Ageing workforce management and workers’ compensation are linked, due to the risk of injuries and claims rising with age. Self managing workers’ compensation can lead to bottom line savings through reduced premium costs, which can be reinvested into managing your mature workforce. This will ensure your workers’ compensation costs remain low and staff welfare remains high.

Demands to prolong working life and increase productivity are under discussion in Australian policy; hence designing for an ageing workforce is a critical workplace issue. Millions of dollars have been wasted by employers over the years as a result of not sustaining the performance of their people once they begin working, despite the impact that people have on efficiency. Rather than considering people as assets to be preserved, often they are, in effect, treated as liabilities – frequently being replaced with business critical knowledge and skills for no reason other than length of service.

Work Ability is the balance between work demands and personal resources. Maintaining and improving Work Ability has been used as a way of solving the problems associated with an ageing workforce. Work Ability Index (WAI) can be applied in Australian workplaces to promote productivity in an ageing workforce and maintain quality of working life. The WAI provides a basis for measuring the changes individuals undergo in their life course with age as well as changes in work demands.

St George Bank has successfully integrated the WorkAbility concept into their business objectives and corporate culture and created a contemporary approach to health and wellbeing within the workplace.

As Section 195 states: An employer must, to the extent that it is reasonable to do so, plan the return to work of a worker from the date on which the employer knows or ought reasonably to have known of the worker’s incapacity for work, whichever is the earlier date.

It is considered reasonable to plan the return to work of a worker when an employer believes that with the appropriate supports in place, the worker could return to work in some capacity. In almost every case, a worker can return to work in some capacity, regardless of the injury – a worker does not need to be 100% recovered to return to work.

In an ideal situation, employers would be aware of and address a worker’s incapacity for work before the worker ceases work and before a WorkCover claim form is lodged. This requires employers to be aware of pre-existing injuries / illnesses and the current health status of their staff, to actively monitor the health of their staff, to look for early warning signs of injury / illness and to be aware of factors outside of work that may potentially impact a worker’s ability to work. When employers become aware of an injury / illness / issue that may impact a worker’s ability to work, employers need to act fast and implement appropriate measures to support the worker remain at work, or return to work.

All P2 Group clients arrange assessments of capacity as the first step in assisting their workers return to work. This is critical to enabling employers to take control of the return to work process, the results of which feed into P2 Group’s unique strategic case management process and assist our clients to achieve the following results:

• Gain control of all WorkCover cases:
How? The employers request the services of P2 Group Occupational Therapists to meet with their workers and conduct functional capacity evaluations. The P2 Group Occupational Therapists will identify capacity and work with managers and line managers to develop a pathway for the worker to return to work in a timely manner as part of the active recovery process.

• Reduce claims costs and achieve significant savings in WorkCover premiums:
How? The employers move quickly to engage P2 Group Occupational Therapists directly and fund the services through their early intervention programs. Less costs, better outcome and improved workforce culture.

• Move fast:
How? The employers and the workers do not lose time waiting for approvals from their WorkCover insurance agents. The employers move fast and stay in control from the start. This results in most WorkCover claims being lodged as minor claims that do not impact WorkCover premiums.

• Reduce WorkCover claims and improve workplace culture:
How? Over time as employers continue to assess workers with injuries and early signs of conditions, the line of communication opens between managers and their workers, which generates a positive workforce culture. As workers learn that they will be supported with their health and well-being through early intervention programs, they inform their managers of aches and pains early instead of automatically lodging WorkCover claims.

Peter Hanks’ amendment to Section 195 now legally binds employers to plan the return to work of a worker. It enables employers to take control of providing sustainable and effective return to work, benefiting the employer, the worker and the organisation as a whole.  Contact an Occupational Therapist at P2 Group on (03) 9818 8914 for more information.

