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Why Employee Well-being Matters for Your Bottom Li ...
Why Employee Well-Being Matters for Your Bottom Li ...
Why Employee Well-Being Matters for Your Bottom Line
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for your bottom line. My name is Nicole Clow, Marketing Manager at PCI, and I will be your moderator for this session. Before I turn the control over to your presenter for today, I have a few introductory items to note. Earlier today, we sent a reminder email to all registered attendees. The email contained a webinar attendance sign-in sheet and a guide to downloading your certificate of continuing education. The handouts are also available now and can be found in the handout section located near the bottom of your GoToWebinar toolbox. The handout contains, the handout containing today's presentation will be made available after the webinar has ended. If you do not receive an email with the presentation, please email pcimarketing at marketing at pci.org as shown on your screen. If there are multiple listeners at your location, please circulate the attendance sheet and send the completed sign-in sheet back to PCI per the instructions on the form. The attendance sheet is only for use at locations with multiple listeners on the line. If you are the only person at your location, there is no need to complete an attendance sheet as we already have your information from registration. Please note that all attendee lines are muted. The GoToWebinar toolbox has an area for you to raise your hand. If you raise your hand, you will receive a private chat message from me. If you have a question, please type it into the questions pane where I'll be keeping track of them to read to the presenter during the Q&A period. Also, a pop-up survey will appear after the webinar ends. Today's presentation will be recorded and uploaded to the PCI eLearning Center. PCI has met the standards and requirements of the Registered Continuing Education Program, RCEP. We can offer one PDH for this presentation. Credit earned on completion of this program will be reported to RCEP.net. A certificate of completion will be issued to each participant. As such, it does not include content that may be deemed or construed to be an approval or endorsement by RCEP. With hundreds of attendees for our webinars, it is impractical to prepare individual certificates. As PCI has met the standards and requirements of the Registered Continuing Education Program, we will upload attendance data to www.rcep.net within 10 days and you can print your certificates of continuing education. Your login name is your email address, so please do not leave that blank if you are completing the sign-in sheet. We need your email address to get you your certificate for this course. AIE credit is not being offered for this presentation. Introducing our presenter today is Todd Adams, Sales Manager at JVI. Thank you, Nicole. Hi, everybody. Thank you so much for attending today. I know everybody is busy and the fact that you all prioritized something that is so near and dear to my heart, I just really respect that and I just want to express some gratitude. I've been working for JVI for over 30 years. The reason I'm a part of this is because I started a task force under the Workforce Development Committee and the task force is called the Emotional Wellness Task Force. And we started about a year ago in the development committee days and when I found out that construction has the second highest rate of suicide and depression, it surprised me. And then when I did a little more research, it actually made more and more sense to me. And perhaps we'll talk a little bit about why that is during this presentation. And the reason I expend my time and resources into this cause is because my hope is, I travel all over the country as a sales rep for JVI and almost without exception, I get and talk to the people at the plants and the offices and I ask them what their experience is in their plant, in their office of people that might be struggling with mental wellness. And everybody says yes. And as a matter of fact, most companies have had some experience of significant depression or even suicidal ideation and suicides. And my goal in this Workforce Development Committee is simply to raise awareness for mental wellness. And if I and we can save one person's life, then that's why I'm here. And I have the belief that we can do that. And it's the right thing to do for the people that are working for our companies. So in March, Cal did a, and I'll introduce Cal in a second. Cal did a webinar in March called Shining Light on Mental Health and Suicide Prevention. And it was well attended and shared quite a bit. And that was kind of our first effort in presenting this as an important topic within our industry. I happen to think what we're doing in this task force is the most important thing that happens at PCI because it has to do with saving people's lives. And for our second webinar that we're doing here today, Cal and I brainstormed of what we think needs to come next. And what I thought of was, let's talk about why this work of raising awareness of mental wellness is not just good for the people in it, but it's good for our business. It's good for our profit. It's good for our bottom line. And that's how we decided to do it. So one quick example before I turn it over to Cal is I have the belief that if we're gonna make a significant impact, and I'm a very impatient person, like I wanna go as fast as I can, as quickly as I can, it has to come from people in companies that have a position of authority. So I'm talking about presidents, owners, CEOs, HR managers, and things like that. And one quick example that I'll give is that there's a man named Brian Murray, and he's not even in the pre-stress, pre-cast concrete industry. He works for a company called Ryan Companies, and he's based out of Minneapolis. And he did a TED Talk about his own battle with suicide and depression. And it is located, that TED Talk, which