Department of Personnel & Administration

Department of Personnel & Administration EAP and Risk Management Collaboration, Synergy & Opportunities Cristina Valencia, Jon Richard, Randi Wood Department of Personnel and Administration October 6, 2006

DEPARMENT OF PERSONNEL AND ADMINISTRATION DIVISION OF HUMAN RESOURCES WORKFORCE PLANNING BUSINESS RISK & LOSS CONTROL TOTAL COMPENSATION RISK MANAGEMENT C-SEAP

Department of Personnel & Administration Workforce Planning & Development • Consists of three work units: • Workforce Development • Staffing Systems • Consulting Services. • This section is responsible for workforce development (recruitment, examinations, selection processes) and also provides expert interpretation and review of applicable rules and laws and investigates and resolves appeals and disputes to the Division Director.

Department of Personnel & Administration Total Compensation • Consists of two work units: • The Compensation unit consists of several functions: • Job evaluation and maintenance • Pay • Personal services contract review • Leave • Work-life programs. • The Employee Benefits unit administers • Employee group benefits plans, • State of Colorado Deferred Compensation Plan, and • State of Colorado Defined Contribution Plan.

Department of Personnel & Administration Business Risk & Loss Control • Consists of two work units: • Risk Management • Workers’ Compensation Fund • The Liability Fund • Property Fund • Loss Control • Colorado State Employee Assistance Program (CSEAP) • Statutory authorization, starting in FY03

Department of Personnel & Administration RISK MANAGEMENT ANNUAL BUDGET WORKERS COMPENSATION $30,075,696 LIABILITY $6,170,969 PROPERTY $5,846,006 (Premiums Only)

Department of Personnel & Administration STATE CLASSIFIED EMPLOYEES GRIEVANCE PROCESS • 10 days to initiate the grievance • Meeting with supervisor • Seven days after discussion – written decision • Five days from receipt of written decision to initiate formal grievance process • Thirty days for second level supervisor to respond • Ten days from receipt of written decision to file a petition with State Personnel Board

Department of Personnel & Administration STATE PERSONNEL BOARD • Authority to review, through a hearing process — adverse impact to a certified employee’s current base pay, status or tenure. • Discretionary authority to review other personnel matters that do not adversely affect a certified employee’s current base pay, status or tenure such as corrective actions, transfers, reassignments etc. • Appeals to Colorado Court of Appeals. • Paid for by the employing agency.

Department of Personnel & Administration RISK MANAGEMENT CLAIMS Claims Brought Under Federal Law EEOC FLSA FMLA ADA ADEA State Claims Whistleblower Retaliation Paid Out Of Risk Management Fund

Department of Personnel & Administration COST ASSOCIATED WITH EMPLOYMENT CLAIMS DIRECT COSTS Defense costs Attorney Fees Discovery costs Depositions Expert Fees INDIRECT COSTS Lost productivity Absenteeism Moral problems Payments to Plaintiff Settlement Back pay Front pay Punitive damages Expert fees Attorney Fees

Department of Personnel & Administration Jon Richard, PsyD Psychologist, C-SEAP

Department of Personnel & Administration BEHAVIORAL RISK MANAGEMENT Yandrick Definition: Behavioral Risk Management applies to the risks connected with workplace behaviors of employees and work organizations that have a negative impact on the productivity of an organization; and life-style behaviors that lead to preventable healthcare conditions and the cost of treating these conditions”.

Department of Personnel & Administration MENTAL DISORDER AS BEHAVIORAL RISK FACTOR • Mental disorder: problems in mood, thinking, or behavior associated with distress and/or impaired functioning. • US population prevalence of mental disorder: 20% of population per year. • Severe mental disorder: 5.4% per year. • Source: Mental Health: A Report of the US Surgeon General, 1999.

