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Tips to Prepare Your Organization For An Older Workforce

People are living and working longer today than in the agricultural and industrial ages. The growth in the number and percentage of individuals over 60 and 80 years of age is already having a global impact.

From 1980 to 2017, the number of individuals over the age of 60 doubled to roughly 900 million. This segment of the world’s population will double again by 2050 to nearly 2 billion, according to the 2017 World Population Prospects report by the Department of Economic and Social Affairs of the United Nations Secretariat.

Risk professionals can prepare their organizations for the coming changes and opportunities of an older workforce with the following strategies:

  1. Customize a workplace safety program. Organizations can utilize various levels and different methods of training to improve safety awareness.
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    These include new hire training, annual mandatory compliance refreshers, on-the-job training, shadowing and formal mentoring programs, educational programs, and certifications. Training can focus on areas such as safety awareness, new technology, ergonomics and workstation setup, life skills, and other soft knowledge. This will also help with safety in general among the entire staff.

  1. Update the education and onboarding process. An important consideration is how different generations of employees learn, so specific training methods tailored to each generational group can be offered. Where online training modules may work for younger employees, older employees may prefer on-the-job or in-person training. It is up to each company to best identify the methods for training its workforce so the content of the training is effectively delivered and understood by its intended audience.
  2. Review training styles. In addition to receiving ongoing training, older employees may feel more engaged if they are asked to teach newer or less experienced employees. One area often overlooked is training for managers who may have older employees under their supervision. Much has been written about training and approaching millennials, however, the reverse is an emerging risk. Companies should begin focusing efforts on how to relate to and the best way to supervise older workers. This is an area of opportunity to enhance a company’s culture and develop the employee-employer relationship.
  1. Know a role’s physical demands. Employers need to ensure they have a good understanding of the actual physical demands of each job position in addition to the physical limitations of individual employees.
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    Post-offer and pre-employment functional capacity exams are recommended for all age groups in industrial and manufacturing sectors. Job rotation is an important safety tool, and can be used for all age groups in an effort to break up the monotonous nature of the work, avoid fatigue, and ultimately develop a well-rounded staff that can cover gaps as needed.

  1. Consider the intersection of technology, comfort and well-being. There are many low- and no-cost ideas that can make the workload more manageable for older employees. For example, in its Dingolfing, Germany plant, BMW hires older workers on an auto assembly line with accommodations for their age such as larger computer screens, special shoes, and chairs for some operations. And Microsoft offers an online Guide for Individuals with Age-Related Impairments, showing older workers how to create slower-moving pointers or magnified screen displays by adjusting their computer’s settings. Standard workstations can be improved with ergonomics in mind. Features like built-in back support in office chairs, standing desks, lighting created to minimize shadows and dark zones, and desks that are easily adjustable all contribute to employees’ comfort and minimize discomfort. On-site clinics save time and are geared toward prevention as well as early disease detection. Investing in the health of all employees through wellness programs is a timeless and ageless benefit and will contribute to productivity and reduce costs.
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  1. Promote an age-diverse business culture by recognizing and appreciating the skills/values of older workers. There are common misunderstanding and stereotypes with older employees that they are less efficient than their younger co-workers. However, from the Organisation for Economic Co-operation (OECD) in 2016 that the working proficiency (in both literacy and numeracy) of older employees is actually not significantly lower than their younger peers. In countries like the U.S., the proficiency of older workers is even at the same level as younger employees (see below charts). A follow-up study in 2018 by OECD indicated that older employees are more likely to involve in more complex tasks, such as supervise colleagues, have higher task discretion, use planning skills and influence others, which makes them as valuable assets as their younger co-workers. So it is important to promote an age-diverse business culture to appreciate the skills and value of older workers.
  1. Improve training against discrimination and negative attitudes to older workers on hiring, termination, compensation, and promotion. As risk management professionals, it is important to remind your organizations to review and improve the policy against discrimination and negative attitudes to older employees, in order to mitigate the potential legal risk. A 2013 AARP study indicated that “64% of U.S. workers have either experienced or observed age discrimination.” Given this background, in 2016, EEOC received 20,857 charges of age discrimination, which counted for more than 20% of all discrimination charges received by EEOC.

As the global working population continue to grow older, corporations around the world could expect to see more age discrimination litigations to come. Risk managers can play an important role by taking initiatives to help their organizations against discrimination and negative attitudes to older employees.

Several members of the RIMS International Council contributed to this article.

2018-19 Holiday Season Flu Warning

While the forecast for the 2018-19 flu season is not as severe as years past, manufacturers projected they would provide between 163 million and 168 million doses of injectable vaccine for the U.

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S. market. Companies are encouraged to maintain efforts to prevent the spread of the flu in the workplace.

