Consensus Based Disability Management Audit is Embraced Internationally Australians latest to adopt CBDMA TM tool that helps workplaces save money, assist people BC pulp and paper industry gives audit positive reviews Workplaces from around the world that have struggled to reduce the human and financial cost of disabilities are turning to an innovative audit for help. The audit, known as the CBDMA TM (Consensus Based Disability Management Audit TM ), allows organizations to diagnose the strengths and weaknesses of their disability management programs. It also provides steps for improving the programs and results. (Disability management refers to workplace strategies that achieve two things: They help workers keep their employment following the onset of a disabling condition. And, they reduce the economic costs of disability.) We believe it s imperative that we continually look for ways of improving outcomes from workplace injuries, said Cameron McCullagh, CEO of Employer s Mutual of Sydney, New South Wales, Australia. His firm purchased a license to administer the audit tool in Australia, as of April 2004. Employer s Mutual is a leading provider of worker s compensation insurance in Australia. The audit was developed at a cost of $2.5 million, and is administered through the International Disability Management Standards Council, based in Victoria, BC, Canada. Designed by a broad group of government, provider, business and labour organizations, the audit is unique in that it requires consensus between workers and management whenever it is administered. It was developed after a global review of best practices in disability management and involved contributions from Canada, the United States, Germany, France, the Netherlands, Sweden, the United Kingdom, Australia, New Zealand and the International Labour Organization. The most appealing aspect of the CBDMA process is not only the way the tool was developed, but also the rigorous testing used and its international acceptance, McCullagh said. Last year, the license to administer the tool in Germany was purchased by the German Federation of Workers Compensation Boards (known in Germany as the HVBG), covering 43 million workers. The audit is also widely used in Canada, particularly in British Columbia. There, the BC Workers Compensation Board has launched a premium pricing initiative for the pulp and paper industry clients that pass the audit. The auditors were upbeat and non-judgemental throughout the whole process, says Wally Dempster, Safety & Loss Prevention Supervisor at Howe Sound Pulp & Paper in Port Mellon, BC. His worksite underwent the audit in March 2004 and was pleased with the results. Going through the consensus-based questions really opened my eyes to our plan both its strong points and its weak points.
Work accidents alone cost the Canadian economy about $10 billion dollars a year in direct and indirect costs and inflict untold pain on individuals. It is estimated the cost rises to $20 billion when non-occupational disability costs are included. Effective disability management can reduce those costs by a minimum of 30 to 50 percent and help restore the security and self-esteem of workers by allowing them to return to their place of employment. The International Disability Management Standards Council works to reduce the human, social and economic costs of disability in the workplace. To achieve this end, it promotes professional and program standards based on evidence and consensus, and that are international.
Questions and Answers about the Consensus Based Disability Management Audit TM (CBDMA TM ) What is the purpose of this audit? The purpose of the audit is to evaluate the excellence of any organization s disability management program and to provide suggestions for improving it. Who developed the audit? The audit was developed at a cost of $2.5 million, and is administered through the International Disability Management Standards Council, based in Victoria, BC, Canada. Designed by a broad group of government, provider, business and labour organizations, the audit is unique in that it requires consensus between workers and management whenever it is administered. It was developed after a global review of best practices in disability management and involved contributions from Canada, the United States, Germany, France, the Netherlands, Sweden, the United Kingdom, Australia, New Zealand and the International Labour Organization. Who would want to take the audit? Any organization that wants to improve its disability management program should consider this audit. There are three main reasons why organizations want to improve their disability management programs: 1) It s the law. Canadian Supreme Court rulings, the Human Rights Act and provincial Human Rights Codes make it clear that employers are legally required to help assist disabled employees back to work. 2) It s good business. Work accidents cost the Canadian economy about $10 billion dollars a year in direct and indirect costs. For companies, disability costs can be hugely expensive, typically in the range of $2 million per year per 1,000 workers. Effective disability management has been shown to reduce these costs by 30 to 50 percent. 3) It s the right thing to do. Effective disability management programs allow individuals who acquire a disabling condition to continue to work and avoid potential lives of poverty. Currently, more than one million skilled Canadians (equal to 6.5 per cent of the workforce), have some kind of disability. But persons with disabilities account for just over two per cent of the Canadian workforce. What happens during an audit and how long does it take? An audit typically takes three days. On the first day auditors review policies, procedures, minutes from meetings and any other data the company has collected. On the second day, auditors meet with a group representing both labour and management to present an 80-point questionnaire dealing with the specifics of the operation s disability management program. Both sides must agree on the answers. The third day is spent surveying a number of randomly selected employees representing both management and labour for their views on the operation s disability management program.
