxes or other items.
  • Remove overhanging or protruding objects, and pay special attention to doorways, walkways and common areas.

Fire protection is another important issue to consider with workplace hazards. Some hazards lead to fires, and many employees do not know how to handle them. Be sure to educate all staff on the following fire safety facts:

  • Blocked aisles may help fires spread faster, and they may also prevent firefighters from reaching the flames.
  • Crowded storage areas cause fires to spread quickly and may block the spray from sprinklers or fire extinguishers.
  • Avoid obstructing vents, heating equipment, lighting and electrical equipment.
  • Never block access to fire extinguishers or other fire safety equipment.
  • Since many fires are caused by accumulated debris or oil, it is imperative to keep all areas clean.

By following these simple housekeeping suggestions, it is possible to make the workplace much safer. Educating employees about safety and fire hazards is a on ongoing process. In addition to providing this information upon initial employment, be sure to offer continuing education. Employees who know how to keep the workplace safe and prevent accidents will be more comfortable at work.

Apr 01
Love0

TAKE TIME TO CREATE A PROACTIVE POLICY ON WORKPLACE DISCRIMINATION AND HARASSMENT

By Workplace Safety

Discrimination and harassment are two occurrences that no business owner wants to see happen in their workplace. These can create major troubles for a business as they disrupt the workplace, lower employee morale, and potentially cause lawsuits that could cost the employer hundreds to millions of dollars.

Employers are legally expected to take proactive stances on discrimination and harassment within the workplace. Those that fail to address such issues are financially vulnerable should an employee bring about a lawsuit. In fact, in relation to discrimination and harassment claims, the U.S. Supreme Court has held that employers can even be liable when they weren’t directly aware that it was occurring.

What Is Discrimination? Discrimination is defined by laws at the local, state, and federal levels. Discrimination on the basis of national origin, race, religion, gender, and creed are prohibited by Title VII of the Civil Rights Act of 1964. The Age Discrimination in Employment Act of 1967 (ADEA) protects workers over 40-years-old from being discriminated against based on their age. Title I and V of the Americans with Disabilities Act (ADA) of 1990 prohibits discrimination against individuals with disabilities. Additionally, many states and municipalities have enacted local laws prohibiting discrimination in areas like pregnancy, parental and marital status, sexual orientation, and political affiliation.

What Is Harassment? Harassment is also defined by laws at the local, state, and federal levels. Harassment is verbal, physical, or written acts that cause an employee to feel uncomfortable in their working environment or that interfere with an employee being able to perform their job. This can include jokes, drawings, emails, notes, slurs, offensive language, and cartoons that either directly or suggestively reflect negatively on a protected class.

What Can Employers Do about Discrimination And Harassment?

1. Have a discrimination and harassment prevention policy. Having a formal and comprehensively written policy that clearly outlines your commitment to having a workplace free of harassment and discrimination will let employees know these acts won’t be tolerated. A lot of employers make such a formal statement within their employee handbook. Employees can sign a statement of understanding on discrimination and harassment as they receive and read their employee handbook. This practice may also be combined with mandatory employee training sessions on harassment and discrimination.

2. Have a policy outlining what steps employees should take related to harassment and discrimination. It’s important for employees to know a formal investigative process will happen and that they have a safe means to report behaviors that leave them feeling harassed or discriminated against. This can be approached a number of different ways. Some employers direct their employees to report harassment and discrimination complaints to human resources or office management for investigation. Other employers may prefer to have the chain of command followed and direct their employees to make reports to an immediate supervisor. Either way, the most important element is that the method of reporting is confidential, easily accessible, and clearly stated.

3. Let employees know that your management team takes your policy just as seriously as you do. Remember, employees are far more likely to believe in and follow the policy when they see that you and your managers truly believe that the policy is important. Take every opportunity to reiterate that employees can always safely come forward when they feel treated unfairly. Also, ensure that employees know the degree of harm discrimination and harassment causes for those both directly and indirectly involved.

Business owners in today’s ultra-competitive market are often faced with absorbing a plethora of information on everything from legal and financial issues to marketing strategies. This can tempt many business owners to procrastinate properly addressing harassment and discrimination. Do remember that the potential financial impact alone is reason enough to make time to create and communicate a proactive policy on workplace discrimination and harassment.

