About Emily Holbrook

Emily Holbrook is a former editor of the Risk Management Monitor and Risk Management magazine. You can read more of her writing at EmilyHolbrook.com.
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Retaliation in the Workplace

The “Timeline” portion of the November issue of Risk Management (online and in print November 1) features a disturbing sequence of workplace homicides based on retaliation, from the first Post Office shooting that coined the term “going postal” to the more recent shooting near the Empire State Building. All instances focused on employees retaliating against managers, supervisors or coworkers.

But retaliation can manifest itself in many ways, including managers firing or demoting an employee due to that employee doing what they feel is the right thing — whistleblowing. A recent workplace retaliation report by NAVEX Global found that this type of retaliation is occurring now more than ever in the workplace, and that “only 15% of respondents said organizations inform employees about retaliation trends and reporting — a low and concerning statistic.”

The survey also found that the definition of retaliation is maturing. The graph below illustrates what both staff and executives define as retaliation.

The study found that the majority of respondents (72%) agreed that whistleblowers who report issues to the government have already reported the issues internally and felt it wasn’t adequately addressed. In addition, 35% said executives are coached after they engage in retaliation, as opposed to more formal disciplinary measures, and 12% reported that no action is taken.

So how do we curb retaliatory in the workplace?

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Using whistleblower reporting data to strengthen ethics and compliance programs is a starting point.

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Just last week, the Obama administration extended whistleblower protections to national security and intelligence employees in a Presidential Policy Directive, signaling just how important protection against retaliation has — and will likely continue — to become.

In other, lighter news, the 168th edition of the Cavalcade of Risk was published this morning.

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Check it out here for links to the best insurance and risk management blogging.

The Insurance Industry Needs More Dynamic Models

Simpler, but more dynamic capital models are what the insurance industry needs in order to avoid suffering some of the same problems it did during the financial crisis that began in 2008, according to the Willis Economic Capital Forum (WECF), a Georgia-State-University-based initiative from the academic and analysis arm of Willis Group.

Markus Stricker, director of the WECF, said in a statement that “everyone in the industry would be interested in reducing the complexity of models, making things more transparent and thus easier to understand. We ought to have learnt in the years since the financial crisis that our economic capital models need to be more dynamic and more insightful.”

He went on, explaining that looking at economic capital models in a static manner is not very helpful. Instead, he suggests insurers develop models that are simpler, yet still useful and easier to use. Stricker suggests learning from other industries that have such models in place.

For example, airplane manufacturers run stress tests to find out how much pressure they can put on a wing before it breaks off, while pharmaceutical companies have a rigorous, structured process they must go through to get a medication validated.

“I think we need a similar set of standard procedures to validate the methods that financial companies use to calculate solvency related key figures,” said Stricker. Currently, standardized processes do not exist for validating economic capital models.

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It seems insurance companies, regulators and brokers could all benefit from a validation process that is transparent and efficient.

Opioids in the Office

Narcotics abuse among the American public has received a good amount of publicity lately — and rightly so. There are now more workers addicted to opioids than ever before. And it seems physicians may not be doing all they can to regulate patient intake.

In fact, a new report by the Workers Compensation Research Institute (WRCI) states that one in 12 injured workers who started prescription narcotics were still using them three to six months later. “Longer-Term Use of Opioids” examined long-term use of narcotics in 21 states and how often physicians monitored injured patients after prescribing the drugs.

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“This study addressed a very serious issue: how often doctors followed recommended treatment guidelines for monitoring injured workers under their care, who are longer-term users of narcotics,” said Dr. Richard Victor, WCRI’s Executive Director. “This study will help public officials, employers, and other stakeholders understand as well as balance providing appropriate care to injured workers while reducing unnecessary risks to patients and costs to employers.

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Among the key findings were:

  • Longer-term use of opioids continued to be prevalent in workers compensation, especially in Louisiana and New York, as well as Texas, Pennsylvania, South Carolina, California and North Carolina.
  • Drug testing was used less frequently than recommended by medical treatment guidelines. Among claims with longer-term use of narcotics, 18-30% received drug testing in most states studied, with the 21-state median at 24%. Over the study period, the percentage of workers with longer-term use of narcotics who received at least one drug test increased from 14 to 24% in the median state.
  • Use of psychological evaluation and treatment services continued to be low. Only 4–7% of the injured workers with longer-term narcotic use received these services in the median state. Even in the state with the highest use of these services, only 1 in 4 injured workers with longer-term narcotic use had psychological evaluation and 1 in 6 received psychological treatment.
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    Little change was seen in the frequency of use of these services.

The graph below is disturbing, considering the addictive nature of opioids, especially the longer the patient is dependent on them.

In response to these findings and the media coverage surrounding them, the Office of National Drug Control Policy (ONDCP) issued a statement regarding an initiative aimed at addressing the problem. The agency unveiled its new web-based program that was developed to help doctors prescribe addictive medications, such as Oxycontin and Percocet, in a more safe and controlled manner.

Prescription drug abuse is the nation’s fastest-growing drug problem and affects everyone from teenagers to stay-at-home moms to, most likely, the very people you work with. We are dealing with what the Centers for Disease Control and Prevention classifies as an epidemic. And though the Obama Administration’s National Drug Control Strategy and the ONDCP’s 2011 Prescription Drug Abuse Prevention Plan are helpful in addressing the problem, they will in no way solve it. For that, education is key, not only in the homes and schools of the American public, but in the workplaces as well. It’s smart risk management.

Infographic: Drug Abuse in the Workplace

Thanks in part to  a drastic increase in prescription narcotic abuse among the public, drug use on the job has also increased — and with alarming effects for employers.

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The following infographic, courtesy of Compliance and Safety, illustrates the magnitude of the problem.

The infographic goes even further by breaking down drug use by industry and company size.

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Employers have options, however, including: