The Changing Workplace Baby Boomers to Millennials, Home Offices to Sleeping Pods May 19, 2016
Panel The Changing Workplace Alan Kubitz Global Risk & Insurance ebay Inc. Helen Kim Vice President, Account Executive Old Republic Risk Management Ryan Kilcullen Regional Director of Risk Control Willis Towers Watson 2
Topic Overview Generations Millennials, Baby Boomers and Generation X Workplace age demographics Home office workers Work / Life balance Napping at work The new workspace Underwriting exposures Coverage impact claim scenario Risk control / ergonomics 3
Generations Millennials, Baby Boomers and Generation X Millennials have surpassed Baby Boomers as the nation s largest living generation, according to population estimates released this month by the U.S. Census Bureau. * Millennials ages 18-34 75.4 million Baby Boomers (Boomers) ages 51-69 74.9 million Generation X (Gen X) ages 35-50 66 million Gen X is projected to pass the Boomers in population by 2028* * Millennials overtake Baby Boomers as America's largest generation * Factank, April 25, 2016 (http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers) 4
Workplace Age Demographics Bureau of Labor Statistics 55-64 1,199 65+ 350 16-19 38 20-24 457 25-34 1,704 45-54 1,689 35-44 1,645 16 to 19 years 20 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 years and over Notes: Employed Persons (in thousands) Finance and Insurance Industry Median age 43.2 * Bureau of Labor Statistics 5
Working at Home is on the Rise 16 12 More likely to be working from home on Monday or Friday 8 4 9.2 13.4 Thursday is the least likely day to work from home. Mon Tue Wed Thu Fri 0 1997 2010 Workers (Million) Notes: Worked at least one day at home per week 1997: 132M total workers 2010: 142M total workers Home-based worker: a person who works part of the time from home Source: Survey of Income and Program Participation (SIPP) * United States Census Bureau 38% 33% 33% 29% 38% Source: SIPP 4.2 Million Increase in home-based workers between 1997 and 2010 6
Working at Home is on the Rise Number of Workdays Typically Telecommute Rather Than Go to Office Base on employed adults All workers Workers who have ever telecommuted % % No days 72 23 One to two days 9 23 Three to five days 8 22 Six to 10 days 2 6 More than 10 days 9 24 While a greater percentage of U.S. workers now say they have telecommuted than in the past, telecommuting remains much more the exception than the rule. U.S. workers say they telecommute from home rather than go into the office about two days per month, on average. Nine percent of workers say they telecommute more than 10 workdays -- meaning at least half of all workdays -- in a typical month. Mean number of days 2.3 6.4 Median number of days 0 3 Aug. 5 9, 2015 GALLLUP The average number of remote workdays is 6.4, and 24% of this group telecommutes more than 10 workdays in a typical month. *Gallup August 19, 2015 (http://www.gallup.com/poll/184649/telecommuting-workclimbs.aspx) 7
Ten Stats about Remote Work Remote.Go (www.remote.co/10-stats-about-remote-work) 1. Increases Worker Productivity 2. Drives Employee Efficiency 3. Lowers Stress, Boosts Morale 4. Reduces Employee Turnover 5. Decreases Real Estate Costs and Overhead 6. Greater Employee Engagement 7. Positively Impacts the Environment 8. Meets Demands of Younger Workers 9. The Wave of the Future 10.A Global Phenomenon * Remote.Go (www.remote.co/10-stats-about-remote-work) 8
Seven Interesting Stats about Working from Home 1. 83 percent of people work from home part of the day 2. Higher-level positions often work from home more frequently 3. Working remotely is one of the top three perks, which also includes reputation and salary 4. Benefits of working from home include 41 percent saving time, 29 percent being more productive, and 10 percent focusing on work rather than office politics 5. Most common challenges include lack of direct communication, data accessibility, and poor visibility 6. 66 percent of people believe their company will go fully virtual in one to five years 7. Employees are willing to give up benefits for the ability to work from home What the Future Holds * Working remotely, at least part of the time, is increasing as technology continues to make staying connected easier. Whereas sourcing talent has previously been limited to those in the geographical area, technology and telecommuting have made it possible to go where the talent is. This allows employers to find the best fit for the company and the job, no matter where the candidate is located. Although there will continue to be challenges from working remotely, many of them can be overcome with the proper team dynamics and through formal flexible work policies. * FlexJobs December 30, 2014 (www.flexjobs.com/blog/post/8-interesting-stats-about-working-from-home) 9
