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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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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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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Aon Risk Solutions | Aon Risk Services Central, Inc.
Understanding the Issue
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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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
Aon Risk Solutions | Aon Risk Services Central, Inc.
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%
Aon Risk Solutions | Aon Risk Services Central, Inc.
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%
Rank among states 38/51
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%
Rank among states 23/51
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
Data Reveals Significant Cost Differences
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73% Higher
Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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Aon Risk Solutions | Aon Risk Services Central, Inc.
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.
Aon Risk Solutions | Aon Risk Services Central, Inc.
“Millennials overtake Baby Boomers as America’s
largest generation”
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Questions?
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Aon Risk Solutions | Aon Risk Services Central, Inc.
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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