You will now have a good idea of what your remuneration will most likely be for this financial year. If you forecast an increase greater than 20% in your remuneration for the 2010/11 year, compared to the remuneration you estimated at the beginning of the financial year, you must provide your WorkCover Agent with a revised estimate in writing immediately. If you fail to do so, you may be penalised up to 100% of the premium difference.

Consider if there have been any unplanned activities this financial year that could result in an increase in remuneration, for example business acquisitions, increases in staff numbers due to a growing industry or increases in superannuation payments. Also consider if all your active workplaces are registered on your WorkCover policy and inform your WorkCover Agent if any worksites were registered or ceased this financial year.

Click here to be directed to WorkSafe Victoria for more information regarding rateable remuneration.

It is also good practice to advise your WorkCover Agent if your actual remuneration during the policy period will be significantly less than the remuneration you estimated at the beginning of the financial year. Your future premium installments can then be adjusted in line with the reduced remuneration.

Please do not hesitate to contact James Kydas or Paul Marsh at P2 Group (03) 9818 8914 if you have any queries or require assistance with this matter.

Part 1 – Juhani Ilmarinen – An Introduction to the Work Ability Concept

Part 2 – Paul Marsh – The Ageing Workforce and Workers’ Compensation

Part 3 – Louise Rolland – Work Ability in the Australian Context

Seminar Overview
Ageing workforce management and workers’ compensation are linked, due to the risk of injuries and claims rising with age. Self managing workers’ compensation can lead to bottom line savings through reduced premium costs, which can be reinvested into managing your mature workforce. This will ensure your workers’ compensation costs remain low and staff welfare remains high.  Demands to prolong working life and increase productivity are under discussion in Australian policy; hence designing for an ageing workforce is a critical workplace issue. Millions of dollars have been wasted by employers over the years as a result of not sustaining the performance of their people once they begin working, despite the impact that people have on efficiency.

Rather than considering people as assets to be preserved, often they are, in effect, treated as liabilities – frequently being replaced with business critical knowledge and skills for no reason other than length of service.

Work Ability, which is the balance between work demands and personal resources, has underpinned the framework for Finnish Institute of Occupational Health services for close to three decades. Maintaining and improving Work Ability has been used as a way of solving the problems associated with an ageing workforce.

This seminar outlined how the Work Ability Index (WAI) can be applied in Australian workplaces to promote productivity in an ageing workforce and maintain quality of working life. The WAI provides a basis for measuring the changes individuals undergo in their life course with age as well as changes in work demands.

About the Presenters
Professor Juhani Ilmarinen is well known and highly regarded both in Finland and worldwide for his research, development and pioneering in ageing and the quality of working life. Under Juhani’s leadership the Work Ability concept and method called Work Ability Index (WAI) was developed at the Finnish Institute of Occupational Health (FIOH). He is the chair of Ageing committee of the International Ergonomics Association (IEA) and Secretary of Ageing and Work Scientific Committee of The International Commission on Occupational Health (ICOH).

After retirement from the Finnish Institute of Occupational Health (FIOH) in the beginning of 2009, after 35 years of service, Professor Juhani Ilmarinen established JIC Ltd. The on-going mission of the company worldwide is to implement an evidence-based model for work ability and to promote the status of all generations with respect to the concepts of age management, work ability, and the life course.

Professor Ilmarinen has more than 500 publications on occupational health, work physiology, work ability, and ageing. He has published 8 books, e.g., a handbook on age management called Towards a Longer Work Life in 2006. In November 2008, the First National Prize for Innovative Practices in Employment and Social Policy was awarded to Professor Ilmarinen.

Louise Rolland – Ernst & Young Advisory Services, has spent the last 10 years investigating the impacts of labour market trends including, demographic change and globalising labour markets on Australian business. Before joining Ernst & Young, Louise established and led the Business Work & Ageing (BWA) Centre for Research at Swinburne University of Technology and the broader business services, public policy and advocacy work of BWA. In the position of Professor, Work & Ageing, she led national and international research projects and worked closely with a number of firms both in Australia and internationally on demographic challenges.