The Centers for Disease Control and Prevention (CDC) recently provided updates regarding the 2018-19 influenza season and you can access the outlook report here. Some new information includes:

  • Flu vaccines have been updated to better match circulating viruses [the B/Victoria component was changed and the influenza A(H3N2) component was updated].
  • The age recommendation for Afluria Quadrivalent was changed from 18 years and older to 5 years and older after the annual recommendations were published last season to be consistent with Food and Drug Administration (FDA)-approved labeling.
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  • Most regular-dose egg-based flu shots will be quadrivalent [they will have four components].
  • The nasal spray flu vaccine (live attenuated influenza vaccine or “LAIV”) is again a recommended option for influenza vaccination of persons for whom it is otherwise appropriate, including for use in non-pregnant individuals, 2 to 49 years old.

For 2018-2019, trivalent (three-component) vaccines are recommended to contain:

  • A/Michigan/45/2015 (H1N1)pdm09-like virus
  • A/Singapore/INFIMH-16-0019/2016 A(H3N2)-like virus (updated)
  • B/Colorado/06/2017-like (Victoria lineage) virus (updated)

Quadrivalent (four-component) vaccines, which protect against a second lineage of B viruses, are recommended to contain:

  • The three recommended viruses above, plus B/Phuket/3073/2013-like (Yamagata lineage) virus

Though the CDC recommends that people get a flu vaccine by the end of October, “getting vaccinated later, however, can still be beneficial and vaccination should continue to be offered throughout the flu season, even into January or later.” Check out the agency’s FluView site for more national trends and other information.

AlertFind recently released a “Deadliest Pandemics of This Century” infographic, calling out the severity of the 2017-18 influenza season, which caused 80,000 deaths and 900,000 hospitalizations. It also provides tips employers can use to prevent the spread of disease.

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Best Practices for Protecting Against Fraud

detecting fraud

In 1987, during arms control negotiations between the United States and the USSR, President Ronald Reagan popularized the phrase “trust but verify.” The maxim is pithy and oft-quoted, but for companies looking to mitigate risk and financial fraud, it should be reworded slightly to “Verify and monitor continuously.”

Fraud is often hard to detect—the Association of Certified Fraud Examiners (ACFE) estimates that the average fraud goes undetected for years. Some of the largest and most damaging frauds, including Bernie Madoff and Allen Stanford, spanned a decade or more. Fraud is also costly; it is estimated that U.S. businesses lose 7% of annual revenues to fraud, and it is responsible for one out of three business failures. The financial implications of fraud are bad enough, but reputational damage can be equally harmful.

Fraud is a potential danger for companies in all industries. In a survey my firm conducted in 2012, nearly 40% of private equity firms said they had experienced fraud. The statistics are sobering, but there is much that companies can do to protect themselves.

The biggest trend we are seeing is that corporate boards are implementing a tip line, which is a great way for employees and others to anonymously report wrongdoing. ACFE studies show 42% of frauds are uncovered through hotlines. You want employees to come forward and tell you what is wrong to give CEOs a chance to fix it. The average EEOC complaint costs between $50,000 and $100,000 in legal fees to settle, not to mention the potential damage to morale and reputation—wouldn’t you want a heads up to fix it before it gets to that?

Instituting rigorous hiring practices, including screening temps and contract workers, is another important tool in preventing fraud. It is not realistic to have the same level of scrutiny for an entry-level employee as you would for a senior executive, but the best way to avoid fraud is by carefully culling the bad apples before they are hired.

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Look for criminal or regulatory issues, limited references, job-hopping, trouble making eye contact and a pattern of lawsuits. A number of our clients have begun to ask us to vet their information technology hires. The IT department has access to the most sensitive files and so it is imperative to investigate potential hires in that department.

Every firm should also have a code of conduct, which describes the culture of a company and what is expected of each employee in terms of actions and conduct. Each company is different, but some rules are universal: sexual harassment cannot be tolerated; discrimination against anyone based on color or religion is strictly forbidden; the workplace should be free of illicit drugs and alcohol; and employees cannot accept gifts from customers or vendors. Consequences for violating any of these codes should be clearly spelled out.

A system of basic financial checks and balances is another way to protect against fraud. Even in smaller firms, the same person should not be in charge of both accounts payable and accounts receivable. Larger payments from the company should be signed by two executives. Regular meetings should be arranged with IT officials to insure that cyber-crime is being monitored at all times.

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Also, consider installing security cameras to serve as a deterrent for rogue employees.

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In the wake of the Madoff scandal, the role of compliance officers has taken on greater importance. Compliance officers often have a seat at the C-level table and are valuable in helping companies to stay on the right side of regulations. As discussed, however, the best way to prevent fraud is by having several layers of protection.

