health, safety and security paige wolf. ©shrm 2008 2 agenda health > making a business case for...

Health, Safety and Security

• Paige Wolf •

©SHRM 2008 2

Agenda

• Health> Making a business case for employee

health.> Managing costs and presenteeism.

• Safety> OSHA.> Creating a safe workplace.

• Security> Workplace aggression and violence.> Video and debrief.> Case analysis.

Employee Health and Wellness

• Paige Wolf •

©SHRM 2008 4

Employee Health: Making the Business Case

• What is the business case for investing in employee health?

> Direct costs• Employee side: cuts into wages.• Employer side: cuts into profits.

Source: Fletcher, M. A. (2008) Rising Health Costs Cut into Wages, Washington Post, March 24.

5

• Headline, front page, Washington Post, March 24, 2008

> Inflation-adjusted median family income has dropped 2.6% (almost $1,000) since 2000.

> Percent of employers’ compensation costs devoted to benefits has increased from 27.4% in 2000 to 30.2% in 2007.

> Almost 90% of employers responding to a National Association of Manufacturers survey said rising health insurance costs are one of their top three worries, higher than:

• Government regulation.

• Competition from imports.

• Finding qualified employees.


The Effect of Healthcare Costs on Economy

©SHRM 2008 6

-1.1%

5.7%*

18.6%

16.7%

17.1%

12.1%

10.1%

8.0%

2.1% 2.5%

0.2%

6.1%

7.3%

11.2%

8.1%

14.7%

10.1%

7.5%

6.1% 6.1% 6.1%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Workers' earningsAnnual change in total health benefit cost per employee

Overall inflation

Source: Bureau of Labor Statistics, Consumer Price Index, U.S. City Average of Annual Inflation (April to April) 1988-2007;Bureau of Labor Statistics, Seasonally Adjusted Data from the Current Employment Statistics Survey (April to April) 1988-2007.

©SHRM 2008 7


What is the business case for investing in employee health?

Indirect costs• Reduced productivity:

Presenteeism.Absenteeism.

Source: Fletcher, M. A. (2008) Rising Health Costs Cut into Wages, Washington Post, March 24.

©SHRM 2008 8


Effects of temporary health concerns:> Workplace health threat.> Public health threat.

Legislation under debate: Healthy Families Act

• Would require employers to provide seven paid sick days for full-time employees.

• Effects of chronic health conditions:> Presenteeism.


Presenteeism: At Work but Out of It

Presenteeism is being physically present at work but suffering from a health-related condition that reduces productivity.

©SHRM 2008 9


Presenteeism: At Work but Out of It• How is the research on this topic

conducted?• What is a key takeaway from this

article?• How would you make a business case

to invest in health costs at a current or previous job?

©SHRM 2008 10

Leaders in Employee Health and Safety

Pepsi Bottling Group (2007 Koop Health Award)• Healthy Living program goal: To motivate behavior

change to drive outcomes and maximize return on investment.> Includes all employees and families.> Has programs for healthy, at-risk and chronic and

catastrophic employees.> Annual risk assessments.> Free lifestyle management programs.> Dedicated nurseline.> Disease and case management.> Local clinics.

©SHRM 2008 11

Source: 2007 Koop Award Winner, Healthy Living--Pepsi Bottling Group, http://healthproject.stanford.edu/koop/work.html


Caterpillar• Health Promotion Programs

> Offer physicals.> Offer free cancer screening.> Offer counseling on ways to reduce or

eliminate risk factors.> 70 percent of employees participate.> Those who don’t participate typically

prefer to see their personal physician.

©SHRM 2008 12

Employee Health and Wellness Programs

• An April 2008 survey by Hewitt of 500 organizations showed that 88 percent planned to invest in improving health and productivity of their workforce (up from 63 percent the previous year).

• Caveat: Organizations should ensure that their programs do not violate:

• Health Insurance Portability and Accountability Act (HIPAA).

• Americans with Disabilities Act.

• Title VII of the Civil Rights Act.

• Law is evolving on this.

• Current guidance is to encourage, not punish.

©SHRM 2008 13

Source: Shelly, J. (2008). Incentivizing Healthcare. Human Resource Executive Online. Retrieved 4/21/08, http://www.hreonline.com/HRE/story.jsp?storyId=87715531

http://www.hreonline.com/HRE/story.jsp?storyId=87715531

Workplace Safety

• Paige Wolf •

Safety in the Workplace

What is the business case for maintaining and promoting a safe workplace?> Improved recruiting success> Improved morale/pride in

workplace> Reduced costs

• Workers’ compensation• Health care claims

©SHRM 2008 15


Occupational Safety and Health Act of 1970

Before the law was enacted, there were:• 14,000 job-related worker deaths

annually.• New cases of occupational diseases

totaled 300,000.• Significant loss of person-days from

job-related disabilities.

©SHRM 2008 16Source: http://www.osha.gov



Purpose: “. . . to assure so far as possible every working man and woman in the Nation safe and healthful working conditions and to preserve our human resources.”




Coverage: • Any employer engaged in

commerce who has employees.• Federal agencies must comply but

OSHA cannot levy monetary penalties.



Occupational Safety and Health Administration Mission: > Sets and enforces standards with an

emphasis on partnership and fairness.> Provides training, outreach and education to

help employers establish and maintain health and safety programs.

> Encourages continual improvement in workplace safety and health, and conducts research on innovative approaches.


Violation

• Willful• Serious• Repeat• Failure to Abate• Other

Penalty

• $5,000-$70,000• Up to $7,000• Up to $70,000• Up to $7,000 per day• Up to $7,000

©SHRM 2008 20


• What is an example of each type of violation?• What is OSHA’s impact?


