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Risk Insider: Terri Rhodes

2017 Forecasts for Absence and Disability

By: | January 25, 2017 • 3 min read
Terri L. Rhodes is CEO of the Disability Management Employer Coalition. Terri was an Absence and Disability Management Consultant for Mercer, and also served as Director of Absence and Disability for Health Net and Corporate IDM Program Manager for Abbott Laboratories.

Paid Family Leave

2016 was the year of paid family leave. While the chance of change at the federal level is unlikely, paid family leave remains the top absence and disability management trend of 2017. Work-life balance is especially important to younger employees, while the labor market continues to tighten. Thus, increasing numbers of large employers are offering paid parental leave as a central recruitment and retention strategy. We’ll see more of this in 2017.

Even more important, localities and states continue to pass paid family leave laws. New York City and San Francisco already have such laws. In 2016, California, New York, New Jersey, and Rhode Island were joined by the District of Columbia (D.C.) with paid leave laws. What is especially noteworthy about D.C.’s law is that it is funded by a tax on employers. The millions of dollars in revenue will be used to set up a separate department to administer the paid parental leave law. If this is imitated in other jurisdictions, it could have major ramifications for the “who pays” dimension of paid leave.

Paid Sick Leave

Over the last several years, paid sick leave laws have ranked high as a continued trend in absence management. Five states, 29 cities, two counties, and Washington, D.C. have some form of a paid sick leave law. We believe there are more to come with legislation pending in more than 25 states. Most paid leave laws offer job-protected absences and/or layer on top of other job-protected leaves, which provide a host of administrative issues. The laws themselves often differ in important ways. Those employers operating in a multi-state environment are left with an array of laws and regulations with which to comply. This will be a key issue in 2017.

Outsourcing ADA

Outsourcing absence management has steadily increased over the last several years, with ADA outsourcing now leading the way in growth. Technology has changed the cost equation. According to the 2016 DMEC Employer Leave Management Survey, even employers with fewer than 250 employees are outsourcing. The most common outsourced programs are state and federal FMLA. From FMLA, it is a natural leap to look for help managing ADA obligations. Medical information for documentation is similar for both laws. We will see this outsourcing trend continue in 2017.

Vendor Engagement

Vendor engagement emerged as a trend in 2016 and will come into its own this year with growing implementation of vendor summits.  Summits allow vendors to better learn the needs of employers and capabilities of other vendors. All concerned can step out of silos and look at absence and disability management in a holistic way. This can result in more efficiency and improved services. Summits help move relationships from “vendor” to “partner,” and we anticipate more employers will take this approach.

Workplace Mental Health

2016 witnessed both vendors and employers more focused on finding solutions to growing awareness of workplace mental health issues. At the 2016 DMEC Annual Conference, we dedicated a full-day preconference workshop to workplace mental health topics and discussion. 2017 will see even greater efforts to develop and implement behavioral health strategies. We also hope to see less stigma in mental illness.

Absence Management Professionals

Finally, we will continue to experience professionalization of absence and disability management in 2017. This has been and will continue to be driven by the growth and complexity of leave laws.  Adding value in these circumstances requires continuous learning.  Conferences, seminars, and professional designations like the new Certified Leave Management Specialist (CLMS) program give those in the field the tools to excel.

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The labor market should continue to tighten in 2017. That means richer benefits, increased employee mobility and higher costs for employers. Now more than ever, it is important for absence and disability management professionals to learn and use innovative skills and programs to help lower those costs. For those who do, 2017 should be a year of greater professional and personal rewards.

More from Risk & Insurance

More from Risk & Insurance

2018 Risk All Stars

Stop Mitigating Risk. Start Conquering It Like These 2018 Risk All Stars

The concept of risk mastery and ownership, as displayed by the 2018 Risk All Stars, includes not simply seeking to control outcomes but taking full responsibility for them.
By: | September 14, 2018 • 3 min read

People talk a lot about how risk managers can get a seat at the table. The discussion implies that the risk manager is an outsider, striving to get the ear or the attention of an insider, the CEO or CFO.

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But there are risk managers who go about things in a different way. And the 2018 Risk All Stars are prime examples of that.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Goodyear’s Craig Melnick had only been with the global tire maker a few months when Hurricane Harvey dumped a record amount of rainfall on Houston.

Brilliant communication between Melnick and his new teammates gave him timely and valuable updates on the condition of manufacturing locations. Melnick remained in Akron, mastering the situation by moving inventory out of the storm’s path and making sure remediation crews were lined up ahead of time to give Goodyear its best leg up once the storm passed and the flood waters receded.

Goodyear’s resiliency in the face of the storm gave it credibility when it went to the insurance markets later that year for renewals. And here is where we hear a key phrase, produced by Kevin Garvey, one of Goodyear’s brokers at Aon.

“The markets always appreciate a risk manager who demonstrates ownership,” Garvey said, in what may be something of an understatement.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Dianne Howard, a 2018 Risk All Star and the director of benefits and risk management for the Palm Beach County School District, achieved ownership of $50 million in property storm exposures for the district.

With FEMA saying it wouldn’t pay again for district storm losses it had already paid for, Howard went to the London markets and was successful in getting coverage. She also hammered out a deal in London that would partially reimburse the district if it suffered a mass shooting and needed to demolish a building, like what happened at Sandy Hook in Connecticut.

2018 Risk All Star Jim Cunningham was well-versed enough to know what traditional risk management theories would say when hospitality workers were suffering too many kitchen cuts. “Put a cut-prevention plan in place,” is the traditional wisdom.

But Cunningham, the vice president of risk management for the gaming company Pinnacle Entertainment, wasn’t satisfied with what looked to him like a Band-Aid approach.

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Instead, he used predictive analytics, depending on his own team to assemble company-specific data, to determine which safety measures should be used company wide. The result? Claims frequency at the company dropped 60 percent in the first year of his program.

Alumine Bellone, a 2018 Risk All Star and the vice president of risk management for Ardent Health Services, faced an overwhelming task: Create a uniform risk management program when her hospital group grew from 14 hospitals in three states to 31 hospitals in seven.

Bellone owned the situation by visiting each facility right before the acquisition and again right after, to make sure each caregiving population was ready to integrate into a standardized risk management system.

After consolidating insurance policies, Bellone achieved $893,000 in synergies.

In each of these cases, and in more on the following pages, we see examples of risk managers who weren’t just knocking on the door; they were owning the room. &

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Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, clarity of vision and passion.

See the complete list of 2018 Risk All Stars.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]