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An Eme rging Strategy of Health and Productivity Management
Health and productivity management is an emerging business strategy aimed at improving the total value of human resource investment. What we do in improving employee health is directly related to how productive and profitable an organization becomes.
In the past, when you were an employee of a business, you were mentored and guided through your business career. Today, the message is that you have to manage your own career, make sure that you maintain physical ability and learn the skills necessary to keep you marketable internally and externally, share in the costs of the business and its success or shortcomings, take ownership of a work group or an entire organization, become a leader, and survive if you are fit. All of this, of course, must be accomplished in an era of economic uncertainty, mergers, acquisitions, downsizing, rightsizing, and spin-offs, not to mention the threat of terrorists attacks and wars. And, the stress of coping with everyday, personal responsibilities seems to never go away.
Some employees thrive in this environment-but most do not. The employee response is generally negative. Employees feel burnout, lack of commitment, insecurity, instability, and even, in more severe cases, depression and anxiety.
Stress: 48% of US workers report high levels of stress, with extreme fatigue and a feeling of being out of control. An additional 38% report constant, but manageable levels of stress.
Work Priorities: 62% see accomplishing the basic responsibilities of a job as most important. 26% think that just being present is sufficient. “Presenteeism” is one of our greatest problems.
Causes of Reduced Effectiveness: 44% cite excessive workloads due to understaffing, 46% are concerned about layoffs, 55% worry about the company’s future, 50% feel their job is insecure even if they perform, 31% cite people issues, and 28% cite juggling work and personal life.
Over 65% indicate they don’t know where to find the help they need. 84% avoid treatment because of the cost.
These things have significant consequences in terms of increased health and productivity risks. These risks are categorized as follows:
= Psychological Consequences including anxiety, depression, nervousness, irritability, apathy, boredom, loneliness, moodiness, and insomnia.
= Medical Consequences including chest and back pains, coronary health disease, GI disorders and so forth.
= Behavioral Outcomes such as accidents, drug and alcohol abuse, eating disorders, smoking, tardiness, and exaggerated conditions.
= Organizational Consequences that take the form of absenteeism, poor work relations, turnover, job dissatisfaction and low productivity.
What is interesting is that all of these problems are being managed, for the most part, by different departments and functions, each trying to solve these problems independently. Without a coordinated approach, cost increases in programs invested in by the organization such as health benefits, long-term disability, short term disability, workers compensation, safety programs, ADA compliance, FMLA compliance, and others are staggering. Studies indicate that there is roughly a 30% opportunity for improvement in overall performance in these areas which on average, equates to $2,200 per employee per year. Another $3,000 in savings per employee per year is achievable in indirect costs.
The greatest opportunity for improvement is in the area of unscheduled absences, 50% of which were tied directly to psychological or substance abuse problems. These studies documented an average loss of 15 days per employee per year due to lost productivity, missed work days due to sick leave, stress, caring for a sick child, child care, eldercare, etc, and time spent at work on personal matters. Low productivity and high turnover rates were found to cost employers two to three times more than health insurance premiums and medical claims.
At the core of emerging strategies to integrate the management of health and productivity is the Employee Assistance Program. Behavioral Health Systems’ Integrated EAP offers a wide range of cost-effective services to help employers retain valuable employees, increase productivity and reduce administrative costs. At the same time, these programs provide a valuable resource to employees to obtain assistance in coping with emotional problems, marital/family concerns, everyday life challenges and more serious problems involving mental illness and substance abuse disorders. Our integrated approach combines easy access and confidential, face-to-face evaluation with an employee centered model of intervention designed to return the employee to health and full productivity as quickly and efficiently as possible. Elements of the program include:
= Early identification and evaluation of the nature and severity of problems.
= Development of a personalized treatment plan in which there is full participation by the employee utilizing the most appropriate and cost-effective programs in the community, specifically designed to meet the needs of the individual employee.
= Support and assistance in helping the employee assume the responsibility for the management of his or her long-term recovery.
= Care Enhancement programs to insure against the possibility of relapse.
As a by-product of implementing this highly successful program, substantial cost savings are achievable. National studies conducted by the Employee Assistance Program Association indicate that for every dollar invested in an Employee Assistance Program, savings of between $5 and $16 is possible. In other studies, 21% of the companies experienced fewer accidents, 35% reduced turnover, 59% experienced lower absenteeism, 62% higher productivity and 68% increased morale. 94% of the employers adopting Employee Assistance Programs agreed that their employees felt greater loyalty to the company and its objectives.
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