Health, Safety and Security

• Paige Wolf •
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 2
Employee Health and Wellness

• Paige Wolf •
 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 4
 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.

5
 The Effect of Healthcare Costs on Economy

20.0% Workers' earnings

18.6% Annual change in total health benefit cost per employee
18.0% Overall inflation
17.1%

16.0% 16.7%
14.7%

14.0%
12.1%
12.0% 11.2%
10.1% 10.1%
10.0%
8.1%
8.0% 7.5%
8.0% 7.3%
6.1% 6.1% 6.1%
6.0% 6.1% 5.7%*

4.0%

2.0% 2.1% 2.5%

0.2%
0.0%
-1.1%
-2.0%
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

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 6
 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 7
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 8
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 9
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 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.

Source: 2007 Koop Award Winner, Healthy Living--Pepsi Bottling Group,

http://healthproject.stanford.edu/koop/work.html

©SHRM 2008 11
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 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.

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 13
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
 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 16

 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 17

 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 18

 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 19

Safety in the Workplace

Violation Penalty
• Willful • $5,000-$70,000
• Serious • Up to $7,000
• Repeat • Up to $70,000
• Failure to Abate • Up to $7,000 per day
• Other • Up to $7,000

• What is an example of each type of

violation?
• What is OSHA’s impact?

©SHRM 2008 20
 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 21
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 22
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 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.
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 24
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
Leaders in Employee Health and Safety

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
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 27
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 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%).

Workplace Violence Prevention Strategies and Research Needs (September 2006). NIOSH Publication No. 2006-
144, http://www.cdc.gov/niosh/docs/2006-144/.
©SHRM 2008 30
 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 31
 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, 12 th edition, Thomson-
Southwestern.

©SHRM 2008 32
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).

33
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?

34
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