is about 18 minutes long, is located on our website at PCI, and that's pci.org slash wellness. And the reason I think it's so important to share that, I could share a million different things with you. The reason I want to share that with you is because he is the CEO and president of a really big general contracting business, and he is sharing some of his own vulnerabilities with it. And my worry is that we just think of this as an employee problem and let them deal with it, but mental wellness is across the board, and it does not discriminate. So my hope is, if you are a leader in your organization, that you won't just put the puzzle pieces into place, but you will also share some of your own story about how we can reduce the stigma about mental wellness. So that's my two cents. And then just don't forget to go to pci.org slash wellness. All of our resources are on there, and that's one of the things I want to make sure you take away from this webinar. So without further ado, I'm going to introduce a good friend of mine. His name is Cal Beyer. We've known each other for about a year, and he does these types of talks across the construction industry. And as far as I could tell, he seems to be the godfather of talking about this thing that nobody wants to talk about. And he is a senior director at The Safe Work, and their mission is to contribute solutions toward overcoming mental health challenges, substance abuse, and the addiction epidemic in the United States. So please help me welcome my good friend, Mr. Cal Beyer. Cal, over to you. Hey, Todd, thank you very much. It's a pleasure to be with you, and I'm grateful that your leadership is really having an impact within your association. I'm excited about this because for years, it was a sector I wanted to penetrate and to reach, but it works best if there are insiders who are concerned about these very topics. And the work that you have done, working with PCI and the leaders, is really getting attention. And so I wanted people to know, I joined a national nonprofit two days after we did that first webinar. I obviously knew about it, but it wasn't gonna change too much because this is the work that I've been doing for 20 years. I previously worked for two large national insurance companies, and I worked as a risk manager for a large construction company. And it's there that I helped launch the Mental Health and Suicide Prevention Initiative within the construction industry. At Safe Project, we're a vertically integrated nonprofit, and I love that because we can actually tackle and drive system change. I'm the senior director for Safe Workplaces, but we have a group dedicated to veterans and caregivers. We have a group dedicated to building safe communities, counties, nonprofits, social service agencies, including K-12 schools called Safe Choices. And then we have a group that focuses on the 5% of college campuses with a collegiate recovery program. And their goal is to build additional collegiate recovery programs. What's powerful is having the opportunity to cut across the workplace in each of those sectors. So my work in construction is going to continue, if not expand. But I wanted to say today's topic is really important, and Todd's right. Galvanizing leadership's one. I'm skeptical, it's that this can have an impact on your capital risk management. And it's one of seven strategic risks we face as AEC companies. Number two, we're gonna discuss how behavioral health impacts strategic risks. And I'm gonna outline what I have called the PQR model. Those are the drivers of a contractor's profitability. Fundamentally, it's productivity, quality, risk, and safety. And I wanna just give you an example then by describing how employee wellbeing impacts your strategic risk. It's gonna show up in both workers' compensation and employee health claims. And just educating you briefly so you can ask your insurance advisors better, smarter questions, and really demand additional guidance in terms of how do I get an ROI on my wellbeing investments. And the last item, I told Todd, it would be not a stretch, but it's an example of a leading strategy. It's one that I used 25 years ago. It was called revenue replacement cost. A lot of companies were using the cost per work hour. At the time, it was called cost per man hour, looking at workers' compensation costs and what are we decreasing our total cost of safety. But this is an opportunity to look at what additional scales of revenue do we need to offset those lost costs. And if we were to calculate that on a behavioral health side, people would immediately see the value in investing more preventive and proactive resources. I have served on the National Action Alliance for Suicide Prevention since it was formed in 2010. It's the nation's leading public-private partnership. And in 2024, the new 12-year suicide prevention strategy for the first time hit the intersection of substance use and suicide. And it was then that I said, I need to go work for a national nonprofit where I can do both work. And this is gonna be really powerful because this is how we save lives, as Todd talked about. So this is Suicide Prevention Awareness Month. Every September is. Last week was Construction Suicide Prevention Week, but September is also known as National Recovery Month. And October is National Prevention Month associated with the substance use area. And I want people to find ways to promote Recovery Month to let your workers with substance use disorder know that they have a home. And we have to find ways to break down stigma to let people seek help sooner. And this recovery toolkit is one example of a resource. I knew Todd was gonna cover briefly that first webinar because it's important for us to remember that was only six months ago. So I'm gonna give just a four slide quick recap. I described in that webinar how rising workforce risk continues in this post pandemic world. You'll see some of those items on that word cloud are the issues that are impacting workers and their families, but also managers and