ReEmployAbility hosted “The Top 5 Reasons Why a Return-to-Work Program is Essential in this Economy” with members of the ReEmployAbility Marketing Team and CEO Debra Livingston.

They sat down for an in-depth discussion into how a company’s return-to-work (RTW) program can save money, build morale, contribute to their community and more, particularly as employers manage the effects of COVID-19.

The longevity of the pandemic has caused layoffs, furloughs, and high unemployment, creating an atmosphere of uncertainty for many employees that can increase workers’ compensation claims. For many reasons, the influence of high unemployment is known to contribute to longer duration of workers’ compensation payments and more extended periods of disability. This becomes more prevalent in a recession and is a concern for employers and insurance companies.

As businesses recover, they may hire younger, less experienced people as well as an aging workforce that is working beyond retirement due to lost retirement funds and savings during the economic downturn. The combination could be a serious cause for concern for employers. As was seen in previous recoveries, this could create real potential for increased claims activity that would result in much higher insurance costs. 

The ReEmployAbility team reviewed 5 ways a comprehensive return-to-work program can help employers and their employees in a post-pandemic economy.

Cost Savings

The first topic the ReEmployAbility team discussed was that a RTW programs add up to big savings. Cost savings are achieved on multiple fronts including avoidance of replacement cost for the employee, reduction in overtime, lower medical expense, decreased indemnity costs, and mitigating impact to Ex. Mod. For example, research shows that companies save up to 54% on their workers’ compensation claims and 35% on medical costs for those claims.

Human Resources

By factoring in Human Resources the savings for a company increase further. A RTW programs retains valuable employees and helps them return to work as quickly and safely as possible. Retaining tenured employees helps eliminate replacement cost and stress, reduces training time, decreases absenteeism and increases morale. Studies suggest that the cost to replace an employee can be upwards of 20% of their annual salary!

Employees Heal Faster

The team then discussed RTW programs and how they are beneficial to employees and helps them heal faster. At home, the employee’s mind is often occupied with their disability and physical pains may become magnified and lead to depression. An Early RTW Program improves an employee’s sense of value and self-esteem; It enables an employee to move from a disability environment to a work environment.

Benefit of Offsite Options

A comprehensive RTW to work program that utilizes offsite opportunities creates a positive work culture. It diminishes animosity in the workplace, improves morale, and alleviates the need for managers to monitor light-duty tasks they normally wouldn’t. Offsite options through a local not-for-profit provide meaningful work, ensuring injured workers feel valued and capable of contributing even while recovering.

Community Impact

The benefits of a RTW program go beyond the employer and the employee. ReEmployAbility connects employers and injured workers to their communities through meaningful offsite work at not-for-profits, giving the employee and the not-for-profit the ability to make a difference. High unemployment and school closures have added pressure on not-for-profits for services. Additionally, not-for-profit donations are expected to be down an estimated $25 billion this year and many have been forced to cut paid staff. As COVID-19 strains the resources of many not-for-profit organizations, injured workers participating in ReEmployAbility’s Transition2Work® program have helped our not-for-profit partners resume normal operations.

You can learn more about this discussion and how a return-to-work program can help your company today by reaching out to National Sales Manager Todd Loomis at​.

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