With a robust understanding and experience of workforce planning and talent management Louise has worked closely with government and the private sector to apply diagnostic and strategic approaches to complex workforce challenges. She has recently led workforce diagnostic projects for the Departments of Defence, BHP Billiton and the banking sector.

Paul Marsh is a Director of P2 Group, Senior Occupational Therapist and Ergonomist. He has over 10 years experience in providing injury management, injury prevention (including early intervention), ergonomic assessments and training, case management, functional capacity evaluations, workplace assessments, manual handling assessments and training and defining inherent requirements of tasks. Paul’s professional experience and interests include workplace rehabilitation with a particular emphasis on Injury Prevention and Early Intervention. He has particular expertise in resolving complex high-costing cases.

Paul has a Bachelor of Occupational Therapy, is a member of the Australian Association of Occupational Therapists and Human Factors and Ergonomics Society of Australia. Paul is currently convening the Occupational Rehabilitation Specialist Interest Group, through OT Australia (Victoria). Paul recently worked with Professor Juhani Ilmarinen during the 6th International Course in Age management in Finland.

Contact P2 Group on (03) 9818 8914 for more information.

Section 202 of the recently updated Victorian Accident Compensation Act states ‘ A worker who has an incapacity for work must, when requested to do so by the employer … , actively participate and co-operate in any assessment of:
a) capacity for work
b) rehabilitation progress
c) future employment prospects’

All too often a worker’s treating doctor will exert too much control within the return to work process. P2 Group Occupational Therapists can assess a worker’s physical, cognitive and psychological health with a strong focus on capacity and what a worker can do as opposed to identifying incapacity. This documented capacity can then be discussed with a worker’s treating doctor to assist in facilitating a return to work. Keeping in mind P2 Group Occupational Therapist’s are specifically trained to obtain knowledge of the employer’s worksites and their operational requirements, which are incorporated with the worker’s needs to reach positive outcomes that are good for the employer and the worker.

All P2 Group clients arrange assessments of capacity as the first step in assisting their workers return to work. This is critical to employers controlling the return to work process, the results of which feed into P2 Group’s unique strategic case management process and assist our clients to achieve the following results:

• Gain control of all WorkCover cases:
How? The employers request the services of P2 Group Occupational Therapists to meet with their workers and conduct functional capacity evaluations. The P2 Group Occupational Therapists will identify capacity and work with managers and line managers to develop a pathway for the worker to return to work in a timely manner as part of the active recovery process.

• Reduce claims costs and achieve significant savings in WorkCover premiums:
How? The employers move quickly to engage P2 Group Occupational Therapists directly and fund the services through their early intervention programs. Less costs, better outcome and improved workforce culture.

• Move fast:
How? The employers and the workers do not lose time waiting for approvals from their WorkCover insurance agents. The employers move fast and stay in control from the start. This results in most WorkCover claims being lodged as minor claims that do not impact WorkCover premiums.

• Reduce WorkCover claims and improve workplace culture:
How? Over time as employers continue to assess workers with injuries and early signs of conditions, the line of communication opens between managers and their workers, which generates a positive workforce culture. As workers learn that they will be supported with their health and well-being through early intervention programs, they inform their managers of aches and pains early instead of automatically lodging WorkCover claims.

In addition to the above, employers also have increased return to work obligations. Section 195 of the recently updated Victorian Accident Compensation Act states -
‘An employer must, to the extent that is reasonable to do so, plan the return to work of a worker from the date on which the employer knows or ought reasonably to have known of the workers incapacity for work.’

What is important to note here is this incapacity may be identified prior to the lodgement of a WorkCover claim. So what do employers do then? Simple, arrange a functional capacity evaluation with a P2 Group Occupational Therapist and proceed down an early intervention path. Want to know more about early intervention? Contact an Occupational Therapist at P2 Group on (03) 9818 8914 for more information.

