“Healthcare costs continue to rise.” This is true not only for individuals but also for companies, whose employees’ well-being directly impacts productivity, output, and cost.
Everyday there is a risk of an accident happening or an employee getting sick. Hence, the need for insurance. Workers Compensation Insurance (WIC) and Employee Benefits (EB). But what if we can reduce that risk? Would that reduce costs and lead to a better RoI?
The question then is – how do we reduce that risk?
Alisa Locricchio, VP Employee Benefits and Risk Services at Poms & Associates suggests that companies take an “integrated approach” to risk management. A Workers’ Comp injury claim today can very likely lead to an Employee Benefit claim years from now – from the same employee. Instead of a separate silo for Workers Comp and a separate silo for Employee Benefits, she suggests a broad and holistic view of risk so that proactive measures can be taken that promote overall employee health and wellness.
Here are some specific steps to take in order to develop an integrated approach to risk management:
- Gather data on what CAUSES the claims. Come up with a brainstorm list of the leading causes of claims (both for your company and the industry) – regardless of whether it’s a Workers’ Comp claim or an Employee Benefits claim. You might already have a starter list based on what you know of your organization’s culture and the general lifestyle of your workforce. Ask the different “silo owners” (Risk Manager, Safety Manager, Health & Wellness Manager, HR Manager). Focus on the big picture.
- Identify low-cost changes that can be done. Did you know that flossing your teeth everyday can reduce your risk of heart disease? Did you know that many carriers offer some free preventive care services? What about offering employees incentives or making a game that develops good habits such as taking 5-minute stretch breaks, or doing breathing exercises?
- Create a tailored Employee Wellness communications plan that is based on your company’s claims, culture, and demographics. How about “crowdsourcing” wellness ideas? Let employees make suggestions or share wellness success stories. Foster conversations, create “buzz” about wellness activities, let people talk about what’s worked for them. All these are for the greater good, which people generally like.
- Evaluate and measure your progress. Within a defined time period, monitor the impact on # of claims, turnover, morale, absenteeism, presenteeism (physically present, but not really focused on work). Make changes along the way as new ideas emerge.
- Finally, communicate with all stakeholders. Talk to the carriers, show them the progress, ask about free services that can be added to the program, negotiate for lower costs,. Get your executives involved and let company culture develop an over-all wellness mindset.