By Donna Motley, Vice President of Claims

When someone tells you they have “good news” and “bad news” – which news do you want to hear first? For me, it depends on what kind of mood I’m in at the moment. As we all know, we are still feeling the aftershock of COVID-19 – and maybe will for a long time to come. One of the negative events was termed “The Great Resignation”. Employees resigned from their employment in record numbers. A large segment of those ending their employment were of, or nearing, retirement age. This resulted in a large loss of “experienced and skilled” employees. This loss of experience has a major impact on the employer, regardless of the industry; industrial, hospitality, construction, trucking, etc. This is bad news for employers.

After two years, The Great Resignation has morphed into “The Great Reshuffle”, meaning a significant number of employees that resigned (or were let go) are now working their way back into the workforce. Some workers returning to the same industry they worked in the past; some workers are attempting new career paths. Reports indicate that in May 2020, 54% of workers 55 and older were either working remotely or unable to work at all (in their particular industry). Today, that figure has decreased to 15%. The U.S. Bureau of Labor Statistics indicates that by year 2030, one in four U.S. workers will be 55 or older. That is the good news!

Senior workers returning to the workforce in a climate desperate for good employees, may mean there is an expectation of increased benefits; higher wages, better fringe benefits, flexible/better work hours, sign on bonuses, etc. When wages increase, premiums increase and Workers’ Compensation wage loss benefits increase as well. Additionally, an employer with an aging workforce must take the employee’s exposure to risk into consideration. Ergonomics should be considered. Proper body mechanics, proper footwear, appropriate PPE, fit for duty testing, education of company policies and procedures should be addressed. Consult with your Loss Control Representative to review your Workers’ Compensation claims history to determine areas that need improvement, changes that could be made.

Included in the Great Reshuffle is a pool of younger prospective employees – maybe seeking employment in your industry for the first time. And that can be a good thing – they are fresh and can learn skills that will create a life-long career. Proper training is essential in these circumstances and cannot be stressed enough, particularly if the employee has never performed the functions required of them at your facility. Statistics reveal workers with less than one year with an employer are 50% more likely to experience a work-related injury.

Obviously, employers do not want to see any of their employees injured. One possible solution would be to have your senior, experienced employees provide one on one training of the younger, inexperienced employees. This would alleviate some of the exposure of injury to the senior employee and assure the new, younger employee is properly trained. Or develop a sort of working partnership, or “team” experience between the two employees. Improper, or lack of training will result in a spike in frequency and severity of work injuries.

Time invested early on, pays off in the long run. Make your company situation a win-win with experienced, long term and safety conscious employees. The result is – IT’S ALL GOOD NEWS!