Return-to-work (RTW) programs have long been recognized as a best practice for effective cost control in businesses. However, in today’s challenging economic climate, even these programs are under scrutiny. As organizations strive to stay competitive and improve efficiency, it’s crucial to assess the value of RTW programs.
At their core, successful RTW programs are built on three key principles that employees who return to work sooner:
- Recover faster
- Return to full-duty jobs sooner
- Improve morale
- Have higher productivity
- Help lower premium rates for employers
To ensure your RTW program is delivering value and optimal results, consider these six benchmarks for success:
1. Speed of Return to Work
The primary goal of any RTW program is to get injured workers back to work before claims become lost-time. Several factors within an employer’s control can influence this including: prompt injury reporting, timely medical treatment and a plan for transitional work.
Effective communication with physicians is crucial. Provide them with detailed information about workers’ responsibilities and available transitional work options to prevent any unnecessary time off.
2. Progress Monitoring
A well-designed RTW policy establishes time frames aligned with medical disability guidelines for an injured employee to gradually return to their pre-injury job duties. It’s essential that all parties — employers, employees and medical providers — understand the employee’s capabilities. While individual recovery rates may vary based on personal factors, the plan should set reasonable expectations guided by the medical provider.
Work assignments must progress, matching tasks with changing abilities and restrictions. Be prepared to address cases that don’t progress as expected, remembering that transitional jobs should typically last no longer than 30-90 days.
3. Supervisor Support
When workforces are lean, supervisors may struggle with the idea of paying an injured worker full salary for modified work. While they might understand the high costs of the alternative — paying both indemnity and medical costs — their focus is often on the immediate task of getting work done.
Supervisors are crucial to the success of RTW programs. They establish functional job descriptions, create alternative duty assignments, ensure work restrictions are followed and monitor progress. Educate supervisors on the high costs of alternatives to help them understand the program’s value.
4. Defining Transitional Jobs
“No transitional work available” is often cited as a reason for eliminating RTW programs. However, in today’s economy, knowledgeable and experienced employees are difficult to replace. Regularly audit available tasks to create meaningful transitional work.
Employees who return to work on modified schedules can help ease the strain on coworkers when given productive responsibilities. Keep the list of transitional jobs dynamic, adapting to shifting workloads and changing company needs.
5. Reducing Litigation
Effective RTW programs can significantly reduce the risk of litigation. Employees who return to work quickly and feel positive about their experience with the company are less likely to seek legal counsel. Well-documented modified job offers can be advantageous if an employee declines the offer and the case is litigated.
6. The High Cost of No RTW Plan
Employers should approach every injured employee off work as being at risk of a costly, extended absence. Without RTW programs, employers face increased claim reserves, higher Experience Modification factors and rising premiums.
These factors can lead to lost bidding opportunities and create a cycle of increasing costs. The long-term expenses of paying both indemnity and medical costs or settling claims often outweigh the perceived short-term savings of eliminating RTW programs.
While the objectives of RTW programs are commendable, they must be well-conceived, well-managed, and integrated into a coordinated risk management program to make economic sense. Regular evaluation is crucial to quantify both short-term and long-term cost savings. As workers’ compensation rates increase and experience rating calculations evolve, employers with high loss experiences will face significant financial consequences. A robust RTW program is an essential tool for managing these risks and maintaining a competitive edge in challenging economic times.
