Column: Risk Management

Rumor Control

By: | June 2, 2014 • 3 min read
Joanna Makomaski is a specialist in innovative enterprise risk management methods and implementation techniques. She can be reached at [email protected]

We all played the game as children — we called it “Broken Telephone.” Children would sit in a circle and someone would whisper a phrase into their neighbor’s ear as quietly as possible. Each neighbor would pass on what they heard until the phrase returned to the message originator.

There were no winners. The game was for sheer amusement when you heard the final, usually unrecognizable message. This game was to teach us how easily information can get corrupted if we’re not careful.

Advertisement




So why is it that many decades later, I often feel I am once again sitting in a circle, this time a much larger corporate circle, listening to what someone said somewhere about something, then passing it on as though it were true?

Did we learn nothing?

Based on what I have experienced, it feels we at times give too much credence to rumors spread around corporate offices.

In fact, it is not that uncommon to witness disciplinary action taken on an employee solely based on information spun in an office rumor mill.

Do rumors pose a corporate risk? Consider a common rumor — that of a pending “corporate restructuring.” We have all sat in that rumor circle at one point. The degree of anxiety and insecurity that runs rampant through an organization with that rumor is astonishing. And sadly it can quickly harm productivity, morale and ultimately profitability.

Exacerbating things is the amplification power provided by our social media and communication tools.

Gossipers no longer have to limit their sharing to just their immediate neighbor. They now have the exponential power to broadcast information to hundreds and thousands of people whether their story is true or untrue.

In fact, the fear of this risk pushed the Chinese government last year to institute harsh new measures aimed at thwarting the spread of online rumors by threatening three year jail sentences if posted rumors were proven untrue. People could be charged with defamation if their online rumors are reposted more than 500 times or visited by 5,000 Internet users.

Short of jailing our employees, should companies try to proactively manage their rumor mill? Should they manage the potentially damaging effects of rumors before they get out of control? In effect, should companies have a rumor risk management strategy?

Some common guiding principles for rumor risk management strategy include trying to keep employees informed as much as a possible — true and timely information is key.

We should try to avoid vague corporate speak or double talk as much as possible. Don’t let employees fill in the blanks for you. It is likely the blanks started the rumor in the first place.

Advertisement




Create mechanisms that allow employees to be linked with a source of truth. Call it a rumor control center. We know that “mystery leads the mind to dark places” so it is best they have a place to go to alleviate their anxiety.

As management, if you yourself hear a rumor, nip it in the bud. Break the chain and kill the game of broken telephone. Use it to your advantage if need be. Send correct messages into the circuit. But do act quickly, as rumors become stronger and more difficult to stop over time and can become accepted as truth.

Lastly, don’t forget to do a post mortem. Try to get at the root of the rumor and manage the situation better going forward.

Read more of Joanna Makomaski’s columns on risk management.

More from Risk & Insurance

More from Risk & Insurance

4 Companies That Rocked It by Treating Injured Workers as Equals; Not Adversaries

The 2018 Teddy Award winners built their programs around people, not claims, and offer proof that a worker-centric approach is a smarter way to operate.
By: | October 30, 2018 • 3 min read

Across the workers’ compensation industry, the concept of a worker advocacy model has been around for a while, but has only seen notable adoption in recent years.

Even among those not adopting a formal advocacy approach, mindsets are shifting. Formerly claims-centric programs are becoming worker-centric and it’s a win all around: better outcomes; greater productivity; safer, healthier employees and a stronger bottom line.

Advertisement




That’s what you’ll see in this month’s issue of Risk & Insurance® when you read the profiles of the four recipients of the 2018 Theodore Roosevelt Workers’ Compensation and Disability Management Award, sponsored by PMA Companies. These four programs put workers front and center in everything they do.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top,” said Steve Legg, director of risk management for Starbucks.

Starbucks put claims reporting in the hands of its partners, an exemplary act of trust. The coffee company also put itself in workers’ shoes to identify and remove points of friction.

That led to a call center run by Starbucks’ TPA and a dedicated telephonic case management team so that partners can speak to a live person without the frustration of ‘phone tag’ and unanswered questions.

“We were focused on building up a program with an eye on our partner experience. Cost was at the bottom of the list. Doing a better job by our partners was at the top.” — Steve Legg, director of risk management, Starbucks

Starbucks also implemented direct deposit for lost-time pay, eliminating stressful wait times for injured partners, and allowing them to focus on healing.

For Starbucks, as for all of the 2018 Teddy Award winners, the approach is netting measurable results. With higher partner satisfaction, it has seen a 50 percent decrease in litigation.

Teddy winner Main Line Health (MLH) adopted worker advocacy in a way that goes far beyond claims.

Employees who identify and report safety hazards can take credit for their actions by sending out a formal “Employee Safety Message” to nearly 11,000 mailboxes across the organization.

“The recognition is pretty cool,” said Steve Besack, system director, claims management and workers’ compensation for the health system.

MLH also takes a non-adversarial approach to workers with repeat injuries, seeing them as a resource for identifying areas of improvement.

“When you look at ‘repeat offenders’ in an unconventional way, they’re a great asset to the program, not a liability,” said Mike Miller, manager, workers’ compensation and employee safety for MLH.

Teddy winner Monmouth County, N.J. utilizes high-tech motion capture technology to reduce the chance of placing new hires in jobs that are likely to hurt them.

Monmouth County also adopted numerous wellness initiatives that help workers manage their weight and improve their wellbeing overall.

“You should see the looks on their faces when their cholesterol is down, they’ve lost weight and their blood sugar is better. We’ve had people lose 30 and 40 pounds,” said William McGuane, the county’s manager of benefits and workers’ compensation.

Advertisement




Do these sound like minor program elements? The math says otherwise: Claims severity has plunged from $5.5 million in 2009 to $1.3 million in 2017.

At the University of Pennsylvania, putting workers first means getting out from behind the desk and finding out what each one of them is tasked with, day in, day out — and looking for ways to make each of those tasks safer.

Regular observations across the sprawling campus have resulted in a phenomenal number of process and equipment changes that seem simple on their own, but in combination have created a substantially safer, healthier campus and improved employee morale.

UPenn’s workers’ comp costs, in the seven-digit figures in 2009, have been virtually cut in half.

Risk & Insurance® is proud to honor the work of these four organizations. We hope their stories inspire other organizations to be true partners with the employees they depend on. &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]