AIA Australia urges action on employee rehabilitation and return to work programs

Insurer stresses need for early intervention to improve employee wellbeing and company bottom lines

Focusing on rehab can improve business outcomes.

Australian businesses are risking productivity levels by failing to implement comprehensive rehabilitation programs aimed at getting employees back into the workforce, according to a new paper launched yesterday by leading life insurer, AIA Australia.

The paper, ‘A critical equation: balancing Australian worker health and company wealth’, draws on data compiled by AIA Australia’s rehabilitation team, and was produced in conjunction with SuperFriend, a not-for-profit foundation created by Industry Super Funds to promote mental health and wellbeing and human capital expert, Dr Sallie Strickland. It addresses some of the challenges faced by businesses in implementing return to work programs, and provides best practice suggestions for employers, including keeping in regular contact with an employee on sick leave, and encouraging employees to return to work partially if they are able.

AIA Australia’s General Manager Life Insurance, Damien Mu, said trials conducted by the insurer have confirmed rehabilitation opportunities identified through early intervention resulted in an increasing number of employees successfully returning to work.

“If an employee is off work for 20 days, they have a 70% chance of ever returning to work”, he said. “If they are off for 45 days, this goes down to 50%, and after 70 days their chance of ever returning to work is only 35%.

“Having a workplace support network in place is extremely important for the recovery process, and enhances the chances that an employee will return to work full time.”

The paper forms part of a comprehensive discussion of issues facing the group insurance industry at today’s second annual Group Insurance Summit in Sydney. The Summit explores how superannuation funds and group insurers can further improve the financial security of working Australians, and incorporates topics including claims innovation, member engagement, the recent introduction of DisabilityCare Australia, and the long-term sustainability of the group insurance industry.

The launch of the paper comes as group insurers face a noted increase in stress-related claims from fund members – according to SuperFriend research, the industry is now paying out over $160 million a year in mental illness-related income protection and disability claims.

But the issue of employee rehabilitation is not just one that affects insurers’ bottom lines – for businesses, it’s been estimated that every dollar spent on identifying, supporting and case-managing employees with mental health issues yields close to a 500% return in improved productivity, through increased work output and reduced leave.[1]

Human capital expert, Dr Sallie Strickland, said encouragingly some resilient organisations are now prioritising employee well-being by investing in integrated management systems that protect and promote good health

“When workers have perceived control of their environment, they are more likely to be more productive, increasing the bottom line,” she said.

SuperFriend CEO, Margo Lydon, said many employers were unaware of the benefits that early intervention could bring, both to their own business productivity and employee satisfaction.

“Many businesses accept that when an employee is sick they should be encouraged to take time off, but what many firms don’t know is that returning to work can be just as important in the recovery process from mental illness”, Ms Lydon said.

AIA Australia is urging super funds and Australian businesses to take action and tackle any perceived challenges around implementing rehabilitation and return to work programs head on.

“We haven’t finished this journey and are still looking for ways to drive better outcomes for all involved. The opportunity exists for our superfund partners and Australian companies to play a leading role in helping employees get back to work following illness or injury. It’s up to the life insurance industry to educate funds and companies on how they can best support RTW practices, ensuring their absence from work doesn’t have a perpetuating effect,” Mr. Mu concluded.

A full copy of AIA Australia’s paper, ‘A critical equation: balancing Australian worker health and company wealth’, is available here.

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1] Hilton, M. Assisting the return on investment of good mental health practices. As cited in Cowan, G., Best practice in managing mental health in the workplace.