supervisors. And so recognize these continue to be trying times and even though most of the world has gone back to normal, there is an impact here and we just need to be sensitive to it. Number two, I provided a dashboard of six different data points pertaining to quote behavioral health. That's the intersection of mental health and substance use disorder. And I highlighted the prevalence in the construction industry of anxiety and depression binge and heavy drinking, and even substance use disorder. I talked about the importance as a first dose for strategy for suicide and overdose of reducing musculoskeletal injuries, critical driving factor. We need to do better with human factors engineering and embrace opportunities to reduce the physical wear and tear on people. And then you'll see I presented data on suicide and drug overdoses. Our industry construction ranks toward the top. I do always include extraction because there are some companies that do mine their own materials. And sometimes those are tied to related operations within some companies, but you'll see those are two elevated rates. The last item I wanted to highlight from this webinar, I talked about four key workplace mental health strategies. There's a link to a survey I was a co-author for. It was with the Center for Workplace Mental Health. It was in September of 2021, and I am seeing other industries embrace those four strategies. So Todd gave you some examples of how important that leadership engagement is, and he talked about the importance of vulnerability. And then the other three categories are why we're doing today's topic. It's gonna help you reinforce a mentally healthy culture. It's gonna help you address mental health awareness by promoting additional resources. And then a key and why the workplace can be so effective at helping workplace mental health is improving access to supports and services for mental health. It could be an EAP, it could be your employee health benefit programs, but more likely than not, some of the best resources are gonna be partnering either with city or county departments of public and community-based organizations that focus on recovery, including addiction and related support. Those are key activities. Today and yesteryear, we had barriers that we had to break down, but the companies that are really driving forward with new services and solutions are helping to solve some of these problems and seeing really promising returns and results in terms of employee satisfaction, employee happiness, productivity, and so many positive things. The last item that we did talk about in that first webinar were crisis hotlines and the nation's three-digit 988, the suicide and crisis lifeline. I mentioned then that the old 10-digit number continues to exist. And then I talked you through how to reach for high-risk populations using their telephone tree. I also highlighted crisis text line. Not everyone who needs to make the call or would benefit from a call will make a call. So we want to give them the option of having a texting service. And crisis text line is great. You can text HELP to the number 741-741. So what I wanted to do is quickly just give an overview of that first learning objective. And before I did talk about human capital risk management, I wanted to define it. So I'm going to define it as a strategic risk within your organizations and within our industry. But the simplest definition that I've used for many years is the conservation or protection of an organization's human and financial resources. So that's a key definition, the conservation of an organization's human and financial resources. Years ago, when I worked in the insurance industry, people said, Cal, sometimes you speak a foreign language, but once they recognized, I knew that there were enough financial leaders, but not enough people focused on building cultures that would improve the outlook for workers. And so by building those caring cultures, it was a way of demonstrating human capital risk management. And this diagram is something that I taught for years to the Construction Financial Management Association. For years, they called themselves the source and resource of construction financial management. And what I was doing was teaching them human capital. And I would tell them human capital impacts each of the other six strategic areas of risk your business faces. And so you'll see those other categories as financial. So, but, is impacted, operational outcomes, operational processes and procedures are impacted by human capital. Their insurance risks, that's what industry I was in. And for me to be a better partner for a contractor's productivity and profitability, I needed to always demonstrate that I could impact their human capital because it rippled through their organization. But legal and compliance was another factor. I spent a lot of time in those arenas as well. Shareholder or stakeholder satisfaction. And I use the word stakeholder here because this is a lot of subcontractors. This could be your suppliers. Your human capital risk management practices can impact all the stakeholders, especially the owners for whom you're doing work. We'll talk more about that and ultimately then reputation risk. That's a topic that I was using years ago to get people to think about how do you build a competitive strategic advantage? And a people-first culture gives you that type of advantage. You become an employer of choice and that reduces some of the other frictional costs that you have. So if we have the opportunity, Nicole, push out that first poll question. Wanted to just engage the audience. This would hopefully underscore some of these opportunities and trying to see if there's anything, Nicole, that I need to do for polls. Nope, I have launched the first poll. So everyone should see that on your screen. We'll keep it open for another 15 seconds or so. Thank you, Nicole. Absolutely. And Nicole, I'm not... So you... So what I might have you do is just read out the answer. Yep, that's fine. Thank you, I appreciate