• Recognize the many factors that contribute to employee productivity. Hiring, training, and rewarding the right people are tools that can boost productivity. After considering your employee population, look at the nature of their absences to determine which can be prevented. Review scheduled and unscheduled absences to decide how much employee "lost time" is acceptable. Look at the full cost of employee absences, including direct and indirect costs such as replacement workers and retraining.

• Assess current corporate policies, procedures, rewards, and performance-management systems. Review the current policies and procedures in regard to return-to-work, leave, and cost-allocation structure.

• Devise methods to capture data. Use data from payroll, lost-time, and cost estimates to get absence patterns and establish integrated program implementation baselines. Be wary of using "existing data" that may contain "hidden costs" such as FMLA leave and under-reporting of lost-time claims. By examining pre-established baselines and benchmarks, utilizing cost-benefit analyses, and measuring employee lost-time, you can generate reports to show the CFO your progress and return on investment.

• Initiate a return-to-work program. Developing an effective return-to-work program--a cost-saving measure essential to the success of any integrated benefits program--should be an early step.

• Consider integrating incrementally. Companies should determine which benefit areas should be managed and give priority to those most directly affecting workplace productivity, such as short-term disability, long-term disability, FMLA, and workers’ compensation. Starting a small pilot within a division or location might demonstrate value before broader implementation.

• Coordinate efforts between the benefits and risk-management departments. These executives should meet regularly to discuss challenges and successes.

• Determine the needs of the entire corporation. The program must resonate with employees both operationally and culturally. For example, if your corporate culture empowers employees, ask how they are going to feel about the new structure, reporting methods, and controls that are often involved with integrating benefits.

• Choose a partner that can help every step of the way. Consultants and vendors can provide useful information or even run your program. They can supply lost-time models to estimate costs, tap benchmark data to establish baselines, and build a case to upper management for benefit integration.

Workforce, December 2002, p. 49 -- Subscribe Now!