AGING U.S. WORKFORCE CREATES CHALLENGES TO CORPORATE HEALTH AND PRODUCTIVITY 

UnumProvident report highlights issues, opportunities facing employers

CHATTANOOGA, TN (July 7, 2005) – At 55, Jack’s not so nimble. He’s not so quick. Jack slipped and fell over the candlestick. Now Jack’s lower back injury will keep him out of work for 16 weeks.

Jack is one of approximately 75 million Americans between the ages of 40 and 60 – a baby boomer. This cohort of aging workers is living, working and playing longer than their predecessors, and this promises to bring unique demands and challenges to today’s workplace.

New research conducted by UnumProvident Corporation (NYSE: UNM) focuses on the aging American workforce, and particularly on the potential health and productivity predicaments that demand a response from employers, medical providers and the workers themselves.

UnumProvident’s research reveals:

• Although workers age 40 and older experience a lower incidence of work injuries, short term disability and unscheduled absences than younger workers, the average amount of time they will miss due to an injury or illness is greater by nearly a third.
  
• Workers older than age 40 account for 50 percent of all short-term disability claims and up to 75 percent of long-term disability claims.
  
• Primary reasons for long term work disruptions for this age group include impairments of the musculoskeletal and circulatory systems as well as mental and cancer disorders.
  
• The additional presence of risk factors such as smoking, lack of exercise and obesity can result in healthcare costs for this population that are nearly 300 percent higher than the younger workforce.

“Employees are living longer and have more active lives that require them to work well into their 60s, creating a myriad of concerns including health-related issues,” says Kenneth Mitchell, Ph.D., vice president of corporate return-to-work development for UnumProvident. “The good news here is that there are tried and proven effective steps that management can take to lessen this occurrence and benefit not only aging employees, but all employees.”

Lost time and the aging employee

UnumProvident’s research notes that excessive healthcare costs for the aging worker are driven by relative health risks, such as smoking, obesity, uncontrolled blood pressure, and more. Companies that develop programs to support and promote preventive health care among their baby boomer employees will encourage behavior that can counter these trends. By putting programs in place that provide incentives for workers to have healthier lifestyles, lost time and health care costs can be reduced.

Mitchell cites UnumProvident customer Coors Brewing Company as an example of a corporate culture that is focused on the health and wellness of its employees. As such, the company has had a measurable impact on productivity, particularly with its 5,000 employee workforce in the United States.

A successful case study

Coors employees have access to a full range of health and wellness resources for their use including a variety of fitness programs, a health coach, on-site physical therapy and medical center, a 25,000-square-foot wellness center and health risk appraisals that come with a $200 premium-reduction incentive. In addition, Coors has a transitional work program by which employees, managers and physicians create flexible options for employees to return to work.

“What we are using is a system that stresses prevention but also accommodates reaction to illness and injury that managers and employees can be comfortable with,” says Eric Grobecker, human capital management manager, Coors Brewing. “We’ve struck a balance between the needs of the company to remain productive and the issues related to the health of our employees.”

The Coors model features impressive results:

• A 66 percent decrease between 2003 and 2004 in submitted long term disability claims
  
• A higher percentage of employees on long-term disability are returning to work within the first year.

“It’s about creating a focused, yet flexible plan for managing productivity,” says Grobecker. “You have to have a system of incentives, education and opportunities for employees to maintain their health. Our employees can see we are committed to keeping them well, and these programs have been received tremendously.

”For a copy of Health and Productivity in the Aging American Work Force: Realities and Opportunities, click here. The study draws upon data from UnumProvident’s disability database – the largest private database of its kind in this country. The database tracks 26.8 million covered individuals and an estimated 178,000 employer policyholders.

“Older employees are, by and large, a great asset to their companies due to their knowledge base and work ethic,” says Mitchell. “This research will assist management teams in pinpointing significant patterns in their workforces and making the necessary changes to accommodate them.”

# # #

About UnumProvident
UnumProvident (UNM) is the largest provider of group and individual disability income protection insurance in the United States and United Kingdom. Through its subsidiaries, UnumProvident Corporation insures more than 25 million people and paid $5.9 billion in total benefits to customers in 2004. With primary offices in Chattanooga, Tenn., and Portland, Maine, the company employs more than 12,000 people worldwide. For more information, visit www.unumprovident.com.