Apr 01
Love0

UNDERSTANDING DISEASE MANAGEMENT & DIABETES

By Employment Resources

Since the medical costs for diabetes reach into the billions each year, taking a chunk out of the cumulative cost of this disease would be beneficial in many ways. As most people know, the goal of disease management programs is to reduce the costs incurred by diabetes. To do this, these programs attempt to teach patients to control the disease. They learn the importance of monitoring cholesterol, blood pressure and blood glucose levels. Individuals with diabetes face similar challenges, treatment choices and the possibility of serious complications. This means that anyone who has diabetes can benefit from the offerings of a disease management program.

However, this is an issue where logic and science are not always in harmony. Many studies have shown that the majority of people with diabetes complications are less educated. Since they lack education, these individuals are more likely to hop from one treatment to another, which is a practice that may create even worse problems. One research study showed that patients who were less educated had two to three times as many incidences of coronary artery disease and end-stage renal disease. The researchers’ conclusion showed that less educated patients with lower socioeconomic status also had poor health management skills for themselves.

Education also plays an important role in the possibility of dying from complications. Research shows that individuals who did not finish high school have a death rate that is twice as high as the rate of death for diabetic patients with college degrees. It is also interesting to note that this factor remains true regardless of race, gender, age, obesity and other relevant factors.

For individuals who need it most, a disease management program will make a significant impact. This means that those who have the highest risk for complications will likely be the most impacted. These programs also have the highest ROI for groups with the largest amount of high-risk members. However, such programs have a lower return for groups filled with people who have college degrees.

Unfortunately, these statistics are not restricted to diabetes. In general, individuals who have a lower income, less education and a lower socioeconomic status face more health challenges. People who have higher education and earn a better income are more likely to get help, follow a treatment plan and learn to live with various diseases. To learn more about disease management and what it is about, discuss the options with one of our friendly agents.

Apr 01
Love0

THE BEST APPROACH TO HEALTH CARE CONSUMERISM

By Employment Resources

Employers are making stronger efforts to educate their employees about health care and manage costs. However, they’ve also realized that encouragement alone is not enough to produce employees who are better health care consumers. In order to make their employees better health care consumers, employers must equip them with the incentive and tools to become what they need to be. For many companies, the answer to their problems has many facets. Health care consumerism requires education and tools for adequate exercising, eating a balanced diet, monitoring health numbers, avoiding smoking and taking the initiative to make changes when health numbers aren’t optimal. In addition to this, health consumerism involves employees being aware of the costs of health care and taking measures to lower those costs. Plan designing, communication and incentives are all important parts of the equation. There are several important issues to consider with this idea.

Helping Employees Care about Their Health. Employers are realizing that simply offering options to employees isn’t enough. They know that employees must receive incentives for doing something difficult that ultimately benefits the employer. In addition to providing employees with the necessary tools to become better healthcare consumers, employers must also give them a reason to use those tools. For example, many pharmacies have varying prices among brand-name drugs and generic equivalents. Educating employees about this difference is important. If they realize all their HSA fund allowance will be used to pay for the expensive name-brand drug, they’ll be more driven to shop smart and use the generic equivalent.

Implementing Consumer-Directed Plans. Many companies that are designing plans are using consumer-directed health plans with health reimbursement arrangements or health savings accounts. To learn how these plans work, discuss the details with us. Some employers are now offering more options for their employees. However, reaching optimal health and maintaining it is the overall goal. Many companies are realizing the importance of trying to run an active health plan to encourage a healthy lifestyle instead of just offering a sick plan to deal with illnesses.

Offering Attractive Incentives. The efforts employers have made to help their employees save for retirement with contribution plans are similar to their efforts to move employees toward better health care consumerism. The main similarity is that both plans involve a greater amount of responsibility being placed on employees. While they face more responsibilities, their employers use incentives to offer rewards for desired behavior. Just as employers use matching contributions to retirement plans to encourage participation, many are now offering contributions toward HSAs and HRAs to encourage participation and better health care consumerism.

Keeping on Track. In order to keep health care consumerism alive, employers must keep track of their efforts. This allows them to determine whether employees are changing their behaviors or not. Some companies have developed special systems for tracking progress. One company developed a helpful dashboard of metrics, which is reviewed monthly for success. It shows the progress of employees as they work toward earning incentives. It also shows interaction rates with health plan representatives through the company’s work sites. There are several ways to implement these valuable changes. To learn more, discuss the possible options with one of our agents.