Workplace stigma and traditional beliefs in regards to the WorkCover system have previously rendered employers feeling powerless and confused. Yet leaving incidences and claims lying dormant would further put them at immense risks of financial cost due to increased premiums and productivity loss, causing adverse impacts for employers and their workplace.

It is important that when becoming aware of a workplace incident or early signs of a health condition that employer needs to move fast and effectively to stay in control of the return to work process, enabling a quick return to work for the worker.

For this to happen, it is crucial that the worker be assessed promptly so the Return to Work process can commence early rather than waiting for approval from WorkCover insurance agents. Employers are encouraged to arrange an assessment of the worker’s functional capacity and marry this to the demands of their duties. A P2 Group Occupational Therapist can assist with these assessments. Acting promptly would improve the chances of a claim being lodged as a minor claim, which will not increase your WorkCover premiums. Employers are also able to avoid further service costs such as rehabilitation providers, unnecessary independent medical examinations and time off work that impacts WorkCover premiums.

With employers proactively demonstrating interest in their workers’ health and providing support through line managers and P2 Group Occupational Therapists, a positive workplace culture and attitude will be created. Workers will appreciate the constructive support, opening lines of two-way communication, creating a positive work place environment. Within such encouraging settings, workers become more confident in expressing their issues of concerns to their supervisors/managers, without the need to lodge a WorkCover claim. This promotes workers to take proactive roles in the workplace, suggesting ways in which to improve workplace procedures and settings. Evidence indicates that a positive and supportive work environment not only leads to a reduction of the amount of claims and incidences but also increases worker productivity considerably.

Through implementing an early return to work program, managing incidences early and effectively, and taking control of the process, employers will be able to assist treating practitioners and WorkCover insurance agents in their facilitation of the return to work process in a timely manner. The positive effects on productivity and savings from reduced WorkCover premiums could be used to fund OHS initiatives and training and support for managers to aid staff welfare through proven early intervention processes.

Are you paying too much? Would you like to reduce your WorkCover premium by 50% in the next 1-2 years? If you are ready to embrace change contact James Kydas or Paul Marsh at P2 Group on (03) 9818 8914.

Paul Marsh with Juhani Ilmarinen. Finland, September 2010

The topic of the ageing workforce is one of the most significant challenges facing organisations today.  Paul Marsh, Principal of P2 Group, recently returned from Finland where he attended the 6th International Course on ‘Age Management’ under the expert guidance of Professor Juhani Ilmarinen – the world’s leading researcher into this topic.

Millions of dollars have been wasted by employers over the years as a result of not sustaining the performance of their people once they begin working, despite the impact that people have on efficiency.  Rather than considering people as assets to be preserved, often they are, in effect, treated as liabilities – frequently being replaced with business critical knowledge and skills for no reason other than length of service.  One course of action is to implement a “maintenance schedule” for human assets, in much the same fashion as we would for machine assets such as hoists, mechanical aids etc.  By being proactive rather than reactive if we contribute to the ‘maintenance’ of a person’s functional capacity, we are preserving both our people and our knowledge and are able to identify – and eliminate or minimise – the root cause(s) of physical and mental health conditions in people.

The Work Ability approach was developed by the Finnish Institute for Occupational Health.  Work Ability is a holistic concept that ensures an appropriate match between individuals’ functional capacities and competencies and the demands of their work and work environment.  A comprehensive program of promoting Work Ability can improve both organisational productivity and individual worker’s wellbeing and is an important contributor to the extension of working life by decreasing work related disability and premature retirement.

By merging P2 Group’s leading edge Worklife Continuance Program i.e. the human maintenance schedule, with the Work Ability Model, employers are provided with real world tangible solutions to extend the working life of employees whilst improving their health and well being – extremely important in this current environment of skill shortages, low unemployment and the inability to attract younger workers.

Contact Paul Marsh at P2 Group on (03) 9818 8914 for more information.