As the workforce in America ages, employers are facing new challenges related to workplace injuries and their costs. Older workers, who often bring valuable experience and reliability, also come with increased risks of serious injuries and longer recovery times. This shift is prompting businesses and insurers to rethink how they handle workers’ compensation claims.
Experts predict that by 2033, there will be significantly more workers aged 55 and older in the job market. Claude Howard, a vice president at Travelers, notes that this demographic is not only growing but also accounts for a large percentage of injury claims. In fact, workers aged 50 and above make up 41% of those who file injury claims.
Interestingly, while older workers generally have fewer injuries due to their caution and experience, when they do get hurt, the injuries tend to be more severe. Factors like diabetes and arthritis can complicate their recovery. Howard points out that if an older worker has just one additional health issue, the costs associated with their claim can double. With two or more issues, costs can increase fivefold.
The rising costs of claims are tied to the aging workforce, longer recovery times, and more complicated medical needs. Although there are concerns about drug pricing and tariffs affecting medical expenses, the main cost drivers are outpatient services and physician care, especially when initial care is not managed well.
On the other hand, younger workers also present a different set of risks. After the COVID-19 pandemic, Travelers reported a rise in injuries among employees with less than a year of experience in their roles. These inexperienced workers made up 36% of injury claims, even though they only represent about 20% of the workforce. This trend may be linked to high turnover rates, as many people switched jobs or industries during the pandemic, leading to a lack of familiarity with their new roles.
Younger employees also tend to prioritize their mental and physical well-being more than previous generations, which can lead to longer absences from work. Mark Walls, a chief marketing officer at Safety National, mentioned that younger workers often wait until they feel completely ready to return, even after less severe injuries. Additionally, there is a growing acceptance of mental health issues among younger generations, leading to an increase in mental health claims.
To address these challenges, experts suggest that employers adopt a proactive approach to workplace safety. This includes fostering a culture of safety where employees feel comfortable speaking up about unsafe conditions. It’s important for businesses to provide consistent training and support to help all workers, regardless of age, stay safe and healthy on the job.
Despite these challenges, the aging workforce also offers opportunities. Older workers contribute stability and deep industry knowledge, which can be invaluable to organizations. As people live longer and healthier lives, many older employees remain productive and may even prefer to take on less intense roles.
In summary, understanding the risks associated with an aging workforce and implementing proactive safety measures will be essential for employers as they navigate the changing landscape of workers’ compensation claims.