Preventing fraud is an ongoing endeavor that requires a commitment to maintaining vigilance each day. Some red flags are easier to spot than others. Some of the most common “tells” of disgruntled or risky employees who may commit fraud include:

  • Living beyond their means
  • Financial difficulties
  • Too-close relationships with customers or vendors
  • Secretiveness
  • Drug or alcohol problems
  • Major stressors, like family problems, including divorce and bankruptcies

In the event that fraud is suspected, every company needs to have a playbook to help guide their actions. This should include having a process to address a tip or complaint, leveraging the expertise of investigators and attorneys and following a plan that keeps the company operating with minimum disruption.

The vast majority of companies prefer to keep things quiet and resolve matters in a private setting. No company wants to have one of its employees be the subject of a “perp walk,” where the alleged offender is shown by the media in handcuffs accompanied by police on their way to being charged.

The surge in cyber-crime is proof that fraud never truly disappears; it just changes shape and form. Therefore, it is up to each company to become a hardened target and make fraudsters want to look for an easier mark.

Protecting Workers from Sun Exposure

sun workers
The number of skin cancer cases in the United States continues to increase, with nearly 5 million people treated for it every year, according to the Centers for Disease Control (CDC). Outdoor workers are especially at risk, as they are constantly exposed to ultraviolet (UV) rays, even on cloudy days when they may think they are safe from the sun.

According to the National Institute for Occupational Safety and Health (NIOSH), UV rays, which are a part of sunlight, are an invisible form of radiation. There are three types of UV rays: UVA, which is believed to CDC advicedamage connective tissue and increase the risk for developing skin cancer; UVB, which doesn’t penetrate as deeply into the skin, but can still cause some types of skin cancer; and natural UVC, which is absorbed by the atmosphere and does not pose a risk.

One of the dangers of being out in the sun for prolonged periods is that sunburn is not immediately apparent, NIOSH said. Symptoms usually start about 4 hours after sun exposure, worsen in 24 to 36 hours, and get better in 3 to 5 days. They include red, tender and swollen skin, blisters, headache, fever, nausea and fatigue. Another danger is that eyes can also become sunburned. They become red, dry, painful and feel gritty. Chronic eye exposure can cause permanent damage, including blindness.

The CDC advises organizations to add sun safety to their workplace policies and training programs, as well as to:Include sun-safety information in workplace wellness programs. For example, programs designed to help employees avoid heat illness can be adapted to include information about sun safety.
• Teach outdoor workers about risks of exposure to UV radiation and the signs and symptoms of overexposure.

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• Encourage outdoor workers to be role models and discuss the importance of sun protection with clients, and coworkers. Visit the National Cancer Institute’s RTIPs website for more information about sun safety.

NIOSH’s advice to workers:

Protect Yourself

  • Avoid prolonged exposure to the sun when possible.
  • Wear sunscreen with a minimum of SPF 15.
    • SPF refers to how long a person will be protected from a burn. (SPF 15 means a person can stay in the sun 15-times longer before burning.) SPF only refers to UVB protection.
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    • To protect against UVA, look for products containing: Mexoryl, Parsol 1789, titanium dioxide, zinc oxide, or avobenzone.
    • Sunscreen performance is affected by wind, humidity, perspiration, and proper application.
    • Throw away sunscreens after 1–2 years (they lose potency).
    • Apply liberally (minimum of 1 oz.) at least 20 minutes before sun exposure.
    • Apply to ears, scalp, lips, neck, tops of feet, and backs of hands.
    • Reapply at least every two hours and each time a person gets out of the water or perspires heavily.
    • Some sunscreens may lose their effectiveness when applied with insect repellents. You may need to reapply more often.
  • Wear clothing with a tight weave or high-SPF clothing.
  • Wear wide-brimmed hats and sunglasses with UV protection and side panels.
  • Take breaks in shaded areas.

First Aid

  • Take aspirin, acetaminophen, or ibuprofen to relieve pain, headache, and fever.
  • Drink plenty of water to help replace fluid losses.
  • Comfort burns with cool baths or the gentle application of cool wet cloths.
  • Avoid further exposure until the burn has resolved.
  • Use of a topical moisturizing cream, aloe, or 1% hydrocortisone cream may provide additional relief.
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If blistering occurs:

  • Lightly bandage or cover the area with gauze to prevent infection.
  • Do not break blisters. (This slows healing and increases risk of infection.)
  • When the blisters break and the skin peels, dried skin fragments may be removed and an antiseptic ointment or hydrocortisone cream may be applied.

Seek medical attention if any of the following occur:

  • Severe sunburns covering more than 15% of the body
  • Dehydration
  • High fever (greater than 101 °F)
  • Extreme pain that persists for longer than 48 hours