TIP OF THE WEEK

October 31, 2008

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Experts Say Aging Workforce Presents Challenges, Opportunities

Dealing with older workers – and how they may affect workers’ compensation claims – has already been attracting the attention of the insurance industry, and experts say current economic conditions will only intensify that interest.

The federal Bureau of Labor Statistics reports that between 1977 and 2007, employment of workers 65 and over increased 101%, compared to a 59% increase for total employment.  Data further shows that the total labor force is projected to increase by 8.5% during the period 2006-2016, but when analyzed by age categories, very different trends emerge.  The number of workers in the youngest group, ages 16 to 24, is projected to decline during the period while the number of workers age 25 to 54 will rise only slightly.  In sharp contrast, workers age 55 to 64 are expected to climb by 36.5%.  But the most dramatic growth is projected for the two oldest groups.  The number of workers between the ages of 65 and 74 and those age 75 and up is predicted to soar by more than 80%.  By 2016, workers age 65 and over are expected to account for 6.1% of the total labor force, up sharply from their 2006 share of 3.6%.

While older workers are generally safer than their younger counterparts, when injured the cost of an injury is double for any employee over age 40, and the severity of the injury is much higher due to age-related factors.

While older workers have a lower rate of injury (lower claims frequency for older workers is well-documented in the workers' comp industry), their claims tend to be more costly.  Experts say employers can take steps to cope with that problem and retain experienced and productive workers.

Advancing age affects the musculoskeletal system in a number of ways.  While variable depending on an individual’s activities and conditioning, there is generally a loss of lean muscle mass with the aging process starting in the 40’s.  This reduction in muscle mass is also associated with a reduction in flexibility and strength, leaving the individual with reduced range of motion and increased risk for injury.  There is also reduction of bone density, particularly in the sedentary individual.  Lastly, the joints typically develop increased stiffness or develop arthritic changes, ligaments and tendons may show thinning, and discs become degenerative in nature.  All these changes tend to reduce the total physical capacity of the individual, reduce the ability to perform heavy tasks, and increase the likelihood of injury from cumulative events or a sudden episodic event.  Ergonomic principles should be implemented to try to reduce the risk of over exertion type injuries such as tendon tears, awkward postures that may cause increased stress to certain body parts, and injuries that may aggravate pre-existing or naturally deteriorating conditions such as arthritis of the knee, degenerative changes in the rotator cuff, or degenerative disc disease.

These age-related factors include a large prevalence of shoulder-related injuries in workers over 45.  These claims often are bilateral and very expensive because of the extensive rehabilitation needed post-operatively to regain range of motion and strength. 

The same injuries, diseases, and degenerative changes that affect the musculoskeletal system can cause instability of the back.  The ligaments and neuromuscular components of the spinal column can become so weak that they are unable to hold the spinal column in normal range of motion.  The more mobile the segments of the spinal column are, the less stable the spinal column becomes.  Causes of instability include obesity, poor posture, fatigue or overexertion, lack of exercise, poor nutrition and smoking.  Prevention of back injuries includes:  losing weight; maintaining good posture (while doing all activities – sitting, standing, lifting, etc.); regular exercise including stretching and strength training; good nutrition; and reducing poor health habits such as smoking. 

Training employees to do their jobs “in a more healthy fashion” will reduce the possibility of injury and relieve the stress and discomfort many employees experience.  Older workers have range of motion issues from years of work and aging.  If you can relieve the physical stress, in many cases there’s immediate relief … and they realize that there is a better way to do their work.

In 2006, the National Conference on Compensation Insurance (NCCI) reported that Bureau of Labor Statistics data showed workers ages 20 to 24 had a nonfatal illness and injury rate of 0.21 from 1994 to 2002, while workers 55 to 64 had an injury rate of 0.11.  However, indemnity and medical costs for workers ages 20 to 24 averaged $12,241 per claim from 1996 to 2003, while per-claim costs for workers 55 to 64 averaged $27,491.  It has been estimated that 45% of the difference in indemnity severity is explained by the higher wages earned by older workers.  Claims duration is another factor.  After 60 months from the date of injury, claims closed an average of 403 days for workers ages 20 to 34, but 529 days for workers ages 45 to 64.  Taken together, higher indemnity and longer duration explain 88% of the difference in severity.  More research is needed to explain the remaining 12% difference.

Companies can use training to keep the experience and productivity provided by older workers while also lessening the chance of injury to those workers. 

Most employers will need to deal with an older work force soon.  The U.S. Labor Department's Bureau of Labor Statistics reports that the “graying of the workforce” is expected to continue for years to come.  And with the baby boom generation about to start joining the ranks of those age 65 and over, “the graying of the American workforce is only just beginning.” Some of the issues employers may encounter with the older work force include controlling workers’ compensation costs, accommodating workers who may have return-to-work restrictions, and prevention of work-related injuries.  How you adjust to the needs of the aging worker will have an impact on worker productivity, workers’ compensation costs, and the bottom line.

The older worker has much to contribute to the employer including:  a better ability to deliberate, reason, comprehend; better verbal command; higher motivation to learn; stronger commitment to work; greater work experience; and more faithful to employer.  Older working adults can be very productive in the workplace when safety precautions are taken.  Recognizing potential problems, choosing solutions and setting goals for prevention are keys to keeping the aging worker healthy and productive in the workplace.  Prevention programs can help identify concerns before they become problems and provide education for better working environments for the worker of any age.

To learn more about preventive health care programs OHS-COMPCARE has to offer please contact our Client Services Team at 816-561-2105 (option 1) or customerservice@ohscompcare.com.

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*Please feel free to forward this information to any member of management in your company who would benefit from it.*

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