3/29/2018 - WMC3/29/2018 10 Aon Risk Solutions | Aon Risk Services Central, Inc. Results—All Industries $25,000 $20,000 $15,000 < 25 years 25 to 35 35 to 45 45 to 55 55 to 60

3/29/2018

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Aon Risk Solutions

Aon Risk Services Central, Inc. | Aon Global Risk Consulting

Aging Workforce:Understanding the Challenges of a Changing Workforce

Presenter

Bob Prior, MS, CSP, ARM-P, CPSISenior ConsultantPublic Sector/Higher Education Thought LeaderAon Global Risk Consulting

76th Annual Wisconsin Safety &

Health Conference and Exposition

Aon Risk Solutions | Aon Risk Services Central, Inc.

Is This an Issue - YES!

PMA conducted Surveys* with Risk Management Professionals

• Survey results discovered

–The biggest WC concern was an aging workforce

–During the next three years they expect an aging workforce,

medical/pharmacy , and co-morbidity conditions costs and to be

the most significant issues affecting their WC costs

* Public Sector (PRIMA) & Higher Education (URMIA) Risk Management—Workers’

Compensation Benchmarking Survey Results, Facts, and Solutions, 2014

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An aging

workforce was

the biggest WC

concern

An aging

workforce is the

most significant

issue affecting

WC costs

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Biggest Workers’ Compensation Concerns:

Over the Next Three Years, What Do You Expect Will Be the

Most Significant Developments Impacting Your Workers’

Compensation Costs?

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Aon Risk Solutions | Aon Risk Services Central, Inc. 4



Deep-Fried Cheese Curds

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(Remember this when we get to the obesity part!)

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Discussion

Understanding the Issue

Changes Associated with Aging

Impact on WC Costs

Role of Co-Morbidities

Rethinking the Work Environment

Your Challenge

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Understanding the Issue

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Baby Boomers are Getting Older

• Over the past decade employees in the 45 year-old and

over category have increased by 49% and make up 44%

of the workforce

• The age group over 55 has grown to 21% of the

workforce

• Between 2008-2018, the number of workers age 55 and

older is projected to increase by 12 million (43%)

US DOL/BLS Data

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Retirement at 65?

• Age 65 is no longer the “normal” retirement age

• Employees are delaying due to economics, including the

need for medical benefits and sufficient resources to retire

• 80% of Baby Boomers plan to work after retirement age

• Many adults are leading active, healthier lifestyles, which

lead to longer life

AARP Data

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The Future is NOW!

• Bus services and urban transit (66.1%)

• Utility workers (62.7%)

• Labor unions (64%)-Hospitals

• Textile product mills (61.3%)

• Animal production (57.7%)

• Metal work/machinery (59.4%)

• Aircraft and parts mfg. (60.5%)

• Paper and pulp (58.8%)

• Foundries(55.2%)

• Navigation, controls, tech (55.8%)

• Truck transportation (56.1%)

• Lodging/hospitality (53.7%)

• Insurance (50.1%)-TPA’s

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Percent of

workforce over 45

years of age, by

industry

2013 BLS,

Current Population

Survey

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Changes Associated With Aging

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Common Effects of Aging

Loss of muscle mass

resulting in decreased

strength

Increased stiffness and

reduced flexibility that

impacts range of motion

Poorer visual and auditory

acuity

Tire more quickly and

recover slower

Lower dexterity

Reduced physical fitness

level and aerobic capacity

Slower cognitive speed

Increased risk of chronic

disorders, disease and

obesity—diabetes, heart

and lung disorders,

cancer, hypertension

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Body and Mind Changes

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Presbycusis


Data is Pointing toward a Workforce of Diminishing

Physical Capacity and Poorer Health

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Overweight and Obesity Impact

• Potentially contribute or hasten an injury

• Can affect the healing process after an injury

- It induces complex negative effects on multiple

organ system functions and processes, including

issues related to wound healing

• Your weight is the result of many factors

- Environment, family history and genetics,

metabolism (the way your body changes food and

oxygen into energy), behavior or habits, etc.

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Chronic Disorders and Diseases

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Adverse Health Effects

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Age of the Workforce is Increasing and

Health Decreasing

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• Workers > 45 44%

• Obesity in > 4538%

• Workers that plan to work beyond age 6537%


The State of Obesity in WisconsinSources: Wisconsin has the 23rd highest adult obesity rate in the nation, according to The State of Obesity: Better Policies for a

Healthier America released August 2017. Remember the deep fried cheese curd slide!

Current adult diabetes rate 9.8%

Rank among states 30/51

Current adult hypertension rate 29.6%


Heart disease cases 347,847

Projected cases of heart disease in

2030 = 1,579,761

Obesity-related cancer cases 89,046

Projected cases of cancer in

2030 = 223,559

Current adult obesity rate 30.7%


Obesity rate by gender

Men 29.6%

Women 29.8%

Obesity rate by age

18-25 14.8%

26-44 31.3%

45-64 33.6%

65+ 34.6%

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Impact on Workers’ Compensation Costs

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The Impact on Your WC Costs

•Older workers tend to have fewer accidents, but

injuries tend to be more severe

•Recovery time may be prolonged

•Chronic, pre-existing conditions can make

treatment more complex

•Therefore, severity of accidents increases as

related to the aging process compounded by pre-

existing health conditions

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WC Claim Cost Study

• $8 billion+ in WC claims from 2007–2017

• To monitor the impact of work-related injuries to aging

workers

• Found consistently higher average costs for older claimants

across all Industry groups

• This trend varied in degree by Industry, but only by the

pitch of the slope

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Results—All Industries

$25,000

$20,000

$15,000

< 25 years 25 to 35

35 to 45 45 to 55

55 to 60 > 60 years

$10,000

$5,000

$0

Education and

Health Services

Leisure and Hospitality

Manufacturing Natural

resources, Mining & Construction

Professional and Business

Services

Trade,

transportation, and utilities

All Industries -

considered together

Figure 2: Results from Aon Laser report

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Data Reveals Significant Cost Differences