your support. I'm ready when you are, Nicole. We just passed the 50% threshold for how many votes are in, so I'll keep it open for another five, six seconds. Sure, that's great. We're gonna have a few of these votes, so I appreciate that. Okay, I closed the poll. Did you want me to share the results or just tell you what the majority chose? If you can share, that would be great, if there's a way to push that out. Yes, so- And Nicole, I'm probably... Yep, if you wanna read the result, that will be fine. I'm so sorry. No, absolutely. So the question was, what is defined as the conservation of an organization's at human and financial risks? So the answer that was chosen the most, which was that 73% is human capital risk management, followed by operations management at 12%, strategic leadership at 12%, and insurance and risk management at 3%. Yeah, and the reason I'm happy to see that 73%, I coined this human capital risk management because I wanted people to recognize it is a subset of strategic leadership, and it can be a responsibility of operations management, but I wanted people to think about it as a separate discipline. So thank you for that, Nicole. We'll do a second poll in just a few minutes. The argument here, when we think about this idea of strategic risks as the drivers of profitability, I believe that safety could be a source of competitive advantage. So I've given you four premises that historically I've used. And I think that top one is really important. Integrating safety with quality enables projects to be built within budget and schedule time constraints. That's important. Number two, ability to deliver quality projects safely provides competitive advantage. It'll reduce costs, and the indirect costs of loss are significant. So thirdly, it's kind of just a premise, but projects with reduced safety generally will experience improved quality schedule and cost performance. So this is the undertow of why wellbeing can impact your bottom line. And that last area, safety performance, is improved through this idea of continuous improvement. And that marriage between safety and quality historically is what separated the top performers in that 25 years I worked in the insurance industry. And it's where we made this a win-win. We developed better teamwork between workers and supervisors. So that's a premise of what I believe. And now this is how mental health that is untreated provides a competitive disadvantage. When we have untreated mental health, substance misuse, or even substance use disorders, these are the areas, the clues, where you need to look to see, is there a human capital risk gap? And frequently it's in productivity. Those three measures, absenteeism, tardiness, and presenteeism. It's impossible to have increased numbers in those three areas, or even most people haven't calculated the cost of presenteeism. So I'll share data with you that will open your eyes. But productivity drain frequently is the big impact here. And then so is increased safety and quality incidence. Obviously any with a serious injury and fatality component is going to impact you dramatically. But even near hits and close calls can have a big impact on your productivity and increasing those indirect costs. Turnover frequently will be an issue. Companies that have employees that churn are increasing losing resources associated with recruiting expenses, training and retraining, and then just the learning curve of building back capacity in your operations. And I've also seen the impact on schedule and sequence of projects. That's where owners and other stakeholders get frustrated. Other trades, suppliers, distributors, equipment providers on jobs when we run into problems with staffing. And ultimately each of those areas has an adverse impact on profit. So for many years, I used that idea of PQRS, productivity, quality, risk, and safety, because I just wanted people to think about these are tangible, measurable areas. For this purpose, I usually add on the schedule with the idea of sequence as well, because that is such a key driver of accelerated or lost costs. So I think it's just important to give you a model that I've seen work really well. Nicole, let's do the second question as well, just because I think these are foundational and hopefully this will be a way to reinforce for people some of these ideas of strategic risk and the impact this can have on your business. Absolutely. So the poll question has been launched, which is true or false, behavioral health only impacts human capital and does not impact other strategic risks facing AEC companies, true or false? I'll leave this open for about 10 more seconds or so. Yeah, thank you, Nicole. I told Todd I was gonna do a true false. We don't see enough true false sometimes in workshops or on webinars. And I've been increasingly trying to put a few in there because it'll help me just identify to people understand this premise of how important this PQRS model is in helping you start to measure the impact of behavioral health on your operations. So Cal, I did close. And Nicole. Oh, sorry. I did close the poll. No, thank you. You're doing great. 100% answered false with 70% voted in. Yeah, thank you. And I'm grateful for that because this has been something that helped me differentiate my career. Once I recognized how important this human side was, I really started to look at the reason why. And there was always another question behind the question and ultimately got it down to root cause, undiagnosed, untreated mental health support. And could we build a safety net in our companies with that caring culture that people could fit in, be part of something bigger than themselves and contribute to organizational success? And the answer is yes. So here are some of the clues. And again, I had to be limited in how much I could share, but I wanted you to think about do any of these expenses have an impact on your operations and buying online? So some of that data I mentioned earlier, increased turnover is an area that frequently gets bucketed. And