The Aging Workforce and Workers’ Compensation

Suzy Boulware ColeSCWCEA Conference

October 18, 2010

Why is our workforce aging?

• Longer life expectancies

• Decades of lower birth rates

• Baby boomers entering 50s– 80% plan to work after retirement

age

Baby Boomers

A cartoon from Walt Handelsman of Newsday.

• In 2005, 13% of the workforce was 55 or older.• In 2010, the percentage of workers 55 and older

was predicted to reach 17%.• The median age of the workforce rose to 40.3 in

2004 (from 35 in 1984) and is expected to reach 41.6 by 2014.

• Overall, population is aging. • Proportion of our population of people age 65

and older projected to increase from 12.4% in 2000 to 19.7% in 2030 (about 75 million Americans).

Cumulative Change in Population by Age Groups, 2000-2050

US Census Bureau

Five-Year Average of Change in Labor Force Participation by Age Group

https://www.ncci.com/documents/research-may05-aging-workforce.pdf

Issues

• Controlling workers’ compensation costs

• Accommodating workers with restrictions

• Prevention of work-related accidents

Effects on Work Capacity

• Gradual hearing loss

• Gradual vision loss

• Decreased reaction time

• Difficulty with body position and balance

• Reduction in bone density; Osteoporosis

• Degenerative Disc Disease

Statistics show…

• Older workers less prone to injuries from traumatic events BUT– Tend to be out of work longer– Require additional time to heal– Have greater impairments– More restricted mobility in the labor market

due to disabilities***– More severely injured and die with greater

frequency from work-related injuries than younger workers

More statistics...

From Ohio Bureau of WCFrom Ohio Bureau of WC

Average Incurred Severity at 18 Months for All Lost Time Claims

https://www.ncci.com/documents/research-may05-aging-workforce.pdf

• Medical severity for all lost time claims increases for each age group.

• Indemnity increases with every age group up to age 65, at which point it declines. (Most likely due to Social Security offsets and lower AWW for those 65 and older.)

• Higher Medical Costs for:– Rotator cuff sprain– Tear of medial meniscus– Carpal tunnel syndrome (more common

during and after 40)

– Based on medical costs incurred by the top 10 most costly conditions for claims between 1998 and 2002 from state-fund claims only

https://www.ncci.com/documents/research-may05-aging-workforce.pdf

• Higher Indemnity Costs for:– Rotator cuff sprain– Tear of medial meniscus– Shoulder tendonitis

– Based on indemnity costs incurred by the top 10 most costly conditions for claims between 1998 and 2002 from state-fund claims only

https://www.ncci.com/documents/research-may05-aging-workforce.pdf

• Increased Lost Work Days– More lost-work days than expected for the

injury across the board

– Based on lost time incurred by the top 10 most costly conditions for claims between 1998 and 2002 from state-fund claims only

0

20

40

60

80

100

120

140

35 to 44 45 to 54 55 to 64 65 andover

Median Days Awayfrom Work

Incidence Rate per10,000 workers

• According to US Bureau of Labor Statistics, injuries and illnesses become more severe as age increases, from a median of 4 days away from work for workers aged 16 to 24, to 15 days for workers aged 65 and older.

• Workers aged 65 and older had the lower incidence rate, 106 per 10,000 full-time workers., compared to 132 for workers aged 35 to 44 and 126 for workers aged 25 to 34.

How can we be PROACTIVE?

• Use wellness initiatives– Coors Brewing Co.

• Fitness programs• Health coaches• On-site PT• 25,000 square foot

wellness center• 66% decrease in LTD

claims• Improved return-to-work

% in first year of LTD

• Xerox– Performed study with pilot group of EEs– Health risk appraisal– Enrolled in targeted programs– Results

• 5.6% of those in program filed WC claims vs. 8.9% for non-participants

• Avg. cost/claim for participants: $6,506 vs. $9,482 for non-participants.

• Make ergonomic changes to lessen back, shoulder, and knee strains

• General safety and ergonomic measures:– Reduce physical requirements, especially

for lifting, pulling, or twisting – Use lift devices, reconfigure work stations– Bring in specialist to evaluate work stations

Ergonomic Changes

– Perform work tasks between mid-thigh and mid-chest level

– Perform lifts close to the body– Avoid above-the-shoulder work– Eliminate squatting, stooping, and kneeling as

much as possible (due to likelihood of degenerated meniscus and arthritis)

– Avoid awkward positioning

Proactive Measures, cont.

• Make simple changes in lighting and color to override sensory changes

• Vary job tasks to avoid repetitive movement

• Provide light duty– Age is an important consideration for

commission in determining disability– Older employees have less mobility

Signs older workers may need accommodations:

• Physical signs, such as fatigue, tripping

• Psychological or emotional signs, such as loss of patience, irritability

• Feedback from supervisors or co-workers on declining performance

• Numbers and patterns of sick days

• History of minor injuries or near misses

Strategies to Protect Older Workers

• Find ways to work smarter, not harder. • Decrease exertional activities, such as in heat or

cold or climbing ladders. • Adjust work areas, such as installing better

lighting, reducing noise, removing obstacles, and decreasing the need to bend or stoop.

• Redefine what constitutes “productive.” • Know your workers’ limitations, perhaps by

conducting annual hearing or vision tests.

Safety Culture

• Must be an institutional value.

• For example, when co-worker feedback indicates an older worker is having trouble, the employer’s response should not be to fire the older worker because that will discourage honest feedback from employees who feel responsible for their co-worker’s loss of employment.

More Ways to Keep Valuable Older Employees

• Wellness programs

• Flexible schedules

• Extra unpaid vacation

• More medical leave than the Family and Medical Leave Act (FMLA) requires

• Allowing less than full-time work with full-time benefits

• Allowing long weekends after heavy workweeks

• Giving more positive feedback than to younger workers

• Setting more specific goals • Conducting ageism training for supervisors

and co-workers to make them aware of the different working styles across the generations

Positives of Older Workers

Positives of an Aging Workforce

• Older workers tend to be more health conscious and suffer less from job “burn out” than previous generations.

• They are more likely than their younger counterparts to participate in employee wellness programs and initiatives.

• Baby boomers are more educated (holding more secondary education credentials per capita) than younger workers and thus apt to be more compliant with policies and procedures such as safety rules, regulations and loss prevention programs, thereby reducing their exposure to occupational hazards.

• Investments in safer, healthier workplaces will likely occur over the next several decades to better accommodate the aging workforce. This is positive for older workers but also will provide a safer environment for old and young alike.

• Fewer workers’ comp claims means higher productivity and lower costs for employers!

“If employers are to reap the benefits of the work ethic and experience of older workers, they must design the workplace of the future to meet their needs.”

AARP. 2002. Staying Ahead of the Curve: The AARP Work and Career Study. A National Survey Conducted for AARP by Roper ASW.

Questions?

The End