14 Oct Maximizing Recovery and Reducing Costs: The Critical Role of Return-to-Work Programs for Employers and Employees

Return-to-work (RTW) programs are intended to help support employees as they reintegrate back into the workforce after experiencing occupational illnesses or injuries. These programs may entail having injured employees return to work with shortened hours, lighter workloads or different tasks (also known as transitional duties) while they recover.

RTW programs offer several benefits, enabling employers to keep workers’ compensation costs under control and allowing injured employees to resume working even when they aren’t ready to take on their original job duties.

This article outlines the reasons a Return-to-Work Program is so beneficial to employers and employees and important steps to take to implement a Return-to-Work program.

ILLNESS AND INJURY STATISTICS

Why is an RTW program important?

According to the Bureau of Labor Statistics (BLS), approximately 2.8 million employees experience work-related injuries or illnesses in the United States each year.  Almost 1.2 million people have lost workdays as a result of their injuries or illnesses. According to the BLS, the average time away from work per injury was ten days.  However, employees who are off work for more than 16 consecutive weeks rarely return to work at all.

COMPONENTS OF A RETURN-TO-WORK PROGRAM

• Develop a formal company policy.
  • Include written functional job descriptions for each job in the company.
  • Ensure the policy is communicated to and understood by employees.

• Identify an RTW coordinator.
  • Designate a responsible person in your organization to oversee the program

• Perform job assessments to understand the physical output of each job.
  • Have someone who is skilled to perform this (occupational therapist).

• Clearly define light-duty or modified-duty options.
  • Create a job bank so that duties can be tailored to employees’ individual needs based on injury when they can return to work.

• Facilitate communication between all parties.
• Ensure there is evaluation and documentation.

DEVELOP A FORMAL RTW PLAN

• Develop a written policy.
  • Policy should be approved/supported by upper management.
• Ensure supervisor and employee understanding of the policy.
  • RTW training should be completed with supervisors and employees, new and existing.
  • Training should be reviewed annually and anytime a change to the program has occurred.
  • New employees will be introduced to the program during orientation.
  • Obtain employee sign-off—their agreement to follow program in event of an injury—each time after training.
• Make sure the program is consistent in following processes.
  •  Make sure all employees are treated the same through the RTW process.
  • This will help prevent any accusations of unfair treatment or discrimination.
• Provide employees with an overview of expectations and always follow through on them.
• Always keep open communication with employees during the RTW process.
• Document all conversations and meetings with the employee to have notes to look back on.
• The RTW coordinator should take a proactive approach to a RTW program.

THE ROLE OF THE RTW PROGRAM ARE AS FOLLOWS:

• Facilitate the RTW process.
• Establish primary contact with medical providers.
• Maintain a modified-duty job bank.
• Clarify work restrictions.
• Ensure all parties understand their roles.
• Monitor experience and progress.
• Ensure recovery is progressing toward full-duty work.
• Keep top management informed of successes and problems.

• RTW coordinators should designate medical providers to suggest to injured employees. To do this, RTW coordinators should:
  • Identify qualified occupational medicine facilities and establish rapport.
  • Invite physicians to tour facilities to understand the physical and environmental demands of the job.
  • Provide physicians with detailed job descriptions, modified and transitional work descriptions, and any paperwork needed during an employee’s return to work.
  • Establish expectations of accommodating restrictions and long-term goals.
  • Establish main contacts at medical facilities.

EMPLOYEE BENEFITS OF A RTW PROGRAM

• Maintain employees’ productive mindset
• Reduces employees’ financial challenges
• Keeps employees more connected to the workplace
• Reinforces management’s commitment to employees’ well-being
• Prevents employees from becoming dependent on a disability system
• Provides a sense of security and stability for employees

EMPLOYER BENEFITS OF A RTW PROGRAM

• Provides proactive approach for cost containment
• Discourages false claim abuse
• Increases retention of employees
• Boosts employee productivity
• Enhances employees’ self-worth
• Improves employee morale
• Reduces financial impact
• Places experienced employees back on the premises (less time/money spent on recruiting and hiring)

HIDDEN COSTS OF WORKERS’ COMPENSATION CLAIMS

According to OSHA, both direct and indirect claims have a substantial impact on employers and their bottom line.

Direct Costs

• Medical payments
• Employee wage payments
• Rehabilitation
• Death benefits
• Death/dependency fees
• Legal fees

Indirect Costs

• Increased hours for supervisors
• Insurance premiums
• Overtime for HR support
• Claim investigation
• Hazard mitigation
• Extended deadlines and lost time
• Training or retraining other employees to fill in for the injured employee
• Increased overhead
• Harm to reputation and employee morale
• Lost productivity
• Repair of property and equipment
• OSHA fines

Hidden Costs:  Indirect Costs

Indirect Costs Affect Profitability

• For example: According to OSHA, the estimated indirect cost of an amputation that an employer would have to pay at a 3% profit margin would be $105,603.
• Sales to cover indirect costs would be approximately $3.5 million.

IN SUMMARY

Return to work programs offer a comprehensive solution for managing workplace injuries that benefits both employees and employers. By encouraging injured employees to return to work in a modified or temporary capacity, these programs help maintain employee morale and keep team members productive, which is crucial during recovery. Additionally, such programs deter potential abuse of workers’ compensation claims, as they provide structured support and clear expectations for recovery and work reintegration. Employers benefit significantly as these programs allow them to anticipate and manage hidden costs associated with workplace injuries and absenteeism. Moreover, return to work programs reduce the financial impact of workers’ compensation claims and embody a proactive strategy for cost containment, ensuring that both employee wellbeing and organizational fiscal health are protected.