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Helping to Reduce the Sting of Absenteeism for Small Businesses

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Helping to Reduce the Sting of Absenteeism for Small Businesses Group Benefits Helping to reduce the sting of absenteeism for small businesses The indirect costs of poor health including absenteeism, disability, or reduced work output may be several times higher than direct medical costs.1 Absenteeism is a challenge for many 2. Potential for a costly ADA lawsuit businesses, but small companies can be Under the Americans with Disabilities Act particularly vulnerable. That’s because smaller Amendments Act (ADAAA), employers firms have a limited pool of workers, making it must apply a consistent process to evaluate harder to cover an employee who’s absent – or each employee’s request for a disability simply not working at full capacity. accommodation.2 The Act further mandates Extended absences may put small companies that each reasonable accommodation at even greater risk. The costs associated determination be based on the individual with compensation and lost productivity can employee’s circumstances. have a significant financial impact on smaller For small companies, this can be a challenge: companies. • It poses administrative demands that Three big challenges that unplanned smaller organizations may not be able to absences introduce accommodate • Employers who lack adequate training 1. Mounting day-to-day costs in Americans with Disabilities Act (ADA) Absenteeism can be a significant financial compliance are at greater risk for litigation drain, resulting in: • Just one lawsuit can devastate a small • Compensation for temporary workers business • Overtime wages • Lost productivity • Compensation to absent employees • Reduced employee morale continued Group Benefits 3. Limited absence management resources Despite the negative impact of unplanned absences, many companies don’t have an effective absence management program in place. Small businesses often lack the appropriate resources, including human resource personnel, to manage accommodation requests and make fully researched accommodation decisions. Solution: Outsource a return-to-work program A return-to-work program is one of the most effective ways to help increase productivity and reduce the impact of extended employee absences. For smaller organizations, outsourcing this process can be a cost-saver in the long run. Help with the gamut of absences. Absences don’t all happen for the same reason. Some are occupational. Some aren’t. For help with both, small businesses should look for an organization that can handle it all. And offer a range of capabilities, including the tools to address and implement stay-at-work, return-to-work and/or job modifications. When businesses actively partner with an employee benefit provider, such as The Hartford, they’re better positioned to help: • Reduce unplanned and extended absences • Ensure a quicker return to work for employees • Minimize ADA compliance risk and potential litigation • Maintain operational productivity during an employee’s absence Look for an integrated solution. Outsourcing to a company that handles both occupational and non-occupational disability cases can help smaller companies achieve economies of scale in reducing costs. “ Applying the same loss prevention strategies for early return to work to both occupational and non-occupational cases, provides greater procedural consistency and cost savings.” – Terri L. Rhodes, CPDM, CCMP, Manager of Education Programs DISABILITY MANAGEMENT EMPLOYER COALITION3 continued Group Benefits A Hartford case study Joe is a 45-year-old furniture delivery driver. He was employed as a truck driver for a local furniture store. His job required him to drive a truck and deliver furniture to customers’ homes. After he fractured his leg in a motorcycle accident, Joe was put in a full leg cast, disabling him for at least 12 weeks: No driving. No heavy lifting. But Joe quickly became bored and expressed his desire to work. His supervisor and The Hartford’s Return-to-Work Coordinator consulted with his physician and agreed to an interim office position scheduling furniture deliveries with customers. A solution under $300. Joe’s supervisor worked with The Hartford’s Group Benefits Claims staff to evaluate potential work options and conduct a workplace assessment, which recommended a special ergonomic chair to help Joe sit comfortably. The cost of the accommodation was less than $300. By returning Joe to work more quickly, his company reduced disability compensation costs, increased productivity and boosted employee morale.4 “ Having an employee out on extended absence can be costly for both the individual and the employer. Getting a claimant back to work sooner – either in a transitional or modified role – can have a significant effect on a company’s bottom line as well as on the employee’s financial well being.” – DonatoMonaco, Vice President SMALL BUSINESS, THE HARTFORD Helping small businesses prevail To learn more about The Hartford’s small business products and services, visit www.thehartford.com/group-benefits-producers/small-business. The Hartford does not provide legal advice related to ADA compliance. The information contained herein is not to be construed as legal advice and is informational only. For legal advice, please contact the counsel of your choice. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including its administrative services company, Hartford Comprehensive Employee Benefit Service and issuing companies Hartford Life Insurance Company and Hartford Life and Accident Insurance Company. Fully-underwritten policies sold in New York are underwritten by Hartford Life Insurance Company. Home office is Simsbury, CT. 1 Centers for Disease Control and Prevention (CDC), April 25, 2011. http://www.cdc.gov/workplacehealthpromotion/businesscase/reasons/productivity.html, viewed on 11/20/12. 2 See ADAAA accommodation-related articles on The Hartford’s website under Group Benefits/Absence Management (http://thehartford.com/employee-group-benefits/absence-insights). 3 May 2013. 4 This example is for illustration purposes only. 4882 NS 07/13 © 2013 The Hartford Financial Services Group, Inc. All rights reserved..
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