you'll see the Society for Human Resource Management talks about a $4,700 average recruiting cost. If that's an executive or senior director level position, that number is gonna be understated. It's understated if you're needing to use a search firm as an example. But across the board, just the average recruiting cost, $4,700. Same data source talks about 46 hours of average training and retraining for a new hire. And this group called Modern Health, their employee assistance program, has a number that's 200 hours of inefficiency due to a new incumbent duplicating the work of a prior incumbent. And I hear that frequently from companies like, wow, didn't even anticipate that there would be such a learning curve and then quote, redoing of work. An area that I saw firsthand when I was risk manager was increased utilization of urgent care and emergency rooms when people were experiencing a mental health crisis, when they didn't have that treated and under control. So a lot of the early day benefits of an employee assistance program were could that help you decrease unforeseen, unanticipated emergency room and urgent care visits? That's something to ask your EAP and your benefit broker to help you identify, is there an opportunity for me to see how we could use our EAP to reduce some of those expensive and frequently not very effective emergency room visits and substitute that with an EAP that has counseling resources that will be better. Here is a little bit of good news. There's data and it's an increasing amount of data that shows early intervention. People getting help quicker are reporting at an 80% rate, having better efficiency or productivity at work and then improved job satisfaction. So that's a good sign. We see that with depression. We see that with substance use disorder. There's a lot of myths around mental health. Only 44% of people with a diagnosable mental health condition seek help. 56% don't. And if you remember from that first webinar, there's an 11 year gap between the symptoms to getting a diagnosis and then starting treatment. If in the workplace we can normalize that it's okay to not be okay, provide people pathways to getting help, that earlier intervention can reduce that 11 years and give you a more valuable, productive, loyal employee. Those individuals turn over less. We see that with substance use disorder as well and that idea of recognizing recovery. And one of the platforms that we can talk about at a follow-up date would be recovery ready or recovery friendly workplaces. Actually hiring people from the recovery community and teaching them skills, or perhaps they have skills, they've left their industry when they struggled with substance use and now they're ready to come back to work. A lot of discrimination is faced by individuals who are recovering from substance use disorder. But the loyalty factor, the decreased utilization of sick time, of not using medical benefits for emergency rooms and urgent care, this is just an opportunity. Many companies are starting to see a hidden asset, a resource that can help reduce the impact of behavioral health on your bottom line. Now, one condition I wanna highlight is depression. This is really important. It's estimated 67% of the workforce is affected by depression. A caregiver, that can be as a patient, right? A person who is affected by the condition of depression. And then if you see some data, the American Psychiatric Association is one organization and has quantified this. They'll report up to 35% reduced productivity. And there were two data points people just need to recognize. Lost or missed work days. And then this idea of presenteeism. That can be measured in partial days or it can be measured in total days. It's where people are at work, but distracted, not focused, not having concentration, not being engaged. We read a lot about this idea of employee engagement and presenteeism goes hand in hand. When I worked as a risk manager and previously as a risk and safety consultant, it's one of the things I scoured on job sites. Did I see people who were there, but adrift, maybe aloof, not paying attention, checked out. And I always made it a point to try to walk over and get that person's attention, especially when there was working from heights of elevation around moving and mobile equipment. Very common in your industry to have those types of exposures and that lapse of focus and concentration can be deadly and it can have traumatic impacts. So this idea of presenteeism, you can observe it. And by teaching people that help is available and sharing resources like your EAD, many companies have found it can be cost advantage to or cost effective to increase the number of employee assistance program visits if it helps people resolve some of these issues. The last item on depression is that it is a leading source of disability. So untreated depression won't always deteriorate into a disability, but frequently it can. And so it's important that we educate people. We let people know that this is a campaign, we're sharing information and resources. One of the handouts that was downloadable on the webinar portal were some quick resources around depression because it has such an impact on both loss and then days of presenteeism. So the last area in this area I wanted to highlight is substance misuse and substance use disorder. You may remember me saying overdose deaths doubled in that prior five years, starting right before the pandemic there is a very fatal or lethal synthetic known as fentanyl. It has contaminated the drug supply. Hopefully everyone is having conversations with your children. If people want to learn more about that, get ahold of Todd. I'll share more information with PCI about that. The number of alcohol related deaths increased by 25% first year post pandemic. If there's any silver lining, it's that the young generation Z is really questioning their collective and individual relationship with alcohol. And there is this quote, zero proof movement that has begun of people curtailing some of that alcohol