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73% Higher


Key Cost Drivers on > 45 Claims

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Percentage of WC claims with Temporary Total Disability (TTD) payments> 38 %

Average TTD days per TTD claim> 14%

Average value of indemnity paid claim with greater than 7 days of TTD> 70%

Medical only to Indemnity claim conversion rate (for all claims)> 27%

Claim Closure Rate (within the most recent 12 months)< 9 %

Percentage of Litigated claims> 40 %

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Rethinking the Work Environment

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What do Baby Boomers Bring to the Table?

Recent studies conducted by AARP and reports published by The U.S.

General Accounting Office identify the mature employee’s greatest

assets (compared to younger demographics) as:

• Lower absenteeism

• Less likelihood to change jobs

• Superior customer service skills

• More eager to learn new skills

• Punctuality

• Commitment to quality

• Better people skills

• Positive attitude

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What can be done?

• Enhance your Health and Safety program toward ALL

employees

• Re-evaluate work areas/stations and job tasks

• Provide the “new” training to all employees

• Rethink your wellness programs for injury prevention

smoking cessation, weight management, annual health

assessments, fitness coaching, etc.

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Methods of Accommodation

For the following issues:

•Vision

•Hearing

•Cognitive Ability

•Physical Ability

•Slip, Trip and Fall

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Vision

•Adequate lighting including task lighting

•Decrease glare on equipment and video displays

•Video display software adjustments (font/color)

•Magnification for small objects

•Daytime driving

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Hearing

Reduce noise levels including background and high-

frequency noises

Relocate, enclose or replace excessively noisy or loud

equipment

Use sound-absorbing materials when considering

workplace design

Address noise-related complaints

Ensure alarms are audible with visuals (strobe lights)

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Cognitive Ability

•Minimize the complexity of tasks

•Automate certain processes

• Increase time between steps

•Reduce need for multitasking

• Increase decision-making time

•Eliminate clutter on VDT screens & work areas

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Physical Ability

•Adequate material handling equipment to reduce

or eliminate heavy lifts

•Review tasks to reduce back, shoulder and knee

strains

•Tasks should have a comfortable range of motion

•Job rotation to reduce RMDs

•Layout of work environment

•Strength training and balance exercises

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Slip, Trip and Fall

•Assess walkways for uneven surfaces, cracks and

changes in grade

•Slip-resistant footwear, flooring and floor dressing

procedures/products

• Improve stairways and ramps

Handrails, anti-slip treads, correct height,

illumination

•Good housekeeping

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Your Challenge

•Consider the following when deciding on

accommodations:

• Impact of older employees on the Institution

Advantages

• Injuries to older employees that have occurred in

the past

•Tasks and jobs that may increase risk to older

employees

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Remember, We Can No Longer Operate in Silos to

Address Aging Workforce Issues

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Safety Wellness Benefits

1 2 3 4

HR

Risk Mgmt.


“Millennials overtake Baby Boomers as America’s

largest generation”

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Questions?

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Additional References

PMA White Papers

https://www.pmacompanies.com/pdf/MarketingMaterial/PMAWhitePaperPRIMASurvey.pdf

http://www.pmacompanies.com/pdf/MarketingMaterial/PMA_WhitePaper_URMIA.pdf

https://www.pmacompanies.com/pdf/MarketingMaterial/PMAAgingWorkforceWhitePaper.pdf

AARP

http://assets.aarp.org/rgcenter/econ/ib49_health.pdf

BLS

http://www.agingworkforcenews.com/2008/07/us-bureau-of-labor-statistics-spotlight.html

Health Data

http://www.cdc.gov/vitalsigns/AdultObesity/

https://www.cdc.gov/aging/data/pdf/Wisconsin-2015-Cognitive-Infographic-508.pdf

https://www.stateofobesity.org/states/wi/

https://www.stateofobesity.org/files/stateofobesity2017.pdf

Ageonomics

http://www.aon.com/risk-services/ageonomics.jsp#

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https://www.pmacompanies.com/pdf/MarketingMaterial/PMAWhitePaperPRIMASurvey.pdf

http://www.pmacompanies.com/pdf/MarketingMaterial/PMA_WhitePaper_URMIA.pdf

https://www.pmacompanies.com/pdf/MarketingMaterial/PMAAgingWorkforceWhitePaper.pdf

http://assets.aarp.org/rgcenter/econ/ib49_health.pdf

http://www.agingworkforcenews.com/2008/07/us-bureau-of-labor-statistics-spotlight.html

http://www.cdc.gov/vitalsigns/AdultObesity/

https://www.cdc.gov/aging/data/pdf/Wisconsin-2015-Cognitive-Infographic-508.pdf

https://www.stateofobesity.org/states/wi/

https://www.stateofobesity.org/files/stateofobesity2017.pdf

http://www.aon.com/risk-services/ageonomics.jsp

Documents

3/29/2018 - WMC3/29/2018 10 Aon Risk Solutions | Aon Risk Services Central, Inc. Results—All Industries $25,000 $20,000 $15,000 < 25 years 25 to 35 35 to 45 45 to 55 55 to 60