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Workplace Health and Productivity:Current Trends and Best Practices in Attendance and Disability ManagementTyler Amell, PhD
September 26, 2016
Disclosure
Name: Tyler Amell, PhD, MSc, BSc
Relationships with commercial interests:
Partner, Morneau Shepell (Human Resources Firm)
No financial ties to materials presented herein
Organizational role is to exemplify thought
leadership and establishment of best practices,
evidence informed practice and outcome driven
services in workplace health and productivity
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Managing Potential Bias
Peer review
Public, third party applied research partners
e.g Conference Board of Canada
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Learning Objectives
Recognize the current state of employers’ experience related to absence, including attendance, worker’s compensation and short term disability.
Use insight concerning future trends in these areas to develop and participate in integrated approaches with key stakeholders – in particular with respect to physicians and role of fitness for duty
Identify available bench-marking data and utilize smart data analytics to improve workplace health strategies and worker function and productivity
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Organizational problems and solutions?Chronic health condition impact?
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Organizational problems Current programs
Wellness
Management training
Strategic HRRespectful workplace
Engagement
CultureDrug costs
Absenteeism
PresenteeismStress load
Workplace injuries
LTD/STD
LifePhysical
General
mental health
Anxiety
Depression
Coping skills
Burnout
Biometrics,
lifestyle and
BMI
Medical
Physical
activity
Nutrition
Sleep
Perceived
stress
Safety
Engagement
Work-life
blending
Finance
Relationships
Mental Work
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Environmental Stressors
Employee’s Internal Stressors
Employee’s Competencies
Environmental Stressors
Organizational Competencies
Health - Engagement - Productivity
Employee
Employer
The total health of an employee will influence their ability to maximize their effort and outputs
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Recent trends in Absence and Disability Experience in Canada
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Basic underlying premise of health and productivity –Are people Not Present or Present?
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ABSENTEEISM
Attendance
STD
WCB
LTD
Leaves of
Absence
Vacation
Sick
Leave
PRESENTEEISM
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Most employers do not have a clear understanding of their cost drivers
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Without clear
data-based
measures,
overall costs will
be unknown and
likely unmanaged
do not monitor the cost of
incidental absence
47% of employers
66% of employers
64% of employers
Source: 2015 and 2016 Morneau Shepell Annual Surveys
did not know the average duration
of their short-term disability claims
do not monitor the incidence and
cost of workers compensation
Morneau Shepell HR Trends for 2017
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Source: 2016 Morneau Shepell Annual Survey
31% 27%29%
Greatest
Challenge is
Number and
Length of
Complex MH
claims
Average STD
Duration has
Increased
2nd Greatest
Challenge is
Accomm. and
Mod. Duty as
part of RTW
plan
33%
Training of
Managers is
being
considered
to improve
DM
Absenteeism is not just a medical issue…
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Source: The True Picture of Workplace Absence, Morneau Shepell 2015
52% of employees said
that their last absence was not related to a medical issue.