use, but alcohol remains the elephant in the room, both at home and in the workplace. So this idea of recovery to help impact stigma free substance misuse is important. A couple of data points, 70% of persons with substance use disorder are in the workplace. So that's a very important consideration. It's argued that there are 46 million individuals that have a substance use disorder. It ranges from mild to severe levels one through level four, but we want to have pathways to people finding recovery. And most organizations aren't providing enough information about recovery. We wait until someone refuses a drug test or fails a drug test, or has an infraction for a substance related violation or a crisis at home. And they finally reach out to say, I don't know who else to turn to. If we share more community based resources earlier and often, and let people know that hope helps recovery, we can lead people toward help faster. So then there's a few other data points I want to highlight. Quest Diagnostics every year has a drug testing index. They call it the DTI, 22 consecutive years, we've had positive drug test results. And it's not always legal and recreational slash medicinal marijuana. In our industry, it's been amphetamines, it's been methamphetamine, and other stimulants, as well as opioids. So just being aware, in the prior year, there was a 600% increase in the number of adulterated samples. So when I tell people, drug-free workplace policy and standard drug testing doesn't really protect you if we're not educating people about substance use, misuse, substance use disorder, and pathways toward treatment and recovery. And the last one I want to just highlight is we've had 10 consecutive years, and possibly 12 increased years, of occupational fatalities attributable to unintentional overdoses in workplaces and job sites. I'm going to say that one more time, 9.5% of all occupational fatalities are overdoses. This is a demonstrated need. Remember when we just needed first aid kits, and then we moved to AEDs? Today, the standard of care is quickly becoming naloxone or nartine to be able to reverse the effects of an overdose. It's becoming that clear based on this data trend. So just wanted you to be aware. Here's another quick data set. This was 21 million lives of health care data. I'll summarize it quickly. The top 10%, the orange and yellow bar, of claimants were 70% of the total health care spend. And the two breakouts on the population side, the 5.7, that was considered a high-risk group, sorry, a high-cost group with behavioral health considerations. But 5.7% of the population was driving 44% of the dollars. Now, this was not construction only. I bet if this was a construction only study, it would be 5% driving closer to 70% of the dollars. So this is a hidden cost. Very few of us will get this type of data. But I wanted people to think about what's showing up in your health care spend trends. They'll give you aggregated, de-identified data. And you're probably going to see cancer, muscular, skeletal, and then mental health or substance use. It could be behavioral health. Every carrier looks at this differently. But what I typically am finding in medium to large organizations, to mega organizations, mental health and substance use is now frequently in that top two, but for sure the top three of spend. That's a clue that this is impacting your bottom line. And then here is a study. This was pre-pandemic. I've been looking for the same aggregated study for post-pandemic data. The Integrated Benefits Institute, you look at those categories across the top, red, medical pharmacy, combined medical pharmacy, and then productivity. Now you see why I was focused on depression today. It makes that top impact overall on productivity. And I wanted you to know that there was a basis for why I was focusing time there. I don't like to be depressing. I don't use data for shock and awe just to illustrate points. But here is a longitudinal view of what's called deaths of despair. These are deaths by year from alcohol, drugs, and or suicide. The data goes through 2021 here. If anything, the line for alcohol, orange, is understated. I see other data that does pinpoint closer to 178,000 deaths attributable to alcohol in the most recent years. Sometimes they look at a more chronic view. I believe this was a shorter-term view. Didn't think about the health effects, just kind of that suddenness. But this points to a really big impact. So when companies tell me, if I meet with them, Cal, I don't think I have an issue. Well, how can society have such an issue and you be the only company that has not been in touch? So I challenge people to look at this data and to say, hmm, wonder how this has impacted me. I don't think it has. This is another view. It's the most current data chart. It looks at the three-decade opioid crisis all the way back to 99 up through 2023. And you'll see that purple line that shows fentanyl, a huge impact. But I want people to recognize you'll see this growing area of polysubstance overdose. And that's the psychostimulants, primarily and cocaine, those next two areas, increasing huge societal impact. And I just wanted people to recognize. And then I know how important the suicide prevention is to Todd and the work of the Emotional Well-Being Committee. So if there is good news, that's 49,000 people died by suicide in the most recent year. But when you think about 1.6 million attempted and 3.8 million had a plan and 13.2 million seriously thought about suicide, that does give me hope that there are people reaching out for support, 988 Crisis Text Line, peer support within companies, and then employee health plans and employee assistance programs. So I always look for the positives. And I hope we're building a safety net that fewer people are sliding through. I did share a little bit of this data in that dashboard. So I wanted to give you, this is the most current data. So for all industries, it's 32 per 100,000 lives for male and eight for female. Construction is similar but higher. 