Health, Safety and Security

1. Health, Safety and Security • Paige Wolf •

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. ©SHRM 2008

3. Employee Health and Wellness • Paige Wolf •

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. ©SHRM 2008

5. Employee Health: Making the Business Case • 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.

6. The Effect of Healthcare Costs on Economy 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. Employee Health: Making the Business Case 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. Employee Health: Making the Business Case 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. ©SHRM 2008

9. Employee Health: Making the Business Case 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

10. Employee Health: Making the Business Case 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

11. 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. Source: 2007 Koop Award Winner, Healthy Living--Pepsi Bottling Group, http://healthproject.stanford.edu/koop/work.html ©SHRM 2008

12. Leaders in Employee Health and Safety 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

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

14. Workplace Safety • Paige Wolf •

15. 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

16. Safety in the Workplace 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. Source: http://www.osha.gov ©SHRM 2008

17. Safety in the Workplace Occupational Safety and Health Act of 1970 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.” Source: http://www.osha.gov ©SHRM 2008

18. Safety in the Workplace Occupational Safety and Health Act of 1970 Coverage: • Any employer engaged in commerce who has employees. • Federal agencies must comply but OSHA cannot levy monetary penalties. Source: http://www.osha.gov ©SHRM 2008

19. Safety in the Workplace 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. Source: http://www.osha.gov ©SHRM 2008

20. Safety in the Workplace Violation Penalty $5,000-$70,000 Up to $7,000 Up to $70,000 Up to $7,000 per day Up to $7,000 • Willful • Serious • Repeat • Failure to Abate • Other • What is an example of each type of violation? • What is OSHA’s impact? ©SHRM 2008

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

22. Safety in the Workplace 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

23. Safety in the Workplace 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

24. 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. 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. ©SHRM 2008

25. 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

26. Leaders in Employee Health and Safety CaterpillarRecipient 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

27. Leaders in Employee Health and Safety 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

28. Leaders in Employee Health and Safety 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

29. Workplace Security: Preventing Violence and Aggression • Paige Wolf •

30. 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%). Workplace Violence Prevention Strategies and Research Needs (September 2006). NIOSH Publication No. 2006-144, http://www.cdc.gov/niosh/docs/2006-144/. ©SHRM 2008

31. 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. 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. ©SHRM 2008

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

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?

35. 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

36. 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