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Absence and Presenteeism impact on Productivity
The average absenteeism rate in Canada in 2015 per FTE
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Source: Conference Board of Canada 2016 and Statistics Canada 2010
8.9 DaysMean
7.8 DaysPrivate
12.7 DaysPublic
58.5 DaysPresenteeism
66.8 DaysPresenteeism
95.3 DaysPresenteeism
7.5XABSENTEEISM PRESENTEEISM
Absence and Presenteeism impact on Productivity
The average absenteeism impact in Canada in 2015 per FTE
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Source: Conference Board of Canada 2016 and Statistics Canada 2010
3.8%Mean
3.3%Private
5.4%Public
24.8%Presenteeism
28.4%Presenteeism
40.5%Presenteeism
15
4%
28%
68%
3%
25%
72%
Private Sector
5%
41%54%
Public Sector
Canadian Mean
Productive Time
Presenteeism
Absenteeism
Source: Conference Board of Canada 2016 and Statistics Canada 2010
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Absence and Presenteeism cost
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Source: Conference Board of Canada 2013 and Statistics Canada 2010
$16.6Billion
Cost of
Absenteeism
$124.5Billion
Cost of
Presenteeism
46%Of Canadian
Employers
Track
Absenteeism
Absence and Disability Experience: Case Study
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An Integrated Schematic of Health and Productivity
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Re
cov
ery
an
d S
up
po
rt
Productivity
Presenteeism
AbsenteeismCasual / Intermittent / Culpable / Non Culpable
Planned Absences (STD, Vacation, Leaves)
Work Related(Occupational)
Work Relevant(Non-Occupational)
Workers’
Compensation
Sick Time /
STD / LTD
Desired Goal / Outcome
is the Same Regardless of PathwayProductivity
RTW / WRI
At w
ork
Design and Approach
EH&S, 1o, 2
o& 3
oPrevention, Risk Reduction,
Health Surveillance, Wellbeing Investments,
Engagement, Culture,
EAP Programs
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Survey of Energy Sector Case Study Experience
Approach:
Short online survey
WCB LCR Analysis
Areas of Interest
Absenteeism
Workers’ Compensation
WCB-Alberta
Short Term Disability
Long Term Disability
Responses representative of 33,000 employees in the Canadian
Energy Sector, 11% decrease 2013-2015
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Absenteeism Experience
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Summary of Absence Results
Does your organization currently use an automated real-time
absence notification/tracking system?
Yes 62.5%
No 37.5%
Some of the reasons why not
Not a feature of time tracking system
Only tracked through time sheets at this point
Canadian norms
64% of private organizations track absenteeism
Natural resources and oil and gas firms are the least likely to
track at 36% and 41% respectively
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Source: Conference Board of Canada 2016
Early
Intervention
3 weeks late…
Canary in the
coal mine…
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Summary of Absence Results
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37.5%of respondents do not
track lost productivity
due to absences
50%of respondents do not
track absence reasons
Absenteeism and Presenteeism impact on Productivity in the Energy Sector
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Source: Conference Board of Canada 2016 and Statistics Canada 2010
3.3%Absenteeism
24.8%Presenteeism
Canada
Private
2.6% ± 1.05%
Min = 1%
Max = 3.8%
Canada
Energy
Sector
Sample
19.5%
Min = 7.5%
Max = 28.5%
Absence Trend: During the past 12 months, compared to the prior 12 months, the rate of absenteeism in your workforce has
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0
10
20
30
40
50
60
Increased Stayed the Same Decreased
Pe
rce
nta
ge
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25
9.2
9.3 9.3
9.1
8.8
8.9
8.7
8.8
8.9
9
9.1
9.2
9.3
9.4
2010 2011 2012 2013 2014 2015
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7.68.6
9.6
1211
0
2
4
6
8
10
12
14
15-19 20-24 25-34 35-44 45-54 55-64 65+
Absence Trends - Canada
Source: Conference Board of Canada 2016
Day
sD
ays
Year
Age
6 year trend,
national,
private + public
6 year trend,
national,
private + public
by age group
Workers’ Compensation Experience
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Worker’s Compensation - Alberta WCB
Aggregated results from the following reports:
Yearly claim costs summary
Claims reporting performance
Employer report card
Premium summary
Premium rate statement (experience rating)
Employer synopsis
Industry synopsis
After the first six months of 2016, new claim registration was
down 15% YOY – Implications for future? (Internal WCB report)
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Summary of WCB Results
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$2.55BInsurable Earnings (IE) in
2015
-5% in 2016
-3% over 2014
Summary of WCB Results
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AB 2016 average is
$1.01
AB 2016 average is up
4.12% over 2015
Average 2016 premium for group was
$0.57/$100 IE, or 0.57%
Premium Analysis – 2011-2016
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$(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2011 2012 2013 2014 2015 2016
Gross Premium
PIR Rebate
Net Premium
Mean: $10.6M - $0.7M PIR Rebate = $9.7M
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Summary of WCB Results
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* 6 days and 120 days
47%
53%
Surcharge
Discount
PIR Trending Data
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$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2011 2012 2013 2014 2015
PIR Rebate
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Source: WCB Alberta 2016
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WCB Nature of Injury (NOI)
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WCB Type %Average
Duration
Total TTD
Days
Average LTC
Cost
Total LTC
Cost
1 RankSprains/
Strains60% 16.2 2,588 $9,926 $1,512,526
2 RankFractures/
Dislocations21% 55.9 1,367 $27,798 $913,466
3 Rank Burns 4% 12.3 123 $20,305 $269,643
WCB Mental Diseases = $120,000
Strategies for primary drivers – OIS, active claims management, expedited diagnostics
(e.g. MRIs), access to care, access to specialists…
Is everything really being done to achieve the desired SAW or RTW outcome?