56 per 100,000 for male, 10.4 for female. In the US population as a whole, it's about 14 per 100,000. So we are elevated three and a half to four times. And then this data is really important. This impacts every demographic in our society, but the yellow arrow points to construction. For 22 major industry groups, the median deaths by overdose was about 40, and construction was three times higher at 131 per 100,000. So what I wanted to do is just educate people. There's a real risk. Instead of thinking that you're not impacted, start to think about how could we not be impacted by these bigger, broader societal trends. So, Nicole, I'm going to pass it over to you. There'll be back-to-back poll questions. I think it's good for us to take a break before I go into that next area. And I'll turn it over to you for the polls, please. Sounds good. So the question number three for the poll has been launched. What mental health condition is the leading cause of disability for working-aged adults between 16 to 64 years of age in the US? Anxiety and stress, alcohol use disorder, depression, or opioid use disorder? We'll leave it open for about 10, 15 more seconds. We're already at 50% votes received so far. Excellent. I'll give it about seven more seconds, and then I'll close the poll. And then, Nicole, once you read that result, you can go directly to poll four. I think it should be lined right up, right? Yes. Sounds good. OK, so I did close this poll. 55% answered depression, followed by anxiety and stress, alcohol use disorder, then opioid. I can never say that word, use disorder. Yeah, it's a strange word for sure. So the correct answer is depression. And that's why we've really made this emphasis today for you to think about how do we share resources with families and our workers. But Nicole, if you go right to poll question four, that would be ideal. Yes. So this question is, what percent of all persons with substance use disorder are represented in workplaces? Less than 10%, 27% to 30%, 45% to 50%, approximately 70%. I'll leave this open for about 20 more seconds. That's fantastic. This is a topic I'm doing at a lot of association conferences like the Human and Financial Costs of Substance Misuse on your organizations, and then teaching people about these recovery-ready workplaces, teaching people about recovery overall. So I did want to just plant that seed. If people are looking for more information, reach out to Todd or PCI. We can have conversations. I'm ready when you are, Nicole. Perfect. So the majority of votes voted for approximately 70% at 48% voted for that, and then 33% voted for 27% to 30%. All right. Thank you. The correct answer is 70% of the persons with substance use disorder are in the workplace. So thinking about how do we build this culture around taking out stigma, taking out the blame. There can be follow-up resources I'll be sharing with Todd that he can build into the emotional wellness and well-being committee for PCI. The last learning objective we have was just to provide a quick overview of the revenue replacement model. I found this to be very effective. When I had contractors that I partnered with in the insurance industry who wanted to be challenged how to get to the next level, this was a model that worked well, sometimes so well, I would aggregate their lost costs. And then I would say, does this number sound right when I did this calculation of revenue replacement? And the first time I used it when I moved to the Twin Cities back in 2004, I'll never forget it. A contractor, they heard that number of $216 million. And then one of their project estimators looked around the room at all the leaders and said, oh my god, that's like doing this project for free. And he actually named a project that they were just finishing. And then the CEO pulled me aside later and he said, that was impressive. You got my people's attention. So I felt like this would be helpful. The connection, though, between presenteeism is what I wanted to do. These are 10 potential consequences of presenteeism. So we have to acknowledge that presenteeism is real and that most of our workforces are going to face presenteeism, people being distracted, not being focused. And so you think about increased number of near hits to quality defects. And then you'll see serious injuries and fatalities, OSHA investigations, citations and fines when you have those, the associated productivity delays, not just from the people being distracted, but from conducting the investigations when work has to shut down because there is an investigation. So you'll see I've listed what I have felt were 10 key areas that impacted project performance. And then when you aggregate this, it was interesting to help companies build a model that they could break down by division or by entity or even by supervision to see who had the best safety controls. And the second part, it was thinking about what primary risk or secondary risk does presenteeism impact. So you'll see those same 10 consequences in the blue line. And then the gray line, you'll say, wow, of those seven strategic risks, what's number one? So you'll see a mix of human capital, operational, insurance, and financial. But where it gets very meaningful is when you combine the primary risk and the secondary risk. And all of a sudden, you see that interrelationship between those strategic risks and how behavioral health that can cause presenteeism can hit your bottom line so impactfully. So what I wanted you to think about is look at all the places human capital showed. And then in the secondary column, if it wasn't financial, if it was operational, financial was frequently the big impact. And that's how people said to me, Cal, you understand our business. You understand how to talk to us. You know how to help us identify practical solutions. So that revenue replacement cost model looked at a company's annual loss costs. And then it took their company profit margin and you made a simple division. The majority of the companies that I worked with doing this