Apr 01
Love0

GENERATION Y & BENEFITS COMMUNICATIONS ISSUES

By Employment Resources

Generation Y is filling up the workplace and the world. Employers who want to gather, engage and keep these workers must know their preferences and styles of communication. This is especially true in the aspect of workplace benefits. Employers’ ability to attract and keep these younger employees is becoming an important part of ensuring long-term success in business. The Baby Boomers are starting to retire in larger numbers and will continue to do so in the future. Since the younger generation has different needs, preferences and expectations, companies must approach benefit package designs in a different way. If employers resist these necessary changes, they could face losing employees and their competitive edge. This means they’ll be left behind in the business world, which is progressing faster each year. There are several things employers and HR managers need to consider about adapting to the new generation of workers.

Generation Y members are usually less financially stable. In comparison with older generations, the younger generation appears to be much more irresponsible with money and financial obligations. Almost half of the individuals in the younger generation pay bills late, have significant credit card debt and are not setting away money for financial emergencies. This generation also switches jobs frequently.

Generation Y prefers personal communication. While previous generations favored the traditional way of looking for benefits information in the workplace, the younger generation prefers personal communication. Although most people think this generation is constantly wired, they tend not to look online for resources. They feel that all resources and information should be brought to them. However, older workers are more likely to look for blogs, forums and other valuable sources of online information independently. The younger generation members are also more likely to ask family members or friends for such information.

Generation Y values strong benefits but they’re usually under-insured. Although most of the individuals in this generation think that benefits are the most important aspect of a job, they often have inadequate insurance. However, they’re the group of workers who are least likely to take advantage of insurance in the workplace. This includes Disability, Life, Accident insurance and major medical plans.

Opportunities for Benefits Communication

In the research for a clearer opportunity for employers to engage Generation Y workers, the research of benefits communication appeared. Workers in this generation usually rate employers unfavorably for the effectiveness of benefits they offer. There are several steps employers can take to boost the effectiveness of communication between themselves and these younger workers. The following are a few valuable suggestions:

  • Implement one-on-one counseling.
  • Employ several forms of communication.
  • Make content interactive and engaging.
  • Use the proper technology for the message.

As benefits decisions continue to shift toward employees, the workers of Generation Y will become more enthusiastic toward the information and products required to manage personal financial security. Employers have the opportunity to build a better ROI by properly evaluating the benefits they offer. They must also evaluate the methods of communication used to appeal to individuals who are part of Generation Y. By doing this, employers will enjoy a more engaged, productive and loyal workforce.

Apr 01
Love0

WORKPLACE FIRES: BE PREPARED!

By Risk Management Bulletin

Workplace fires and explosions kill 200 American workers and injure more than 5,000 a year, at a cost of $2.3 billion. To help keep employees safe, any business that’s required to have fire extinguishers on the premises and needs to evacuate people during a fire or other emergency must have an Emergency Action Plan (EAP) that meets specific OSHA standards. The EAP includes — but is not limited to — these required elements:

  • Evacuation procedures and emergency escape route assignments.
  • Procedures to be followed by employees who remain to operate critical plant operations before they evacuate.
  • Procedures to account for all employees after an emergency evacuation has been completed.
  • Rescue and medical duties for employees who are to perform them.
  • Means of reporting fires and other emergencies.
  • Names or job titles of persons to contact for further information or explanation of duties under the plan.

Businesses can also implement a workplace Fire Prevention Plan (FPP) that describes the onsite fuel sources (hazardous or other materials) that could trigger or help spread a fire, as well as the building systems, such as fixed fire extinguishing systems and alarms in place to control the ignition or spread of a fire. At a minimum, your FPP should include:

  • A list of all major fire hazards, handling and storage procedures for hazardous materials, potential ignition sources, and the type of fire protection equipment needed to control them.
  • Procedures to curb accumulations of flammable and combustible waste materials.
  • Maintenance of safeguards on heat-producing equipment to prevent the accidental ignition of combustible materials.
  • The name or job title of employees responsible for controlling fuel source hazards and maintaining equipment to prevent or control ignition or fires.

If you’re required to have an EAP or FPP, you must provide emergency preparation and response training for employees. Even if you’re not required to prepare such plans, it makes sense to develop and enforce them.