WCB Total LTC Claims Costs
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$6.3MTotal LTC Claims Costs
Wage Loss
Rehab
Medical
Vocational
Short Term Disability (STD) Experience
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Summary of STD Results
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50%Outsourced
Adjudication and
Claims Management
50%Of insourcers have
explored outsourcing
Summary of STD Results
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Plan design:
5 Day STD
elimination period*
Plan design:
26 Weeks STD
coverage period*
100% of Respondents were self-insured for STD
* 6 days and 120 days
Summary of STD Results
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0
5
10
15
20
25
30
35
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2013 2014 2015
Bu
sin
ess
Da
ys
Ra
tes
Year
STD Incidence Rate
STD Closure Rate
STD Duration (BDays)
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75% of Respondents Tracked STD Reason
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2013 2014 2015
1 Rank MusculoskeletalMusculoskeletal
Injury and PoisoningMusculoskeletal
2 Rank
Mental Health
Respiratory
Gastrointestinal
Mental Health
Respiratory
Mental Health
Respiratory
Gastrointestinal
Nervous & Sense
3 Rank
Genitourinary
Gastrointestinal
Respiratory
Gastrointestinal
Musculoskeletal
Genitourinary
Gastrointestinal
Injury and Poisoning
Mental Health
Genitourinary
Other
Strategies for primary drivers – active claims management, expedited diagnostics
(e.g. MRIs), access to care, access to specialists, pharmacogenomics (SSRIs, chronic pain)…
Is everything really being done to achieve the desired RTW outcome?
The Physicians’ Role (employers perspective)
People health strategy?
Medical clearance?
Pre-hire?
Post-offer?
Pre-placement?
Health surveillance?
Incumbent testing?
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SAW?
RTW?
Absence?
WCB?
STD?
LTD?
Fitness for Duty?
Safety Sensitive?
Long Term Disability (LTD) Experience
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Summary of LTD Results
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100%Outsourced
Adjudication and
Claims Management
72% Carrier 1
14% Carrier 2
14% Carrier 3
Summary of LTD Results
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26 week LTD
elimination period*
24 month LTD
coverage period*
LTD Plan Design
* 4 months and 12 months
Summary of LTD Results
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0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1000.0
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
0.40%
0.45%
0.50%
2013 2014 2015
Ca
len
da
r D
ay
s
Ra
tes
Year
LTD Incidence Rate
LTD Closure Rate
LTD Duration (CDays)
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LTD Reason (Condition/Diagnosis)
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2013 2014 2015
1 RankCancer
Mental Health
Cancer
Mental HealthMental Health
2 RankCirculatory
Respiratory
Mental Health
Circulatory
Cancer
Mental Health
3 Rank Cancer
Musculoskeletal
Cancer
Circulatory
Musculoskeletal
Mental Health
Circulatory
Strategies for primary drivers – active claims management, expedited diagnostics
(e.g. MRIs), access to care, access to specialists, pharmacogenomics (SSRIs, chronic pain)…
Is everything really being done to achieve the desired RTW outcome?
Health and Productivity Innovation
$13 million Healthy and Productive Work federal research
grant program…
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Visit us: morneaushepell.com
Follow us: @Morneau_Shepell
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Thank you!
Tyler Amell, PhD
Partner