Work / Life Balance 57 percent of employees think technology has ruined the definition of a family dinner. 60 percent of employees blame bad bosses for the most negative impact on work-life balance. 38 percent of employees have missed life events because of bad work-life balance. How To Extinguish The Burnout In Your Office Feel like your team is suffering from poor work-life balance and low morale? Consider embracing some of these suggestions from survey respondents. Offer a flexible work schedule with the ability to log in and work outside typical business hours to compensate for time off during standard operating hours Let employees work remotely Offer unlimited paid time off (it works for Netflix, Groupon and Evernote why not your organization?) Restrict company email use to an hourly range Set up meeting free times throughout the week * Professional Convention Management Association * You Won t Believe These Work-Life Balance Statistics April 27, 2015 10
Work / Life Balance * jobsdb Happiness Meter Poll 2015. Thais Agree: Happy is a Better Job 11
Work / Life Balance Sustainability = Smart Business - Millennials demand sustainability 12
6 Companies (Including Uber) Where It's OK to Nap A growing number of businesses are recognizing what research has long trumpeted: Daytime napping may come with big advantages--both psychological and professional. Today, roughly 6 percent of employers have nap rooms onsite, a 1 percent increase from 2008. From scrappy startups to tech behemoths, here are a few companies that will encourage you to rest and recharge*: 1. Uber The ride sharing company's San Francisco headquarters includes nap rooms. These were designed by interior design firm Studio O + A, under the supervision of principal Denise Cherry. 2. Google The perks at Google's Mountain View, California, headquarters are aplenty: nap pods, complimentary food and drinks (including a coffee bar with a full-time barista), and shower rooms, to name a few. 3. Zappos Perks at the online shoe retailer's Las Vegas headquarters include EnergyPod chairs, massage chairs, regular wellness fairs, and onsite health screenings. 4. Capital One Labs Houses sleeping nooks, which are connected to the ground by way of ladders and "gabled blue" support beams. 5. Ben & Jerry s One of the earliest adopters of the workplace napping policy, the Burlington, Vermont-based ice cream company has had an office nap room for more than a decade. "The room itself is really part of the larger corporate culture here and the company's belief that a happy employee is a productive employee," a spokesperson told the BBC. 6. PwC It's about smart working, and that means you need to recharge. In this context, nap rooms become more and more important." * Inc. September 4, 2015 * (www.inc.com/zoe-henry/google-uber-and-other-companies-where-you-can-nap-at-the-office.html) 13
The New Workspace 14
The New Workspace A Change in Mindset Building a Great Culture Cultural shift with a different workforce Younger generation of employees (great for work comp claims) Different values of the tech employee Open structure, no offices creates a more personal feeling Keeping employees engaged How?? Creating a fun environment Provide benefits that this type of employee values Goal to keep employees happy, i.e. more productive Message from the top More open communication from senior leaders Employees understand the goals/mission of the company, which keeps them more engaged 15
The New Workspace From This... To This 16
The New Workspace Where do Employees Work? Home Home Office (Work From Home: WFH) Not as prevalent as rumored Many companies don t have official policies Commuting Office Spaces Open space plans Very few offices Hoteling Community spaces for collaboration Walking meetings What s next Employees in the Cloud?? 17