analysis probably averaged between 7% and 10%. The higher your company profit margin, the less additional revenue you needed to offset those lost costs. But occasionally, I would be with a really thin margin business that was doing competitive bidding. They weren't negotiating work. It was lump sum, hard bid. And they'd be in that 1% to 3%. This had a huge adverse impact on them. And we recognize crud. This is impacting our bottom line, and we don't even know it. We have to put some controls in place. So you'll know where you fit on that spectrum. You basically see how that model works. The last thing I wanted to do is just share with you why I felt it was such a good tool. So there'll be two items I want to stress. This shows you how much additional revenue needs to be sold by people like Todd Adams to offset lost costs for that company. And then it's really important, the more you can calculate your total costs, direct and indirect, will be helpful. Insurance companies frequently will provide you their lost costs. And then every year, you want to make certain that you've developed those losses. They'll give you lost cost development factor. Or you'll get a premium audit adjustment where losses have increased or decreased. It's important to look at that total incurred lost cost. And then the last thing is, if you don't update lost costs, you miss the inflationary impact as well. And the longer claims are open, the more expensive they are. So the biggest flaw I saw with that cost per work hour, so companies would have that down to $0.20 per work hour, but they'd never gone back and updated their current loss data, they'd have millions of dollars of reserves on open claims and beating their chest about how good they were doing. But the company was shedding a lot of impact. So it's really important to look at this holistically. And here's my premise. I have had some companies, and I called it selected in that secondary bullet point. But some contractors said, Cal, what if we applied that model that you gave us years ago? And we started breaking down our losses into areas of behavioral health, where we had stressors or well-being indicators, anger, frustration, personal or job-sick, stress and fatigue, substance misuse. Some of those contractors have told me that their number exceeds 75%. And what that has immediately done is help companies prioritize necessary investments. So I thought today this would give you an opportunity to think holistically that behavioral health has a huge impact on your human capital and other strategic risks. And I wanted to share some of those leading areas of concern, depression and substance misuse, and then for you to think about a people-first culture that could institute necessary changes to help you identify future investments to improve your human capital risk. My contact info is here. If I can help you, reach out to PCI, to Todd, directly to myself. You'll receive a copy of these slides. I want to thank Todd for the introduction, PCI for this second webinar. I don't know if there are questions. If you have time, I'm happy to take them. Nicole, if you don't have time and you want to keep it to that one hour, certainly understand. Happy to have you send me questions. I can provide a response. And you can send those out to the individuals who attend. With that, I'll pass it back to Nicole. Wonderful. Well, on behalf of PCI, I'd like to thank Cal for a great and informative presentation. Unfortunately, it does not look like we have enough time for questions today. But all questions will be forwarded to Cal along with your contact information. As a reminder, certificates of continuing education will appear in your account at www.rcep.net within 10 days. If you have any further questions about today's webinar, and if you do not receive the handout within an hour of this presentation ending, please email marketing at pci.org. Thank you again. Have a great day, and please stay safe.
Video Summary
The webinar, moderated by Nicole Clow from PCI, focused on the critical topic of mental wellness in the construction industry, particularly its impact on business operations and profitability. Todd Adams, Sales Manager at JVI, introduced the session by emphasizing the high rates of suicide and depression in the construction sector. His task force, the Emotional Wellness Task Force, aims to raise awareness and mitigate these issues. He highlighted the necessity for leadership, including presidents, CEOs, and HR managers, to actively engage and share their own experiences to reduce stigma around mental health.<br /><br />Cal Beyer, a senior director at The Safe Work, discussed the broader implications of behavioral health on strategic risks in the construction industry. Key points included how untreated mental health conditions, such as depression and substance misuse, significantly impact productivity, quality, safety, and ultimately, a company's profitability. Beyer shared data indicating that depression affects 67% of the workforce and is a leading cause of disability. Substance misuse disorders also critically impact workplace productivity and safety.<br /><br />The webinar underlined the importance of early intervention and support systems, such as Employee Assistance Programs (EAPs) and recovery resources. Closing with a Revenue Replacement Cost model, Beyer illustrated how addressing mental health proactively could save companies significant costs, improve employee retention, and reduce safety incidents. This session aimed to equip leaders with the knowledge to create mentally healthy workplaces, thereby enhancing both employee well-being and business efficiency. All resources and further information were shared via PCI's wellness page and attendees were encouraged to reach out for more information.
Keywords
mental wellness
construction industry
business operations
profitability
suicide and depression
leadership engagement
behavioral health
Employee Assistance Programs
workplace productivity
safety incidents
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