Department of Personnel & Administration MENTAL DISORDERS AS BEHAVIORAL RISK ETIOLOGY • Among the 10 leading causes of disability worldwide, 4 are mental disorders. • Major depression is the leading cause of disability. • Individuals with mental disorders utilize twice as many visits to primary care physicians. • Individuals with major depression 4x as likely to suffer heart attack as those without, holding other factors constant. • Source: NIMH

Department of Personnel & Administration ECONOMIC IMPACTS • Employees with depression are absent 1.5x more than average employees, with 20% reduction in productivity. • Depression alone is estimated to cost over $44B per year in lost productivity, direct treatment costs, and excess mortality. • Employees with depression + any other chronic illness cost 1.7x those employees with only the non-mental health condition. • Source: Wolf, D., EA Roundtable 2002

Department of Personnel & Administration COST OFFSET • Surgeon General estimates that indirect costs of mental health disorders (e.g., sick days, reduced productivity) at $79B. • Multiple studies demonstrate that provision of mental health care reduces non-mental health care costs and reduces use of the most expensive mental health care services (e.g., hospitalization).

Department of Personnel & Administration ECONOMIC IMPACTS: Beyond Mental Disorder • Consider also: • Smoking: estimates of app. $601/yr/smoker increased health care expenditures. (APA) • Alcohol abuse/dependence: annual health care costs of over $22B (APA) • Sedentary lifestyle: Annual per person costs of app. $330 more than active person (CDC). • Obesity: direct US health costs of $102B (Lewin, 1999)

Department of Personnel & Administration CHALLENGE How can EAP move beyond tertiaryresponse to the individual distressed employee, to also incorporate primary prevention and risk management activities?

Department of Personnel & Administration EAP-RISK MANAGEMENT INTERFACE • Training Programs for Managers: e.g., Responding to Mental Disorder in the Workforce. • Targeted Consultation (secondary intervention). • Integrating EAP into promotion of wellness activities such as exercise promotion, weight management services, prevention and disease management elements of insurers’ services. • Encouragement of services via Worker’s Comp administrators.

Department of Personnel & Administration Randi C. Wood, LCSW, DCSW, CEAP Director, C-SEAP

Department of Personnel & Administration Loss Reduction Pilot Conducted ByC-SEAP Evaluation Indicators August 7, 2006

Department of Personnel & Administration Regions • Pilot Regions: • Region 1 • Region 3 • Headquarters (In Region 6)

Department of Personnel & Administration Evaluation Indicators • Short Term: • Penetration - Managers, Supervisors, Lead Workers Trained • Training Evaluations • 30 Day Follow-up Evaluations • Long Term: • Incidents and Type of Incidents • By Region & Gender

Department of Personnel & Administration Short Term Indicator: Penetration • Managers, Supervisors & Lead Workers • Number - 404 • Received Training: 8 of 15 sessions completed to date • Trained - 246 • Penetration: • Trained / Number = 246 / 404 = 60.9%

Department of Personnel & Administration Short Term Indicator: Training Evaluations • Attendees: 8 of 15 sessions completed to date • 246 • Training Evaluations: • 217 • Training Response Rate: • 217 / 246 = 88.2%

Department of Personnel & Administration Short Term Indicator: Training Evaluation Responses • Response Scale: 1 – Strongly 2 – Disagree 3 – Agree 4 - Strongly Disagree Agree • Provided me with useful information to improve my job performance and/or work life balance: • 3.29 • Would recommend C-SEAP service to others: • 3.37

Department of Personnel & Administration Short Term Indicator: 30 Day Follow-up Evaluations • Attendees: 8 of 15 sessions completed to date • 246 • 30 Day Follow-up Evaluations: • 176 • 30 Day Follow-up Response Rate: • 176 / 246 = 71.5%

Department of Personnel & Administration Short Term Indicator: 30 Day Follow-up Responses • Same 4 Point Response Scale: • Conflict Management training had a positive effect on your ability to manage performance and productivity.: • 2.91 = Agree • Conflict Management training provided by C-SEAP has had a positive effect on your ability to prevent or resolve workplace conflict: • 2.96 = Agree

Department of Personnel & Administration Long Term Evaluation Indicators • Long Term Indicators: • Numbers of Incidents • Type of Incidents • Type of Separation • By Region & Gender

Department of Personnel & Administration Total Incidents 2002 – 2006

Department of Personnel & Administration Incidents 2002 – 2006: Type of Action

Department of Personnel & Administration Incidents 2002-2006: Gender

Department of Personnel & Administration Incidents 2002-2006: Gender Rates Per 100 Employees

Department of Personnel & Administration Separations by Fiscal Year

Department of Personnel & Administration