Who conducts the audit? The audit is conducted by a licenced firm with trained and accredited professionals. There are currently three in Canada: Diversified Rehabilitation Management: Garry Corbett, PhD, CCRC, CRTWC Winnipeg, MB Occupational Concepts: Nicola MacNaughton, BSc, OT, MSc, OT(C), CDMP Moncton, NB Organizational Solutions: Liz Scott, PhD, MEng, MBA, MSc, COHN, RN, CRSP, CDMP and Carol Keane, BA, DMC, ConResCert, Burlington, ON What happens when an audit is completed? The auditor provides a complete report, giving the organization a score (out of 100) and offering detailed advice on how to improve. In at least one jurisdiction, there is an incentive for achieving a certain grade. In a pilot program recently launched by the Workers Compensation Board of BC, pulp and paper mills achieving a grade of 80 percent or more on the audit now receive a 10 percent discount on their WCB benefit and administration/premium rates. As the audit becomes more widely known, it s anticipated that insurance providers in other jurisdictions will follow suit with similar programs. Even without rebates, there are powerful financial incentives for organizations to improve their disability management programs for example, the opportunity to reduce long- and short-term disability claims, to reduce re-training expenses and to avoid lost productivity. How much does it cost to take an audit? Cost varies with the size and scope of the operation. This cost can often be recouped almost immediately. Minor improvements in disability management programs, suggested as a result of the audit, typically lead to significant savings in short- and long-term disability claims.
Comments on the Audit Experience in Canada On what motivates an organization to request an audit It gives us a roadmap. We don t fear audits. Instead, we think, Oh, wow, someone s going to help us make things better. It s an opportunity to gauge where we are and whether our employees feel we re doing the right thing. Deen Maharaj, Director of Human Resources, G & K Services Canada Inc. (a contractor to the Canadian Federal Government), Toronto, ON (Underwent audit in March 2004) The initial motivation was to get a 10 per cent reduction in our WCB rates. But even if we don t qualify for the rebate, the audit will provide us with a gap analysis. Aside from our moral obligations, if we can find ways to manage the gap, then we re looking at even more significant savings and benefits. Statistics show that the sooner you get people back to the workplace the more chance they have of becoming fully productive. Doug Petersen, Employee Relations Manager, Eurocan Pulp & Paper, Kitimat, BC (Underwent audit in March 2004) On the experience of being audited I felt quite positive. It was good for us and I think it would be good for all mills. It ll tell you where you re at and give you a comparison to all the other mills. We discovered we need a lot of work still. It s a benefit to everyone to have a really good disability management program. Rick Campbell, President Local 1127 CEP, Eurocan Pulp & Paper, Kitimat, BC (Underwent audit in March 2004) It was a very smooth, easy process. The auditors were upbeat and non-judgemental throughout the whole process. They followed up with some excellent and very constructive summaries at the exit meeting. Going through the consensus-based questions really opened my eyes to our plan both its strong points and its weak points. Wally Dempster, Safety & Loss Prevention Supervisor, Howe Sound Pulp & Paper, Port Mellon, BC (Underwent audit in March 2004) I was impressed with the quality of it. The auditors seemed to be very knowledgeable about their subject and gave us a lot of confidence. I ve had training as an auditor but I d never gone through anything quite like this. The consensus-based questions were a new angle to me. It s definitely a benefit as long as the people are honest. The audit is worth going through as an educational tool, to provide benchmarks for your system. Gert Leslie, Lubrication Mechanic and 2 nd Vice-President, Local 1119 CEP, Howe Sound Pulp & Paper, Port Mellon, BC (Underwent audit in March 2004) On why the BC Workers Compensation Board is offering a 10% rebate to pulp and paper companies that pass the audit We believe so strongly in the principles of effective rehabilitation we decided it was time to offer a positive financial incentive to the employers who participate in this pilot project. Incentives work and if this project is successful, as we expect it will be, we will look to adapting the model to other industries. Sid Fattedad, Chief Financial Officer, Workers Compensation Board of BC, Vancouver, BC
On how failing an audit can be beneficial I see this as a particularly valuable tool for companies who don t believe they ll pass. It provides a gap analysis of where they re failing. It s very specific and says: here s where you need to improve. It provides a roadmap for success and reassures them they ll be moving towards a world-class program. Garry Corbett, Partner, Diversified Rehabilitation Management and licensed CBDMA TM auditor, Winnipeg, MB The people who are likely to fail are the ones who will benefit most. We identify the gaps. Why expend all that energy developing new solutions when you can benefit from the best practices of others? It works very effectively. Liz Scott, Principal, Organizational Solutions and licensed CBDMA TM auditor, Burlington, ON On the benefits of the audit process being consensual (both labour and management participating) The consensus-based process is very valuable because you have both workers and management coming to agreement. That means so much because the hidden agendas are replaced with logical solutions. Liz Scott, Principal, Organizational Solutions and licensed CBDMA TM auditor, Burlington, ON What a lot of companies have found is that the disability management program can set a constructive pattern for union and management that spills over into other areas. It gives both sides the experience of succeeding together rather than just throwing stones at each other. Garry Corbett, Partner, Diversified Rehabilitation Management and licensed CBDMA TM auditor, Winnipeg, MB For further information on the CBDMA TM please contact: National Institute of Disability Management and Research 830 Shamrock Street, Suite 202 Victoria, BC V8X 2V1 Tel: 250-386-4388 Fax: 250-386-4398 Internet: www.nidmar.ca Email: debra@nidmar.ca Email: wolfgang@nidmar.ca