by Tim Coomer, Specific Software
If you don’t recognize the acronym “GFM,” never fear: I couldn’t resist throwing a new one out into cyberspace. AcronymFinder.com says GFM can stand for, among other things, “gaming FM (radio)”, “general field marshal,” and “global financial market,” but around the office we’re using it as a convenient way to refer to the current “global financial meltdown.” As a pilot and former rocket scientist, I find acronyms tend to lighten the subject at hand… terms such as MAD (Mutually Assured Destruction), BMDS (ballistic missile defense system), or one of my personal favorites CFIT (controlled flight into terrain) don’t seem quite as threatening if you only use the initials. So, GFM is a “lighter” way to refer to a situation that’s very serious indeed.
During this GFM, it’s important to remember that historically, employees who are stressed about job security or have personal financial difficulties tend to file more workers compensation claims.
The past few weeks have been incredibly dramatic and sobering: I feel like my brain has been rewired and I’ll never see the world in the same way again. Many of our staff here are thankfully young enough that we have some time for our retirement funds to recover, but most of us also have concerns at a level we’ve never had before regarding the cost of children’s college educations, major purchases and investments of any type, etc. We’re hearing from our personal and business contacts that we’re not alone. So, I thought I would survey the WorkCompEdge team and share with you how we view the impact of the GFM on workers comp – for both employers and insurance agencies. Here are some thoughts from our team:
Employers
Employers should be alert for a possible increase in workers compensation claims. Historically, employees who are stressed about job security or have personal financial difficulties tend to file more workers compensation claims. To avert such a possible increase, we have these recommendations for employers:
- Be especially vigilant at this time about nurturing supervisors’ relationships with their employees, even when there may be negative news to report. Effective, proactive communication with employees is never more critical than now, when fear and rumors can undermine a company’s culture.
- Pay close attention to any claims that are filed: show care and concern for the injured employee. An injured employee is often under a lot of stress, but those stresses may have extra weight in this economy and therefore lead the employee into a downward, self-defeating spiral.
- Even if your business is off, don’t relax your return-to-work policy. For both the financial benefit to your company and the injured employee’s recovery, it’s paramount that you get employees back on the job in some capacity. A claim that is partially due to emotional stress or depression will be greatly exacerbated by sitting at home.
- Finally, this is a great time to reinvigorate or launch an employee wellness program. Get your workers walking at break time; hire a massage therapist for a special on-site chair massage day; make healthy snacks and decaf beverages available in your breakroom to ward off junk food binges some research suggests may be related to stress.
WorkCompEdge modules that are particularly applicable to the above points include:
- Before and After an Injury – The Crucial Role of the Supervisor’s Actions and Attitudes
- Expedite Return-to-Work – It’s Critical to Health, Morale, and Your Bottom Line
- Build True Safety Culture – It’s More Than the Incentive of the Month
- A New Paradigm – Promoting the Health of Your Workers
Agencies
Your employer clients may be hurting financially, but this may mean they’ll be open to new ideas that will make a difference. The coming months will likely be an excellent time to move away from “low bid” philosophies and demonstrate how WorkCompEdge can be an effective tool to lower costs. Use the “Learn the lessons” module to show the employer the potential savings that come with lower losses and a lower experience mod. Then, sit down with the employer and use the WorkCompEdge ModMaster report or the online survey to help map out a strategy for implementing WorkCompEdge.
It looks like we’re going to be dealing with a recession for a while. Ask yourself, “What do my employers clients need most in recessionary times?” We think that one answer is lower fixed costs and a healthy productive workforce – exactly what WorkCompEdge can deliver – but we’re very interested in hearing what you think. Through our products WorkCompEdge and ModMaster, how can we help you help them?
For All Our Readers
Whether you’re an employer, agency, or other insurance professional, it may be time to understand that the best investment you can make is in your own company and in yourself. We want to know how we can help you do that. What challenges do you think the GFM will bring to workers comp in the coming months?
Please, let us hear from you – on the blog comments or by email to me, Tim or our blog editor, Kory.
http://www.WorkCompEdge.com
http://www.SpecificSoftware.com
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