Our risk management professionals would be happy to help you develop and review your plans — just give us a call.

Apr 01
Love0

DRIVER’S ED 101: TRAIN YOUR WORKERS TO DRIVE SAFELY

By Risk Management Bulletin

You want your employees to be safe on the road and avoid accidents, whether they’re driving your vehicles or their own. The safer your drivers, the better for all concern — and the lower your exposure to litigation. Make sure that your safety meetings and training sessions include these four key elements.

  1. Collisions are common, especially at intersections, where it’s estimated that one in three two-car crashes occur. To reduce the risk of head-on collisions, drivers should keep alert and look down the road for possible problems, such an oncoming driver passing another vehicle. To avoid being rear-ended, drivers should signal intentions, slow gradually, and check mirrors for tailgaters. To avoid rear-ending another vehicle, they should maintain a two- to four-second distance from the vehicle ahead and watch for brake lights and turn signals.
  2. Passing. Train drivers to pass only in a passing zone, check oncoming traffic to make sure no one is coming, and check their mirrors to make sure someone behind them isn’t moving out to pass. Drivers should never pass unless they can see enough clear space to do so comfortably. When being passed, they should slow down if the other vehicle needs extra room to pass safely.
  3. Road/Weather Conditions. Road construction, traffic, slippery roads, bad weather, and other hazardous conditions contribute to many accidents. Under these conditions, drivers can stay safe accidents by taking precautions such as slowing down, increasing following distance, being prepared to stop, turning on headlight to be more visible, avoiding distractions, and keeping calm in heavy traffic. Drivers should also know how to handle a skid (take your foot off the break and turn in the direction you want the front of the vehicle to go).
  4. DUI. You can’t overemphasize the hazards of driving under the influence of alcohol or drugs. According to one recent report, one in five motorists admits to drinking and driving. Drunk driving kills more than 20,000 Americans a year, and injures another 50,000. Drinking impairs all the faculties that prevent traffic accidents: the ability to determine distance, reaction time, judgment, and vision.
Apr 01
Love0

SAFETY COSTS: A SAFE INVESTMENT

By Risk Management Bulletin

Too many businesses undervalue the benefits of workplace safety because of communication barriers between safety professionals and managers, as well as the challenge of demonstrating safety performance in financial or bottom-line terms. To turn this situation around and enhance the business value of safety programs, use these basic strategies.

Identify safety as a core business value. Obviously, profitability drives corporate value; but so do brand name, compliance risk, and worker productivity Workplace safety programs influence all of these drivers to some degree.

A few years ago, Liberty Mutual Insurance Company surveyed senior financial executives at large and medium-sized companies about their views on safety and insurance. These executives cited increased productivity and reduced costs as the top benefits of workplace safety and health. In an earlier survey, an overwhelming majority of executives believed that workplace safety had a positive impact on their companies’ financial performance. Many cited a return of investment of $3 for every $1 invested in workplace safety programs.

View safety as an investment in continuous improvement. An “investment” is a commitment to earn a financial return or gain future advantages. Safety programs correlate directly to the benefits of increased productivity and efficiency. For example, one container manufacturer reported a 20% increase in the number of boxes produced per day on an assembly line after an ergonomics consultant recommended operational changes to eliminate repetitive arm and shoulder injuries.

Combine leading and trailing indicators of safety performance. Leading indicators tell you about the future value or direction of performance. For example, your employee turnover rate can indicate future changes in productivity and/or injury rates. The number and frequency of near misses can help predict the risk of future accidents. Hours of employee safety training completed or the number of employees trained can indicate changes in productivity and safety. The number and/or frequency of completed inspections can indicate the level of compliance risk, integrity of equipment, and changes in productivity.

You can learn where you’ve been by using such trailing indicators as injury and illness reports, lost workdays, and Workers Compensation claims. Although trailing indicators can highlight past costs, they are inconsistent and often unreliable indicators of future performance.

Enhance employee involvement. It’s not effective just to tell employees what to do and judge them on how well they do it. Because they’re in the trenches, workers are more sensitive than managers to the integrity of safety and productivity data. For example, workers can see what’s really going on behind the statistics in injury and illness reports when management often can’t do so. Employee involvement should play a key role in effective safety performance evaluation.

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