Making The New Office Work No longer sitting at your desk for 8 hrs./day an ergonomic benefit Wi-Fi everywhere Companies promote collaborative meetings away from your desk Open spaces Outdoor spaces Activity areas Cafés Proactive Ergonomic Programs Onboarding Annual refresher training The result: Very few traditional work comp claims Claims involving employees injured on shared bikes (from building to building) Ergo claims from working on buses Claims from team building i.e. physical activity injuries 18
The New Technology Workspace Employees are often able to use the newest technology Ease of obtaining IT support Knowledgeable, dedicated, on-site personnel Kiosk areas for basic equipment needs Low Tech improvements / changes Sit-stand workstations Almost no file space cloud and other digital storage utilization $$ BUDGETING $$ not really an issue in tech companies; if an EE needs something for their workspace, they get it 19
Exploring New Exposures with the Changing Workplace Workforce New Leaders to replace the Baby Boomers Emergence of the Post Millennials (Post 2000) Boomerang Employees Cultural Diversity Traditional Full Time Employees vs Part time Employees/Contractors Range of Values/Expectations from the 4 Generations Work Environment Remote/Home office Open Office Spaces Project Based Locations Pet Friendly / Family Friendly Amenities 20
Exploring New Exposures with the Changing Workplace Technology Smartphones, Laptops, Tablets, Wearable Technology Social Media Tech - telligence Automation / Robotics Response time / Availability Expectations Work / Life Balance Flexible Hours and Days Remote Access Maternity / Paternity Leave Financial Responsibility shift of Employee Benefits 21
Coverage Impact due to Changing Workplace ORRM Workers Compensation Claim Date of Loss 3/16/12 Initial Facts 51 year old engineering specialist who was assigned a company van was traveling into the office from home to meet his manager when he was involved in an auto accident Hip fracture injury During 2nd surgery, blood clot developed and he expired Initially denied using coming/going rule Claimant s Widow appealed, lost and filed a suit for judicial review seeking the denial to be overturned 22
Coverage Impact due to Changing Workplace ORRM Workers Compensation Claim Unforeseen Claim Complications Our claim Claimant logged in that morning, sent emails and made some work related calls before heading to the office. Argument that he was simply traveling to work and not in the course and scope of this employment. Higher court deemed this compensable since his manager requested he be in the office for a meeting that provided a reason for the claimant to go to the office vs directly to a client site. Increased total reserves from $190K to $1.4M 4 years later 23
Risk Control / Ergonomics Improve your organization s performance and gain an ergonomic edge FREQUENCY IS DOWN, COSTS ARE UP What is Driving Loss Experience? In billions Assualt/Violence Caught in/compressed by Highway incident Repetitive motion Struck against object Struck by object Fall to lower level Bodily reaction Fall on same level Overexertion $0.64 $1.79 $1.99 $2.02 $2.11 $4.10 $5.12 $5.78 $8.61 $13.61 Overexertion account for more than a quarter of the overall national burden in 2010 (Liberty Mutual 2012 Safety Index). Many Bodily reaction and all repetitive motion are also MSDs. Overexertion injuries from excessive force, lifting, pushing, pulling, holding, carrying, throwing Bodily reaction injured from bending, climbing, reaching, standing, sitting, slipping or tripping without falling Repetitive motion injuries due to repeated stress or strain 24
Risk Control / Ergonomics Workforce Trends Not Favorable 16 to 24-7% The aging workforce trend continues. 25 to 54 2% 55 to 64 37% Projected % change in labor force by age, 2006 2016 (BLS) 65 to 74 83% 75+ 84% Impact on Business Metrics Working in pain slows down work, while ergonomics projects speed them up. 25% Ergonomics Project -10% Working with MSD 25
Risk Control / Ergonomics 7 Deadly Wastes of Human Capital 7. Exclusion 1. Injury 6. Turnover 2. Inefficiency 5. Absenteeism 3. Mistakes 4. Discontent 26
Risk Control / Ergonomics Focus on the current demand for Quick Help Technology available 1 2 3 4 Identify symptoms early Perform self help Report to supervisor, manager or HR Obtain immediate professional ergonomics assistance 27
QUESTIONS??? 28
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