• How to handle an OSHA inspection:> Check credentials.> Hold initial meeting.

• Explain philosophy, processes and programs in place.

• Show records.> Tour facility with inspector.> Close meeting, confirm follow-up actions.

Q: Do you have to allow unannounced inspections?

©SHRM 2008 21Adapted from: Mathis, R. L. & Jackson, J. H. (2008). Human Resource Management, 12th Edition, Thomson-Southwestern Publishing.


OSHA as a partner in safety

OSHA’s Safety and Health Achievement Recognition Program (SHARP) recognizes small employers who operate an exemplary safety and health management system. SHARP-certified employers are exempt from OSHA inspections while certified.

©SHRM 2008 22


How can organizations promote a safe workplace?• Reward systems/accountability.• Safety teams.• Promote a safety culture with visible

signs and frequent communication.• Training:

• Processes/procedures.• Detecting potentially unsafe behavior.

©SHRM 2008 23

Threat to Workplace Safety

• Drug and Alcohol Abuse> Nearly 80 percent of drug users, binge drinkers and

heavy drinkers are employed.> What are the signs?

• Drug-Free Workplace Act – 1988> Applies to federal grantees and some federal

contractors. • Depends on size and type of contract.

> Requires policy that employees remain drug free. > Employers must provide drug-free awareness

programs.

• No federal law on drug testing in the private sector.

©SHRM 2008 24

Source: Capwell, R. (March 2008). Drug and Alcohol Testing – Adding Value to Your Bottom Line, http://www.shrm.org/ema/library_published/nonIC/CMS_025132.asp.

Unsafe Employees – Discussion Questions

• What can organizations do to protect themselves and their employees from the effect of employee alcohol or drug abuse?

• How would you handle an employee who showed evidence of a substance abuse problem?

• How does the Americans with Disabilities Act factor into substance abuse issues?

©SHRM 2008 25


Caterpillar Recipient of the 2007 Corporate Health Achievement Award

“Safety is the first thing we’re going to worry about. Your health and well-being come first – period. None of the other goals matter if, in the course of achieving them, people are injured.” – Jim Owens, CEO

• Thousands of employees ensure that working conditions are safe.

©SHRM 2008 26

Caterpillar

• Requires training; requires reporting of violations

• Has daily safety communication

• Provides in-plant medical facilities> Has a local team to facilitate

accommodation of health-related restrictions

©SHRM 2008 27



Caterpillar

Safety-related results: Decreased workers’ compensation costs for temporary total disability, permanent partial disability and health care providers.

> From 2000-2007:• 87 percent reduction in lost days per 100

employees.• 75 percent reduction in recordable

injuries.

©SHRM 2008 28

Workplace Security: Preventing Violence and Aggression

• Paige Wolf •

Security – Workplace Violence

• Workplace violence is one of the highest security concerns of employers.

• What are the causes/sources of workplace violence?> Criminal intent: No legitimate relationship with

the business or victim (85%).> Domestic spillover (5%).> Worker-on-worker: Employee anger/hostility

to another employee (7%).> Customers (3%).

©SHRM 2008 30

Workplace Violence Prevention Strategies and Research Needs (September 2006). NIOSH Publication No. 2006-144, http://www.cdc.gov/niosh/docs/2006-144/.

http://www.cdc.gov/niosh/docs/2006-144/

Security – Workplace Aggression

Workplace aggression is more common than actual acts of violence and can include hostility, obstructing progress and threats.

Factors that contribute to workplace aggression:> Social: Unfair treatment, intentional

thwarting of goals.> Personal: Type A, low self-monitors,

assumptions of hostility.> Situational: Layoffs, downsizing, RIFs,

employee monitoring.

©SHRM 2008 31

Source: Neuman, J. H., & Baron, R. A. (1998). Workplace Violence and Workplace Aggression: Evidence Concerning Specific Forms, Potential Causes, and Preferred Targets. Journal of Management, 24, 391-419.

Workplace Aggression/Violence

Handling a potentially violent person• Attend to verbal and nonverbal cues of hostility.• Respond in a calm manner.• Allow the person to express their views.• Ask questions to allow them to explain and

share their frustration.• Express concern and understanding of their

feelings.• Discuss a plan to follow up about the concerns.

©SHRM 2008 32

Source: Mathis, R. L, & Jackson, J. H. (2008). Human Resource Management, 12 th edition, Thomson-Southwestern.

33

Violence at Work Video

• Complete the Violence at Work Worksheet while you watch this video produced by the National Institute for Occupational Safety and Health (NIOSH).

34

Violence at Work Video – Discussion

• What types of workplace security measures does your current or previous employer have?

• What category of controls (administrative, behavioral, environmental) would your example fall into?

• What improvements would you recommend for your current or previous workplaces?

Debra Taylor Case

Case Exercise:• Read case in three parts.• Discuss with partner what should

happen at each stage.• Share thoughts with class.

©SHRM 2008 35

Health, Safety and Security – Wrap-up

• Health: Maintaining and promoting employee health has direct cost savings and can improve productivity.> Ensure programs don’t violate employment laws.

• Safety: Establishing a safety-oriented culture reduces employers’ risk and improves image. > Requires going beyond just complying with OSHA

regulations.

• Security: Efforts should be made to eliminate workplace aggression and violence.> Establish reasonable controls to protect employees

from public.> Train employees to look for signs of aggression and

provide reporting mechanisms.

©SHRM 2008 36

health, safety and security paige wolf. ©shrm 2008 2 agenda health > making a business case for...

Documents

employee health

agenda health

rising health costs

health insurance costs

business case slide

workplace health threat

business case presenteeism

public health threat